Investment Q&A

Q: Hello -
Over the first decade this century emerging markets seemed to do relatively well. Over the last 10 years or so, it appears that relative performance has been much better in the U.S.

Do you believe Emerging Markets represent good value compared to the U.S.? For instance, VWO has a PE ratio of 13, ERUS is about 7, whereas I think the U.S. is somewhere around 18 - you can correct me if I'm wrong. How much affect does a strong USD play in this recent past 10-year performance? Assuming we see a weakening USD, would that be the trigger point for the two mentioned ETF's to outperform the U.S. indices? Obviously stronger oil prices would also likely help ERUS.

What affect would this also have on BNS with it's exposure to Latin America? It's been the weak sister among the big Canadian banks. Would a weaker USD then give the BNS stock price a boost as a result?

Q: Further to my previous question on this topic I’m Attaching report claiming these two stocks do indeed own different assets

I’m wary of holding BIPC because the new corporation only owns a small subset of the partnership’s global infrastructure assets. Is this a concern?
It’s true that BIPC directly owns only natural gas transmission assets in Brazil and regulated utility operations in the United Kingdom. However, the fact that BIPC shares are exchangeable into BIP.UN units and both will pay the same dividend/distribution means BIPC investors are getting access, albeit indirectly, to the complete global portfolio of infrastructure assets including railways, ports, toll roads, pipelines, communications towers and data centres. It also means that BIP.UN units and BIPC shares should track each other closely in price, which has been the case so far. (My note: NOT TRUE)
“In order to effectuate the stock split, we were required to transfer assets to BIPC since it’s a separate reporting issuer/listed entity,” Ms. Low said.
“The assets we chose to transfer (being the gas transmission system in Brazil and regulated distribution operations in the U.K.) were selected as they were relatively easy to transfer considering regulatory, legal, financial and tax implications,” she said.
“So while BIP LP and BIPC do hold different assets, investors should be indifferent as BIP LP and BIPC should be considered one entity, which collectively share the same assets, returns and management.”
Full disclosure: The author owns BIP.UN and BIPC personally and in his model Yield Hog Dividend Growth Portfolio

Q: Hi,

What's your thoughts on stepping into CPD at this juncture for income, long term.

Thanks

Q: With apologies to the members who do not appreciate US content, I am hopeful to get your thoughts on Quidel. How would you assess its potential for capital appreciation in the next year or two? There is a Covid angle which is almost a reason not to buy in my opinion (it has to end right?) but other business opportunities as well. Thoughts on whether to buy, sell or hold and why if you can please.

Q: Hello 5i Team
1 - Is there a source for Normal Course Course Issuer Bids (NCIB) available on-line, other than reviewing news releases from individual companies?
2 - Is there an easier way to determine NCIB purchases other than searching SEDI for individual company purchases or reviewing quarterly financial reports for the individual companies?
Thanks

Q: Hello team,

Shares of VET in the US fell hard (by about 18%) on Thursday and another 2% after hours. I know oil is not doing well but isn't this a bit of an overreaction? Unless, something else is going on with the company. Anything material?

I have a full size position and wonder what the best course of action is: add, hold, or lighten up at a loss? I have a very long investment horizon and this is my only investment in oil.

Thanks a lot for your guidance especially in these crazy times.

Q: Where can I find on 5i website News and Report Updates at 5i Research emailed yesterday at 4:44pm. Thank you

Q: Please comments PCI, is it a reliable long term income source? Would you initiate a position today? Thank you!

Q: IDG CN has been in continuous decline since 2018; we are near the lows the stock set. There has been little to no bounce from mid-late March lows. What is your outlook on the company (realizing there is a lot of unknowns with government bailouts for mall/plaza tenants) and do you think at current levels it would make for an attractive buy?

Q: Taal recently put out a 5 year corporate vision (https://www.taal.com/files/TAAL-CorporateVisionDeck.pdf) which seems to pivot the company's focus to transaction processing and some other related areas. This new vision relegates the volatile mining business to the background in favour of what seems like a more sustainable model. I understand this is still a speculative investment and a very small cap company but I would appreciate hearing whatever thoughts you might have. Thanks.

(I think the ticker in your system needs updating as it has traded as TAAL since late last year.)

Q: Hello Peter,
Air Canada has a take over offer at $18 per share, and assuming the regulators approve the deal, would this price still hold given Transat is trading in the $6 dollar range? If the deal is not approved by EU regulators, would Transat be a good buy at $6 per share or would Air Canada be a good buy at the current $19 dollar range? Thanks very much

Q: Hello team, after a large down day in the markets today Primo ended up in the green. Is there any explanation for this? - eg Primo company?👩‍🦲
Mucho gracias

Q: I wonder if you can point to an article or other guidance on what key metrics to look at and how to interpret them for a stock. Being relatively new, I tend to look mostly at profitability and revenue growth on a go/no-go basis when looking at a company in the absence of other info (ie 5i recommendations). Using REAL as an example, total after tax profitability is only 9% and 3 yr revenue growth is a tepid 8% and falling from a 5yr rate of 17%. These numbers are underwhelming compared to other co's, so I must be missing something with a company like REAL, and would like to learn how to see a little deeper.

Q: would it be to late to purchase Abbvie after this big run in price.

Q: What is your best guess as to the likelihood of a dividend cut by any of the above listed companies? Thanks.

Q: I thought the quarterly results that were released yesterday by Transcontinental were reasonably good considering the Covid -19 pandemic. What is your view of the results. Thanks.

Q: Good morning, please comment on latest results from Peller. Do you still consider this a good long-term hold.
Rob

Q: The Dividend is pretty high. Is it safe? Thanks!

Q: This is a big picture question about the current "incredible" rally.

What percentage would you attribute to
a) Fed's fiscal input including printing money and buying all kinds of bonds,
b) Short covering by both big and small investors
c) FOMO by Institutional investors (smart money) and
d) FOMO by retail investors (dumb money)?

Is there a place or articles one can access to get an idea about these variables?
Many thanks.

Q: These are the US holdings in my RSP. All have done well except for SYK down about 8% with a limited outlook for the rest of 2020 based on the Covid pandemic. Regardless of sector weighting, what are your favorite 2 or 3 US equities for growth over the next 5 years? I'm okay with a moderate risk.
Thanks in advance,
Greg.