Investment Q&A

Q: Hi 5i team:

So today (Sept 1st) there was economic news on a slight contraction to Canadian GDP and the TSX rocketed up, presumably on assumptions about the implications for interest rates. I know you have mentioned in the past that by the time a recession is officially declared we are probably well on the way to being out of it. I’m assuming that the “smart money” probably has more subtle indicators that they watch that probably don’t necessarily make the daily mainstream headlines? Curious if anything maybe below the average investor’s radar has caught your attention of late that has caused you go “huh” with regards to the market (I have learned to appreciate your insights over the years). Thanks,

Q: I am down 32% in BEP.un (TFSA) and am thinking of switching to GSY (is it too late?) or ENB or QSR or PPL. I also own BN and BIP. Any suggestions?
Many thanks.
Connie

Q: hi,
can I get your thoughts on Alaris re recent news on partnership arrangement with Shipyard?
are you comfortable holding AD.UN right now and into the years ahead?
cheers, chris

Q: Follow-up questions. - Do you suggest P/E below is considered a value stock? If not please give us what is considered as value P/E.

The current forward P/E for each sector is:

Materials: 17.4X
Real Estate: 28.2X
Financial: 13.4X
Services: 16.5X
Discretionary: 24.4X
Utilities: 16.1X
Energy: 11.6X
Health: 17.5X
Staples: 19.4X
Industrial: 18.2X
Technology: 25.5X

Thanks for the great service

Q: Wts constellation software 20 shares, 0 value appears in my account….. can you please enlighten me….

Q: Your opinion on WTS-constellation 31MAR40. Thank you. Fooklin

Q: Did Coliseum "engineer" any changes to senior management in exchange for the cash infusion? I assume they now have seats on the Board Of Directors.
Thanks,
Jim

Q: Hi 5i,
In response to a question of mine and questions from others over the past few months you have pretty uniformly rated GXE a hold - partially I think on the premise that the damage has been done. I am holding and I'm content to continue for a while.
I wonder though - given its small size and present earnings of - $52M - is there enough money there to justify it continuing as a public company, especially one that is shoveling money out the door every month in the form of dividend payments?
In the past year (and possibly for longer)Twin Peaks Capital LLC has been buying up GXE shares pretty regularly, and today it owns 2.51% of the company (6.5 million shares worth $5.7 million at todays prices). Insiders have also been buying.
Why would a business like Twin Peaks Capital LLC buy so heavily into a little public company like GXE - how does it expect to get a return on its investment? Capital appreciation seems unlikely. Is it just cashing dividends, or might it be getting ready to take it over itself or, alternatively, might it be trying to ensure it has a large and therefore profitable position when someone else takes out GXE?
Thanks 5i - I look forward to a better understanding of what might be going on.
Peter

Q: If a person was looking at income with some growth, long term would you prefer FIE or another financial ETF or one or more banks. If banks, which are your top choices.

Q: Everyone, what are the main risks with LMN and is the company managing those risks. Clayton

Q: I am reviewing my portfolio and realized that XEI has grown to be about 20% of my annual income earned from my investments. If it was an individual stock I would be concerned and divest some of it. As an ETF should I still be concerned? I am retired and have no work pension.

Q: Lots has been made of Buy with Prime on Shopify. Markets certainly liked it. I came across the attached article that is quite revealing, if all is factual (no reason to believe not). Can we get your thoughts on how things unfolded? Are there any negatives, or things to be wary, for Shop getting more involved with Amazon. How important is Buy with Prime to SHOP?

https://www.businessinsider.com/inside-clash-between-amazon-shopify-over-buy-with-prime-2023-9

Q: Thoughts on BIR. I was thinking of buying more, but I believe the current dividend is not sustainable without incurring more debt, so do you think they will reduce it until NG prices pick up? If so, will the price drop, or do you think the possibility is already priced in? Is their balance sheet good? And finally, what are their reserves like? Thanks!

Q: Do you feel these companies can become long term compounders? If so, which company do you feel has the better prospects of becoming a long term compounder?

Q: " Australia is the world's biggest LNG exporter..." ( Globe and Mail ). What is the best way to invest in that?

Q: Hi 5i,
Perhaps this question should be under Miscellaneous, but here goes:
I have my accounts at CIBC Investor's Edge, but they are all strictly CDN accounts - RRSP, TFSA and unregistered. I've now learned that I can buy CDR's in a number of US companies through those accounts, and I'm thinking about getting my feet wet 'down south'..
As an example, NVDA is available and as of Friday was trading at CDN $46.24. On May 31 the NVDA CDR was trading at CDN $36.30. Thus, the CDR has appreciated 27.4% over that period, whereas the US NVDA went from $378.34 on May 31 to $485.09 on Friday, a gain of 28.2%. So very little difference in the return it seems.
If I were to acquire some US names through the CIBC CDR's, they would all be in registered accounts.
Is there a downside or risk to doing this that I should be aware of (other than the normal investment risks) and are there tax ramifications arising out of either capital appreciation or dividend payments if they are in either an RSP or a TFSA?
Thanks - any information you can provide will be appreciated.
Peter

Q: How would you rank these? What is their free cash flow if any? Please advise whether they are buy, hold or sell rating..

Q: 1. Has the company been totally honest prior to reporting last month. Please explain, since many research groups were recommending it including yours.
2. Is this thing worth holding while being down + 50%
3. Why would a company in such a mess declare a dividend?

Thanks DAN

Q: Two questions pertaining to CSU issuing warrants to CSU stock holds. 1) Were the warrants issued in lieu of September’s dividend payment? 2) What is the advantage to CSU to issue these warrants? Thanks … Cal

Q: Further to Gordon's question 01 Sep any projections to when CVE and CNQ will each reach their debt limits and start returning the profits to shareholders (divs or buybacks) ? Thank you.