Investment Q&A

• First National Financial Corporation (FN $48.19)
  • $48.19 P/E (TTM): 15.75X Cap: $2.88B
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• Atrium Mortgage Investment Corporation (AI $11.64)
  • $11.64 P/E (TTM): 11.03X Cap: $548M
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• Firm Capital Mortgage Investment Corporation (FC $11.81)
  • $11.81 P/E (TTM): 44.63X Cap: $435M
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Q: Can you explain what a MIC is? what are the benefits and risks? How do you buy them? Any you would recommend?

Upvote 3

Read Answer Asked by Carla on January 13, 2025

• TransMedics Group Inc. (TMDX $118.80)
  • $118.80 P/E (TTM): 93.66X Cap: $4.28B
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Q: Your thoughts on the company after the short report? Is there more damage yet to come or is there an opportunity here?

Thanks

Dave

Upvote 3

Read Answer Asked by David on January 13, 2025

• Delta Air Lines Inc. (DAL $54.12)
  • $54.12 P/E (TTM): 7.61X Cap: $34.52B
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• Air Canada Voting and Variable Voting Shares (AC $18.67)
  • $18.67 P/E (TTM): 4.9X Cap: $6.09B
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Q: Hi 5i
Dal reported today Fri Jan 10....Delta forecasts the strongest profit in its 100-year history.....it expects 2025 to be the most profitable year in the company's 100-year history...

Do you think Delta earning/outlook are reflective of the industry in general and specifically AC?

Could this be the positive catalyst the airline needs or is management so bad its still basically a coin toss on their outlook?

Is AC expected to meet their forecast earnings Feb 14?
I meant to add to this question that the american airlines , LUV, Ual are up today after delta earning while air canada continues its slide.. why do you think that is?
Thx

Upvote 2

Read Answer Asked by jim on January 13, 2025

• Eagle Materials Inc (EXP $220.73)
  • $220.73 P/E (TTM): 16.21X Cap: $7.16B
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Q: EXP has fallen by nearly 25% in the last 5-6 weeks. Any idea what has caused this? And do you see it recovering going forward? Thanks

Upvote 1

Read Answer Asked by Leonard on January 13, 2025

• Fiera Capital Corporation Class A Subordinate Voting Shares (FSZ $6.65)
  • $6.65 P/E (TTM): 20.34X Cap: $716M
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Q: Is FSZ a buy for income investors at this level?

Thank you!

Upvote 4

Read Answer Asked by Jim on January 13, 2025

• Royal Bank of Canada (RY $181.78)
  • $181.78 P/E (TTM): 19.19X Cap: $253.80B
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• BMO Equal Weight Banks Index ETF (ZEB $46.87)
  • $46.87 P/E (TTM): 12.51X Cap: $3.90B
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• EQB Inc. (EQB $103.60)
  • $103.60 P/E (TTM): 10.54X Cap: $3.97B
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Q: Hi there. As always, we really appreciate your insight into the markets and your thoughts on the evolving landscape. We have held Royal Bank for many years in a portfolio for our grandchildren and it has done well on an annualized return basis. It is a core holding but would you suggest going into a basket possibly being the better move going forward as market uncertainty seems to be growing? Do you have any names we can explore that might better capture future growth and allow a bit more diversification? Do you see Canada as an index finally outperforming the US this year with the sky-high valuations of the Mag 7? Thank-you!
Please take as many credits as needed

Upvote 6

Read Answer Asked by Lesley on January 13, 2025

• Intuitive Surgical Inc. (ISRG $474.06)
  • $474.06 P/E (TTM): 70.77X Cap: $170.99B
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• Dollarama Inc. (DOL $194.00)
  • $194.00 P/E (TTM): 43.3X Cap: $53.42B
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• Celestica Inc. (CLS $273.15)
  • $273.15 P/E (TTM): 43.72X Cap: $31.41B
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• Transdigm Group Incorporated (TDG $1,401.22)
  • $1,401.22 P/E (TTM): 54.28X Cap: $79.58B
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• Axon Enterprise Inc. (AXON $863.65)
  • $863.65 P/E (TTM): 179.92X Cap: $67.50B
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• Berkshire Hathaway Inc. (BRK.B $468.91)
  • $468.91 P/E (TTM): 12.24X Cap: $1T
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• Heico Corporation (HEI $316.54)
  • $316.54 P/E (TTM): 78.87X Cap: $44.03B
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Q: Please rank the following from best to worst for a long term hold. Thanks

Upvote 14

Read Answer Asked by Ben on January 13, 2025

• Miscellaneous (MISC)
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Q: In general, how should Canadian investors consider adjusting portfolios in light of the tariff threat? Should they be reducing exposure to Canadian equities on a relative basis? What fixed income /cash alternatives should be considered?

Upvote 10

Read Answer Asked by Ian on January 13, 2025

• Abacus FCF International Leaders ETF (ABLG $29.25)
  • $29.25 P/E (TTM): 129.81X Cap: $31M
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Q: I have been trying to find research information in 5i questions and on my trading platform, RBC Direct Investing for TTAI - FCF International Quality ETF mentioned on the latest podcast, but I can't find it using the ticker or description. Can you help me with where to look? If this isn't an ETF that is available to me through RBC DI, is there a comparable ETF for international market compounders? Thanks!

Upvote 1

Read Answer Asked by Kim on January 13, 2025

• Eli Lilly and Company (LLY $746.37)
  • $746.37 P/E (TTM): 62.57X Cap: $725.91B
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• Novo Nordisk A/S (NVO $45.38)
  • $45.38 P/E (TTM): 13.77X Cap: $363.68B
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Q: Hi, what would you replace NVO with? Thanks and Greetings, Peter.

Upvote 2

Read Answer Asked by peter on January 13, 2025

• Brookfield Infrastructure Corporation 5.000% Subordinated Notes due 2081 (BIPH $16.88)
  • $16.88 Cap: $7.81B
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Q: Hi
Happy New Year
Could you have a look at this bond/corporate note and provide some feedback? I am wanting to add it to my US portfolio. I see that its end date is 2081? As well it can be redeemable as early as 2026? Could you confirm these dates as well. Thanks, Len

Upvote 3

Read Answer Asked by Leonard on January 13, 2025

• Celestica Inc. (CLS $273.15)
  • $273.15 P/E (TTM): 43.72X Cap: $31.41B
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• TerraVest Industries Inc. (TVK $157.51)
  • $157.51 P/E (TTM): 41.76X Cap: $3.04B
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• Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A $126.82)
  • $126.82 P/E (TTM): 18.62X Cap: $1.51B
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• WELL Health Technologies Corp. (WELL $4.75)
  • $4.75 Cap: $1.17B
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• Propel Holdings Inc. (PRL $35.71)
  • $35.71 P/E (TTM): 17.69X Cap: $1.39B
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Q: i've done well in 2024 with a number of 5i canadian small and mid cap picks such as CLS, PRL,TVK, WELL, HPS, etc.
I did similarly well with a number of picks in 2021 only to watch those gains evaporate in 2022.
I know 5i prefer not trying to time the market but i'm watching my 2024 winners trend down, some more than others.
I still believe in the fundamentals of my 2024 winners but if the market is trending down is there not some point one should step aside, take the profit and wait for a new or renewed uptrend?

Upvote 22

Read Answer Asked by Rob on January 13, 2025

• Meta Platforms Inc. (META $771.99)
  • $771.99 P/E (TTM): 30.35X Cap: $1.91T
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• NVIDIA Corporation (NVDA $179.42)
  • $179.42 P/E (TTM): 58.06X Cap: $4.34T
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Q: In follow-up to the Q&A on Howard Marks' recent memo, out of the current "Mag 7", which one do you think is most likely to be in the S&P500's top 20 companies in 20 years, and which one do you think is least likely to be there? Feel free to make two picks for each or decline to respond. I own 5 of the 7.

Upvote 3

Read Answer Asked by Barbara on January 13, 2025

• Vanguard U.S. Dividend Appreciation Index ETF (VGG $96.78)
  • $96.78 Cap: $2.06B
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• Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) (VGH $66.50)
  • $66.50 P/E (TTM): 50.42X Cap: $879M
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• Vanguard Dividend Appreciation FTF (VIG $206.89)
  • $206.89 P/E (TTM): 51.22X Cap: $90.15B
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Q: Good Morning
Is there an unhedged version of VGH ?
Can you recommend any other unhedged ETF similar to VIG but listed in the Toronto Stock Exchange ?
Thank you

Upvote 4

Read Answer Asked by Terry on January 13, 2025

• Royal Bank of Canada (RY $181.78)
  • $181.78 P/E (TTM): 19.19X Cap: $253.80B
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• Bank of Nova Scotia (The) (BNS $76.43)
  • $76.43 P/E (TTM): 16.04X Cap: $95.44B
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• BCE Inc. (BCE $32.00)
  • $32.00 P/E (TTM): 77.45X Cap: $29.91B
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• Sun Life Financial Inc. (SLF $84.91)
  • $84.91 P/E (TTM): 15.23X Cap: $47.58B
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• Restaurant Brands International Inc. (QSR $94.32)
  • $94.32 P/E (TTM): 23.44X Cap: $42.70B
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• Northland Power Inc. (NPI $22.36)
  • $22.36 P/E (TTM): 22.58X Cap: $5.90B
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• North West Company Inc. (The) (NWC $47.83)
  • $47.83 P/E (TTM): 16.73X Cap: $2.31B
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• Exchange Income Corporation (EIF $66.51)
  • $66.51 P/E (TTM): 26.83X Cap: $3.42B
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• Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC $46.73)
  • $46.73 Cap: $17.48B
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Q: These 9 stocks were approximately equally weighted in unregistered dividend account before NPI and BCE took a big dive. The overall yield of the account is around 4.8% which I have been happy with, but the loss of capital in the 2 mentioned is troubling.

Objective of the account is to generate retirement dividend income for the next 5 to 10 years.
Other accounts provide pretty decent diversification by sector / geography / growth etc.


Question 1. Should I take the loss on these two and redeploy into the other holdings?

Question 2. Any glaring omissions in this account which you think I should add in here?

Upvote 8

Read Answer Asked by Jim on January 13, 2025

• iShares Russell 2000 Growth ETF (IWO $291.82)
  • $291.82 P/E (TTM): 4.55X Cap: $11.79B
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• iShares MSCI World Index ETF (XWD $101.46)
  • $101.46 P/E (TTM): 13.1X Cap: $1.25B
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• RBC Quant U.S. Dividend Leaders ETF (RUD $25.52)
  • $25.52 P/E (TTM): 40.09X Cap: $734M
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• Vanguard S&P 500 Index ETF (VFV $154.69)
  • $154.69 P/E (TTM): 59.73X Cap: $24.02B
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• Financial Select Sector SPDR (XLF $51.95)
  • $51.95 P/E (TTM): 43.38X Cap: $52.19B
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• Vanguard S&P 500 ETF (VOO $581.64)
  • $581.64 P/E (TTM): 57.82X Cap: $663.38B
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• Vanguard Dividend Appreciation FTF (VIG $206.89)
  • $206.89 P/E (TTM): 51.22X Cap: $90.15B
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• Vanguard High Dividend Yield Indx ETF (VYM $134.50)
  • $134.50 P/E (TTM): 45.23X Cap: $59.48B
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Q: I currently own a full weigh of the above listed ETFs and in light of President Trump's economic policies that are likely to benefit the financial sector, I'm looking at possibly adding XLF: US ETF to my US$ Non Registered account.


Q1. What would be your best idea for US$ ETF to add to a US$ Non Registered account at this time along with your rational for this choice?

Q2.What are your thoughts on XLF:US in terms of potential return for 2025 and the remainder of the Trump presidency?

Thank you and I look forward to your response.
Francesco

Upvote 4

Read Answer Asked by Francesco on January 13, 2025

• BlackBerry Limited (BB $5.12)
  • $5.12 Cap: $3.07B
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Q: Hello 5i Team
I have noticed that Black Berry stock has started to rise in price, is it because of improved fundamentals ? Is this a company that you would recommend for a 3 year purchase?
Thank you

Upvote 2

Read Answer Asked by claudio on January 13, 2025

• Brookfield Corporation Class A Limited Voting Shares (BN $92.87)
  • $92.87 P/E (TTM): 234.96X Cap: $153B
  • View BN Profile
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Q: Hello 5i

If BN is the only Brockfield Group stock in a portfolio. As a diversified conglomerate, up to what weighting percentage can it be held without becoming a bet on a stock?

Thanks

Upvote 15

Read Answer Asked by Charles on January 13, 2025

• Brookfield Corporation Class A Limited (BN $67.49)
  • $67.49 P/E (TTM): 234.96X Cap: $110.68B
  • View BN Profile
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Q: Given Fridays sharp pullback would you consider this an ideal entry point?

Upvote 15

Read Answer Asked by Kim on January 13, 2025

• Global X S&P 500 Index Corporate Class ETF (HXS $89.76)
  • $89.76 Cap: $4.62B
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Q: As a follow up to my question on January 8 regarding ETFs you suggested ZSP to represent S&P 500
Would HXS be a better alternative since there will be no withholding tax in the TFSA as per asked by Danny boy on January 10?

Upvote 2

Read Answer Asked by Indra on January 13, 2025