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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello, I have a small position in MEG and would like to add on the possibility of the company being taken over. As I understand it , they have a large Net Operating Loss (NOL) that a major could use to offset their tax. ..
What is your assessment of their financials? From what I see their EPS growth has been -ve for years. Then the question is why would someone buy this company? is it mis-managed?
Thanks
Carlo
Read Answer Asked by Carlo on February 13, 2024
Q: How well do you know this company and its management?
Interest rates have really helped clearly but seems like they have made some nice moves ...2021 acquisition of 40,000 accounts from community/Computershare Trust right before rates went up... relaunching the CSS and increasing mortgage loan originations
Also from what I read they are the dominant player in Canada for alternative investments (growing) by a large margin is this true and why are there no other players in this? Noted that TMX Group and Western Pacifc are the only other options in Canada for these investments.
Sharecount has seemed stable for close to 10 years down 90,000 shares.
Any other thoughts?
Read Answer Asked by Michael on February 13, 2024
Q: I am using PLTR as an example. When looking at “potential” growth in a company, I assume it is useful to look at “current” PE “future” PE (as one metric). From the G&M watchlist I get 304 and 156 respectively for PLTR. From a growth standpoint this may suggest a potential 2x share increase IF the company meets targets. Is this correct? For my benefit what is the PE definition shown under “PLTR Profile” on the 5i site as it gives a PE of 246?

Thanks for all you do!
Read Answer Asked by Danny-boy on February 13, 2024
Q: You recently recommended US/CA equities at 65%/35%. With US ETFs and CDRs I am only at 20% US. I am considering significantly increasing my holdings of HXS, VFV, and HXQ to make up the shortfall of 45% US. Do you see any downside to this approach?
Read Answer Asked by Dennis on February 13, 2024
Q: Hi Peter and Team,

SHOP shows in their previous Quarterly release that they have grown free cash flow (good stuff!) but when I look at cash balances, I see they have a reduction in cash and equivalents with a simultaneous increase in "Loans and merchant advances, net."

I am trying to decipher if SHOP is:
1. Actually adding cash (key indicator of health)
2. Vendor financing their customers heavily which ended very badly for the likes of GE.

Is the quality of SHOP's financials showing some cracks here? It seems like this vendor financing theme is taking off in the "tech" stocks.
Read Answer Asked by Marc on February 13, 2024
Q: Hello, thank you for your last answer on 5 industrial and consumer names suggestions with a brief reason for each. Now, I would like you to suggest 3 names of the same, but chosen within the CDRs offering. Thanks!
Read Answer Asked by Martin on February 13, 2024
Q: My PA wants me in telecom. I had Telus but it dropped heavy and I harvested losses, investing in BCE only to continue down. I realize higher interest rates are a challenge for telcos and utilities. It there a case for any of the of Canadian telecoms? I have a long term investment horizon but do like safe dividends. Are the telcos dividends "safe"?Should I hold BCE or flee for another company, even in the US. (I have VZ, also in the down elevator, bigly). thanks, al
Read Answer Asked by alex on February 13, 2024
Q: Thanks to 5i, I've done extremely well with NVDA. After the launch of ChatGPT and seeing Elon Musk mention on X how hard it was to get his hands on NVDA's chips, I increased my exposure to semiconductors. Among the trades I made towards the end of last year was averaging down on UCTT, which was also a favorite of 5i. I already had a partial position and was fortunate to buy more near the bottom of 2023. Recently, however, you seem to have adopted a somewhat negative outlook on the company in your commentaries. I'm relieved to see this stock back above water in my portfolio, now with a decent gain. Is there a specific reason or news for the stock's recent catch-up, and should I continue to hold it, or is it still considered overvalued, suggesting I should take my profits and move on? Thanks, as always.
Read Answer Asked by Michael on February 13, 2024
Q: Hi,

Your answer today on BKCC & BKCL prompted me to compare BKCC with Blackrock BKCL both of which have high dividends….and I still look for sustainable dividends and some growth. As 5i pointed out with BkCC ( usa) it “ tends” to pay a consistent dividend….BUT the share value has dropped from over $16 to about $3.70 today.

1. What is your best guess on the fate of Horizon’s BKCC over the next 5 years?

2. Given that Canadian banks pay consistent dividends and decent dividends….
again best guess…. would buying BNS, CMO, TD, RY, BMO be more likely to provide a better payoff over the same 5 year period.

Thanks.
Read Answer Asked by Donald on February 13, 2024
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