Investment Q&A

Q: You have often commented that timing the market (bottom or top) is next to impossible and I do agree. In one of your recent updates you talked about the “Volatility Index” and it being an indicator of when you could step into the market and the level of volatility could provide some guidance when trying to buy the dip”.

Could you provide some commentary about the level of volatility and your thinking about how it can help determine when to step into the market?

Thanks
Tim

Q: Can I get your opinion on BTSG please? is the earnings projected to go up? Is it a good buy?

Q: Hello 5i,

A follow up to Willie’s question about a potential USD devaluation on Sept 03.

We have 50% of our RRSP and TFSA in USD. Investments outside of the US and Canada are in CDN though those investments are minimal. In the past, the suggested path was to own US stocks with US funds over using CDN dollars to purchase US stocks or purchasing CDR’s. Moving forward, is it prudent to slightly reduce USD exposure by having a combination of CDR’s and US stocks for US investments (i.e. 10k in MSFT CDR’s + 10k of MSFT in USD)?

We had purchased USD about 8 years ago with a plan to vacation in the US upon retirement though we decided to vacation elsewhere now with CDN dollars. A currency cost would apply to sell 10% of USD though we do not have costs to buy or sell. This change would only be applied to the largest positions (NVDA, GOOG, META, MSFT, BRK.B, WMT.)

5i always seem to be ahead of the curve in their investment strategies and we are humble beneficiaries from your knowledge.

Thank you for your insight.
D&J

Q: Could you comment on the Q2 results. Would you move to a full position based on results?

Q: Descartes just reported Q2 earnings. They have made 85 cents (US) for the 1st half of the year. Given that earnings are creeping up, maybe they make $1.75 or $1.80 this year. That would be about $2.40, $2.45 Cdn, something like that. The stock price is about 55 times that, giving it a very high p/e. I know it has always had a very high p/e. Earnings growth for the 1st half is only about 6%. I know DSG is a highly regarded business, they are pretty consistent, etc. but I am finding it hard to see the value of holding this stock with such sluggish growth compared to the very high p/e ratio. Seems it would be tough to see much price appreciation when the p/e is already so high and the growth is minimal. Is there reason to think the growth might be high enough in the next 2 -3 years to justify not only the current stock price, but a significantly higher price? I'm finding it difficult to justify continuing to hold a stock with a PEG ratio of about 9.

Q: Can you share where CVLT stacks up with some of the growth names more widely discussed here? Where would it rank as an investment compared to NBIS, PNG, ZDC, AXON, CLBT and CLS? Perhaps rank from highest to lowest conviction if not too much trouble. Is it a good entry point today or would you wait to see something specific before initiating a position?

Q: What is your opinion of the ETFS, XEQT and VEQT. If only buying one, which one would you pick?


Thanks Valter

Q: Hello 5i,

I'm considering an option's strategy that would allow me to capture the upside to stock ideas (e.g., smaller cap companies) in cases where I would prefer to not purchase the stock, as I already have quite a few stocks especially in the technology sector. For example, I was thinking of buying a few call options for CLBT at a strike price of $20, expiring Jan. 16, 2026 for around $0.65. I would sell to close the options a bit ahead of the expiry date if the stock price is above $20. I have previously sold puts for things like AXON and CLS but then the stock price took off and I was left with a reasonable premium but nothing compared to the price appreciation. I would appreciate any thoughts you have about this idea. Also wondering what your top 5 ideas might be for the US market with a strike price/timeframe for the option.

Thanks so much,
Lisa

Q: Hello Team 5i & Everyone!

What do you think the likelihood of the tariffs being cancelled by the US administration is if they become too unpopular with their fan base and wealthy friends? (I’ve heard that historically tariffs take 4 - 18 months to fully work their way on to the consumer, so I’m open minded to the idea that the US consumer hasn’t felt the full impact of them yet.)

What would the market reaction maybe be if tariffs were cancelled?

Is the goal of lowering interest rates via the US administration undermining the independence of the US Fed (and stacking it with ‘yes people’) simply so lower interest rates will offset the tariffs affect on the US economy and lower the cost of the US refinancing its debt? Are there any more reasons you think apply here?

Appreciate your big brains,

Thanks!


(Hopefully this question isn’t a repeat, I got timed out when I first wrote it.)

Q: May I get your thoughts on this gold company? Seems inexpensive but operates in Mongolia. Thanks.

Q: Can I get your thoughts on this speculative idea? Thanks.

Q: Can I please get your thoughts on this company? Thanks.

Q: Is there anything I am missing here? Seems like an incredibly cheap stock with a good yield and little to no debt. Of course there is some risk of operating a mine in Nigeria, but that alone doesn't really explain why the stock is this cheap.

Are there any other gold producers you know of with such a low valuation given their production?

How does the company's market cap given their production compare with other companies of the same size production in the industry (even if from other geopolitical arenas)?

Q: What is your opinion about in FLVI.NE (franklin international low vol high div etf)? What is the yield of this etf?

Q: Please explain the economics / accounting of how a utility co like Enbridge can have a payout ratio above 100% for years and still raise its dividend each year without stock price crashing

Q: Good morning!
I am a dividend investor, almost totally in higher paying blue chips and sector specific equities. I rely on those payments for my income. However, I am considering an etf as a possibility to lower risk , but am not very familiar with the offerings. A brief look about wasn't encouraging, as it seems that often the dividends paid may decrease over time, and not necessarily in sync with govt interest rates as you might expect. As an example, I thought XRE would be a good one, paying over 5%. Their distribution 10 years ago was 8 cents. The most recent was 6 cents. This does not keep up with inflation, a key part of my requirement.
All that being said, can you suggest Canadian etfs that pay a high dividend, one that increases with inflation? Thanks for your ideas! ... Paul K

Q: Your thoughts please on this TFSA used by a retired banker that is very simple but has vastly outpermormed the TSX. I realize only 3 sectors are covered but looks to be all quality companies?

Thx

Q: Is it too late, or can I still buy gold stocks, and which stocks do you think still have room to grow?

Q: Hi 5i
I noticed Chair/CEO Mike L Rose keeps buying more and more and more shares. At today's price (58.45) I think he has ONE BILLION DOLLARS of TOU. Would like your thoughts on why he is so confident on his company. Also, Barry Schwartz indicated it is kind of an AI play as the demand for energy rises. Comments please.
Thanks, Greg

Q: Hello 5i,
Is this a good entry point at this level ? Your thought about this company please.

Thanks