Investment Q&A

Q: Good afternoon;

My initial question was going to be solely about On Holdings. It is almost getting to be one of those companies that'd capture the interest of Peter Lynch, as it is showing itself across sports these days. Yet the real question is likely a bit bigger picture...

Could you provide me with your take on the "Active Wear" apparel market these days? I've provided a few names that may be competitors and there are more. All things being equal is this a sector worth investing in at this time given what seems to be lacklustre performance of many companies and "turnaroud" becoming a bit of a buzzword.

If you could also provide a best - least best top 5 to consider in this sector that would be appreciated.

Thanks as always,

Dave

Q: My TFSA consists of these 6 stocks and I am looking to add to probably 2 of them. Can you give your opinion as to which you would pick based on current price and future long term (3 to 5 years) growth. Use as many credits as you see fit. Thank you

Q: What is your opinion and valuation on this? Good time to buy it vs other mid caps because it may be temporarily discounted due to 2 large investors recently selling their positions or do you feel thats a vote of no confidence in their prospects going forward. Less likely to be taken over vs. Newmont and Agnico just raising funds for other purposes.

Q: Any reason that you know of for today's drop in ATRl's stock price?

Q: Seems investors are not impressed by CSU and continue to sell off all these names. I have around a 10% allocation to the family (4% CSU, 4% LMN, 2% TOI). I'm contemplating reducing my positions and adding to MDA, ZDC, CLS, ISRG, TOU. What are your thoughts? I'm concerned because CSU and LMN are one of the larger positions in my portfolio. Thank you!

Q: Hi Peter,

I have a question about Nvidia’s proposed $100 billion investment in OpenAI. From my understanding, the funds will be used to purchase Nvidia’s own GPUs. How should investors interpret this circular funding in terms of valuation integrity and long-term sustainability? Does it raise red flags about inflated revenue or distorted market signals? Considering the deep entanglement between Nvidia, OpenAI, and Microsoft, at what point does this trio resemble a functional monopoly in the AI ecosystem? If it walks and quacks like a duck, it is a duck! Is it time for regulators or competitors like Google and AMD to step in and balance the power? I doubt the government knows or will to do anything. I would love to hear your perspective.

Best,
Matt

Q: I am thinking of selling BIP.UN; held in a TFSA where growth is something of a goal. It has not done much for some time and I have good sized positions in other Brookfield entities. What is your current outlook for BIP.UN…worth holding or time to move on? Possible replacements could be GSY or PRL; if there is a move, which of those 2 would you favour? Many thanks for your excellent service.

Q: Everyone, my spouse and I have eight different accounts and all have cash that valves less than $500 in each account. The total amount is less than $2000. I never like cash because it’s doesn’t appreciate in value. So do you have any micro-cap stocks that you would recommend? With the assumption that they could go to zero. Clayton

Q: Hi I was hoping you could help explain where an RRSP is preferred in investing over a TFSA. I consistently try to offset my income by contributing annually to my RRSP, however unsure the types of stocks or ETFs I should be holding. I currently pay into a pension, hence (pension + RRSP money) results in a higher tax bracket at retirement leading to more taxes down the road. I hold mostly high growth stocks as I feel I have time on my side with my age of 41, although don’t want to get bailed on taxes down the road. Something I feel I can’t avoid.

My question is, should I be holding such high growth stocks in my RRSP or consider other options ? If so, what?

I do understand TFSA’s are generally preferred for tax free reasons. This being said, my RRSP is steadily growing year after year.

Any guidance is much appreciated.

Q: What is your opinion of this company?

Q: FTN announced today that for every 100 shares you own they will issue you 10 more shares.I imagine the price of the shares will drop approx. 10% the day they are issued.My question is why wouldn't they just increase the dividend 10%?

Q: Csu, Atd both are acquisitors,have excellent management and are down sharply from their all time highs
In your opinion which one would provide the best return over the next 3 to 5 years?

Q: These stocks are all losing ground lately in my portfolio. Please reply in what order and at what price you would add to them I want to ensure I add valve at this point;

Also should i add to my holding in GDXJ? or start a position a silver stock (please recommend several in order of preference ) same recommendation for US bank ETF....Thanks

Q: All 3 stocks have recently been down and are continuing to drop today (Tuesday). Your blog on the CSU/Leonard call about AI recapped what was said and indicated premiums assigned to these stocks may be lowered. Looks like it's now underway. I was hoping for more thought on what might happen in the future? As many of your customers own these stocks, it would be nice if 5i could issue quick reports on them. Are they still rated high or have they gone down a notch, or two or three? Are they rated buy, hold or sell? Where does 5i see these stocks' prices in 3, 6 and 12 months from now? I realize there are many unknowns and predicting the future is tough, but 5i has done this generally quite well in the past. These 3 stocks appear to widely held and deserve more attention at this time.

Q: Thank you for the timely and well-done blog on CSU.
Two questions:

1) Would YOU put new/fresh money into CSU TODAY? Please give a brief reasoning for your answer.

2) If YOU had owned CSU shares for a number of years, what would you do with them today (irrespective of portfolio make-up)? Please give a brief reasoning for your answer.

Thank you

Q: I hold these two with significant losses. should I move on from these or do you see any chance of revival.

Thanks Dave

Q: Hi Guys Since you will get a lot of questions on the short report on Goeasy I thought this article/comment from National Bank would help members and save you some valuable time ( only make public if you think it is useful):

National Bank Financial analyst Jaeme Gloyn thinks the allegations and evidence brought by Jehoshaphat Research in a short report released Monday claiming Goeasy Ltd. (GSY-T) is manipulating their reporting to delay and avoid reporting rising delinquencies and charge-offs are “without merit.”

Accordingly, in reaction to the 9.9-per-cent drop in the Mississauga-based company’s share price on Monday as well as a post-close analyst call in which management firmly refuted the allegations, Mr. Gloyn now sees “a buying opportunity.”

“The report includes former employer interviews and former competitor executive interviews to explain how frequently and easily GSY uses tactics to delay reporting charge-offs and delinquencies,” he said. “JR argues GSY will have to start reporting higher charge-offs as these loans will inevitably need to default and be charged-off and expects this catch-up in losses to ‘devastate earnings’. The report argues its thesis on the following points: i) GSY’s change in their definition of net charge-offs, ii) rising interest receivable as a percentage of interest income, iii) lower allowance rates on stage 3 loans, iv) large shift of loans into GSY’s “low-risk” category, v) the surprise departures of former CEO, Jason Mullins and CFO, Hal Khouri."

“JR’s evidence of manipulation (Rising interest receivables, lower allowance rates on stage 3 loans and the shift in loans to the ‘low risk’ category) is explained by GSY’s rapid increase in auto loans. GSY has grown its portfolio of auto loans from $40-million in 2021 to over $1-billion today,” he said. “The key is these loans are larger and typically benefit from a lower loss given default because they are secured by the vehicles. Unlike unsecured loans that charge-off after 90 days, secured auto loans will charge-off after 180 days. As these larger auto loans become delinquent, it is reasonable to see an increase in interest receivable. Further, because these loans are secured by vehicles where confidence in recovery is higher, it is also reasonable to report a decrease in stage 3 allowances as a percentage of loans outstanding. Additionally, the risk categorization of loans is determined based on probability of default, which can change based on collections abilities. GSY enhanced their collections capabilities in 2024 which could explain the change in classification.”

The analyst concluded the evidence presented by the Florida-based firm is explained by recent growth of GSY’s secured lending platform.

“We are aware of the potential volatility that can come with rapid growth of a lending vertical as we have seen with auto lending at GSY,” he noted. “We believe management is also aware of this and is actively making investments to improve collections and underwriting. That said, this does not imply that GSY is involved in any accounting games or excessive ‘kick the can’ activity.”

Mr. Gloyn reiterated his “outperform” rating and $265 target for Goeasy shares. The average is $239.22.

Elsewhere, Scotia Capital’s Phil Hardie cut his target to $225 from $235 with a “sector perform” rating.

“The release of a short report alleging that goeasy has improperly delayed credit losses and materially unreported loan delinquencies has put near-term pressure on the stock,” he said. “We believe the central theme of the report follows a relatively well-worn path for short-sellers that target lenders during transitioning economies. The author alleges that company uses “pretend and extend” practices to avoid reporting delinquencies and uses accounting approaches that delay reporting of loan losses and other expenses.

“We don’t buy into the report’s bearish view that delayed net-charge-offs are likely to drive a significant earnings miss for 2026, or that GSY is engaged in questionable practices. Following a 10-per-cent one-day decline in the stock after the release of the report, we would not be surprised to see a near-term bounce to recover some lost ground, however we think the report will sharpen investor focus on underlying delinquency and portfolio credit performance trends and constrain near term multiple expansion. Ultimately we think the key to sustainably removing any overhang will be delivering solid results with the charge-off rate remaining in line with the targeted range with late stage delinquencies also trending down.”

Q: I have a question about hedged/unhedged versions of the same ETFs. There are a number of these, and they often have very different market values, as in TD's Global Technology Leaders ETF - TEC (unhedged) and TECX (hedged). In this case, the unhedged version has a mere 8.7m assets compared to 3.5b for TEC.

I would normally think an ETF with such a small AUM unstable, but given this is a TD ETF and mirrors its vastly larger brother, would that necessarily be the case? And isn't the rise and fall of an ETF simply a reflection of the stocks it holds?

What brings this to mind is the way hedged ETFs of American stocks have outperformed their unhedged counterparts this year. There is an administration in the US determined to drive down the US dollar by hook or by crook. So it seems to me that hedged is the way to go for now.

Q: Hi,

For portfolio considerations I need to start to trim AEM back to a full position weight. I also have PAAS, WGX, FNV, AGI at full position, and ABX at just over a half position for may precious metals portfolio. Would you recommend investing the AEM trim to top up ABX, or is there another precious metal that you would like better at this time. And can you give me a brief reason why.
Thanks.

Q: Considering recent interest rate reductions can you please advise on investing in xhy.to or ushy at this point? Are they equivalent but just in different currencies?

Thanks.