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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: Do you have any timely and suitable names for my TFSA contrib this year? I tend to buy things that are quite growthy in my TFSA. As such its already chock full of technology. Open to US or Canuck names but they need to be quite liquid. Happy New Year
Read Answer Asked by Martin on January 04, 2024
Q: ROKU had a great 2023. Towards year end, it was hit with a couple of downgrades. 5i continues to like it, in response to Q&As. Could you please list the top 2-3 reasons you have for ROKU to have another good year(s). I am not expecting it to duplicate its 2023 success, but looking to quantify whether ROKU has several more years of growth.
Read Answer Asked by Greg on January 04, 2024
Q: Thinkinf of swaping out Sunlife now in a hopefully falling rate environment for a stock with more overall growth potential, but still a dividend over 4%. Please provide a few names for a dividend focused retirement portfolio that also bring strong overall return potential. Or, thoughts on whether Sun Life is still a stock to own in this situation.
Read Answer Asked by Gerry on January 03, 2024
Q: Hello and Happy New Year.
I have a question on moving funds in/out of ZMMK. I received an amount of cash that I am going to park in ZMMK for the interim. My question is do I need to be concerned with superficial losses while moving funds out? I see it bounces in a range of approximately $49.90-50.08 and sitting at $49.94 as of now. If I were to move funds in now, my avg cost sits around todays cost and if I want to draw out under that, it would create a superficial loss (~$1200 worst case) although not a concern as it's held for the dividend. Thank you.
Read Answer Asked by Randy on January 03, 2024
Q: What are your current thoughts of Atlas Engineered Products? They seem to be trying to add small legacy type businesses as their method of growth. Do you think they have the management that can pull this off? Are their financials currently solid enough that debt is not a problem at present interest rates? Any other thots positive or negative about AEP? I’m quite positive on this group and wanting to buy more. Should I be tempering my enthusiasm?
Read Answer Asked by Terry on January 03, 2024
Q: I previously asked you about the rule of 40 for SaaS companies here:
https://www.5iresearch.ca/questions/text/rule+of+40#answer163822. Could you explain further why this model doesn't seem to work for companies in other industries?

For example, ATD has a low single digit free cash flow margin and would not meet the rule of 40 threshold, but it has proven to be a consistently good investment over the years despite that fact. Why doesn't its poor profitability hold it back and what other criteria would you consider important in lieu of the rule of 40 that help you identify it as a good investment?
Read Answer Asked by Adam on January 03, 2024
Q: Hi
I know that this question is almost impossible to answer and it is anyone's guess but what is the end game for this mounting debt in the US? 34 trillion? Perhaps 10 trillion of that is domestic? Still a stagering number. GDP is 26.24 Trillion with that volume it sounds manageable but they and other goverments dither about, eventually kicking the can down the road. At what point does this come to a head in your opinion? Perhaps a year or an event that you see as an epoch?
Thank you
J
Read Answer Asked by Jeremy on January 03, 2024
Q: Regarding Michael's question on Magna, here is what was reported on BNN Bloomberg:

"We will watch shares of Magna after Goldman Sachs downgraded the auto part maker. One of the big structural calls on Magna is that it is poised to benefit from the ramp-up of electric vehicles and getting more of its content into cars. This morning, Goldman is poking holes in both those ideas. Goldman says Magna will see slower content per vehicle growth compared to peers, and ramp-up of electric vehicle production from customers like Ford and GM will be slower"

Happy New Year to 5i and everyone!
Read Answer Asked by Steve on January 03, 2024
Q: Hi, Large Cap Tech stocks in US started the new year with a sharp pull back.
In Canada, Shopify was the one which followed the trend with 6-7% drop. Constellation Software was largely unchanged and Lumine is consolidating from recent sharp gains. We hold all above stocks in our Non-Regd as well as TFSA accounts. There is about $80k TFSA Contribution room available, due to withdrawls made last year. We are considering In-Kind contributions to add to our TFSA holdings when MV of these stocks are lower, in order to limit crystallization of capital gains, as all of these names have large gains embedded, in our taxable account. Is it a reasonable approach ?

If technology sector witnesses some more decline (after very strong returns during 2023), what are the next Technical support levels for these three stocks ?

Thank You
Read Answer Asked by rajeev on January 03, 2024
Q: Thank you for your quick response to my previous question. I would like to use excess cash in my RRIF to top up either Telus or Enbridge. May I have your opinion of their relative total returns for the next 1 to 3 years?
Thank you, JaneN
Read Answer Asked by JANE on January 03, 2024
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