Investment Q&A

Q: Given today's world politics, what are your views of defense stocks, both European and North American examples: AIRBUS, NOC, BA and European contractors etc?
Thank you again for your terrific service
brian

Q: Given the increasing focus on defence spending both in North America and Europe, do you have some conviction stocks (accessible to a Canadian retail investor) that will likely benefit from this trend?

Q: I've held Lockheed Martin (LMT) for 11 years and enjoyed a solid return of nearly 14% per annum, largely driven by the success of the global F-35 program, which has been a cornerstone of LMT’s revenue and earnings growth. However, with today’s announcement that Boeing has won the Next Generation Air Dominance (NGAD) fighter jet contract—potentially worth over $20 billion initially and hundreds of billions over its lifetime—I’m concerned about the impact on LMT’s future growth and outlook. The loss of this high-profile sixth-generation fighter program to a competitor could signal a shift in market dynamics, especially given LMT’s historical dominance in advanced fighter jets. How do you assess the implications of this decision for LMT’s long-term growth trajectory, particularly in terms of its Aeronautics division and overall market position? I’m considering selling my position due to this turn of events, though it would mean realizing a significant capital gain in my taxable account, and I’d likely reinvest in another aerospace and defense industrial, such as Northrop Grumman or even Boeing itself. Could you share your analysis of how this contract loss might affect LMT’s valuation and growth prospects, and offer your thoughts on whether selling now and reallocating makes sense for an investor like me seeking both growth and stability?I'm a retired investor and do benefit from the dividend growth of LMT. Please factor into your overall comments. Thank you!

Q: Further to Stuart’s recent question on European defense spending, I’m also interested in the security theme. I recently purchased Axon in the belief police spending will be ramped up going forward. Do you have some suggestions for me to investigate in the areas of security/defense for the following: police, computers, military. Perhaps a couple of companies in each area as your top choices. I realize you have covered companies such as Raytheon extensively through the years but this theme hasn’t been on my radar until recently. Unfortunately, it seems to be increasingly significant going forward.
Thanks so much for your guidance in these challenging times.

Q: Hi,

Could you please briefly compare/contrast these three US defence contractors? Is there a clear favourite? Are they any others worth considering?
Thank you.

Michael

Q: In a best case scenario, I think 4 years of Donald Trump in power will be chaotic and discruptive in the US and globally. In a worst case, I believe the US is heading for internal unrest/violence, and the certain parts of the globe will be at war. If you were a 74 year old investor who has done well listening to 5i the last 2 years, how would you now hedge against these scenarios?

Q: Good morning. Saw a question regarding RTX on Friday and was wondering if you would recommend solely holding this or would you prefer an ETF holding this and LMT, NOC, GD?
Thanks
Steve

Q: I recently saw a video where drones were used in firefighting and ag research . I only know these two names and I think they are more into military applications. New drone hardware and applications is popping up weekly.
Are you able to predict which companies are likely to be the most dominant and financially successful , or will the military outlook always hold the top spot ?

Q: What are the best companies in the following sectors you would invest in for maximum profits.
Thank you.
Chipmakers
Lithium
Uranium
Canadian gold mining
Arms Manufacturers
Auto Parts
Energy
Quantum Computing

Q: Dear 5i team.

I would like to look at a small investment in defence/war munitions sector companys or ETF. Can you suggest 3-5 names that cater to "War" efforts that can be considered a DIY ETF? As well, which ETF(s) would you consider for this exercise. Ideally one with the lowest BA %.
Finally, are these Co's trading at resonable valuations, or has this ship sailed, so to speak?

Many thanks for your help.

Q: Can you recommend any stocks that would benefit if China invaded Taiwan? I was thinking along the line of military, resources, submarine, sea technology stocks, etc. But if you know of any other ones that would be great too. Thanks.

Helen

Q: What is your view on NOC's recent earnings. Would you continue to hold or are there other companies in the sector that you believe are signicficantly better investments. Thanks as always for you expertise.

Q: Basket defense stocks: could you suggest a basket of defense stocks for 3+ year hold. A short comment on why you like them would be appreciated.
Thanks

Q: I want to make an investment in the defence sector and have narrowed my focus to these two stocks. Which of the two would you choose and your reasons for doing so. Any comments on these two securities would be appreciated. Thank You.

Q: Just wondering your top 3 US/Canadian stock picks focusing on increased military spending.

Thank you for providing this great product.
Mike

Q: I am thinking to start a position in the defense sector for a 3-5 year hold. Is this a sector you see much upside and volatility in? Has the worlds tensions and conflicts already been priced into the share prices? What would be your top three defense companies to consider?

Thank you in advance for your great advice!!

Q: Good morning. I am underweight Materials and Industrials and want to add to my holdings in those sectors. I considering adding some or all of the above as new positions to my RRIF. Do you consider it is a good time to be adding these companies to my portfolio or do you have other suggestions in the Material and Industrial sector that you consider better to purchase at this time. Please take as many credits as you consider appropriate.
Thanks for your great advise.

Q: Britain's drone “super highway & other country's may follow, Canada will be last as usual.

As drones become more ubiquitous which manufacturer[s] do you think will lead the way?

What are the best pick & shovel company's to bet on in the drone gold rush?

Thank you.

Q: With so much U.S. military equipment being sent to Ukraine and presumably must be replaced, what company(s) is most likely to benefit?

Q: Need to rebuild industrial sector holdings - assume a clean slate. What percentage to invest in each subcategory with top picks [some suggested names-please provide your 2 or 3 top picks] and target buy price would be very helpful. (1) Engineering & Construction- WSP, NVEE, J, KBR, ETN and PWR [for electrification]; (2) Transportation- CNR, CP, TFII, CJT; (3) Goods: LMT, NOC, TDG, BWXT, DE, FLNG, FREY; (4) Services: WCN, GFL, TRI. Thank you.