Investment Q&A

Q: As a senior, what is your opinion on the future of Dollarama - with such a small dividend is it advisable to buy more, hold or sell?
Thanks for your advice.

Q: Good afternoon,

I have held DOL since January 2018 and since that time, overall, I am down about 3%. I have somewhat lost patience with it as many of my other names have done well during that period.

What are your current thoughts on DOL and it's future over the next 3-5 years? If I was to sell it, what are some more larger (market cap) stocks that you like for a mix of balance and growth that aren't tech? I was thinking possibly BAM.A, TFII or BOYD as some candidates.

Thanks.

Q: Thank you for your recent stock screener for Low Beta stocks, very helpful analysis.
With respect to Dollarama, the 5 year ROE number was staggering, any explanation?
Thanks, Brian

Q: What is your opinion of Dollarama, is it a buy, hold or sell - is the dividend safe?

Q: Thank you for your great advise. I currently have a good positive portfolio thanks in large part to your suggestions. I need to increase my consumer defensive by about 1.5%. I currently own the above companies at different weights. ATD 3.5% PBH and L at 2% and DOL at 1%. Where would you add or would you suggest another company. Please rank in terms of preference.

Thanks, Yves

Q: Any reason why it has been strong recently?
It's earnings report is still several weeks away

Q: Hi i5,

According to "Buffett Indicator", when it's in the 70% to 80% range, it is time to throw cash at the market. When it moves above 100%, it's time to lean toward risk-off. Now Market Cap to GDP Ration > 100% means stocks in bubble territory. Do you think Canadian stocks may also in bubble territory? If US in bear market, do you think the above Canadian stocks which I am holding can be survived? Perhaps, should we start to off load which may be in danger during the bear market into cash, or switch among balance or income portfolio. Any suggestion?

Q: Good morning 5i team,
I am a little late reading Q&A. Not a question but a complement of information. Regarding Kevin’s question on August 4th about DOL’s negative shareholder equity: your points are all valid, but my understanding is that this situation on the balance sheet results mainly from their massive annual share buybacks over the last few years. Per share, the cost of the buyback is higher the book value. Thank you for your collaboration, Eric

Q: In your answer to Kevin's question regarding assets Aug. 4 you state that Dollarama "Does not have many hard, physical assets." and go on to say that it leases stores. Your website 'Company Profile' would appear to disagree. "All the stores are owned and operated by the company." Would the profile be out-of-date? I am interested in the company too. Thanks

Q: I've been considering Dollarama for a small position. You seem generally positive about it.

I found it to be the only company among the ones I researched with a negative shareholder equity. Investopedia tells me this is a warning sign, indicating the companies liabilities exceeds its debt.

Can you explain Dollarama's situation and advise as to whether this is a company to avoid?

Thanks as always.

Q: hello hello...I have a full position in DOL, like held for long-term grow for a Cdn stock. If DOL is a good buy now, how about Dollar General?......me, pondering if DG would be good addition to the my US dollar portfolio which also includes the long held Costco in that same sector but without going sector overweight.......Keen to e-hear your take.......Thanks and enjoy the upcoming week-end.........Tom

Q: Hello,

My partner and I heard about 5i from a friend whose been using you for many years. You came with the highest recommendation.

I feel like I should be copying one of your portfolios, especially due to my lack of knowledge, but it is very important for me that my investments to follow my ethics.

I would like to know which companies on your balanced and growth portfolios would be highest on positive environmental, social and corporate governance, which are low and should be switched and for which companies. I'm happy to do research, but I'm struggling to navigate the important statistics and feeling incompetent in finding good resources. I have seen your ESG scores (https://www.5iresearch.ca/blog/ESG-tsx-companies) and would be keen to know where to find information on how they are created. I would also appreciate other resources that you think would assist in building a portfolio, or simply which companies you would put on it.

Thank-you,
Ellen Perkins
Ucluelet BC

Q: Appreciate u 12 tips today. Too many for me to buy now.Has lots of the big 6 can.banks & Qst (similar to Xbc).Please give me best 5 to buy.Txs for u usual great services & views. FYI China moves to impose HK security law causing drops in Asian markets esp HK( down 4.84% now) as well as US futures(Dow now down 139 after earlier up some 108)

Q: Your top 5 consumer stocks for long-term hold? US would be ok.

Q: hi there,

I have held Dol for a long time but as i transition to retirement i am looking for an alternative with a stable dividend. I have looked at L - do you have other suggestions as most consumer staples seem overvalued currently.

Cheers

Q: Hi gang
In an answer today.. saying that Consumer Cyclicals are better choice over Staples at this juncture ..you mention DOL and DG as good choices to consider. But in your cover reports you say they are both Defensive. Is Defensive not the same as Staples?
Thanks for all you do...would be lost without you.

Q: Which sector, consumer discretionary or staples do you believe will be a better bet currently.
Please name 3 stocks on the Can + US side that should work in this thesis and why.
As always, keep up the great work.
Mark

Q: Good Morning
I currently have 37 positions spread over 3 accounts(RRSP,TFSA,INVEST). Most if not all are or at one time been in 5i’s model portfolios. Many of these are currently at 1.5% or less and although I believe they all have varying levels of potential their current weighting in my overall portfolio will have little impact unless they all go up. I believe I should consolidate the listed group, do you agree and if so which ones would you keep? Proceeds would be added to the remaining names.
Thank you for your continued advice and guidance.
As a side note you advice regarding non action in turbulent times is proof positive. Aside from harvesting some tax losses and buying proxies for a handful of names, my portfolio is now bordering on even for the year.
Publish if you wish

Q: Since the March lows DG has gone up 35% and the same comparison, DOL has gone up 20%.

Any reason for the large discrepency?

Thanks

Sheldon

Q: Hi, 5i Team
In the market updates email that you sent on Mar/01, you mentioned the following companies deserved a closer look:

Air Canada (AC), Lightspeed (LSPD), BRP Inc. (DOO),Maple Leaf Foods (MFI),Dollarama (DOL),Aritzia (ATZ),Gildan Activewear (GIL),
Alimentation Couche-Tard (ATD.b), Canada goose (GOOS), Descartes Systems. Group (DSG), WSP Global (WSP), 

In the "5i special Opportunities Report" within the Special Market Volatility Report email sent on Mar/09, you recommended 10 stocks that were very attractive. Only WSP and DSG were also included. What do you think of the others? Is it a good time to buy them around March?
Are they also solid names worth owning especially now after some huge corrections?

Thank a lot!