Investment Q&A

Q: What will the effect of an interest rate lowering cycle be on Propel Holding’s earnings?

Q: Hello, I know 5i like both of the above but if only one could be bought today for a 3-5 year holding period which one would be best. Thank you

Q: Hello,
I thought given the news about Goeasy's ceo change (uncertainty) would have moved some investors to propel holdings.. Also, what is holding the stock back? The market is moving higher today but propel is hardly moving... also, any news on Topicus.. The stock is at a standstill with few trades taking it higher than it dips again.. is it becoming a trading stock

Q: Hello Team,

I was wondering if you could rank the attached 12 companies from 1 - 12. I have some money to deploy in my cash account and already own all 12 in my TFSA/RRSP. Will be a 3 year hold.

No worries on size, risk or industry, looking for best returns only.

Thanks!

Q: Paul asked today if PRL's dividend has been increasing in proportion to its income increases, or are they increasing the payout ratio. In your answer, you mentioned the dividend is up by 30% compared to last year at this time, but you didn't compare this to the income increase. PRL had an 84% income increase in 2023 compared to 2022, and in Q1 of 2024, the income was up 77%, so in fact they have been DECREASING the payout ratio, as the income has been increasing at a much faster rate than the dividend.

Q: Given that Propel has been increasing its dividend at a rapid clip the past few quarters, are they increasing their dividend in proportion to increasing profits per share OR are they simply increasing the dividend payout ratio?

Q: Question on RESP - thinking of selling BNS and replacing with GSY and PRL 50/50 also thinking of adding some WELL and VHI for long term holds any suggestions

Q: PRL or TSU, which stock had the most growth going forward?

Thanks for your service!

Q: Any reason PRL is down 5% at this time of writing Friday? I like this stock a lot but it’s trading is frustrating of late.

Q: Hello,
I would like a comparison analysis of these two companies on their business and which one do you think is a better business to hold for 5-10 Years?

Q: What are 5-6 stocks 5i would pick that are Canadian, profitable, and less than $1 billion market cap for the higher risk/growth part of a portfolio, to hold for the long term?

Q: Hi Team,
PRL appears to be breaking out recently. If looking to add to a position here is now the time? Also, would you advise selling Ats and switching into PRL with the funds? Ats has been a drag for a long time now in my portfolio .

Thanks ,
Shane

Q: Do you thing Small/Mid cap companies will do well in next 2 to 3 years?

What are your top 5 Canadian and US names in this space that you would buy today?

Thanks
Tim

Q: With the tsx dropping over the last few weeks and valuations adjusting for companies you like. What would be your top 3 Canadian and top 3 US names that you would start a position in, if buying today for the long term? Thx

Q: Hi, All above stocks have been beaten down over past few weeks, after a strong run. They are now trading at much lower valuations compared to their larger industry peers in Canada and US. Power Infrastructure, Construction, Industrial and Banking sector have been in a steady uptrend for most of this year and growth is expected to be solid in the foreseeable future.

Just wondering, if they are simply following the trend in US markets where small caps continue to lag the market. What are your thoughts and do you see the trend reversing anytime soon ?

On a different note, ADF Group stock is now trading below $17.31 ( price at which the owners sold some shares recently } and Terravest trading below the recent secondary at $74.25. Some investors seem to be freaking out ?

Thank You

Q: I read with interest your (excellent) advice about ‘when to sell a stock for fundamental reasons’ as I believe I often sold for wrong reasons, and I want to ‘learn’ to do it for better reasons. You mention the following:
‘In the case of volatility, if a name is jumping by 5% or more any given day, it is tough to call it an ‘investment’ anymore as it becomes more of a bet on a given day’s move. Again, some investors will make money here, but we would far prefer to look elsewhere at this stage.’
Vertiv (VRT) is one of the stocks you often mention as one that is taking full advantage of AI because of its ‘privileged’ involvement in data centre cooling technology and is in a ‘growth spurt’ that affects the stock price and is worth considering at this stage of AI growth investing. ( you do add it won't last forever, though…) Nonetheless, it is trading lately with large daily swings (of 5% and, even, sometimes 10%). In which way would it be different then and tough to call it an investment vs a speculation? I feel the same goes for Propel Holdings (PRL) which is another small but rapidly growing company because of an interesting business model. (it too, lately, also appears to be on an up and down elevator ride.) Would you care to explain the difference in reasoning please?
Thanks, Adel

Q: How does PRL use credit unions in their day to day business?

Pls. provide year end EPS & loan book for GSY's past 5 years.

Thanks

Q: Hi, currently holding CSU 5.17%, LMN 4.86%, and TOI 1.8%. Have nice gains in all. Looking to trim some CSU and LMN and add to TOI. Would you be comfortable with this move at this time considering each of their fundamentals and valuations? Which do you think has the longest runway for growth and how would you rank them for a 5-10 yr hold.

Also, I have TVK 1.79%, HPS.A 2.02%, PRL 1.41%, WELL 1.91%. No position in DRX (how would you look to avg. into this name?). How would you rank these if you were to add to these positions currently? When looking to add, are you mainly looking at the valuation and fundamentals or does the avg. cost and % return factor into that as well? For example, my HPS.A is up 60% and PRL up 4%, does this factor into your decision of which one to add to or does it not matter and we should just consider the forward return potential? Thanks!

Q: hi group i am very light on financials does it make sense to invest in the smaller companies for exposure to the financial sector. (eg GSY,IFC EQB - please rate these 3 (in order of preference and why.-against CAD/US BANKS .. also I am light on Health care do you see the sectors as a buy please give me you top 3 picks in healthcare presently i own CVS and PFE should i sell them to invest in you picks?...Thanks for you help with this

Q: Hello ,
Is there a reason why well health is ticking higher and Propel keeps moving downwards to the lower 20s range? Thank you and much appreciated.