Investment Q&A

Q: Hello Peter & team,

Read a report that stated bank deposits are up considerably. Reason... It appears People are banking funds without having the opportunity to take their annual vacations because of Covid. Vaccines are in the process of being distributed. There will be an end to the lock down eventually, and when that happens people will be biting at the bit to travel. I know I am.

My question... I'm thinking the beneficiaries of this pent up demand are going to be Cruise Lines, Airlines & Hotels. (plus anything else you can suggest) Are you able to tell us - your loyal 5i family - which companies we should be targeting which will benefit once everyone starts being able to travel again? And if you could, please provide your futures opinion on Air Canada which is still down 50% (approx) compared to it's pre-covid highs. I am seriously considering a strong position and would like to know your thoughts.

Thanks for all you do

Gord

Q: Can you please provide some recommendations on travel related stocks listed in Canada or the US. Am looking to hold for 3 to 5 years.

Thank you

Q: Energy and Travel etc stocks likely to be sold out for Tax loss which are more likely
and good to pickup?

Q: Hi Peter and Team,

I am a newbie here and really impressed by how appreciative members have been to the service you guys provide.

I have very small positions in both AC and GIB.A, and would like to consolidate to one for a long term hold. Could you please rank the two and also provide brief explanation?

Thanks for your insight!

Q: What are your thoughts on the impact of Air Canada’s recent announcement that they are pursuing the cargo market. What is the impact on Cargojet? Will this result in a significant impact on margins? Would you sell Cargojet as a result of the stiffer competition? Are you still concerned of the debt levels in Cargojet? Thanks for your expertise.

Q: Hi,
I’m wondering why TRZ is trading above the (pitiful) $5 new offer by AC. With the vote to be held on Dec15th, I assume that most shareholders will take AC shares as exchange, at a lower price of $17.47, which means a value for TRZ close to $7 now . But wouldn’t that dilute AC stock, with the risk of a sell-off afterwards- or the amount is too small to make a difference? Without the OK from Canadian and European regulators, isn’t any choice risky right now? And selling TRZ at the market a better choice today? Thanks.

Q: I noticed you recently added AC to your portfolio.
Is there a chance that creditors will ask for a restructuring of capital structure?
Or the government if they start pumping money in AC?
Like a bankruptcy form,where shareholders will be left "holding the bag"?
How strong is AC financially at this moment?

Q: I realize these are two completely different companies with one dividend producer and one that could rebound significantly post Covid, If you were to choose one of the two for a two to three year return, which one would you pick.

Q: Thanks for Thursday's update...I know Air Canada's balance sheet is stretched but my TFSA positions are held for the long term. Would an Air Canada position be a good for placing in TFSA?....Thanks for your input.....Tom

Q: Bot this one at 14 and sold at 18 cause I was smart...it's now trading at 23 and I look really dumb... what's your view on to he price path going forward?

Q: Hi all,

For AC.TO and SU.TO, they are just like brother increased more than 5% today. I have brought those two stocks half years ago and finally now back to profit. I want to thank you fro your advise and actually no need to wait for 3 years :)
Which one will benefit more after COVID? Do you think keep holding now, since both hitting the high price for 3-6 months. After the COVID, how long will last for those two in benefit the raise? 1-2 years? Usually, I have difficult to sell the stocks in high price, do you think they are good for long term holding for 5-10 years? What is the possible in short term one year target price? Kindly advise.

Q: What is the outlook for a government bailout for Air Canada, and what would the impacts of a deal likely be for investors in your view?

Q: Is this a good entry point on these two airlines? Or should I wait until the new year?

Q: I would like to purchase companies In the travel industry that will do well once COVID is over and people start to travel again for pleasure and business.
Please suggest a sector or stocks that I may consider
Many thanks for your great service
Peter

Q: Hi guys...thanks for the service. Wondering if you can name 2-3 Canadian and U.S. stocks that you feel have been unfairly punished over the past months...that you feel would be very good entry points and may rally quickly...more so a trade rather than a long term investment....thanks.

Q: It is hard to imagine that this pandemic will one day be a distant memory but eventually life will return to a pre pandemic normal. Can you name 4 or 5 Canadian traded stocks that suffered during the pandemic that you believe will have growth potential in this future?

Q: Seems inevitable that people will travel on planes are some point starting next year and will ramp up from there. With the dominate company that services Canada, does that make Air Canada a "no-brainer" stock to invest in for the 3-5 year time frame?

Any reason to not get in at this point?

Q: Hello 5i Team. I have a moderate risk tolerance and am looking to make a long term contrarian play with up to 10% of my portfolio on a couple of well established names that have been squeezed by COVID, but will ultimately endure (strong balance sheets) and prosper in a post COVID world. I can stomach volatility, but want to stay away from companies that have a higher chance of going to zero. Air Canada has caught my attention and it is well covered in your question bank. I was planning on pulling the trigger on it, but before I do, can I get a risk/reward comparison between it and Southwest Airlines. Between the two, which would you go with? For my second play, I am considering MGM Resorts International and American Express. Can I get your take on these two, and specifically for American Express, whether its business model is more inclined to benefit than the other major credit card companies once a vaccine arrives and travel starts to pick up. I realize that these are two very different businesses, but which would you go with and why?
Thank-you.

Q: If you could see into the future and knew COVID, people's fear of COVID, the economic effects of COVID were all gone ( basically a complete return to normal scenario was 100% for sure in 2021/2022) what basket of Canadian stocks would you purchase now for longer term hold (5-8 years).

Q: Every year I look for a beaten down company - out of favor this year but with an intact business likely to do well in future years. What should we be keeping our eyes on?

John