Investment Q&A

Q: Hi 5i,

What high quality companies do you think stand to benefit from the upcoming Carney move to investing more in Canadian-related defense and the infrastructure built out?

Thanks!

Q: Hello
our defense Minister tells the Arms company that Canada is spending more on our military, the NATO set a goal of 5% of GDP
what Canadian companies could benefit from this move? thanks
Michael

Q: Hello 5i,
There have been many negative questions regarding Tariffs and other non-Canadian officials. Wondering if it makes sense to look to those Canadian companies that would benefit from the upcoming April 28, 2025 event results.
Following is my list of questions for you – please feel free to take as many credits as you require since I typically don’t use many.
• The clear winner looks to be BAM/BN/BIP/BEP with the massive housing & project build plans. Some housing build plans look to be well beyond anything the private sector has ever seen. Outside of investing in BAM/BN/BIP/BEP are there any other companies that will experience increased growth rates? Perhaps Canadian Only Lumber Companies, Steel, etc.… Being careful to ensure the industrial carbon tax doesn’t offset any building growth rates.
• Looks like major projects are going to be built to save the country from the tariffs. Assuming these are going to be non-conventional energy would the companies such as BAM/BN/BIP/BEP/WSP, benefit the most? Are there any other companies to start looking at? Perhaps carbon capture companies?
• I wonder if there are any areas of benefactors increasing/decreasing the amount of tax havens in Canada? There are a fair number of mid/small companies that could setup a beneficial tax structure and become more profitable. My experience with setting up offshore structures is that there are setup/dismantle/maintenance costs with Lawyers and Accountants but perhaps other benefactors are investable. Are there any publicly traded Accounting or Legal companies to start watching?
• With proposed additional spend to media companies are there any benefactors? Will BCE benefit from the overall plan? Are there companies worth looking at in the media sector?
• With the additional military spend are there any companies in Canada to invest in? I have a small position in MAL which could benefit from Canada built fighter jets. Is BBD.B a good one to look at?
• After reviewing the proposed firearm buyback pricing list, the overall program looks to be worth ~$2B in 2025 for Canadians. My question is could there be benefactors to this spend? Maybe ~$2B is not enough to stimulate the economy considering the current spending levels but it reminds me of a COVID-like spend bump. Assuming a large portion of the funds will be redistributed back into the economy.
• Health care seems to be getting an increased focus compounded with the buy Canada therefore are there any pure Canadian pharmaceutical/healthcare companies that will benefit? I have a SIS position that I could add to if they are going to be benefactors. Are there any companies that provide safe site vending machines or building structures?

Q: Morning Troops. This is more of a hopeful question than anything. It is now almost a certainty that we will be spending more on defence regardless of who wins the election. If it actually comes to pass that our country decides to ease up on defence procurement from the US and spend more at home, how are companies like CAE positioned to profit from this and do you see it happening? Cheers.

Q: What 5 stocks either USA or Canadian would you feel could be good shorts prospects if we get a full blown Tariff war

Q: Please comments CAE's earning. Would you initiate a position today for a long term holding? Thanks.

Q: I hold AEM, T, TSU, ARX, CVE, BB, WELL and KITS.
Would you consider these holdings relatively safe from
possible US tariffs? I’m trying to figure out what to sell
now before this might happen and if I’m wrong buy back later.

Q: I noticed BlackRock filed a report with the SEC that it held 16 million shares of CAE. Is there any significance
to this that you might know of?

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: I'm looking for suggestions for stocks or ETFs that would benefit from increased investment in the north (either infrastructure-, defense- or resource-related). Do you have any suggestions of opportunities that warrant further investigation for a 'northern/artic play'? I can't help but feel that all the talk south of the border about Greenland, Canadian resources, etc. that someone will be spending substantially more in the north over the next 4 years...

Q: What are your views on Gildan as an investment for a 3-5 year hold?Also thinking of CAE as a turn around story.Which do you feel has the better prospects?

Q: Greetings 5i, I am considering selling CAE and reinvesting the proceeds in MDA. Based on stability, current valuation and runway for future growth, what is your opinion please on this swap? Thank you.

Q: CAE has been another good news story for me this week. Finally they put together a decent quarter, at least in my eyes, what do you think about their qurarter? I know one quarter does not make a trend but I would hate to get out of something after a good gain. Now it is nearly at $31. Is this fair value for CAE for the near to mid term. At this price there should be no tax loss selling on CAE this year, right? My discipline tells me to sell but does your expert opinion shout, "gain for the long haul"?

Q: Finally back even with MAL after 3+ yrs ...... hold or sell ?

Q: Have you looked at this new class action lawsuit against CAE?
Could I have your thoughts and opinion please?
Thanks.

Q: I was on the verge of selling CAE until seeing that it had taken a recent jump in price in the last couple of days.

Could this mean the company's promise is finally coming to some fruition?

Would you recommend continuing with selling it as part of a portfolio clean-up or waiting and seeing if there is renewed hope on the horizon for this company?

Thanks as always.

Q: Sir:
In reviewing the trust holdings for Grandchildren, I noticed that these previous darlings of 5i are all on life support. So , going forward, what are your recommendations? Thanks- Jim

Q: I bought this stock, because I thought there was a pent-up demand for new pilots. I have lost 10 -15%, since I bought it, now for the last couple of years it has gone no where, but sideways. So, is there actually a shortage of pilots?
Also, what is the forecast for the remainder of this year and next year. I am seriously thinking of selling. Now I am looking for your advice as to whether to sell this stock or keep it.
Thank you
Earl

Q: Who would you consider to be CAE's major competitors - does CAE still have a fairly wide moat or is this no longer the case ? What mistakes do you feel were made to bring the company to this point and do you consider management to be competent and capable of turning the company around ?
Going from a B+ rating to out of the portfolio was a bit of a surprise . (there is a yield showing on portfolio info chart - old news or did I miss some new news?)

Q: Do you think the change on the Board of Directors for CAE is positive, negative, or neutral? See news release "CAE announces changes to its Board of Directors."

Many thanks.