Investment Q&A

Q: What would be your 5 top economic recovery plays at this time, US and canada.
Can you rank Them in order of preference.
Thanks

Q: Hey 5i team,

Bargains and value pickings seem to be getting slimmer. With a possible recovery or even a lockdown again...with a healthy balance sheet and product or business. Buy and hold longterm horizon.
What are your top recovery picks that you would step into today?

Q: Good day 5I Team
In multiple accounts (3 registered & 2 none registered).
SIS (1.75% / -19% total PF) ,
CAE (1.3% / -16%) ,
WSP (1% / +2%)
RTX (1% / -2%)
NFI (0.2% / -59% )
XBC ( 0.2% / -8% )
Your suggestion, which one to Add, Hold, & Sell for long term growth ?
Thanks
Best Regards

Q: Hi Peter, Ryan, and Team,

Today (rightly or wrongly), I used the large uptick in the share price of CAE to sell my position that's held in my TFSA. (I sold with a gain of 4%, not counting the previous dividends.) I feel that the "airline" sector will still be under pressure after the present euphoria settles down, but who knows?

Having said that, please suggest two or three stocks or ETFs from each of the following sectors that could be considered somewhat defensive as well as being suitable for a TFSA. Portfolio Analytics indicates that I'm underweight in:
Basic Materials
Communication Services
Consumer Defensive
Energy
Financial Services
Healthcare
Industrials

Please deduct as many credits as you deem necessary. Thanks for the continuing superb service especially during this unusual time.

Q: Hi, Over past 2 weeks markets have seen a rotation from Technology sector and the Stay Home stocks ( like Netflix, Shopify, Alphabet and others) into Cyclical sectors (Banks and Industrials). Airlines, Cruiselines and Gaming/Entertainment ( like WYN etc ) stocks have also shot up recently. This sector rotation seems to be based on belief that with economy reopening ( and Federal Reserve with an endless supply of money/support), recovery may be much faster and stronger.

With this noticeable shift in market positioning, we would like to participate and hope to benefit in near as well long term. We have 15% weight in Canadian Banks. But among Industrials, only companies owned by us are CNR, RPI.un and BYD. We also started a small position in AC and Boeing, on Friday, with intentions to build over time.
We are looking for companies in this sector with strong fundamentals which are trading at a discount to their historical levels, for COVID related factors and depressed market sentiment. Could you please recommend a few names in Canada and US. Thank You

Q: I am going to trim my KXS back to 6%. With the proceeds I am considering one of the following:
Add to my CAE; add to my GSY; add to my ATD.B or initiate a position in DSG.
How would you rank these choices? Any and all thoughts will be appreciated. ram

Q: Hi Team,
I have recently bought roughly an equal amount of holdings in both CAE and REAL. Currently I am up approx 4% with CAE, and down 9% with REAL. I was wondering if it would be a good move to perhaps trim say 1/3 of my CAE and use it to average down some on REAL at this time. Or, should I just hold the course? I bought CAE as a recovery play, and REAL for its growth its currently experiencing. Which do you see as having more upside in the next year or 2? Thanks

Shane.

Q: Can you give me names of 10 companies - CDN and U.S - that you feel have:
* strong balance sheets,
* a strong likelihood to survive or thrive in the current environment
* appear to be of good current value with an eye on a potentially strong rebound given a bit of time.
Your opinion is greatly appreciated.
Thanks

Q: Hello, I am planning to sell one of either ET or CAE or NWC to generate cash for the purchase of DocuSign. Which one of the these three would you sell? I understand that they are all good companies currently held in the 5i model portfolios, but I can't make up my mind. Regards, Gervais

Q: I own a fair number of the stocks in your portfolios. Given that there may be an upcoming rotation from the hot Tech sector into more value oriented stocks, what are some beaten up value names in your portfolios that you would be comfortable holding a 3% position in? I am still 30% cash and I am trying to wait until second quarter carnage is in and then buy value names. What are your thoughts on this?
Thank You for your support in these times.
Clarence

Q: Hello team,

I have the above companies in a TFSA. I have some cash. Could you recommend and rank three new positions as well as three existing positions to add to?

Thank you so much,

Q: I sense that your positivity toward CAE has become somewhat muted. In response to their quarterly report, you stated their "future looks highly uncertain" and that currently, TFII might be the better industrial sector choice. I don't want to parse your every word but I am wondering if you have more concern for CAE now than you did two weeks ago, for example? Is CAE best looked at as a value play and in that context, a good choice for a long term hold?

Appreciate your insight.

Paul F.

Q: Good Morning 5i,

Please provide your opinion on CAE Q4.

Thanks!

Q: Beside WSP, what are your favourite Industrials (CDN or US) for the next 3 years?

Q: I'm a bit flabbergasted at your recent bullishness on CAE considering the state of the airlines. But I trust you and haven't sold my position that is down 30% as of today.

I have a few questions about the backlog which I think you mentioned sits at 9 Billion dollar. So with so much work, why do they layoff staff? Is it that the staff laid off can't actually help with the backlog (i.e. they work in sales instead of engineering or something?). With do they suspend their dividend? Why have they not invested (now or previously) to deal with the backlog that they seem to have had for so long?

I get that CAE is uniquely positioned to succeed if things go well. However, they are so positioned in an industry I don't see getting back to 'normal' anytime soon.

C.

Q: Dan asked a question on May 11 about ranking the prospects of DOO, GOOS, CAE, LSPD over the next 5 years. Your answer was following ranking: LSPD, GOOS, DOO, CAE. My question is would you rank these 4 companies the same way for prospects over the next 12 months?
Thankyou

Q: I am hoping that you can shed some light on the revenue streams for CAE. I don't expect the airline industry to show much growth for a couple of years and but I am wondering how much this affects this company. How much of their revenue is generated from training brand new pilots, pilots on new aircraft, regular ongoing training for pilot license maintenance etc.? I know you like CAE and I normally don't pay that much attention to timing as I am a buy and hold investor. However, I am wondering if in this instance are growth revenues still two years away or do they maintain fairly even cash flow? I am assuming that the medical division is still a minor contributor to cash flow.

Appreciate your insight.

Paul F.

Q: How would you rank these stocks for growth as well as risk profile?

Q: I am about to triple the size of my investment in the portfolio above and give equal weighting to all. Virtually all of this new money will be in non-registered accounts. In total, this self-directed portfolio will represent 20% of my holdings; I also have 40% in a growth-focused pension fund, and 40% in a mix of ETFs through a robo-advisor.
Do you have any suggested changes to the list of names? I am primarily focused on growth, with a 3-5 year horizon.
Do you recommend a different weighting e.g. heavier on some, lighter on others?
What are your thoughts regarding timing? I am tempted to put all of the new money in now, betting on the sustainability of the recent recovery. But I understand that a phased approach will reduce risk.
Thanks for your help.

Q: Looking for some good growth prospects over the next 5+ years. Don't mind taking on something higher on the risk scale. I am evaluating some stocks that seem to be quality companies that have fallen dramatically. Would you please rank DOO, GOOS, CAE, LSPD as to how much upside you see from the current stock price for a long term hold.