Investment Q&A

Q: Hi, I'm interested in some oil/mining stocks that have recently plummeted. Do you think there's more room down, and when do you see them rising again? Thank you.

Q: If I were to pick only two themes for long term investment, they would likely be urban water supply and the electrification of North America. (Would appreciate your thoughts on those choices...).

Regarding electrification, I'm well positioned in energy providers, including green & conventional energy producers. I have a half position in HPS.a and a small amount of GRID. I am struggling to decide if I should move upstream into a copper producer (BHP?) or if I should stick with small caps like HPS.A to get more torque.

I'm retired and no longer young; my finances are solid. Most of my investments are with a professional manager. I keep about 20% for fun, but even the fun money is mostly in fairly blue chip stuff. It is in this small chunk that I shall play around, and I am okay with adding a bit of risk.

So the question is: raw material producer or end user stocks? Where would you head? Specific suggestions most welcome.

Thanks in advance.

Q: Follow Up from my recent question.

A couple questions weren't answered, but can the following one be addressed?

4. AMD. Is it worth holding the 2nd fiddle? Would it be better used in something in 1st in a different space? like AVGO or QCOM?

With your answer to SMCI from my previous question, do you have an idea based on multiples, etc that you could see an achievable price target at for 12 months?

And Finally, the last couple weeks have been ROUGH. In the other answers I've seen you mention issues with the Election, Recession fears, and just general fear with earnings coming. Are we in for a rougher ride? I know that not being invested for the few key days in a period of time drastically reduces total returns over a period, but do you foresee one of those key days coming say, by the end of the year? Would it be prudent for an investor in times like these to say, go to say 25, 50, or 75% cash? Which?

I picked up PRL and ASPN after your response to mine and other questions, and am 10 and 20% down. Did I jump the gun? Worth going to a full position in the current turbulence? Or is it worth a steadier broad market etf or energy Utility until things calm down?

Q: If you owned BEP and BN, do you think it's worth selling BEP to buy BN as a replacement? I understand is that BEP pays BN a lot in fees, and that would be the smarter play in the longer run. What would you think of that? What are people saying about the cagr growth over the next few years? For example, if BEP is expected to grow up to 12%, but BN is expected to grow at 18%, BN would probably be the better choice. Is that logical thinking at all? Thank you!

Q: Since july 2022 the U.S 10/2 year bond yield is no longer inverted what should we take from that, if any thing?

Q: What do you think about dollar tree. i bought it earlier this year. It had a bad earnings report and dropped a lot. Market over reaction?? Should I buy more ?

Q: Hi,
After carefully curating the Q&A over a period of time and posting questions, I put together these companies as my own personal 5i Small cap fund!
As of today this is where I stand:

GSY negative 8%;
LMN negative 11%;

HPS.A Positive 1.5%;
PAY Positive 7%;
PRL Positive 1.5%
TOI Positive 5.3%.

On the whole in terms of raw numbers, it is still positive.


For the new monies, would you add to these positions or suggest another small cap equity.
IF you were to add to these existing positions, in which order would you add.
I am a patient guy and willing to wait for a while. I was with you holding Knight Therapeutics for a long time! (Negative)
Also with you in energy sector (Positive) So, I know how this goes.

Thanks for all your answers.

Q: What US equity ETF do you suggest for a very long time horizon (I’m in my 20s so likely will keep investing for decades)?

Earlier this year I had been adding to RSP since most of the gains were concentrated in the Mag 7. With the market having broadened out a bit, I’m not sure if I should keep adding to RSP or if I’m better off investing new money in VOO (or VTI).

Which of the 3 ETFs (RSP, VOO, VTI) would you expect to have the best long-term total return?

Q: Hi 5i

CCO ($49.70) hit my radar due to the roughly 33% pullback since the high in May. A couple questions: How does TA look to you? I've had success buying around 30 RSI and CCO is near this.
-It looks like CCJ trades about 3 times the volume compared to CCO. I've noticed US investors are more prone to pounding a stock lower than deserved, and on the flip side, will also push companies way higher than they should go sometimes. Would you agree? Do you think this applies to the run up in May (went higher than it should) and now perhaps is lower than it should be?

Thanks,
Greg

Q: Blake on September 7th ask about valuations for CSU, LMN and TOI. If you inherited $10,000 and had to invest it by Monday evening, how would you allocate or split the difference between these three stocks?!? The usual thinking ahead three to five years. Thank you for what looks like a fine service!

Q: Sold 1/2 my portfolio (except CSU, TOI, LMN) at the end of August. First week into Sept and I'm looking smart. While I think it's still too early, when and how do I get back into market? Holdings (some sold out in August) include AMZN, META, NVDA, AMD, VRT, BN, SHOP, AXON, SNPS, NOVT, GOOG, NU, ELF.

Q: Your opinion on this company for a nice way to invest in health care with good growth and not a lot of risk?
Thanks Again

Q: Is MG a "safe" contrarian play yet? Thanks Ron

Q: Good morning,

In an answer to Danny on August 13, you said that BCE's trailing twelve months dividend is around $3.7B, which is covered by the operating cash flow of $7.6B, I read a post from Reddit yesterday that says BCE's free cash flow payout ratio is 109% stating that its dividend is covered by debt and equity dilution. Can you explain why these numbers are so wildly different? Thanks very much,

Q: A week back or so you stated one might be lucky to get NVDA at 110, and now it appears to be approaching the 95 support level back in the spring. I realize these type of questions are predictive in nature, but here goes, what do you see as a long term floor for entry into NVDA.

Also please provide valuation metrics if it hits this target,
Thx

Q: So not long ago when it over a $1000 and being recommended still as a buy, today with it being under $400 is buying today like robbing the bank or does the knife continue to fall? Is 5i buying today?
Thanks Again

Q: Hello 5i,
I have, below, cut and pasted a segment of a press release:

"A&W Food Services of Canada Inc. ("Food Services") will also receive a similar dividend from Trade Marks on its investment in Trade Marks.

Food Services also announced today that it has declared a dividend in the amount of $1.0 million to its shareholder. The dividend will be paid out of Food Services' available working capital and is separate and distinct from distributions declared by the Fund to unitholders of the Fund..."

I have looked at the Investor Page of the AW.UN website and can find no clarity around what happens to the $1.0 million dividend. I am surmising that it goes into the larger fund for whatever purpose they deem necessary, but will NOT trickle down to individual unitholders. It seems the regular monthly dividend of $0.16 is all that we will receive, as per usual. Does this interpretation seem correct?

This confusion over the 3 entities, and who gives/gets what, goes a long way towards explaining the need for a much simplified corporate structure, imho!!

Thanks for any clarity you can provide!!
Cheers,
MIke

Q: Good afternoon. GSY is struggling a bit lately but so is the rest of the market. I read an article that said GSY has high debt levels that are not well covered by cash flow. This got me wondering why does GSY have high debt levels and where does it get its money to lend? If they borrow to raise money to lend and rates drop could they not get into a squeeze where the margin between money they loan out and loans they have to reply narrows?

Q: Peter with so many unions going on and threatening stikes in Canada I believe it will effect the owners ie shareholders to a negative affect . Can you give us companies with 5% div or more that are not banks and are not unionised. Thanks Ken

Q: What is your opinion of ATGE in an otherwise financial equity, diversified etf, and REIT-oriented portfolio? Also, how does it stack up against such firms as Franklin Covey or TAL Education Group?