Investment Q&A

Q: Can I please have your opinion on the impact of interest rates on FirstService in general. Do you feel they would have anything other than the average market reaction to interest rate changes, either rising or falling? Thank you.

Q: I have 1/2 to 2/3 positions in these four names. They pulled back recently and I am considering adding to make them full positions. Would you proceed today or wait for better prices? Any price targets to recommend.

Q: Your recent comments about FSV fundamentals have been quite positive and yet the share price continues to decline. Is it possible (ie likely) that this has something to do with the changes to the capital gains rules? If so, what would be your approach?

Q: I've held FSV for many, many years and have a nice unrealized gain. I'm looking to add to the position.

Any concern with adding at this price level? I notice the graph has shown a steady decline for the past several weeks.

Would you wait for it to settle down a bit?

Thanks,
Robert

Q: Thanks for a recent explanation of FSV's P/E ratio.

It's current P/B, P/S, and P/C metrics look fairly reasonable compared to the past 10 years, would you agree?

Are you able to please give your opinion on the company management, current margins and debt for this company?

Q: Some time back, based on your recommendations ( thank you ) I added BN and GSY to my cash portfolio which is loaded up with banks, utilities , telecom etc, to include more growth oriented high quality stocks and am now able to add one of these four. Would you please give me a quick analysis of each detailing strengths/weaknesses financially , operationally,
sector wise. In what order would you buy ?
Thanks Derek

Q: Hi Peter, Ryan, and Team,

In the Real Estate sector, and across all our accounts, we own DIR.UN, FSV, and IIP.UN. FSV has been a stellar performer, and without 5i’s initial recommendation, it wouldn’t have been considered, and is certainly one we want to keep.

However, when I look at the charts for DIR.UN and IIP.UN, I see that Dream Industrial has a much better long-term record. Does a residential real estate stock need to be owned in one’s portfolio? If IIP.UN isn’t really necessary, I’m considering selling it and putting the proceeds into DIR.UN. Both IIP.UN and DIR.UN have made money, but of course, Dream has made a lot more.

Your comments, as always, are greatly appreciated.

Q: I am somewhat confused and mystified....according to 3 sources I look at (including the company profile on 5i), the P/E for FSV is at 75. In an answer in early April you suggested the Forward P/E is 32.5; on April 25, you explained that while Revenue was up 14%, EPS was 67 cents down from 85 cents the prior year. 1. How does the Forward P/E drop by more than half when EPS went down? 2. You describe the results as good overall, yet the stock price continued to slide although it turned a bit at the beginning of this month: at this time do you see FSV as worth holding onto? Many thanks

Q: Your comments on First Service earnings please

Q: Was just re-reading the 2022 5i report on FSV and reviewing some recent answers to questions whereby you remain positive on the name. Can you provide a quick update on a few things in the report, like the key risks then versus now, and comment on the current valuation on a forward basis (and anything else new/changed, positive or negative that you think is worth considering before making the decision to buy now). Thanks.

Q: Can you comment on FSV earnings. Slight miss on earnings but a beat on revenue. market is down of news. what are your thoughts going forward

Q: Hi,

I want to add one of EQB and FSV to my TFSA. Which one would be your choice?
Regards

Q: I have held CP for some time now. Although it has fluctuated somewhat, it seems to be range bound. Do you see it having much potential to increase? I am starting to consider swapping it for FSV, which seems to just steadily increase. Any comment on that switch?

Many thanks

Q: Hi 5i,

I currently hold DND and REAL, which I had purchased approx. 1year ago. My Thesis for both of these stocks is that once interest rates begin to fall both stocks both could experience positive stock movement to the upside given the current need for housing and all the pent up demand in the US/Canada.

I have read your report on dropping coverage of DND and your answers to questions on REAL. It would appear that your main concern is on their debt levels and that there are better opportunities elsewhere for an investors capital. Is that correct?

Do you have any actual concerns with the business models of both these companies itself? What are your views on the real estate market in general?

Apologize for the multiple questions. Please deduct as many credits as needed.

Thanks in advance!

Greg C.

Q: I have both stocks in a non registered account. Thinking about selling Colliers and adding to First Service. Thoughts

Q: I am woefully underexposed to the real estate sector.
Could you please identify your top 3 Canadian stocks, REITS and ETF's which one might play for the impending interest rate cuts in 2024?

Thanks
Jeff

Q: Do you feel there's a good chance that we are in the midst of a true rotation to growth? What are a few Canadian and US names you think are well positioned to outperform in this scenario?

Q: Which companies in the 5i Growth portfolio have the most consecutive quarters of revenue growth? Please list top three in order.
Thanks!

Q: Please provide your analysis of the earnings of these two companies.

Thanks

Q: Comments on FSV earnings please? It’s still a buy for long term?