Investment Q&A

Q: Hi 5i Team,
Encore Wire Corp hit all time high after earning reported in February, but dropped more than 20% lately.
Could you pls give your update assessment of this company going forward.
Is it buyable? if so, would you pls suggest an entry point.
Thank you as always.

Q: Hi 5i,
I have a few of questions about a few tech ETF's - please deduct as many points as you think appropriate.
In comparing XIT to TXF.B I note that XIT has a better 5 year annualized return (16.03% to 7.87%) but TXF.B has outperformed XIT over the past 3 year annualized period by 10.23% to 8.38%. In addition, TXF.B pays a very healthy distribution (over 9% annually) while XIT pays none. And then finally, XIT is all Canadian and has over 75% of its NAV wrapped up in 4 names - CSU, SHOP, CGI and OTEX.
All that being the case, I wonder:
Is XIT too dependent on just a few names that are all in one geography to have the safety one expects (hopes for at least) in an ETF, both looked at in isolation and also when compared to a name like TXF.B?
XIT obviously hit it big with those 4 names (and especially CSU I'd think) but is its good return likely to continue into the future with so much reliance on so few contributors, all of which are in Canada?
Is there a site that does the hard work of comparing the actual returns of ETFs by analyzing the combination of capital gain combined with the contribution of distributions so that it's possible to get a true idea of the performance of an ETF like TXF.B with its 9% /year distribution compared to XIT's zero payout? and finally:
Between a hedged ETF like TXF vs an unhedged ETF like TXF.B which have identical holdings, which would you expect to do better over the next 3 years or so, and why? I note that unhedged TXE.B has outperformed hedged TXF over the past number of years, and I wonder if you think this trend will continue.
Thanks 5i, I look forward to reading your thoughts.
Peter

Q: I have no International exposure to date. Can you please suggest your top three International ETF's.

Q: Can I get your 3 or 4 picks for Ai stocks or ETF,s

Q: I am down 26% on goeasy this quarter.Should I dump or add at these price levels?

Q: I have an odd situation regarding capital loss on META. On a US$ basis there is a small capital gain. However, when converting to Canadian $ using actual exchange rates around acquisition dates for adjusted cost base, and using the 2022 annual average exchange rate from BoC for sale proceeds , I get a capital loss. This looks strange. I have checked several sources , and even asked ChatGPT to do the calculation. All calculation methods show results within 1%: a gain in US$ but a loss in Canadian $. Is this even acceptable to CRA? Or am I best to claim no gain, no loss? (I acknowledge of course: 5i are not tax advisors; that 5i is not responsible for whatever I report and whatever sources I use. I’d just appreciate knowing if this sort of bizarre thing does occur). Many thanks.

Q: Looking at one of these 2 candidates for a small (~1-2%) position in a TFSA.
Could you provide some input, and which would you prefer.
Thanks as always
T.

Q: ATZ,CIA,FCR.UN,MTY,PD,NTR,TSU,TDM,GOOS,ECN,ALL TSE
Losses in all this stocks and confused need your Opinion Badly,I know they are maany stocks and Highly apreciate your help.

Q: i am going to buy this stock next week. is there any reason i should not?

Q: I read from another source that KNSL and RLI are peers to TSU. You stated an evaluation comparison with AON, AJG and BRO in your previous report (jan22). Finviz classified the first group in ‘’Property & Casualty’’ and the second, more as ‘’Insurance Brokers’’. Could you please clarify which group should be used to compare. The second group did well since mid-march but the first one did so-so. The idea is if Trisura belongs more to the second group, it could represent a good entry point since they are still in the penalty box. Your thoughts are appreciated.
Tks

Q: Does this CNBC article bode well for Tantalus Systems GRID?

https://www.cnbc.com/2023/04/06/outdated-us-energy-grid-tons-of-clean-energy-stuck-waiting-in-line.html

Q: I am catching up on my reading and got to your article about Canadian Stocks that pay US dividends.

I do own a number of them. Most of them are in US accounts at my broker I guess it makes sense to have all of them on the US side to avoid loss of currency conversion.

Are there any other reasons?

Thanks

Sheldon

Q: I currently have approximately 2% of my retirement portfolio invested in Goldman Sachs Business Development Corporation Inc. (GSBD). I hold this investment primarily for the dividend income it generates. It has however been an absolutely terrible performer from a preservation of capital perspective over the past few years and every time it reports earnings it seems that the Net Asset Value per share has somehow dropped from the previously reported period. I am therefore considering switching out of GSBD and into Starwood Property Trust (STWD). i would value your opinion on that suggested trade.

If you might happen to feel that neither of these firms is a particularly advisable investment for anyone to hold then please don't be shy about saying so.

Thank you!

Q: What are your views on this as a place to protect some dollars?
Are there better places ?

Q: Are there any Canadian listed American utilities covered call etfs or non covered call etfs? Thank you.

Q: would you recommend buying this company at this time

Q: Hi team
like to add to an existing position
for dividends and long term hold for some capital appreciation
could you give me a
good entry point? (price wise); all banks have pulled back
thanks

Michael

Q: Previous question to 5i: What will be the effect on TC Energy if Coastal GasLink project price increases bya further $1.2B?
Previous 5i answer: "he noted increase would be about +10% to the current estimates. At this point, we think investors are expecting the worst and we doubt the share impact on such news would be too dramatic, perhaps 3% to 4% down."

What does 5i mean pls by "he noted increase would be about +10% to the current estimates"?

Thank you. Ron L

Q: Hi all,

I wanted to share this from a post on LinkedIn:

You have to be fluent in accounting to look at public companies.

Not because accounting itself matters.

But because accounting can obscure what matters.

READ THAT AGAIN

And your task it to translate GAAP into meaningful business logic.

Or use 5i Research :)

Happy Easter Everyone!

Q: Nutrien struggling as of late...what is your opinion on this company and its future?