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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi, There are lots of high growth companies out there with little or no free cash flow. Growth investors accept this because these companies invest aggressively in their own growth, development, market position, etc.

While it's understandable that high growth companies focus on their own growth now, presumably they will eventually need to switch to other forms of capital allocation. I am wondering if you have any insight into how much confidence we should have in which of these management teams will act in the best interest of shareholders when the time comes to maximize shareholder value via other forms of capital allocation. For example, if a company reaching maturity throws most of their resources into R&D despite diminishing returns it would not be in our best interest.

I realize the answer to this isn't completely knowable, so also interested in your general thoughts on this topic.
Thanks
Read Answer Asked by Alex on January 21, 2022
Q: Was listening to some podcasts on clean energy and it was noted that Canada has some of the best battery recycling in the world. I found the above noted company and was wondering your thoughts on it as an investment or if there is another company in this space you might consider.
The speaker also commented that Canada is in a good position to capitalize on clean energy but needs a national strategy or we will just end up sending the raw materials to be processed elsewhere missing out on value added economy.
Do you have any suggestions as to companies that may be on the way to achieving this?
Read Answer Asked by Colleen on January 21, 2022
Q: Lately I have noticed a number of questions regarding P/E. Most sites quote TTM (trailing 12 months). While valuable, you have mentioned that you find "P/E-forward 12 months" to be more helpful. I believe the 5iR company data page shows TTM.

Could you consider, in one of your next website updates, including P/E-fwd 12 months? If yes, great. If no, can you provide a website that does show this number.

Thanks for your help.....Steve
Read Answer Asked by Stephen on January 21, 2022
Q: Hello Peter and Team,

Is there a smart way to hold investments denominated in Swiss Francs that generate yield?

The goal is to diversify some funds to currency in a stable country that isn't printing money unabated like in Canada, the US, and the Euro to avoid loss of purchasing power. Even better if we can be invested in decent stocks or get dividend yield while we are at it.

Thanks!
Read Answer Asked by Marc on January 21, 2022
Q: Hi 5i
You have mentioned in previous responses that REAL should/could be taken private. If this was to happen, what happens to shares holders and what do you think share price could be worth if this was to happen.

What do you think odds are of this happening?

Previous answers you have clearly stated you could not endorse the company heading into earnings....In your opinion at this point, down -68% would you continue to be holders or rushing for exits ?

Thx

Jim
Read Answer Asked by jim on January 21, 2022
Q: As a long time member it seems to me previously 5i indicated a 1% position was too small to help performance in a portfoilio. Lately you have been adding 1% positions, why the change?
Read Answer Asked by Charles on January 21, 2022
Q: Looks to me that it's time to start looking in the 'bargain bin' for some heavily discounted companies. I like to find good solid companies that have been taken down with the market but through no fault of their own. They also are so good at running their businesses that I need to wait for times like these to purchase them. I'm an investor who can accept medium risk and dividends are always welcome. Please focus on Canadian companies.
Read Answer Asked by Les on January 21, 2022
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