Investment Q&A

Q: Hi,
This is a follow up to another member question/answer from July 26, 2019. "But we would still prefer building one's own ETF with 10 to 15 stocks. Yes, there will be some that decline. But this will ensure proper diversification, eliminate fees, and (likely) get you higher income and overall returns. Owning 15 or so stocks across 11 sectors is not that difficult, but there is a trade off between effort (and perhaps inexperience) and costs. But this would also be the easiest way to balance out the account with no concentration risk, over time." is the portion I'd like more information on. I currently hold XIC:CA for the bulk of my Canadian exposure. If i were looking to "replicate" the XIC ETF with 15 stocks over 11 sectors, would you recommend equal weighting across all sectors and do you have any stand out stock picks to represent each sector in this scenario. Thanks!

Q: Could you please tell me how the fundamentals are calculated in divided class share structured companies? Could the answer could include A,B,Preferred shares? How would rules apply to Market cap/ P/Eratios, or anything else? Would it be total market cap of both a and b shares or per class when I view them on a company profile? Is every company required to report this the same way? How about general calculations of the company. What is the best method for me to look at when I wish to do research on a company. I use ATD.A,B as an example but any example you wish will be fine.
Thank you
Jeremy

Q: Earlier today a member talked about companies that had grown in value, in his case Sunlife had reached over 7% of his portfolio, and asked if he should be trimming them. You encouraged him to cut back to 5%. I understand the general principle of balance and diversification in a portfolio in order to reduce risk, but how do you reconcile being rigid about that with the idea that Peter and many other fund managers and advisers have written about - the importance of letting your winners run? Exceptional portfolio results are often due to one or two stocks that have doubled, tripled and more. Boyd is such a stock for me. It is still recommended as a buy by 5i and many others at current levels. I can't imagine why I'd cut it back. My question though is a general one. How do you resolve these two conflicting notions?

Q: I just renewed my membership and in the past there is a section that tells you how many question "credits" you have left (unused carryover credits, plus new credits from the renewal). Where is that information located now? I searched all over and can't find it. Please help, thanks.

Q: Good morning guys
Often you will mention that a given stock may take for example 3 to 5 years to come back. What percentage gain are you allowing for? I like to shave some of my winners back to my original amount and then wait for a pullback to add again. Then I will do it all over again.
Thank you

Q: I am confused by how the term « position » is used here - a position I take as meaning a holding but some refer to « a full position » « 2 positions » etc. Would you provide some clarity? The muddy jargon isn’t helpful. Thanks.

Q: I am selling my home and moving, have not yet found a new place to live, so I will have a lot of cash to park for an unknown length of time. My plan would be to do a high interest savings account at Oaktree or buy the purpose ETF. My wife will kill me if I lose any capital…
Do you have any better ideas?
Thanks!

Q: What percentage of a RRIF account would you recommend having exposed to a covered call strategy using ZWC, the said account has Enbridge, Superior plus, XTR and FIE, with the two latter having the largest percentage

Q: Hello. Looking for a recommendation in the telecomm, materials, and energy sectors. Can you also let me know if you see them as more stable companies IE better fit for my RRSP, or have the potential for higher growth so maybe a better fit for a TFSA? Im 40 so long runway ahead and ok with some volatility for the sake of growth over time.

Q: Question of curiosity. Any idea what happened in the last second/close of trading today with Western Forest Products? 9.39 million shares (2.5% of shares outstanding) changed hands? From quotemedia it suggests it is a MOC trade - https://www.tsx.com/trading/toronto-stock-exchange/order-types-and-features/market-on-close - which really means nothing to me, even after reading that page (Investopedia doesn't help much either with an example of a trader selling 100 shares in a MOC order). Is it an ominous sign for tomorrow's opening?

Thanks

Q: Wilders RSI 14 - Can you use 14 weeks instead of 14 days? What are the pros and cons using wks vs days?

Q: Hello Peter, I called in BNN market call but could not ask the question. Good show.
Question is about adding new money on a regular basis. What do you suggest adding to - positions that are lagging ( and thus are at the lower weight now - some listed above) or picking ones with most attractive outlook (from fundamental perspective).
Can you please suggest top 2-3 names in each portfolio at this time.
Thanks

Q: On August 8, 2018, Peter Hodsons Top Picks on Market Call were Covalon Technologies, now down 78%; Spin Master, now down 23% and Stingray Digital, now down 17%. This doesn't give me much confidence in the recommendations made by 5i Research.

Q: Hi All at 5i! Tracy Britt Cool is one of Warren Buffett right hand people. She is leaving Berkshire to start her own investment company , similar to Berkshire, but handling smaller cap stocks. Do you know if this investment company has been established yet? I have been looking but can’t seem to find any information. Your assistance would be appreciated. Cheers, Tamara

Q: Any suggestions where one could obtain the credit ratings on Canadian Companies? Tx.

Q: 5I Team,

Can I get your comments UCU's recent rights issue? I'm concerned that its too dilutive. Is this a good way to raise capital?

Thanks

Q: I see that some companies like BLDP and SEA have been added to the S&P composite index and others , mostly energy corp have been removed. Ballard hasn't done much in years . Can you explain these changes , thanks a lot.

Q: Please provide some public sources that I can find the industry average for comparison to a firm's specific financial metrics (e.g. PE ratio, price to cash flow)!

Q: Hi team ,
I am down 24% on square . Is it time to sell, hold , or buy more? In my opinion it’s being punished for no real reason, and still believe in its growth rate and potential disruptor status .

Call this a 2 part question as well and charge me credits accordingly . Do you believe in this current “market rotation” gimmick ? To me the current growth companies are still the current growth companies . It seems these days that the big traders on the market get together for a coffee before market open and conspire together to decide “what’s the theme of the week today ?”. I don’t understand it all but this last Monday for example was grossly obvious how crooked the “market “ can really be . Ayx for example : you can’t tell me that over the weekend that company is suddenly worth 15% less come Monday morning . In my opinion it’s a sad platform we all play on here , but at the end end of the day it seems the best strategy is to buy a best in class company and hold it long term , unless the fundamentals change , cause the market is so obviously manipulated every day .

Your thoughts please would be appreciated . ThAnks !

Q: AYX, OKTA, TEAM, TTD, TWLO, VEEV

It's clear that software stocks are taking a heavy beating right now. Are there any concerns for recovery and continued growth at the companies above? What sort of expectations might you have for the above stocks down the road at the 1-year, 3-year and 5-year marks?