Investment Q&A

Q: I was looking at a lot of the negative comments about your stock picks - I think your service is the best value for money of any of the services I subscribe to - I have always subscribed to the idea - if something doubles I take some money off the table - usually half and then I let the other half do what it will do - I never get greedy and sometimes I have to take a bit of a loss. You have given me more good ideas over the years that I have done very well on - when markets turn - investors always want to "blame" someone - markets go up and down and it isn't always pleasant - but if an investment you own is down and the fundamentals are still overall positive - why wouldn't you buy more. This current investment environment seems to punish any company that misses analysts' expectations even by a small amount. All the investors that looked at the US markets especially and didn't take some money off the table - only have themselves to blame - nothing goes up forever and no one - even you guys - have a crystal ball - but you are pretty exceptional in the service you provide - especially for the subscription price.

Q: This is both a comment and a question:
I know that 5i doesnt need another "bodyguard" ... or even someone to "beat the drums" for 5i's expertise ...but as you frequently suggest ( and clearly many of your happy customers do the same) namely: we need to do our own homework too.

As part of that process, one of my sources is RBC Direct Investing where I can pull up pretty much everything I could ever want to see on a stock. This includes Morningstar ratings and a rating such as undervalued, overvalued and fair value.

The question: can you tell me how you view the value of this information as part of the investment process? Given that nothing is perfect, is this information highly regarded as useful. I would expect RBC is convinced "yes" since they likely pay hefty fees for the service.
(I could call Direct Investing on this matter, but I believe a 5i answer will be far superior to anything I would get there.)

Finally another comment and specific examples consistent with the 5i point of view:
After reading your comments regarding "throwing in the towel" on TV and RHT .... and having read so many critical comments from your customers, I decided to check Morningstar.

Both RHT and TV have 5 star ratings which is as good as it gets. Similarly the cuurent price and Fair Value for TV are 0.43 and 0.93 cents; RHT 0.32 and 0.68 cents. If I read these numbers correctly, Morningstar still sees an upside of over 100% on each of these stocks..... not unlike 5i's original perspective. Of course I have no idea of the timeframe. Nonetheless I am glad to be out of both and be able to use the money for better opportunities.

Signed: Another grateful customer who REALLY enjoys looking at the over the top performance of (to only name a few) KXS, CSU, SIS, PBH, PKI .... even Amaya/TSGI and more recently PSI (nicely up in a bad market).

Onward and upward....

Q: Years ago I used to use liquid options on the TSE35 Index, but have been frustrated in finding a modern day equivalent for today's main Toronto Index.
I'm thinking there must be something available to at least partially match
the huge liquidity provided by the SPY options for the S&P 500, but have
so far never been able to find a Toronto Index alternative.
Thanks so much!

Q: Would you please provide us with what the dates are for earnings announcements for all 5i portfolio stocks?

Appreciate your help.

Sheldon

Q: How are corporations classified into different sectors? For example: why is Savaria Corp considered to be in the "Industrials" sector rather than "Health Care"?

Q: Are there any rules regarding insider purchases? Once they disclose a purchase, are they required to hold the stock for any specific period? If you know of a site where I could research this more fully, I would appreciate it.

Q: I’ve been reading much negative commentary on this site lately, mostly shots against 5i’s recommendations, and I feel compelled to add my own observations.

Having invested since the late 90s, and earning my sole living from it since 2008, I find the shots against 5i alarming, and their defence against them heartwarmingly reassuring.

I’m essentially a large-cap, dividend-growing financial & utilities/pipeline/reit/preferred oriented-type investor, including looking to the US for what the TSX does not have (in essence, I’m investing for income first and growth second, though growth is still important), who has subscribed to 5i since its inception.

The alarming part is that while I’ve bought into ‘some’ of 5i’s growthier stock picks, my conservative-oriented big cap stocks (both US & CAD) have fared just as badly in recent weeks. So much for my own - intensely researched - so-called safety stocks. The reassuring part is 5i’s comments back to everyone, which is basically summed up as: relax, move to the sidelines - by ‘doing nothing’: meaning: hold - watch the show, but don’t be a part of it.

I was fully invested in 08/09, and while I fortunately ‘did nothing’ at that juncture, I certainly could have used 5i’s wisdom and calmness at that critical time.

This too will pass. Some companies will not survive. Most will. Those that do, will typically prosper. Try not to make large bets. Spread it around. Don’t react. Invest for growing income. Accept some losses, and let them go.

I write this more to remind myself, but since I have greatly benefited from other 5i members who have voiced similar thoughts, I thought it important to include my own.

I trust and hope that Peter, Ryan and The Team will keep their skins proficiently thick, and carry us through a multitude of turbulent times long into the future.

Thank you for helping us keep our heads in these difficult times.

Warren

Q: Not a question but more a suggestion. I have been a client since year one of 5i I have done very well with the service using it as a guiding tool followed up with my own research. A suggestion for other investors out there who maybe experiencing some panic in this sell off that we are having. I suggest that when they do look at your recommendations and after they have done some of their own research and decided to buy they should write the reasons down in a note book as to why they are purchasing this company stock and date it. Then they should list the reasons why they would sell it. This way when the market starts the sell off they can go back and read their notes and see if anything has changed with their pick and if they should sell or maybe buy more due to an irrational sale. Once I personally implemented this practice I found my feelings of panic in a sell off were gone because I know and can look back at why I bought a certain equity and make sure the story has not changed. Please feel free to put this out there and thanks for the great service looking forward to 2019 ideas.

Q: Having read a number of complainer's questions in the last few days it occurs to me that not everyone should be a do-it-yourself investor. I well recall the myriad compliments fawning over you and your staff when certain members were watching their 5i recommended holdings climb in value on almost a daily basis. You likely knew that those words of praise would at some point turn to venom which they have. My plea to those who see fit to complain at this time is that you carefully consider what you are doing by making your own equity investment decisions. It may not be the right way to go. There are numerous options for you such as mutual funds, robo-advisors and broad-based etf's. However it isn't constructive nor in my view appropriate to complain to 5i that your stocks have diminished in value at the moment. Peter and staff don't control market sentiment nor momentum. They provide valuable information and opinion without bias for you to assess and then for you to govern yourself as you see fit. Please don't complain about this service solely because your holdings are down. That is one of but three alternatives of equity investing (along with breaking even and having your investments appreciate). A better approach at this time is to ask questions so as to position yourself more wisely. Publish at your discretion.

Q: Comments. There has been a change in the market and the economy. We have had almost 9 full quarters of U. S. growth, acceleration, etc. it may be coming to an end and we could be entering a downturn. This is the view of many smart people who do not publish or broadcast. Of course, based on the past, there has always been a recovery. Past results do not guarantee future performance and the winners may be different next time. The market is up or down for many reasons, but lets be frank here. 5i is not providing a hedge fund type service. I am sure many of the subscribers are inexperienced investors and feel the pain, if they bought stock near the peak of prices for certain areas. Common mistake. One's view of balance is critical but does not take into account major change in direction over a shorter time frame. One should not expect to have the market in their stocks recover. It may not. Risk mitigation is always the rule. Try not to lose your money or your can't play......Its my money and I expect to keep it and have it grow but I do not rely on anyone's opinion in the end. 5i is just one source of information or opinion.

Q: Most of the companies I currently own are listed on the TSX. I believe some of these companies must be claimed on a T1135 (foreign ownership) form. Is there a list somewhere that will help me identify which TSX companies are considered foreign?

Q: Just my 2 cents..having been with 5i for 4 and a half years I gave learned to trust your opinions and then do my own due diligence. These are difficult weeks and the market is fearful. But it is still here after many many years and decades of ups and downs. When we stand back and look at the charts....we are up over the years. This is an opportunity to slowly dip into some of our favourite holdings. The world and hence the market has always had problems and always will. To those who doubt 5i opinions...stay the course...and do your own research as well. I'm glad I have.
Post at your discretion.

Q: Peter & Ryan, I have been a 5i member for over a year now and do not own all of your stocks but do own the ones mentioned above. I am down thousands of dollars based on your recommendations and expertise. Please help me understand what service am I paying for? I understand the market goes up and down but there is many of your recommendations that are getting wiped out. What is 5i's due diligence process for picking companies?
Appreciate your feedback
SF

Q: When one has acumulated sufficient funds in the RSP, TFSA ,unregistered accounts, etc, to fully fund ( after tax consideration,) a retirement lifestyle that matches ones current lifestyle, is there any reason to continue to be in the stock market? Age is 67. I am thinking of selling all my stocks, bonds etc, and just having GIC`s . Aside from FOMO, would the risk of very high inflation be my only concern?

Q: Here is a list of some of my holdings. Most of them are frightening. TOY, GSY, PHO, COV, TSGI and KXS which I just increased to a full position the other day.
RHT, CXR and SINO FOREST. I have seen them go from dollars to pennies and out of these I am very concerned that TSGI -- one morning I will wake up and it will be pennies and when I go to 5i you will be telling us that you will be removing it from the portfolio and selling it. If it will take years for these to recover, should we not put our money somewhere else until that time comes?
Thanks Dennis

Q: G &M no longer provides complete lists of New Highs for free.
5i provides a maximum of 10 names.
Would you know of a replacement site? I get my ideas from such lists.

Q: Is this a decent place to park some cash for 6 - 12 months?
If not, what would you recommend that has a safe return?
Thanks

Q: This is to follow up on the comment posted by Wilf earlier today re. his concerns with portfolio tracking through Globe Fund. I have created a new topic " Globe Investor " in the Forum category " Brokerage and Research Tools" for anyone experiencing problems they would like to share/discuss re. the new portfolio tracking platform introduced by Globe Investor a couple of months ago.
Thanks.

Q: How do I view my watchlist?

Q: Is there any way to find a listing of companies that are in your database?
It is frustrating to enter tickers an receive "not in our Database"

regards
Ernie