Investment Q&A

Q: Hello,

In the real estate sector, I have a position of 7% in D.UN, and 2.5% in CUF.UN. Both positions are respectively held in my TFSA and RRSP. I would book a 15% profit over the past year if I were to sell. How important is it to be exposed directly to real estate?

What's your thought on selling to buy more growth oriented stocks since I am a young investor and don't really need the income. What would be your company suggestions? I am currently underweight in consumer defensive (3% ATD.B), industrials (3% SNC, 3% WJA) or/and could also add another position in technology (2%BB, 2%PHO, 5% OTEX, 6% KXS).

Thank you,

Q: Hello,

I assume that VFV and ZSP are identical EFTs provided by Vanguard and BMO respectively. Their MER, asset allocations, sector breakdown are close to identical.

However I notice the following anomalies (VFV vs ZSP):
1) Dividends of $0.238 CAD vs $0.145 with yields of 1.565% and 1.789% respectively. Why the difference in dividends?

2) Portfolio turnover rate of 13.18% vs 31.90%. Why would there be a difference in turnover rate?

3) Benchmark: S&P 500 CAD vs S&P 500 TR CAD. What does the "TR" mean?

3) Market price (NAV?) of $56.33 vs $34.94: Is this due to dividend reinvestment and inception date?

If one were to buy one of these, which would you prefer and why?

Thank you for your excellent and unbiased opinion and service

Q: I suggest you place a eValium button on a stock every time it tanks. I could prevent folks from jumping off windows. On second thought marijuana ETF would do the same.

Q: totally agree with Jim your services surpass any other
your advice and analysis are more than appreciated
keep the super good work
thanks for your insight and knowledge

Q: How can I find out what sector a stock is in?
Thank you

Q: Hi,
I remain somewhat confused about which account it's best to hold Dividend paying stocks in. I've noticed some responses where you indicate it's best to hold the dividend payers in non registered accounts and higher growth stocks (capital gainers) in a registered TFSA or RRSP account.
For whatever reason, I assumed the opposite as I thought receiving dividends was more along the lines of receiving income (i.e.- cash) so it would be best to put these into your registered accounts to lower the tax bill.
So, in my situation, as I receive approx 60k in annual pension income- am I better to put the dividend payers into the registered or non registered accounts to keep the tax bill as low as possible.
Thank you.

Q: Can you explain Prem/Discount to NAV 0.48%, Actual Management Fee 0.65%, Actual Management Expense Ratio (MER) 0.70%.

Thank you

Q: Hi, folks
I'm very new to 5i Research, and trying to get myself orientated around.
I have some questions on the balanced portfolio
1) with less capital like $50k, what your recommendations on how to follow this portfolio?
2) when there is a add/remove in the portfolio, how quickly I will be notified?
3) in the report, when you add or trim a position, do you provide at what price to buy or sell?
4) for how long I need to hold the stocks in your portfolio? Do I need to have a stop loss/trailing stop to max my gain and minimize my loss?
5) what is the average holding period for a stock in this portfolio roughly? You can give me a range the longest to the shortest...
6) to initiate to build this portfolio for my own, is it better to wait for the market to pull back? or Do you have a recommendation about when to buy?

By the way, is it ok for me to ask questions about stocks/ETF's outside Canada or large cap's inside/outside Canada (I know you guys are focus on mid to small caps)

Thanks a lot!
Jane

Q: I am trying to understand how you do things and can only re-visit this topic when my time permits.

I understand there are 11 sectors:
1. Technology
2. Basic Materials
3. Industrials
4. Financials
5. Consumer Cyclicals
6. Consumer Non-cyclicals
7. Utilities
8. Telecommunications
9. Healthcare
10. Energy
11. Real Estate

Would you agree with above?

Keeping this in mind, you have a representative of each sector in the Balanced Portfolio?

Do you feel that a person should have all sectors represented in their portfolio at all times?

Thank you in advance for your help with this.

Q: I would just like to echo Rod L's response to "complaint re KWH.UN etc". I have been a very happy member since May of 2013. Not everything has gone well, but by roughly following a 5i model (I think diversification, self risk assessment, and time) I have much more than exceeded my investment expectations. I think anyone would be hard pressed to find a better investment service anywhere - and the price is a bargain!!

Q: 5i:
read this on Seeking Alpha, and HAD to share, as investments can be very somber reading, this is meant to put a smile on people's faces (investing should be a LITTLE fun):
I've bought stocks and sold stocks and held stocks; just not at the correct time!
lol, and the best to y'all.

Q: Hi guys,

After many years of successful investing, I've finally opted for a 'margin' account. While I don't plan on using the margin excess for further long exposure, I would like to try shorting a name or two (I'll keep the positions small, maybe 2% each for now). Are there any good short candidates that come to mind? I want to avoid the battleground stocks (VRX, HCG), but would love to find something that is just a real dog.

Thanks,
Mike

Q: I am always leery of a company where the insiders do not have any or perhaps very few common shares--Instead they have--options--multiple voting shs--performance share units--subordinate voting shs etc.Common shs mean to me you got some skin in the game--I dont understand all these other classes of shs---TOY is a good example of this.I dont like options thats no commitment at all and hurts the share price.Should I be concerned about these other classes of shares? What do they all mean?
Thanks--I have just had your portfolio review and find it very helpful--would reccommend it to any body.

Peter

Q: Hello 5i:
I would like to have a better understanding about market sectors that are benefiting from higher inflation, and sectors that are preferable when inflation is lower than expected. Is it possible to make such a clear cut categorization, and if yes, in which sectors shuld I invest during inflationary and deflationary times?

Q: Hello 5i
I plan on shifting a large sum of RRSP monies from my financial planner over to Questrade so i can manage it myself with the guidance of 5i Research of course .
Should i be concerned with the safety of these investments with Questrade in terms of account hacking etc via computer . Do brokerage companies generally have insurances for this type of thing ? I really don't want to be putting myself in a position of high risk unknowingly .
Thanks
Bill

Q: Would it be possible to include whether the dividend of companies that you cover qualify for the dividend tax credit or contain foreign income or return of capital? This information is a lot harder to find on company websites than I thought it would be since I think is quite important information. I appreciate it might be hard to include provide this info for every question asked (thought it would be nice when the question does pertain specifically to the dividend) but the Reports should include it, I think. It may also help to cut down on the number of questions as to which account stocks should be held.

Thank you.

Paul F.

Q: I bot a warrant several years ago for $3.00. It will run out in June of this year and is now worth two cents. Can I do nothing and just this run out or do I have to sell it. Money from the sale will not cover the brokers fee.

Q: Recently a member suggested The Cerbat Gem as a free investment news and recommendations site. May I advise caution as concerns this site.

Yes, they aggregate press releases, broker reports, and trading monitors in an impersonal (robotic?) style, and perhaps this provides a useful service. But there is little to distinguish The Cerbat Gem from (for example) The Stock Rover, Buckeye Business Review, Chaffey Breeze, Rockville Register, The Markets Daily, Community Financial News, Key Gazette, etc., etc., etc. - all of whom print variations on essentially the same information.

Still not put-off? Consider, then, that the site's Omaha, Nebraska street address can't be located via Google maps, and that it shares a Florida phone number with Sports Perspectives (another address-unfindable investment-news site.) Indeed, we might wonder whether its real purpose were to generate webpages which, subsequently, show-up on news-based search results, thereby creating click-bait for the site's endless pop-up ads.

Q: Your readers may be interested in a couple of free investment sites that I use.
The first is Globe Investor/My Watchlist which publishes daily
(before the market opens)-Analyst upgrades & downgrades and Small cap stocks to watch.Then the next day some of the selections are reported in the Globe & Mail. For instance Cirius Trust was an upgrade yesterday and was covered today in Eye on equities in the Globe & Mail. This morning before the market opened Shopify was upgraded .
The 2nd is The Cerbat Gem ,a U.S. site that covers investment news and recommendations from numerous investment houses in Canada & U.S.
Recently they had reports on Crh,Sis and Zcl.

Q: WHEN A COMPANY SAYS IT IS EXPLORING ALTERNATIVES AND HIRES AN INVESTMENT
BANKER TO EXPLORE THOSE ALTERNATIVES; HOW OFTEN WILL A SALE HAPPEN IN YOUR OPINION? I REALIZE THE BOARD WILL ONLY SELL IF THEY GET A GOOD PRICE BUT I WOULD APPRECIATE YOUR THOUGHTS AND DO YOU THINK CDI-N IS WORTH HOLDING FOR A POSSIBLE SALE? I DO NOT OWN THIS COMPANY YET BUT WOULD CONSIDER PURCHASING IT. THANKS