Investment Q&A

Q: Hi, 5i.

What are your top picks for consumer staples at this time?

Thank you,
Robert

Q: Because of my age and possible future need for income, amount and security, I am pondering the addition of the following ETF’s. I am indicating the present and after purchase weighting in my portfolio. ZWU ( 3% - 5%), XHY (1% - 3%), XTR (0% - 5%). My portfolio is reasonably well
diversified with about 95% blue chip (28) common shares. Can you please comment on the appropriateness of my proposed purchases, given your limited knowledge of my portfolio.

The composition of XTR i shares includes other I share ETF’s so if I were to purchase this security I would be effectively duplicating management fees and further increase my exposure to XHY, which is held in XTR.

Thank you for considering this questions

Q: Not a question on a stock but a comment on the recent changes.

In having the option to receive "email updates daily", I'm assuming you mean that questions are filtered to your watchlist, and are not actually sent to one's inbox email. Is that correct?

When I click on my Watchlist, I see all the recent questions related to those I've marked -- but I'm not actually receiving any updates via e-mail.

Please clarify how this for me. Thank you.

Q: This might be a tough question but I am pretty sure you would have seen it before. I need strategic help. I can’t seem to sell a losing stock. I am paralyzed by the fear that by selling I lock in the loss. Or that at the current price it is actually the time to buy the stock.
Surprisingly even with this list of losers my portfolio is actually up. Much to the credit of 5i. So I don’t need to sell but can’t help thinking that the money could be put to better use. I am also pretty sure that there could be different advice for each stock. But anyway here is my list. What do you think? Sell or hold?
Please take as many question points as you feel is appropriate.
TMA -21%
GH -20%
GS -30%
HLF -33%
PM -25%
WEF -20%
AYA – 45%
CXR -34%
PHM – 79%

Q: Hi,

I recently opened an RESP account for my daughter and am looking for advice on a few ETFs to purchase that provide some long term growth potential, while being appropriately diversified.

Given that i an just starting to save in this account, I'm starting from a small balance, roughly $2,000, i would prefer to only purchase a couple ETFs to limit transaction costs. I have a relatively long time horizon (18 years).

Thanks

Q: Just wondering if the next step in website improvements would be to post the real time share prices for stocks in our watchlist much the same as the globe investor website. I have used this site for many years for this purpose however over time they have reduced the amount of information you can get on any particular company. I would much rather pay you the fee as your service is far superior to the information that they offer.

Thanks

Q: What is the differences between HVU and HUV? I'm bearish towards the markets and looking for something to buy for a short term holding period of 2-4 months as added insurance. Any other recommendations? Thanks

Q: Is 5i planning any educational meetings/conferences in 2016/17? If so, when would the details be available? And if not, what recommendations do you have for ongoing educational opportunities for members? Thanks, as always, for your advice!

Q: Hi Team,
In regard to valuation metrics such as P/E, EV/EBITDA, P/CF. Can you guys explain a bit on how to interpret these numbers to determine what is under or overvalued. I know you have to look at industry, earnings variability, growth of earnings etc. If your answer would take too long is there some reading material we could look at to learn?
Keep up the good work!

Q: Hi Team.
What is your "take" on fears around the Gold backed Yuan and the US dollar? The last Q and A was mid 2015.

Thanks for the great uplift to the site...good stuff!

Q: I really value your monthly updates, which I get in the e-mail. Are these stored anywhere in the 5i website? Is there an archive I can look up? Thanks.

Regards, Shyam

Q: In Constellation Software Annual Meeting voting instructions, we are asked for vote for:

A SPECIAL RESOLUTION AUTHORIZING AND APPROVING AN AMENDMENT TO THE ARTICLES IN ORDER TO (I) CREATE A NEW CLASS OF COMMON SHARES TO BE DESIGNATED AS DE COMMON SHARES, TO BE ISSUABLE AT ANY TIME OR FROM TIME TO TIME AT THE DISCRETION OF THE BOARD OF DIRECTORS OF THE CORPORATION, (II) AMEND AND RESTATE THE RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS ATTACHING TO THE COMMON SHARES OF THE CORPORATION, AS APPLICABLE, TO REFLECT THE CREATION OF THE DE COMMON SHARES, AND (III) CHANGE THE BASIS UPON WHICH THE MAXIMUM NUMBER OF CLASS A PREFERRED SHARES WHICH MAY BE ISSUED BY THE CORPORATION IS CALCULATED TO REFLECT THE NUMBER OF ISSUED AND OUTSTANDING COMMON SHARES ON A FULLY DILUTED BASIS, ALL AS MORE PARTICULARLY DESCRIBED IN THE ACCOMPANYING MANAGEMENT INFORMATION CIRCULAR.

I have read the Management Information Circular. My understanding: one can convert common shares to DE common shares and must be held for one year from the date of issue. Holders of DE common shares are not expected to be paid regular dividends. DE Common shares will not be listed on any stock exchange. DE common shareholders will be able to reinvest dividends (DRIP) in a more tax efficient manner. If any point is incorrectly, please advise.

My questions are:
1) How would you recommend voting for this resolution?

2) If this resolution was passed and DE Common Shares are made available, what investment criteria would one choose convert to DE Common Share versus keeping Common Shares?

3) Is creation of DE common stocks a common practice in public listed companies (either in Canada or US)? If yes, what other listed Canadian companies have issue this type of stocks?

Thank you.

Q: This has to do with your changes as of today, why can't you continue to list the company symbols on the top of question as previously done ,and also the date that the questions were asked . I am not one for asking a lot of questions but can usually find the answers I am looking for by sorting through previously asked questions and if I now go to the Q&A page I can not find out how long ago the answers are given to a certain question . This is a good site but it was better yesterday . Murray

Q: Hi, This is to send a note of commendation for how you set your stock selection strategy and discipline. It was clearly evident when you recently added PBH and KXS to the Balanced Portfolio with a full 5% position undeterred by the fact that stock traded at $55.69, close to its all time high. I would not have had the guts to initiate a position in PBH at these levels, watching stock price for 3 years, climbing steadily from $15-$16 level to present. New addition of PBH to my favorite 5i Portfolio was a your strong vote of confidence in the co. helping me to finally decide to pull the trigger and I am quite happy about it. I already had a full position in KXS from before. Thanks for the incredible value you offer to retail investors like me, everyday

Q: When researching dividend stocks I always check the "payout ratio". Most of the time this information is not available. Is there a web site that includes this information when researching a stock without doing it mathematically?

Thanks.

Q: A general question, in your analysis of ACQ you include a chart of the stock with the overbought and oversold graph. What metrics do you use to figure out if a stock is either overbought or oversold?

Q: This is in reference to the answer you gave to Edward on Apr. 12. How does one buy ENF at $28.25, the new issue price? I'm with BMO Investorline.

Q: Hello Peter

In my power balanced portfolio I have: CSU, ESL, SJ, CCL.b, BYD.un, ATD.b, MG, KXS, DOL, PBH, DHX.b.

My question is: what is wrong with my portfolio that on the such a good day today on TSX +158 pts., all of my stocks accept for CSU and MG went down!!
What is wrong with my portfolio selection and what would you change.

Thank you Andrew

Q: Can you please advise which ETF is better to hold when market sells off.
Below ETF has to be hold for one /two weeks or I can hold for long time. If below is not right one - Please recommend another ETF.

ETF: HVU OR HUV

Q: I am sure that this question has been asked in the past however I cannot seem to locate an appropriate answer. I am wondering what would be considered an acceptable percentage of any one stock in ones portfolio. Most of mine are now 3% and I am starting to think I have too many stocks. Would 5% be the general guideline?