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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: I have a question about your rating system and apologize if the same question has been asked and answered recently (I'm a new member). If a company is rated A for example and has gone up substantially since you gave it this rating will the rating be downgraded eventually reflecting the higher valuation or does the rating only reflect your views on the quality of the company, it's management etc? Does the "A" rating mean that you feel it's not only a good company but is also trading at a good price? Thanks.
Read Answer Asked by Mario on August 07, 2013
Q: Hello Gentlemen, please tell me what "5i Alpha" represents on your model portfolio summary.
Thanks
Dave
Read Answer Asked by Dave on August 06, 2013
Q: Information eventually for the community.
I spent a lot of time (trying to) getting info on reported earnings, disregarding completely the actual official reporting against estimates which are themselves constantly revised to match the `Beat estimate requisite during the quarterly `Urbi et Orbi financial results Mass`.
This morning I found wwww.factset.com that seems to do a good job reporting the real results. If you go to the site, you will see that 2Q earnings are dismal, born(should I say levitated) once again by financials that are reducing quarter after quarter their reserves to maintain earning growth.
Anyway, if you think it is worth, please publish.
CDJ
Read Answer Asked by claude on August 06, 2013
Q: I hold stocks in my RRSP and non-registered, but recently opened a TFSA. I feel that managing stocks in 3 account is too complicated so would like to buy some ETFs that I can rebalance once per year in my TFSA. Do you have a suggestion for an ETF portfolio that includes a mix of large cap and small cap Canadian and U.S. ?

Thanks,
Carla
Read Answer Asked by Carla on August 06, 2013
Q: Hello Peter and the 5i Team,

For a $21,000 RRSP, would you recommend only ETF's, and if so, which ones that would reflect the kind of holdings in the Model Portfolio?

Or alternatively, if trading costs through a discount broker are $10 per stock, and I wanted to purchase at least 15 names from the model portfolio, which 5 of the 20 names could I neglect? My thinking is that while some ETF purchases could be commission-free through Scotia iTrade, the on-going MER's of the ETFs would cut into the returns. In this scenario, the $150 trading costs don't seem excessive over time.

As usual, thanks for your thoughtful answers. Your service is first-rate!
Read Answer Asked by Jerry on August 05, 2013
Q: Your answer to Bill July 31 was to have 15 stocks for $25,000.00 At that rate it works out to $1,666.00 a stock. Is that so when your up you make alittle But when your stock gos down you don't lose a lot.I've only been playing the stocks about 6 months so everything is quite new to me. If I could show you what I own hopefully you could help with some changes. i'm hoping this is not to long of a question. I have DHX-$2.45x1000s. SYZ-$5.35x2000s DND-$4.25x750s CMI-$1.60x4000s AYA-$5.99x1000s CXS-$2.22x2000s Iput in $35,000.00 Should I be selling part of the shares off to get it to aprox. $1.666.00 a stock. I don't mind taking a bit of a chance. Thanks for all your help. Andy
Read Answer Asked by Andy on August 05, 2013
Q: i am planing to switch my stocks to the model portfolio.some of them has exceptionally done well so far.few of them are in minus,do you still have faith in them also?.I BELIEVE THE ANSWER IS YES BUT double checking before i adjust for long term on tuesday.Your service has been greatest support to us.
Read Answer Asked by nizar on August 04, 2013
Q: I'm taking your advise and spreading my investments over 20 stocks (5% of portfolio per stock). But, when I do the math I of course never come up with a nice even number of shares to buy like 100 shares. What should I do if say my 5% of my portfolio calculates to be 104 shares or 77 shares etc... Do I buy the exact number of shares as in the 104 or 77 or round them to the tens or hundreds as in 100 shares or 70 shares? Your advise would be appreciated.
Read Answer Asked by Deborah on August 03, 2013
Q: 2 kid RESP starting university in 2 & 4 years. How would you adjust this portfolio?
51% laddered bonds maturing at tuition dates in 2-7 years
7.1% ZWB
8.4% CGX
2.6% CSU
6.9% IPL
11.9% XRE
8.3% XTR
2.5% MG
we add $4k /year in monthly increments
Read Answer Asked by William on August 02, 2013
Q: What market value of a canadian company is considered "small cap" compared to the US? What portion of an overall equity portfolio should be invested in canadian small caps?

Thanks
Ron
Read Answer Asked by Ronald on August 02, 2013
Q: First I would like you to know how much I appreciate the model portfolio that you added to your site. I follow it regularly and have gradually been adding companies to my own investment portfolio based on your model. My question has to do with investment/portfolio management. When a company is added to the model portfolio, are there any expectations as to how long a company will be held and what would cause you to sell a position? Thank you.
Read Answer Asked by John on August 02, 2013
Q: Good morning! I would appreciate if you could clarify what a "position" is... 5% of portfolio, or $5,000 in one equity? Thx
Read Answer Asked by Brenda on August 02, 2013
Q: Are you at all concerned that many stocks in Canada that are popular right now (e.g. CSU, ESL, VRX, GIB.A, CGX, CMG) are way above their 200d mavg and have very high P/E's ? Although many are growing quite nicely are these stocks overbought in your opinion?
great service.
Read Answer Asked by John on August 01, 2013
Q: hi team,

Which sectors and asset classes perform the best when rates rise
Read Answer Asked by Karl on July 31, 2013
Q: Is there a source to get short information on US and Canadian stocks besides Bloomberg.

thanks, mark
Read Answer Asked by Mark on July 30, 2013
Q: Hello Peter and team. I response to Linda and her question July 29 Analysts who appear on BNN marketcall have their opinions chronicled on stockchase.com I believe BMO Investorline does a good job of listing ratings from various brokerage houses in a table with changes to ratings and target prices. I should also mention I switched from BMO to CIBC Investors Edge because I find it is a better trading platform. I hope this helps. Frank
Read Answer Asked by Frank on July 30, 2013
Q: Hi Peter and company,
What is the best way for an individual investor to get analyst price targets of stocks of Canadian companies?
Read Answer Asked by Linda on July 29, 2013
Q: Good morning 5i team. As investors, we’re told that our stock portfolio needs to be diversified across various sectors. Makes sense, but is there such a thing as a universally accepted list of sectors. If so, what are they? Do I need to hold stocks in all sectors? If not, how many represent a good level of diversification? And is there a readily available source (website) to identify which sector any individual stock falls under? Thanks.
Read Answer Asked by Thomas on July 29, 2013
Q: Hi Peter and team,
While P/E ratios are often used by investors to value a company, many pundits warn against using this metric in every instance. A number of investment gurus recommend using EV/EBITDA ratios. Besides being difficult to calculate, I see that it's not always recommended in every situation. Can you give me an idea which type of stock this metric is ideally suited for and if there is a website that provides that data?
Read Answer Asked by Robert on July 29, 2013
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