Investment Q&A

Q: I agree with and often quote you, " often nothing is the right thing to do". That, and learning the importance of managing position size are very possibly the two main reasons my portfolio has grown to the size it is. It wasnt all luck that I trimmed a few stocks that had grown to oversize positions early last Nov. My biggest winners are mostly my biggest decliners in this down draft, the recent trimming eased the pain somewhat. It's not just your stock picks making people $ , thanks for that!

Q: On a Day like Today a lot of "Stops" were activated, then it seemed like a scramble to get back in. Even experienced Host's on Cable, you could sense their chagrin.
Personally I don't like stops, thinking that short of a mushroom cloud, my picks (and I) will ride out the storm.
Could you please tell your thought's ?

Q: Hi, Where is the 2021 IPO Report mentioned in the Jan18 Updates?

Q: I am wondering what you think of Home Depot for writing covered calls as part of an on going cash flow enhancement strategy.
Along those lines I am wondering what factors you would look for in a stock for a strategy such as this?
Many thanks.
Mike

Q: Dear 5i team.

Can you help me understand what is going on a Qipt?
I read that a management cease trade order was approved and they are not in compliance with some reporting requirements for the Nasdaq.
When do they report next.
Appreciate your help deciphering this.

Q: In answer to a question I had earlier this year, you mentioned the following when looking for capitulation:

“Looking at volume 'at the bid' is helpful as well, indicating sellers are hitting bids in a panic rather that waiting for a buyer. Gap downs are also a sign, indicating investors just don't care and want out.”

What is the best way to find this information?

Thanks.

Q: Good Morning 5i,
I would like your opinion on investing in CDR listings in Canada to gain exposure to the US market with much less of my investment dollars allocated to each individual stock. With the pull back currently going on in the markets the timing to go into the US when things settle down could be very good. If you like the CDR route, which stocks would you suggest to pick up? Please deduct whatever credits are necessary in order for you to give full consideration to my question. Thanks for your assistance!

Q: How often are the prices reconciled between a USD listing and a CDN$ listing of the same stock? If a bunch of Americans buy CNI and push up the price, is that immediately reflected in the CNR price? and vice versa? And how often is the exchange rate adjusted? Is there ever a time when they are out of alignment?

Q: Please give me your thoughts on trading on the NEO Exchange. It seems to be a relatively new platform.

Q: Hi...do you put much stock in the "death cross"? I see the 50mda has dropped below the 200mda for each of PBH, WSP and XIT (ya, I know technicals aren't as reliable when applied to ETFs). What is your opinion on both the "golden cross" and the "death cross"? Are either or both reliable?

I trimmed all three on the way up (in keeping with my asset allocation target ranges). I have already added a bit to XIT, with more planned next month. I was considering adding to PBH and WSP once things settle down in a week or two.

Your thoughts?

Thanks...Steve

Q: Do you recommend the use of Canadian Depositary Receipt (CDR)? What are Pro's and Con's?

Q: In a January 21 answer to a member’s question on SHOP, you stated that the P/E for SHOP was well over 100x, whereas the poser of the question thought it was close to 30x. I think the confusion is rooted upon 5i basing its calculation on adjusted earnings, whereas the member was likely considering GAAP earnings. I raise the point only because I have recently seen others state the P/E of SHOP as in the 30s as well, including in the G&M, and I think it would be helpful for 5i to be clear about which earnings it is using for its calculation. (I hope I am not wrong in my understanding of the situation).
Personally, as a DIY investor, the P/E is often one of the top 2 or 3 data points I use when making a buy/sell decision, and I would be tempted to guess this is true for many other members. For what it’s worth, I agree that the adjusted earnings are more relevant in the case of SHOP. I would very much welcome any further comments or blogs by 5i that discuss adjusted vs GAAP
earnings.
Thank you for your more than excellent service. Hardly a week goes by where I don’t at some point read all the Q&A , reports and updates on your site. I have learned much.

Q: Hi Peter, & team,

Thank you for that timely "One of the hardest things" message banner on the member page. I was going to ask that very question. I am going to read that thing every time I want to press the sell button.

Thanks.

Q: I was wondering about your thoughts/comments on Jeremy Grantham’s comments that a huge crash is coming. I know people say things like that all the time, but obviously Jeremy has quite the background and history. Thanks

Q: Hi Peter and Ryan. Given the state of the world these days do you have any sage advice for investors regarding American and Canadian markets. Possible sectors to avoid or concentrate on. I realize this seems like speculation but the probability of a Russian invasion is certainly trending higher each week.

Thank you,
David

Q: Lately I have noticed a number of questions regarding P/E. Most sites quote TTM (trailing 12 months). While valuable, you have mentioned that you find "P/E-forward 12 months" to be more helpful. I believe the 5iR company data page shows TTM.

Could you consider, in one of your next website updates, including P/E-fwd 12 months? If yes, great. If no, can you provide a website that does show this number.

Thanks for your help.....Steve

Q: Do you have a hard and fast rule for taking profits into a spike? So many stocks peaked in November and "round-tripped", many giving back their pandemic moves. I have heard -triple-sell-half, rebalance above 7%, etc. I find that they are easier said than done. Just need to add another methodology to my quiver as I have seen too many gains melt away.

Q: Regarding the currency in which dividends from BAM Brookfield Asset Mgmt are paid:

I see you recently stated they pay in USD.

However on their website it says
“ Registered shareholders who are Canadian residents receive their dividends in the Cdn dollar equivalent, unless they request to receive dividends in U.S. dollars.”

So it does not seem to be based on the currency in which you buy the shares. Can you confirm?

I am waiting for my discount broker to confirm that I can receive them in USD.

Q: Hi 5i,

For all of the companies you cover here, when you rate stocks, what is the most important factor you consider first? Do you actually meet with the senior management face to face on regular basis, or occasionally, or never? In any case, how you rate their management teams?
Thank you very much!

Q: Good day team. I own LSPD and follow KXS. As both are good companies I am thinking that one day I will either add to LSPD or open a position in KXS. The difficult part is comparing the value of these companies when they have negative earnings. Analysts often comment on the multiple of price to sales but this does not show up on a stock quotes. 1) is there an available source that provides this information, or 2) if I have to calculate it myself is the formula: stock price X shares outstanding divided by revenue?