Investment Q&A

Q: you referenced in a previous question that Trading volume and 'travel' is also important. Is there a certain term or way to track "travel" for individual companies stock prices and what do you like to see for "travel" for a daily chart... I am sure straight up is ideal but not what we tend to see.

Q: Investing forums are great places to have a respectful and civil discussion/debate with fellow investors. It’s a resource that seems to be underused by 5i members, possibly because it is difficult to navigate.

Are there any plans to make the 5i Forums more use friendly?

Now a user has to open each subforum to see if anyone has posted or replied to a post.

There is no way of knowing if someone has replied to a post.
It says This forum supports BBCode tags. But only a few. There is no easy way to quote a poster or part of a post so that other posters know who or what you are replying to.

I’m new to 5i so maybe I’m missing something. I’m looking forward to exchanging ideas on investments, investment strategies and portfolio management with other members.

Q: Hi Guys
In a hypothetical $1 million portfolio, approximately how many different stocks or ETFs should be owned? Would a position represent 2% of the portfolio? Any comments on a portfolio's composition would be greatly appreciated.
Thanks

Q: In the lithium field, I have both LI and LAC
My question is two fold, am I better to double up and just own one stock and if so which one would be your choice? I know you recommend having at least 1 per cent of your portfolio in a stock. By selecting one, I’d achieve that
I guess it would also be like owning Linamar and Magna. Do you choose one or does this bring one more diversification?

Q: Hi Peter,
This is a general question, When looking at valuations specifically, like the EV/Sales, what number is considered the" middle ground" whereby the stock is neither cheap nor expensive?
Second question relating to the same EV/Sales formula, when looking at for example, SHOP, its EV/Sales based on the next twelve months (NTM) revenue is 33.3 while it is at 46,4 when it is based on the last twelve months (LTM) of revenue. I would have to say that the NTM is a better indicator. Am i correct , if so or not, why?

Thanks

Q: Greetings 5i Team,
I have noticed on occasion that you will respond that a particular security represents 'higher risk income'. This occurred earlier today when a question was posed concerning EIF.
When you say this, do you mean that the income itself is at a higher risk than say that of BCE or do you mean that the company itself tends to be a higher risk security as compared to others within its sector?
Thank you as always
SP

Q: Hi,
Can you help me to understand why the premium of BIPC is so high over BIP.UN? It increased to more than 40% today, $94 vs $66. On the other hand, the spread between BEPC vs BEP.UN is much narrower, up and down around 10%. Do you expect the the gap between BEPC and BEP.UN to widen? Thanks,
Martin

Q: On March 2nd the Globe published a list of all 219 companies in the S&P/TSX composite index grouped by sector and ranked based on their expected price returns (excluding dividend or distribution income), according to Refinitiv data. The closing price is as of March 1 and the expected returns are based on these closing prices. All other data is as of Feb. 28. It included the % yield and the number of Buys, Holds, and Sell recommendations.
Results show 1,710 Buys, 836 Holds, and 125 Sells.

Yesterday they did the same for the Small Caps based on the March 5 close.
Results show 952 Buys, 371 Holds, and 32 Sells.

While not surprised by the results, it does call in to question the objectivity of the recommendations.

Q: I’m not a “day trader” but when I do want to sell or buy a stock I generally see how the stock is moving that day, and so I tend to trade late in the session. Do you have a general preference as to what time of day you would sell (or buy) stocks?

Q: When companies do a private placement or a bought deal, what percentage of the time would the stock price rise above that price, lets say in 1 year? Do you know any studies that answer the question, or can you provide an answer based on your experience? I recognize the question is very broad. I suppose your answer would differ depending on the market cap of that company. Asking because I want to see if it is a good strategy to buy based on a dip down to the PP price. Thanks.

Q: CAE announced public offering of common shares priced at $27.50USD to raise $250,000,000USD to finance a portion of the purchase price and related cost of L3 Harris Military training business. What are the pros and cons of public offering versus brought deal from a company’s and investor's point of view? Is one financing deemed "better" than the other? Thank you.

Q: extreme stock market enthusiasts

Believe you have produced a new acronym.

Q: In one of your recent replies you said that “while the declines are big, we are not so sure we are at capitulation just yet.” I remember similar comments in early 2020. Recognizing it’s tough to predict a bottom, what signs do you look for that suggest we are at or very near the point of capitulation? I believe quick reversals is one, but are there others?

Thanks.

Q: Sirs , could you please explain what a value stock is and what the purpose of a value portfolio is .
Thanks Donna

Q: Good morning 5i team,
What is 5i's view of companies that spread stock option expense across P&L categories? A company might report significant R&D expense which an investor views as a positive, until one realizes that a considerable portion of the R&D expense is related to stock options? Is that generally-accepted accounting treatment? How do companies generally handle this? How does 5i view one treatment versus another? Thank you.

Q: Hi Peter,
I enjoyed your article again in the FP, as I always do. I do think the 60/40 split is an old market axiom that has outlived its time. I understand the bond argument for balance and income. I am lucky to have a DB pension, so I don’ t need bond income. Similarly, if I want to sleep better, I move into lower beta or value names, which I have done. My question, if you don’t mind me asking, is what is the average bond weighting of your staff in your portfolios?
Thanks again.
Dave

Q: hello, what is the difference in subsets(?)/classes of stocks? As an example, what is the difference between these two stocks? thank you

Q: RE my question about criteria for buyable microcaps. I cannot remember anything specific to help locate this item in the feed. As an alternative, could you suggest several criteria to help deciding if a microcap is worth considering for purchase: e.g., certain level of booked revenues etc.
Thanks, David

Q: Google has held up pretty well through the market turmoil. Would you ever sell it to buy something that has been hit hard? For example, would you sell GOOG and buy TTD?

Q: I struggle to identify and summarize reporting dates for my holdings' earnings announcements. I am using the nasdaq site, which is inefficient and sometimes incorrect. Any suggestions on how to organize or what apps might be helpful?

Thanks in advance.