Investment Q&A

Q: Hello 5i team,
In a November 16th answer, you mentioned GSY, PHO, GH and QTRH as potential go private companies. What would make them « ripe » (ready) to be bought? What characteristics (size? Slowing growth?) would help to know that a go private transaction might happen let’s say in the next year? I am surprised you included GSY (starting soon auto financing) and PHO (some new management recently) on your short list as they seem to still have growth avenues and no financing problems.
Thank you for your collaboration, Eric

Q: Is there any advantage/disadvantage to buying a US listed stock in your Canadian RRSP account as opposed to buying US dollars and buying the stock in your US RRSP account?

Thanks for being such a great source of information.

Q: It appears that SJ has been buying back shares in Sept and Oct. Is this normal or usual for SJ? Obviously when a company does this they think the stock is undervalued and it's best use of capital.

Q: Good morning folks, I would like some food for thought regarding a TFSA. Over time my TFSA has morphed into a Tech account which isn't so bad given recent sector performance. I am generally pleased with overall portfolio balance but feel that some diversification in my TFSA would be advisable. Would you please suggest which sectors (ranked if appropriate) are best held within a TFSA with a bit of colour commentary. Thank you so much for your input. I find the Q&A section truly great brain food. Have a wonderful weekend!

Q: One of my portfolios I run a leveraged that is currently about 2.5x leveraged (stocks :equity). More than half of the portfolio are dividend companies (overweighted beaten up real estate) and then tech at 20% with the rest diversified value/blue chip. This is a riskier portfolio than an average RRSP but in the context of my entire net worth and other business/real estate assets it is 5% and so I am okay with the risks.

That being said, after we have had big moves upwards, what might be some of the ways I could hedge or pay some small insurance premium for protection? I could simply sell off some of the portfolio, and also take capital gains but would be losing that longer term leveraged exposure that I see as the economy rights itself and to allow my value stocks to play out.

I know the big hedge funds can use options on CDS but what could a private investor do?

Q: I have a RESP and have both the VGRO and IWO what would be the next best ETF for this account? At what $ value would you start to buy stocks instead of ETF? It has 15 years to grow.

Thanks

Q: Any idea when Peter’s next BNN appearance will be?

Q: Have you ever of this company (worldmarkets), are they available to Canadian Clients, and what do you think of their published performance, it looks unrealistic. Thanks
https://worldmarkets.com/aimanagedaccount.html#account-safety

Q: The market reaching new highs while we are still in pandemic mode has me moving more defensively to take some profits now, and move to holding more cash (yup- i know i am not supposed to try to time the market, but is this not another version of buy low and sell high instead?) . What do you think about using cash to buy 5-10% of my total portfolio with so-called black swan investments, rather than having cash sitting around waiting to be deployed for the next market drop?

Q: Hi, Just a general question about Market Call guests. Do they approach BNN about appearing on the show, or does BNN aproach them about coming on the air. It looks like fantastic exposure for attracting business
for the individual and their firm, thanks?

Q: What source do you use to assign a "Sector" label to a specific company? Do you group similar sectors under your labels? Can you elaborate on the process you use in your portfolios?

I attempt to apply sector labels to individual companies in order to track sector weightings and maintain an awareness of the level of diversification I am achieving.
Keeping the number of sectors to a reasonable number (10?) requires grouping of stocks.

Currently I am using ; Consumer C/NC (10%), Finance (20%), Health Care (10%), Energy (10%), Industrials (10%), Technology (20%), Telecom's (10%), Utilities (10%). Industrial's and Consumer C/NC usually get a mix of companies thrown in there. The weightings are my loose guidelines, and I do vary from them quite a bit. i.e. Energy is currently at 3%, Tech at 40%.

I have a struggle controlling the Tech weighting due to positive returns of my holdings and the fact that so many innovative companies use technology in conducting their business and thereby are classified into the Tech Sector. (E.g. REAL is within the real estate industry however is placed in the Tech Sector.)

Any thoughts you can offer to provide me with a healthy perspective are appreciated. Thanks.

Q: On November 10, Patrice asked about a list of dividend paying stocks; your answer provided a link to a list you had prepared. Is this list available on the website? If so, how do I access it - I looked and cannot find it. Is there other kinds of info that is available to your members and if so, how can it be accessed?
thanks

Q: BEP-UN was in the mid 75$ range when they announced a 3 for2 split.Should a new share be worth 50$ or will continued buying keep it much higher than that ?

Q: My apologies for the barrage of questions today but I’ve been saving them up meaning to get to them over the past few weeks. This is the last one (for now). In evaluating a growth company in the small to mid cap range what would the most important metrics to use. Thank you.

Q: Do you provide a listing of companies you currently have reports on (70 companies)? I have looked on your website and cannot seem to find such a listing. I could search by specific companies or by rankings, but would like a overall quick reference of what companies you have reports issued on. (preferably printable)

Perhaps it is already there and I have missed it?

Q: Hello 5i,
Where can I find a list of companies that have just started paying dividends? This has been spoken of before that one should keep an eye out for these companies but I am unable to find a stock screener that offers this option. I am only interested in Canadian exchanges traded companies.

Thanks
Pat

Q: If you assess the following Canadian sectors: financials (the big five banks, insurance companies), electric utilities (EMA, FTS, CU) , pipelines (ENB, TRP), telcos (T, BCE, RCI) and rail (CNR, CP) ... how would you assess each sector for dividend sustainability and growth?

Q: Just a general question as to what your thoughts are on the tech sector right now. It's obviously been extremely hot. How do you see the sector fairing in the short term (1 year) with the potential of covid passing. Do you see any need to reposition part of the portfolio away from tech and move to some value areas such as banks and energy? The reason I ask about the short term is because I think tech is only going to get bigger in the long term (5,10,20 years)

Q: Could you give a brief explanation of how price per cash flow is calculated. Also what ratio of price/cash flow would be concerning and what would be considered good. Thank you.

Q: Hello,
I am not sure I understand premium/discount when buying ETFs..Is this a parameter I should consider when purchasing ETFs..Lets say the ARKG or ARKK etf? Are there any particular days for me to purchase etfs? How do I know if an ETF is selling at a premium or dicsount on a particular day is it shown somewhere? Thanks.

Regards,

Shyam