Investment Q&A

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

As per an earlier question we posed, we then increased our positions in 12 of the 30 companies. At this time we would like to increase our investments in 6 of the remaining 18 companies. The intent is to increase the other 12 in approximately 4 months. Which 6 would you add to today? Please rank them, include a small blurb explaining each choice and suggest an entry point. Thanks!

Q: Hi 5i,
I like the idea of adding an 'industrial' type transportation name and have been looking at ALC.
I wonder though if it might see a near term slow down in business because of the type of supply chain issues currently plaguing some manufacturers such as NFI lately thus leading to less cargo to transport, or does it have enough product that is immune to the supply chain bottlenecks to keep its ships loaded?
I'd also appreciate any other suggestions you might have besides ALC for transportation names worth looking at that also pay a comparable dividend.
Thanks!
Peter

Q: The markets pre-COVID were rising at a reasonable rate year to year, with the odd market downturn. Since March/April 2020 the markets have shot up and stocks are trading at much higher multiples than pre-COVID. Eventually, reality may kick-in. There are many companies trading at very high evaluations. If you look at the overall market (i.e. Nasdaq) you see an exponential growth curve for the past 18 months, definitely not sustainable and possibly overpriced.? I still buy stocks but sometimes feel that if the market turns around, it could be years for it to come back. (I am more concerned about companies such as SHOP, NVEI, TTD, LSPD, NVDA, TOI, UPST, ... all of which are great companies but if we overpay, payback could be much more than 5 years.) I thought same about Netflix, I was totally wrong and missed out on one of the biggest lifetime opportunities BUT there must be a point where the price is definitely too high. Are we overpaying? Will we regret this at some point? Your thoughts? Thanks.

Q: What percentage of each would you suggest for a good balance between Canadian and US stocks at this time? (Thanks so much for your help. I have benefitted immensely from your good advice for a few years now.)

Q: I am considering increasing my WCP position from 2% to 3.5% by selling my position in WELL. The purpose of this trade is to achieve a greater capital gain over a shorter timeframe. Thank you.

Q: Hello, I am cleaning up my portfolio to take advantage of YE losses... I am down about 5% on these stocks, except PINS ( I am down 20%) which one(s) would you keep and which one(s) you would sell now?
Thanks
Carlo

Q: Is Stelco a buy, hold or sell at this price ? As always, thank you for this great service.

Q: Considering the possible effects of shipping disruptions and the abilities of consumer companies to maintain inventories and hence profit margins, cyclical and discretionary, would your top three stocks to have in one's portfolio long term, in your professional and respected opinion, be altered.
What would be the top three suggested holdings for long term(5 years)
Thank you

Q: Assuming the early Oct. vote approves the purchase of these companies,when are the transactions scheduled to occur?Thanks for the info.

Q: Hello 5i team,
Is there a stock ticker symbol that tracks methanol prices (or a website)?
Thanks,
Andrew

Q: Stocks that I hold are Sun Life for the past 3 months going sideways between $63 and $65, TRI hit a one month low of $143.70 and STLC a one month low of $39.95 while the market has been moving up at quite a pace. I know you liked Sun Life and TRI. Are there any of these I should be looking to get out of?
INMD is a health stock on quite a run for quite some time and I was looking to get in but I would like to see some sort of pause before I do something like that. I don't know how you feel about it but Motley Fool had recommended it. I do not subscribe to Motley Fool but sometimes some of their picks show up on my inbox. Your guidance would be greatly appreciated. Thank you.

Q: I have a position in BAM and am thinking of increasing it or adding a new position in BX to enhance my diversification. Does BX offer a range of different assets compared to BAM, or am I simply doubling up? Is now a good time for a purchase of either BAM or BX? Thanks.

Q: In a recent answer you were ok with BAM.A up to 10% of portfolio. Does that mean 10% of total stock holdings or 10% of all investable assets(including bonds , GIC’s). Are there any other Canadian stocks which you have similar conviction? Thx

Q: I admit to a "home country" bias, but try to temper that somewhat by investing in Canadian companies that derive significant portions of their income from outside Canada (e.g. I own AQN, ACO and others).
In this context, which do you see as a better fit as a consumer staple holding -- Aritzia or Gildan?
Or is it even, or also, a consumer staple or consumer discretionary question -- everyone needs basic clothing (Gildan) but fashion (Aritzia) is more discretionary?

Q: For Telus International, why would current shareholders sell their 12M shares (in this case decent percentage of outstanding) and could this imply to the market lack of confidence? Also, in this instances, what price would they be sold at? Do you still see ATS Automation as a buy and why is Nuvei taking small hits everyday? Could this be that it went up quite fast after their earnings.. Thanks very much.

Q: I've heard it said, invest in what you know and what I know for sure is we need food and water to survive. So I'm looking to purchase two stocks in my portfolio in the agricultural sector. I am looking for dividend and some growth. If that stock offers diversity and/or a technical play even better. But first and foremost, what these investments have to offer is something the world can't do without.
What would be your picks out of the above list and why?

Q: With another qtr in the books, what is your current ranking of these three and why?
Appreciate your work.

Q: If the market keeps falling for a bit is there anything particularly attractive? Can you try as best as possible to consider the effects of the Evergrande (potential) collapse all the while presuming that economic fallout will be mostly contained? In other words if new construction in China slows and it has some effect on mining and iron ore prices (for example) what is not effected or what kinds of companies and in which sectors will actually benefit? Or am I just overthinking developments that have too many moving parts to really make sense of? Thank-you.

Q: I was curious to know your perspective on Linamar and its current trading price during this risk-off market. The CEO has been buying 4 million dollars worth of shares at a higher price level and the last earning call seemed good. Albeit in a very cyclical sector, Analyst's conscientious is upwards of 100$/share. I want to increase my allocation to the industrial sector before the infrastructure bills go through. Would LNR be a good Candidate at this price point or are there better opportunities today that catch 5i's eyes? Thank you as always.

Q: Hi group i have some cast to deploy ($89,000) what would you suggest to take advantage off the pullback and when to invest please give me 6 stocks regardless of sector /market. Also why you think they are worthy of getting my money. Date to invest would be big help (i know its a guess) thanks for your guidance its much appreciated