Investment Q&A

Q: Hi 5I! Two questions here for the end of 2020.

1- LSPD is now a 100% above its pre-pandemic levels with a market cap of more than 9 bln. Share price has doubled in two months. All of this with negative net income, negative net margin, negative ROE, negative EPS, etc... Price to sales ratio is at a astounding 39+! And, a probably decent portion of its customers still on lock-down around the world. I understand growth expectation are high and analysts are pounding the table on this one. The quintessence of the "Recovery" play. But at what point, to put it mildly, can we honestly say the stock is getting a bit ahead of itself? Isn't the downside risk factor growing at a equal alarming pace here, if things don't pan out like everyone expect? Don't get me wrong, I'm very happy to have bought the stock back in april. But I've learned over the years to be very careful when things get too easy. My best success in the market have always been acheived on the long run, with lots of patience and when things are boring.

2- FSZ has been trading at a very high yield for a long time now. How worry should I be since the yield stubbornly refuses to return to more "normal" levels. Either the market deeply undervalues the company or it thinks their payout ratio is too high and a dividend cut highly probable. Or, I'm missing something, which is also highly probable. Your toughts on this would be very appreciated.

To everyone at 5i, have a great holiday, happy New Year 2021 and thank you for your great work in 2020.

Q: In our investment accounts, reg and non-reg combined, we have: PSLV @ 3.5%, PHYS @ 3.5%, BCE @ 9.72%, BNS @ 6.6%, KEY @ 3.5% VSC @ 5.7% and ENB @ 6.6%. I have a significant cash balance which is available for the right opportunity. Thus far nothing jumps out as “buy me now”.
We have smaller allocations [2% to 3%] to FTS, MFC, ALA, KEY, SU each and a number at less than 2%.
Given we are retired I’m wondering about increasing some of these allocations on any market general pullback? I usually focus on liquidity and free cash flow as two of my selection criteria as well as comments you make to questions asked of 5i.
Thanks for an advice you can provide.

Q: Part 2 of my question about year end adjustments to my portfolio. I have fairly small positions in 10 of these stocks (0.6% to 1.1%), and no position in DOO. I would like to add to several of these using the cash generated from reducing larger positions in some holdings. Looking for best long term total return, 5+ years. Sector, and size of company not a major consideration, in a well diversified portfolio. I like growth, I like dividends. Looking at ATD.B, BAM.A, CAR.UN, DIR.UN, DOO, GRT.UN, ITP, LNF, TCN, TECK.B, SLF. Thank you.

Q: Hi 5i. Assuming in Canada there is pent up demand for travel, and dollars sitting in deposit accounts, what Canadian equities in the travel or hospitality space would one consider investing in once Covid-19 abates and travel restrictions are rescinded?
Please list any Canadian equities that you think will benefit from Canadians traveling again. Thanks

Q: Doing a year end review of all of my holdings. I would like to reduce my position in several stocks (or eliminate entirely in the case of HR.UN and CPH) in order to raise some cash for increasing my position in several other holdings. Fairly large question, so I will divide it into 2, this for the potential reductions and a further question about the potential adds. Would you please rank these stocks in the order you would reduce or eliminate to raise some cash, starting with the one you would be most inclined to reduce/eliminate. Sector, or large cap/small cap not a concern, as I have a broadly diversified portfolio with a lot (too many, really) of names. Thank you for this, and also for the very good service. My 1st year as a client, and I will certainly be renewing. I have recommended the site to a few friends who also do investing.

Q: I am overweight in the Utilities sector and underweight in Materials. I am considering selling some BEPC and using that cash to add to Materials. Is NTR recognized as belonging to Materials in the Portfolio Analytics ? What other suggestions would you have for Materials stocks at this time?
By the way I have found the Portfolio Analytics a great tool for following and planning my investments -Thank you for your great services .

Q: Hi!

As part of my industrials sector weighting, I have 4% allocated to transportation. Given the current environment, I believe airlines are the best value, but probably also the riskiest. Nevertheless, my portfolio is reasonably well balanced. Do you think it is prudent to invest my 4% allocation entirely in AC? It clearly provides better value than the railroads and trucking, but as I said, with increased risk.

Thank you,
Jason

Q: Retired, dividend-income investor, who normally employs a buy-and-hold strategy. I have long term core positions of mostly conservative equities (ETFs = CDZ, XIT, ZLB, ZWC, ZRE, LIFE; Stocks = AD, AQN, BCE, CSH, FTS, MFC, NTR, NWC, PBH, PLC, RY, TRP, WSP) and fixed income of annuities, Fisgard and Gov't-Private pensions. I believe my portfolio is set up fairly conservatively.

I have cash for another position in my Cash Account. I have been reading several 5iR questions lately about various themes for 2021 (Recovery Trade, Swap from Growth to Value, Emerging Market improvements, Take-Over Candidates, etc.). While I'm not even sure if this is possible, I'd like to ask you to screen for as many of them as possible (all thrown into one big ball) to create a half dozen candidates for me to do more research on. I'm looking for a starting point. I'm not even sure where to start, hence the request.

I'm looking for a Canadian (preferably) or USA company, potentially a take-out target, benefitting from the recovery of the economy. I lean towards the Value spectrum, as I inherently find it difficult to buy a stock that has already had a good run. If a dividend could be thrown in, that would be a bonus. Market cap and sector do not matter.

This is sort of a "kitchen sink" kind of question. If that results in zero candidates, then please use your discretion and drop various filters. As you can tell by my current holdings, they are for the most part, blue-chip companies. If we could identify something like an Enercare (that was taken out by Brookfield), that would be a homerun.....happy to hold it but ecstatic to have it taken out. But Enercare is just an example.

Please rank them from best candidate to least...maybe 3 Canadian and 3 USA companies or all 6 from Canada if possible.

If you can run this exercise, then I'll do some further research on your list. I know this is a crazy request...thanks in advance. Take as many credits as you need to throw some brain power at this....I'll never use all of the credits I currently have.

Much appreciated...Steve

Q: I have a full position in MX in my TFSA. Even after the recent rally, I'm still down about 15%. It seems to be having good momentum, so I'm a bit hesitant to sell, especially when I can't claim the tax loss. But a part of me just wants to just get out and buy something like WELL, XBC, or STC.

Any thoughts, or advice? Thank you for all that you do.

Q: Hi
Can I have your opinion as the reason these two trading symbols on the same company are so dramatically different
I hold both and have done ok on one a very ok on the other I just don’t savvy the difference and it can’t all be tax related
Kind regards
Stan

Q: What telecom would you buy today for growth potential ...one(or two) in Canada and also in US.

GM

Q: what do you think of exchanging bdt or are for bad in my balanced equity portfolio?

Q: I have been holding STLC for a while and pleased with its forward movement ...now the dilemma , when to sell. Is it one to keep for a while as an infrastructure play. Thank you.

Q: According to Portfolio Analytics, I'm underweight in Industrial, Consumer Defensive, Utilities and Energy. Can you please give me three names to consider in each category? I'm also overweight in North America so, to the extent that there are good international names in these categories, please include them. I have a fairly long investment horizon: 5 years until my children hit post-secondary and 20-30 years before retirement.
Thanks.

Q: Hello,
Now we have vaccines in the market.
In this scenario , which sectors will be booming & what stocks would you suggest to have it for potential growth in future. I would like to invest in the US side.
Thx,

Q: Hi, which of the above has a better growth profile? Thanks and Greetings, Peter.

Q: I was talking to a storekeeper in Uxbridge On.. I asked him " How's Business " He said he was having the best FALL ever. I asked "How Come ?" He said because the SNOW BIRDS are Staying Home. This will help my favorite stock DOLLARAMA Who else will benefit ? How many Snow Birds in Canada ? Dollarama Traffic has really picked up. I asked the Clerk why. Her answer is now we are selling food more people are coming in to shop. Please Comment
RAK

Q: I've owned both OSB and WFT since mid April, was very lucky with my timing. I had planned to hold both for a couple years due to the strong housing and retro markets. A month or so ago, as we all know, WFT (trading at +/- $72.00 at the time) took out OSB (trading at the time +/- $43.00) in an all stock offer which seemed at the time to be acceptable by large institutional shareholders (Pattison/Brookfield) as well as the two boards in general. The take out price for OSB was +/- $49.00. Being an all stock offer, I believe OSB shareholders were to get +/- 0.6 WFT shares for their OSB shares. In the time since the announcement, both WFT and OSB have continued to rise in value. As of late last week, WFT closed at $82.68 and OSB closed at $55.36. Can you please help me understand how this structured all stock take over might now pan out???? Will OSB shareholders only get the $49.00 offer upon closing or was the structured all stock take out offer based on a %, ie, will OSB shareholder still receive +/- 0.6 WFT shares. I need to decide what's best for my family accounts. I like $55 a lot more than $49, but it's a wash if it's 0.6 shares of WFT

Q: Between CIGI and FSV, how would you rate them and why?

Q: I have wanted to purchase TRI since $42
Is recent drop an opurtunity and its just market fluctuation?