Investment Q&A

Q: My question is about portfolio balance. Right now I am very overweight in technology (30%) But it isn't all the same kind of technology. For example , Facebook, Shopify and Google are not the same sort of business as Avago and Texas Instruments. And they, in turn, are different from Constellation Software and Kinaxis (also different countries). These are the companies I own. So would you recommend I reduce my tech weighting, and to how much?

Q: I am relatively new to managing my own investments and understand the importance to position sizing etc. I am 62 with of course the need for solid income portfolio in a few years. However as I review my portfolio and determine forward tactics I wonder if I am getting to heavy in sector sizing. For instance when I look at income I have 27% in financials, 20% in utilities, 14% in real estate etc.. Or for growth 8% in hi tech.

What strategic advice can you offer on sector position sizing?

Thank you


Steve

Q: On Friday Helen suggested an innovative solution re avoiding potential duty but even if it was feasible the solution would not restrict supply which is the goal for the US players.

The softwood lumber trade dispute is not so much about finished lumber crossing the border as it is about land management. In recent years, the largest CDN domiciled companies have purchased 30-40 mills in the US because buying US mills is more profitable than investing in CDN mills. That is evidence against the US claim that gov't subsides make it cheaper to produce in Canada. Also, US owners have been bailing out of operating Canadian mills.

Large US companies want the value of their timber land to increase which is mainly why they attempt to restrict supply. For example, the largest US timber holder is WY, (NY). WY owns about 13,000,000 acres of timber currently valued about $1,000 acre. If they can restrict supply, the average value could appreciate to $2,000 - $2500 acre. The "trade" dispute is more about wanting to increase US based inventory values than unfair subsidies for CDN manufacturers.

Phil

Q: please explain how the market loves shopipy.with no earnings.but hate homecapital with earnings and a nice dividend.

Q: Why not? A US lumber company buys western forest to get around the lumber trade disputes? It then becomes a US owned company even though it is in Canada. Does that make sense? Could that work?

Q: Any updated comments on Stingray Digital.

Q: I am concerned about a correction in the market (both USA and Canada) and am wondering if I should take some profit given the great run over the last 4 months and hold some cash for better buying opportunities should the correction occur later this year. Recent analysts on BNN are also calling for a defensive position with holding cash. What do you think about this strategy and what percent of a portfolio would you suggest to have in cash? Does 10 to 15% make sense? Thank you for your great service.
Deborah

Q: I think I know the answer to this however I need to ask anyways-if someone is just interested in collecting dividends and a small amount of growth, and for simplicity, why not put the vast majority of your investments into the various Brookfield companies-throw in a bank and large oil producer and walk away. The history of the Brookfield companies is very good and I figure if they go down hard, the whole economy is in serious trouble. Your thoughts?

Q: Hello Team 5i, I'm scared about a possible Trump Dump, not knowing what he will say/do next.....so staying away from Single Stocks, but do not want to stay out of Market. Hence looking at ETFs, and would appreciate your Ranking of these.

Q: Is there a company that has a significant exposure to cobalt??
Kind Regards

Q: National Bank released a research report on Callidus that gave a private buyout range of $18 to $22, one year ago. Since then revenues and earnings are up. They came out a little while ago saying the value would now be to the top end of that range. The company released a statement in February saying 17 parties were interested and any deal would likely close by the end of June. The stock trades at around $18. Isn't there excellent potential here for a 10-20% trade in just a few months? Thanks.

Q: Hello

Could you comment on most recent earnings?

To me it sounds like both are managing costs and inventory well but their hands are tied due to the cyclical nature of the Agri business.

I have owned a small position in both for five years or so now.

Thank you

Q: Can you rank these co's based on growth potential over a 6-18 month term?

Thanks for all the great insight and information. This service has been a great "investment."

Q: Could you please comment on the recent results posted by RME and the appropriateness of the market reaction? In your view would this be enough of a fundamental change to trigger a sell for someone with a short/mid term trade on the stock?

Q: Hello,

I am gradually adding companies to my portfolio when the funds become available. My question is, should I also be selling portions of my stocks that are doing well to fund my next purchase? Or should I only do this if one stock has taken off and created a significant overweighting? I guess what I'm trying to decide is if it is more important to quickly diversify or to let time do its thing and patiently add companies when able.

Thanks,
Al

Q: I have enjoyed quite a runup in my holding of CRH and am thinking of taking some of my profits (slightly overweight now) and adding to my position in BAD where I am slightly below my average price. Why has BAD dropped so significantly recently and would you consider this a good entry point or sit tight with CRH.

Q: Please comment at this price

Q: I have a comfortable weighting of these stocks in my TFSA (Overweight in CGX and STN. ) Planning to add three more. In reading your answers I was thinking of GUD and KXS. Suggestions for a third or another three or should I add to existing stocks? Long timeframe. Many thanks.Always enjoy your careful answers. Paul

Q: Hello 5i,
I want to buy two stocks to balance my portfolio which is overweight in Consumer, Financial and Health Care. In my watch list I have the following stocks.
Materials: MX
Industrials: ECI, EIF, KWH.UN
IT: ENGH, SYZ
Telecom: T
Utilities: BEP.UN
Which two stocks (sectors) would you buy at the present time? If (when) there is a correction, which sectors are more likely be on “sale”?
Thanks!

Q: Hello I5, Like to have your assessment of TS.b, is the div safe, do you see any near term growth. With regards to FGD, would you explain what "re-assume debenture" means, your evaluation of this company' growth and earnings.
Many thanks, J.A.P. Burlington, Ont.