Investment Q&A

Q: I need to sell one of my losers in my portfolio to pay for my home renovation. Between TCN and CJ which one is less likely for me to regret for dumping them in the next six months?

Q: SYZ, ZZZ, CZO, TNC, NFI, PBH and ITC These are all stocks that have been down considerably over the last month. They are stocks that 5i customers have or did have. Meanwhile, the TSX 60 has been flat for the last month. So I am wondering if the members are selling out on these stocks and possibly putting the money into oil which has been up for the last month or so. Should I have been getting out of some of these stocks over the last while and putting my money into oil which is one sector that is doing quite well and probably the reason the TSX is not losing ground this month. Thank you. Dennis

Q: ITP is up today and I don't see any news to explain the move. Do you see anything?

thank you

Q: Hello 5i,

Please provide your opinion on the BMO "Blue Chip GIC"
It offers 100% capital protection + 1% rate of return (total over 5 years) and a 100% participation in the S&P TSX Low Volitility Index.
I have seen many equity linked GIC's before but never with a 100% participation.
Fine print indicates that the maximum allowed by law is an average of 60% per year. The negatives I can see with this;
Possible opportunity loss of only a total guarantee of 1% over 5 years.
Money is locked in for 5 years.
Returns will be considered as interest not capital gains, so it would only make sense in a RRSP and or TFSA.
Is there anything else I am missing here?
Thanks,

RD

Q: Hello Peter,
Any idea why these stocks:Pacific Insight, Fairfax, Knight, and Stella Jones have been declining of late, especially Pacific Insight. It has been hit very hard after their earnings. Is it a good time to pick up these 4 companies given the current decline? Thanks very much.Umed

Q: What do you think about taking a 5% position in Bird at this time. Although its share price is down, it has consistently paid an attractive dividend since 2011 (0.66/year), rising to 0.76/year in 2014 where it has remained. Its second quarter results were disappointing due to Alberta wildfires, but isn't this a good entry point as Fort McMurray reconstruction ramps up?

Q: I have about 10% cash right now. Normally I prefer to be fully invested because I like the steady dividends. My investing style is somewhere between your income portfolio & balanced portfolio and the portfolio is reasonable balanced. I don't need to take anything from my investments now but I will in a couple of years.

It "feels" like sitting on a bit of cash makes sense right now in the short term and maybe take advantage of tax loss season or other buying opportunities (seems like a lot of those recently).

Your thoughts?

Q: HI,
In my RRIF I have 1000 FAP (Aberdeen Asia-Pac)
I plan to move all to ECN (ECN Capital Corp)
good move or bad move?
Thanks for your advice
Jean guy

Q: On this Thanks giving day Thank you peter and all the staff for your wonderful service and advise.

Q: What are your thoughts on the prospects for the Mullen Group going forward? Is it's price discounting more problems in the oil sands or does it reflect a much rosier scenario in revenues generated from that part of their business. Thanks so much

Q: Hi 5i,

Do you have any data on Aritzia such as EPS, yearly revenue, debt, cash on hand, etc. Since IPO's tend to be very volatile, which means they sometimes go from very expensive to ridiculously cheap. If it does become cheap due to plain old volatility and not because of deteriorating fundamentals, I just might be tempted to buy in!

Q: Do you consider the Mar 2027 bonds to be a decent hold within a diversified bond portfolio?

Q: Hi Guys,
If I think the US PMI data may be peaking in the next few months and we could have a global slowdown for 2017 and looking for a few bearish bets, perhaps a few short trades as well. With China now depending on more exports as well as Japan and with a big chunk of those exports coming to the US we could have the 3 largest economies in the world slowing at the same time. This would weaken the demand for crude oil and I think it could revisit the $20's once again. I'm looking for companies that can quickly get in trouble once again if the economy begins to weaken, I'm thinking Teck and Baytex? Do you agree these names will drop in the above noted scenario ?Any other names you might suggest? Looking for weak balance sheets I suppose with too much debt. Thanks

Q: Interest rate sensitive sectors are under performing possibly due to a December rate hike from the Fed. Do you think the reaction is overdone? Good entry point on REITs and Utilities?

Thanks,
Jason

Q: What is your opinion on replacing a holding in PWF with FSZ with respect to future growth and income? Joe

Q: I understand that these 4 stocks are considered growth stocks. Presently I am negative on all four. Is patience required ( long term ?) or would you suggest to switch to other growth stocks and which ones would you recommend. Thanks.
Klaus

Q: what are you thoughts on CGC and ACB? do u think they are overvalued?

Q: From Oct. 3 : Q: A headline article in Globe and mail " Why it feels like another financial crisis ----" gives a current p/e for the tsx of 23.6 Your macroeconomic report has it at 17. Is this a difference between trailing and forward earnings or am I missing something?/
5i Research Answer:
There is a difference between current and forward earnings multiples. For example, based on data from Thomson Reuters, the current P/E for the TSX is 17.2x and the forward P/E shows 16.7x. Some publishings do not distinguish between forward and current when reporting P/E so one may see differences from time to time. However, the P/E quoted by the Globe looks to be high regardless of the timing perspective. Different services also seem to use different sources of estimates; we do see 23X on some other services, but simply defaulted to Thomson here.

It seems to me that the difference between 17 and 23 is a significant distinction and would indicate the TSX is in overbought territory if the latter is true. A subsequent article in ROB on Oct 4 produced a chart (source Bloomberg) showing the PE ratio for the TSX "Composite" at 23.5 and the highest in 14 years with the widest gap with the US since 2009. Is it possible 5i Research data from Thomson Reuters is utilizing the smaller sample from the TSX "60" or another index to arrive at 17X?
How to know what the true number is for sure?

Q: I am looking to add some Brookfield Business Partners shares for a long term hold in my rsp (5 years). Where would you rate this company on a risk reward scale for this type of investment.

Thanks for your great work.

Q: Some time ago I asked about this fund TRIMARK GLOBAL ENDEAVOUR FUND. and you mentioned the MER is quite high.If I am thinking of selling this fund and would like to know what stocks or ETF would you replace this fund with?

Thanks
D