Investment Q&A

Q: Hello 5i, I don't currently have any exposure to the lumber sector. I'm thinking of adding CFX, ADN or WEF. They all seem to be moving again. I do like dividends but don't need them for income at this time. Do you have a favorite in this sector.
Thanks again

Q: Any particular problem with Leon's this morning? Quite a drop on no apparent news.

Q: Hi Team,
What do you infer from the second quarter Financials and recent subscription numbers.Can this growth rate be sustained?
Also,do you foresee accounting problems for business users?

Q: Good morning Team. According to TD, DRT is in the Materials Sector and AYA (Amaya)is in the Info Tech sector. Do you agree? Also Is DIS (Disney)not Consumer Discretionary? A few Q and A's have thrown me off. Much thanks for all you do. I have rejoined for 2 years...can't get by without you every morning..(along with my morning coffee)..cheers

Q: Hello - Would I be correct in saying that the price for Fortis is presently cheap? When I look back over a 5 year period the P/E ratio appears to be at its lowest level right now. Would you agree?

I have no data that goes back further than that so I don't know what the average P/E would be over a longer time frame.

Q: I think I am a bit underweight in the industrial sector. I currently own CCL (4%) and LNR, MG, STN, BIN (2% each) and KBL (1%) for a total of 13%. Would you suggest to add something in the transportation sector such as CNR, CP or TFI; or perhaps ATA or something else; or perhaps increase one of my existing holdings. Thanks for your thoughts.

Q: Could I please have an update on Sleep Country? Thanks!

Q: I have read lately that Sobey were having difficulty integrating the Western acquisitions putting the share price under pressure. Seems to me that this deal was accretive from day one. Can you comment both from a short term and long term perspective. Thank You

Q: Hi Folks,

I plan to initiate a position in EFN. Looking at selling one of ALA, PPL or KEY to raise cash and diversify. Which one would you suggest that I sell and why? Or is it a wash between them?

Thanks.

Q: I Team, may I get your view on (POT) Potash Corp. Is it a buy, sell or hold.

Q: Hello, Do you think CCL is a buy at these meteoric levels. I have a half position and would like to top up. I am also considering WPK and I dont have any position in WPK. I also want to top up on BEP..any reason why this has fallen? Also can you suggest any US stock to buy and forget for the next 20 years or so..Cheers, Shyam

Q: Hi Peter and team,

What are your thoughts on KPT tissue Inc.? Would you buy at the current level with a 3 year time frame?

Many thanks!

Q: Hi there. May I get your opinion on Magellan Aerospace. And at this time is it a Buy, Sell, or Hold.

Q: Hello,
Have you any idea why cmh is down 6.60% this morning? I can't find any news that could account for it.

thank you

Q: Maybe this is not an easy question to answer, but when you say a particular stock is cheap or very cheap how do you determine this? Also, how would you determine if a stock is cheap AND high quality? Thanks!

Q: this question is about rebalancing for "balanced positions" and those for "small cap growth positions" within an overall portfolio.

for example, ATD.B in the balanced portion of the overall portfolio now has a market value of about $25,000 or 5% of the overall portfolio.
as it understand the i5R investment approach, when it reachs 7%, then I would sell some ATD.B share to get back to a 5% weight, right?!

now for the small cap growth positions…..with the position cost being $2,500…..or about 0.5% of the overall portfolio,
what is the rebalancing rule of thumb?……..do I hold until a small cap growth stock gets to $25,000, or to some lesser amount that is less than the 7% of the overall portfolio???

Q: Just a quick comment. You have commented in the past that too much news is negative and investors should avoid too much media and static. I get the e-mail on black Friday and it does cast a shadow of indecisiveness. The question is simple. Are you at 5I bullish or bearish on the next 12 months in a general sense? You don't have to be specific on sectors et. but rather how do you see the market (Canadian/US) I'm just simply trying to filter out all the news and concentrate on the big picture which you guys have a much better handle on than I have. Thanks for all the good work. Cheers

Q: Hi,

You recently answered a question from Question: "Hi 5i: The stock market situation has changed a lot since I last did any rebalancing. Could you therefore tell me what weights you would now recommend for the 10 TSX sectors. Also, what sectors would you assign to MAL and BOS which Morningstar calls Basic Materials, and to DRT which Morningstar calls Services. Many thanks.
5i Research Answer:
These are general guidelines, and may vary somewhat from prior answers. Sector allocation needs to be highly personalized based on your needs and goals.
Info Tech: 15%
Industrial: 20%
Telecom: 5%
Financial: 15%
Utilities: 10%
Materials: 5%
Energy: 5%
Cons Staples: 5%
Health care: 10%
Cons. Discret. 10%"

Can you give me 2-3 stock picks for the next two to five years in some of those categories? Specifically...
Info tech.
Industrial
Financial.
Utilities
Consumer discretionary.
Healthcare.

Q: This question is about the merits of moving big time losers from a RIF to a TFSA - assuming there is still a future for these losers .... which are AVO and ACQ. These are far and away the biggest dollar losses in my RIF and are down 50-60%.

If these guys are close to being in the same category as WIN which I did just dump, perhaps I should move on.

BUT - I am OK with holding on if you so advise.

And would also appreciate your point of view on the move to a TFSA with the stocks at these low prices. I am aware that I will still have to pay the tax on this withdrawal, so would likely wait until the New Year.

Thanks again.

Q: Hello Team 5i

I have an idea. Please tell me if this makes sense to you. I am down significantly in 5 stocks, CXI(-40%), AVO(-53%), BDI(-74%), TOG(-53%) and TOU(-54%). My plan is to sell these in my RRSP as I will have to one day pay tax on them in the future. Buy them back in my TFSA(and my husbands depending on the limit for 2016). My hope is that the stocks will appreciate in my TFSA tax free. Of these 5 stocks is there one or two you would be extra cautious on. Your thoughts. Thank you