Investment Q&A

Q: reading the questions and answers to this massive downturn-
I think by far the best response comes from jerry who says I don't follow 5i's long term advice or their portfolios, I get my value from specific recommendations, answers to questions, and the basic integrity of 5i.
the key part of jerrys quote is long term advice--peter has been very clear that 5 years is his time frame and yet during this downturn especially with cxr everyone is in a panic.
as for me my time frame is far far shorter than 5 years-- and I think a stock like knight and currency exchange-- I own lots of both we will be rewarded long before 5 years is up and if I am not I always have the option to sell.but every investors temperament is different and if this downturn is too painful then sell and wait it out. dave

Q: Hello Peter,
I own some Home Capital group, about 2 percent of weight. I also own bank of nova scotia, TD, and Royal all of which represent 17 percent of my weighting. I also have Ailment Couch Tard and Auto Canada which represent 2 to 3 % each. I am breaking even on HCG. I was thinking of selling it and putting the proceeds towards Auto Canada or Ailment Couche Tard or one of the existing banks as mentioned to take advantage of their lower stock values. Which one would make sense to you? I was thinking of splitting my proceeds to Auto Canada and Ailment Couche Tard as I have enough weighting in the banks. Why am I thinking of this? Simply to diversify away from stocks that could potential be hit due to a housing bubble. Your comments please.

Q: On this latest pullback I am looking at adding the following. How would you rank them in order of attraction? Progressive Waste Solutions (BIN), Royal Bank (RY), Stella Jones (SJ) and Sienna Senior Living (SIA). My portfolio now is well diversified so just consider total future gains with medium to low risk.

Q: To me the key to knowing when to sell is knowing one's temperament. Once you know it, you can listen to what 5i suggests or google "when to sell stocks" and get a bunch more ideas. Choose the ideas that align with your temperament. I don't think an investor is going to be happy following some stranger's temperament. You have to follow your own.

I see a lot of people writing 5i, unhappy with their 30% and 40% losses. What they're saying is that their temperament can't handle those losses. No law says they had to suffer those losses. They were free to say, "Screw this, I'm getting outa here." But they didn't. They were aligning with 5i's temperament, not their own.

For me, I don't follow 5i's long term advice or their portfolios. I get my value from specific recommendations, answers to questions, and the basic integrity of 5i.

Q: when 5 i sold fsv was it replaced with CXI in the model portfolio. I have some cash to put to use.

Thx Blake

Q: Hi, Peter
I would like to have a confirmation of the deal price.
David mentioned $ 86.5 on the 28th, you did not correct him.
Then Walter the same day mentioned $65, you did not correct him either.
So what is the deal price, it add to the enormous confusion.
Now another question/comment (please take 2 points is you think so):
I was looking this morning at the Biotech chart (Nasdaq IBB)from the yearly perspective it seems that it will test the August lows which is the norm these days (testing the lows).
BUT then I looked at the 10 years of the same chart. From the end of 2011 to today it went from 83 to 284.Is this not a gigantic bubble and if the pharma/biotech space is having "a bit" of a stumble these days, don't you think the bad times are just beginning,and Clinton has not much to do with a simple case of another bubble exploding?
Ps : I have asked you a private question last thursday and did not get an answer, is it lost?

Thanks for your answer
Claude

Q: Do you still prefer AGU over POT and if so can you give details as to why? I'm noticing a higher debt level than POT particularly when compared to market cap or enterprise value. My biggest concern is 1/ dividend sustainability and even more so 2/ getting thru a horrific storm (if this thing gets much worse) without going under.

Q: I am hoping to use the market weakness to pick up some of the names I don't currently have from the model portfolio. Do you still recommend SYZ and SJ as buys at this time? I have half a position in CXI and was thinking of topping it up to a full. Does this make sense at this time?

Q: Peter; Premier Notley just stated the Province will be basically getting out of using coal powered energy. How will this affect RNW? Thanks.Rod

Q: Could you please provide your thoughts on Brick Brewing as a company and what you think of their stock at these prices?

How will the recent changes with regard to allowing beer to be sold outside of the LCBO and Beer Store effect BRB? Thank you.

Q: please comment on the result of DHX.B

Q: I see in this article from the Globe
http://www.theglobeandmail.com/report-/national-bank-to-crack-down-on-conflict-of-interest-trading/article26555169/%3bjsessionid=hJT9WJyQ77z18hQ2MV7ncJK7kDtSwB81KJWy7cLypqQTQfFh2JDc!1889603102/?ts=150928082500&ord=1
That the National Bank plans to reach your level of "conflict free" advice by not allowing trading by staff.
Nice to see others reaching for the bar you have set!

Q: If Canada enters into the Trans Pacific Trade agreement, as our current government is determined to do, a side effect will be on our dairy industry as cheaper US products will start to be allowed into our country. How do you see this effecting Saputo? (SAP-T)

Q: Hello 5i,

Good morning. I'm looking to add to positions primarily within the small cap/growth porfolio. What companies does your research suggest are great buying opportunities right now? My investment objective is to maximize returns over 20+ years and I'm looking for your 8 highest conviction names primarily within the growth portfolio (or balanced portfolio if there is a particularly great opportunity)

I'm not interested in a diversified list, but rather what 8 names present the best risk/return metrics over the long term with attractive entry points right now. I already own Stantec and Home Capital Group as core holdings and have no problem holding stocks that have under-performed provided the fundamentals are still intact. Thank you!

Q: I have been sitting on the sidelines for a few months and have only dabbled in the market since March/April. Im glad I held off. I think I would like to get in now.But have no problem waiting if that is prudent. I have done this before and missed a few opportunities.
I am looking for a 3 year Horizon - maybe up to 5 years as a stretch.
How would I deploy funds in todays market between the portfolios you have helped us with to balance risk. Im hoping for a 12 to 15% return overall.
How would I time it. I was thinking a controlled plan to invest over the next months to average the risk in a volatile market. I was also curious about your thoughts of a cash percent to keep some gunpowder dry for opportunities.
Thanks for your help

Q: 1:49 PM 9/26/2015
Hello Peter
I want to diversify my portfolio into the Industrial, Healthcare[REIT], Telecom, and Consumer sectors. My portfolio is designed to give steady reliable dividend income as we are both retired.

Currently I have :

Industrials - nothing
Healthcare [REIT] - CSH.UN [3.4%]
Telecom - BCE [4.9%], T [2.0%]
Consumer - CSW-A [3.2% ], NWC [2.6% ], RPI-UN [0.74% ], AW-UN [2.4% ], DHX-B [1.7% ].

I am trying to find companies in these 4 sectors that have the Size, Stability, Dividend Yields over 4%, and Safety, as nearly comparable to the big Canadian Banks as possible, but I am having a hard time finding additional companies. Do I just add to the ones I already own? What would you suggest.

Also what percent sector allocations are reasonable for these sectors for a permanent Seniors' Income Portfolio?

Thank you..... Paul K

Q: This is Bill Ackman's hedge fund. The returns look very interesting, but I can't access any research reports, including even consensus numbers. What are your thoughts about this company and do you have any consensus numbers to share? Also, can you think of any negative tax consequences that may occur from owning this stock?

Thanks

Q: Would you be able to give your forecast on the state of the US debt and what might happen in December when they will be deciding to raise the debt ceiling. How much will it affect the currency exchange rate and also the Feds decision to probably raise rates will be around the same time. Or in other words do I hold tight on my US holdings or take my profits over the next month or so and reinvest after their decision?
Thank You
Jeremy

Q: I need to shift more of my Canadian equities into US equities for proper diversification. Based on your many years of investing experience, how long do you think it will take for the US/Canadian dollar spread to narrow? Thanks!

Q: Hello Team
I just recently read a report (thomson reuters)dated sept.25.They have given Intertain a score 3 out of 10.Not a glowing report which may account for some of the weakness.Do you have any comment on this report? Thank You