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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi Peter,

Again, just a recent subscriber. I noticed last week your response to another subscriber about some small cap US stocks that you might like.

Of the suggestions, I did some of my own research on TCON and MNST and bought positions in both. Tcon is up almost 50% and MNST is up approx 20%. As you suggested they are spec positions so I took relatively small positions in both. Nonetheless those trades alone will pay for your service for the next 10 years

First, thanks for the great ideas.
Second, why don't you guys start a small cap US growth research service? The variety of stocks for you to recommend is extremely broad.
Thirdly and lastly can you suggest any other small cap growth in the US that I can research?

Much appreciative
Read Answer Asked by Sheldon on March 02, 2015
Q: I am thinking that it is time to own a transportation company to take advantage of low gas prices and improving economies. I know that you like both of these companies, so I am wondering if there is something to suggest buying one over the other? Both seemed tied to North American economic growth although perhpas Cargojet may have some international business so I am thinking that this is an apples to apples comparison despite the different modes of transportation provided. I have a preference for company that could be a long term hold with a growing dividend.

Appreciate your thoughts as always.

Paul F.
Read Answer Asked by Paul on March 02, 2015
Q: Good morning. I would like some help with my TFSA. At present I have CIX (+5%), FTT (-15%), and VET (-26%) and cash. Total value is 30K with 12500 in cash.
After reading through your TFSA questions I am tempted to sell all holdings and buy new holdings. (ie time to let the losers go and place money into your recomended stocks with good growth potential)
I am 53 year old with a non registered acct holding blue chips and your model portfolio.
Your help is greatly appreciated.
Read Answer Asked by Anna on March 02, 2015
Q: Hi.. would you say that NYX Gaming Group is the same as AYA.to or are there any differences?? Thanks
Read Answer Asked by Mike on March 02, 2015
Q: I am looking to add some of the names that you cover. In your opinion - which 5-10 names offer the best potential for price appreciation over the medium to long term.
Many thanks
Read Answer Asked by Gary on March 02, 2015
Q: Good morning,
I have reasonably balanced positions in the above stocks.(Following your advice. Thank you.) Long term horizon. Looking for growth/stability. Should I add to these? However, I am weak on U.S. Was thinking of some U.S. ETF"S. Rob Carrick mentioned many in G& M on Saturday. Which would you recommend?
Read Answer Asked by Paul on March 02, 2015
Q: Hello 5i
On may either 4 or 10 of 2014 you gave What you thought would be a good example of a portfolio for a middle aged investor. I thought it was good. A further question on that, though. You give the percentages each sector should comprise. But, my question is how many stocks in each sector should one hold?
Thanks
Read Answer Asked by joseph on March 02, 2015
Q: Hi Peter,
I wondered if it would be possible to have a list of your best recommendation updated regularly. I understand the model portfolios have a similar role, but for example have a more focused list (10-15 stocks) of high convictions stocks updated monthly would be interesting.

Thank you for your good work.
Read Answer Asked by Gabriel on March 02, 2015
Q: With your help my TSFA has grown from a hobby to something a little more serious . Thankyou. I have had ESL and DH for a year and a half, DSG for 2 yrs.GIB.A for 5 mo. Also in TFSA
are MFC TD CXI WCP. The 4 tech stocks now make 55 percent
of this. Every time I think of trimming back (probably ESL )
they keep going up. What do you think ? If I sold anything I
don"t know what I would buy anyway. Have XTC ZUH ZLB and BIN
in my RRSP.
Thanks again for your time .Without your help I probably
wouldn,t worry about this stock market business.

Larry
Read Answer Asked by Larry on March 02, 2015
Q: heard a very positive report about them---their restructuring and management...Do you have any recent info on them?
Read Answer Asked by peter on March 02, 2015
Q: Dear Gentlemen,
I am in the process to rebalance my PF, based on 5I Summary list, I have companies classified in Services, Consumer Goods, and Financial Service, I assume that these 3 sectors are not in the 10 TSX sectors.
What do you suggest for these 3 sectors, to merge them them with other sectors or keep them and allow % . If so how much ?
Thanks Best regards.
Quote : On average, we would suggest a portfolio similar to this:
Utilities 15%; Financials 15%; Energy 10%; Materials 5%; Telecom 10%, Industrials 10%; Healthcare 5%; Info Tech 10%; Cons. Discretionary 5%; Consumers Staples 15%.
Read Answer Asked by Djamel on March 02, 2015
Q: Robert's Feb 26 question about the arbitrage opportunity in BCE's acquisition of Glentel inspired me to try to calculate the downside risk of buying GLN now. Please correct me if I'm off base in my math. Assuming you can acquire GLN shares now at $24 and a 50/50 cash/stock split on closing, the BCE share price would need to fall to $43.23 [26.50 / 2 = 13.50] + [42.23 x .4974 / 2 = 10.50] = 24.00 total to eliminate any gain. If you were to receive all shares and no cash, break even would be $48.26 [48.26 x .4974 = 24.00]. It's possible BCE could re-visit the $48 range, where it was for much of 2014, but dropping to $43 would seem less likely. As a side note, I see that over 8 million BCE shares traded right at the bell on Friday. Average daily volume is around 2.5 million. Was this simply end of month fund re-balancing?
Read Answer Asked by David on March 02, 2015
Q: Hi,
I have these four in my TFSA. A bit heavy on CGX and STN but okay with the imbalance. Long term horizon. Now have about $7500 cash. Would would you recommend?
Read Answer Asked by Paul on March 02, 2015
Q: Hi 5i Team,
I have reasonably balanced portfolio. Looking for growth/stability in non registered cash account. What percentage among these would you spread cash over the next six months? Which ones first and what %? Long term horizon. Any others instead of these ones?
Read Answer Asked by Paul on March 02, 2015
Q: Hi there,
I only have a 4% weighting in health care and own JNJ. I would like to increase my health care weighting to 10%. I was thinking of buying some XLV, CCT, and GUD. (CCT and GUD would go in our TFSA's). How does this combo seem in terms of diversification, balancing risk and growth. Any other recommendations instead?
Thanks, Kerri
Read Answer Asked by KERRI on March 02, 2015
Q: Hello 5 I, Canada Pension Plan purchased 341,900 of Kelso recently and was wondering if I should get excited about this?

Read Answer Asked by ron on March 02, 2015
Q: In relation to the question i just posted regarding portfolio construction, i have another question. In two different answers you give quite different percentages for asset allocation. I am surprised that there is such a difference in the two. One for "an average investor" gives this breakdown:
For the average investor, based against the TSX sectors, we would suggest these allocations; 
Consumer Staples  5%
Consumer Discretionary 10%
Energy  10%
Info Tech  15%
Materials  10%
Industrials (with some US) 15%
Healthcare  10% (with some US) 
Financials  10%
Telecom  10%
Utilities   5%
Enbridge and IPL do behave more like utilities, but the TSX includes them in the energy sector, so we do as well. Badger has 55% of its business in the oil and gas sector, but the TSX classifies it in Industrial Products. 

In the may 2014 post i cited earlier, which is for a "middle aged conservative" investor, it is like this:

May 05, 2014 (asked by paul)
Question: What sector weightings would you recommend for a conservative middle age investor, with a balanced focus on capital gains and dividends. Thanks
5i Research Answer:
On average, we would suggest a portfolio similar to this:
Utilities 15%; Financials 15%; Energy 10%; Materials 5%; Telecom 10%, Industrials 10%; Healthcare 5%; Info Tech 10%; Cons. Discretionary 5%; Consumers Staples 15%.
Read Answer Asked by joseph on March 01, 2015