Investment Q&A

Q: I would strongly agree with Jules comments quoted below;
"5iResearch announces portfolio changes after markets close and uses the previous day closing prices in costing out portfolio changes. But members don’t have this luxury of selling or buying a stock at the closing price of the day before. They line up in queue and do their transaction at the start of the following market day. My suggestion is for 5i to be transparent and price all trades at the opening prices of the following day. That way there is a sense of alignment with what the stated portfolio returns are and what members can expect to get. "
Please accept this simple recommendation so your published rates of return are representative of what can be expected by the average investor. Otherwise add a statement to the effect your rates of return are calculated based on trades conducted after market close and as such do not reflect the rates of return achievable by the individual investor.

I've followed 5i almost from inception and am deeply indebted to them for holding many stocks that I wouldn't have otherwise purchased and many have returned well over 100% such as: CSU, CCL.B, SIS, KXS, AYA (now changed), ENGH. So I thank 5i for their service and only ask when they make changes to the portfolio they state changes are in effect at market open the following morning. Never mind what mutual funds and other do. Stick with the 5 i's.

Steve

Q: Upon reflection on your answer about my earlier question concerning thinly traded stocks (SYZ), I would like to suggest a change in how 5i prices portfolios. I don’t think it will be popular with you.

I don’t know how many subscribers 5i has but I’m sure it’s substantial. By what happened this morning on the markets after you made a number of portfolio changes late yesterday, your base is enough to move markets, particularly in thinly traded stocks. Members will never be able to match the stated returns of the portfolios simply for this reason. Members can mimic the trades and keep the exact portfolio composition but we are at the mercy of the markets the following day when we try to make the trades required to maintain the sameness. Two stocks you sold outright were SYZ and ITC. Both traded down at market open (SYZ substantially). Another you bought, RHT, was up on opening on strong buying demand.

5iResearch announces portfolio changes after markets close and uses the previous day closing prices in costing out portfolio changes. But members don’t have this luxury of selling or buying a stock at the closing price of the day before. They line up in queue and do their transaction at the start of the following market day. My suggestion is for 5i to be transparent and price all trades at the opening prices of the following day. That way there is a sense of alignment with what the stated portfolio returns are and what members can expect to get.

5iResearch is a good service. I’ve been a member for years and have benefitted. Are you conflict free? In the traditional definition, you are but you have a vested interested in achieving high portfolio returns. This is your marketing tool. I have no problem with this but feel you need to be open with members and attempt to provide a portfolio return that members have a chance of achieving.

Q: This is submitted as a customer who simply wants to improve relations and responses through communications. Do with as you will.
Your response to John and others regarding portfolio moves on ABT and SYZ seemed rather sharp. I speak for myself only, but I doubt if I am alone when I say that I value your services first and foremost for the educational aspects; from blogs to reviews and questions. That said, I personally feel that your communications could have been improved by perhaps reviewing recent past responses on impacted stocks prior to updates being released. In this manner explanatory notes (for example), could be included and head off confusion/ consternation.

Q: So now with this stock in the growth portfolio, and many sub. asking about this stock in the last 3 months, is this what got your interest up in it, or was it on your shopping list before them? Seems like a little late on the huge run up.
Thank you

Q: This is not really a question but an observation. In response to your reply to Gervais copy below you indicated you would give Abt “another quarter or two.” I was therefore quite surprised/disappointed when you announced next day the sale of your full position.
John

Asked by Gervais on February 14, 2018
5i Research Answer:
Results were not great, and we would like to see more than a 3% revenue increase. EBITDA margins and cash flow improved, which is positive. We are still OK with its prospects, but it did miss most estimates. We will give it another quarter or two.

Q: this morning GUD stated that it submitted a new drug for review,Why it dropped sharply today?.Txs for u usual great services & response

Q: Hi Peter and Staff
So your growth portfolio results for February will show a disposition of these two stocks at yesterday's close - with yesterday's volume - there is zero chance we get out today or anytime soon at what you did / are these two companies going to survive or should we take what we get and exit ?
Thank you
Dennis

Q: Good morning,

I notice in today's Q&A you mention the addition to Reliq Healthcare to one of your portfolios. When such changes are made to portfolios, are the intra-month additions and deletions announced somewhere on the site, or only visible in the month end portfolio update publications?

Also, can you comment on Reliq's patient onboarding process. In your view, are there risks with this process (delays on big contracts) or with a large competitor entering the space.

Thank you

Q: I see you have removed SYZ from the balanced portfolio. As a thin trader, would you expect the stock to go down as some/many of your followers will 'rebalance' to match your moves? If it does move down, is this a lesson for subscribers to be careful in investing in recommendations that trade thinly? Of course, it works the other way when a thinly traded stock is first recommended.

Q: High five 5i,
I'm down 13% on this stock, should I stick around or just let it go! :)
Would it recover in 2018, that is, up 13%.
God bless you 5i.

Q: Hi there, thanks for the updates on your portfolios! I mostly follow your Balanced Equity Portfolio with a few swap in towards growth (ie: KL, SHOP, PHO, PEO, COV, GSY, DOL etc) - in other words I dont' mind risk, but not on the extreme end of the risk spectrum. I like the names like PBH, KXS, SIS, TOY as well. That being said, If I wanted to buy 3 of 5 names that were added to the BE and Growth Portfolios, which would be best suitable for me: RHT, WEF, TCK.B, VB, LIQ

Thanks so much!

Q: I own NTR as a commodities play on the possibility of a weaker US dollar (among other reasons). I also follow BE. Your recent portfolio changes suggest a move from NTR to WEF might make sense for me. I have no particular love for NTR (and agree about dragging their feet on the dividend), and always like to reduce my non-BE holdings where appropriate. I regret not selling NTR at 65, but investing is about future prices, not past. My question for you is do you think near term total return will be better with WEF or NTR? I would appreciate some analysis as to why, and if you don't like to make near-term predictions please provide your thoughts on a switch from NTR to WEF. I know they are in different spaces but they would I think fill a similar role in a portfolio--non-metals, non-energy commodity exposure. I would appreciate your views. Thanks!

Q: What is your firm's view of GUD ?

Q: Following the balanced portfolio. Please rank your new equities in the order they should be bought. Which 2 have greatest growth potential. Also will AVO hang around the 26.80 mark until the sale?
T as always

Q: I currently own PLI in my TFSA account at only a 1% weight and in a loss position. I have added some money to my TFSA account so would you be a buyer of PLI or wait for the next quarter report?

Thanks

Q: Would you be able to tell me when CCL.B reports their next Earnings.

Thanks Valter

Q: due to it's pullback today, do you think this is a good time to buy Shopify?
thank you,
Dorthy

Q: An update to my Nov 2016 comment. My now 7 year old's RESP CSU shares are comfortably 6 baggers (previously only 4 baggers in Nov 2016). Thanks again and looking forward to my first 10 bagger. Again thanks for the advice to not be afraid to buy a stock that has gone up in price. I've purchased CSU in a number of other accounts since and all are now up a minimum of 100%.

Q: Hi Peter and team - I have read the description of Photon Control's business in TD Waterhouse but am still unsure of exactly what it does. Would you be able to give an easy-to-understand summary of the company. Also could you comment on recent insider buying/selling and overall ownership, as well as provide any reasons that makes this a good buy at this time. Thanks for the excellent service.
Rob

Q: Hello team,
Why the huge decline in ECI ? Would you hold, add, buy or just sell and replace with something else?
Thanks!