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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: Best of the Season to All at 5i
Is 5i planning to do report on Shopify? If so, I was wondering if you could address the following: Shopify now has a market cap in excess of $5B. It has negative earnings, and is not expected to make a profit in 2017. Its estimated revenues in 2017, according to Morningstar are approx $0.55B
To put this in perspective, Linamar has a market cap of $3.8B. It made $350M of free cash flow in 2015 and will increase that in 2016. This is AFTER some $375M of capital investment is subtracted from earnings. I realize they are in entirely different industries, but if I could magically own one company or the other outright today, I would choose LNR in a heartbeat.
The market is always right I suppose, and you have a 100% gain on SHOP in your growth portfolio. But at what point does the reality of fundamentals come into play?
I recall years ago when Ballard Power had a higher market cap than Loblaws. That happened.
P.S. Yes, I do have a case of sour grapes because I did not heed your advice and buy SHOP when you recommended it!
Cheers
John
Read Answer Asked by john on January 03, 2017
Q: I am going to be purchasing all stocks in the balanced equity portfolio in the next few days. Would you recommend equal weights to begin with or mirror the current weightings?
Are there any companies you would wait for a bit of a pullback before buying.
Do you still prefer WCP over RRX? I am guessing maybe for stability and dividend?
Are you planning on making changes to the portfolio anytime soon. Thanks very much.
Read Answer Asked by Andrew on December 30, 2016
Q: Starting a TFSA and have narrowed down a larger list of 10-12 stocks to these four. Still doing research on each of these, but I was wondering if you thought this was a good mix for a TFSA, while adding different sectors as the years progress.

Thanks,
Jason
Read Answer Asked by Jason on December 30, 2016
Q: Hi There,
I am currently considering adding a position in one of the three companies ENGH, OTC, or SHOP to hold within my TSFA. I currently own GUD, KXS and SIS. Please advise which one of these three you would recommend buying next. Thank you for your helpful insight and all the best of the season!
Read Answer Asked by Kevin on December 23, 2016
Q: Good morning Peter, I purchased PUR in early August based on your company report and have watched it steadily decline 21% since. I know you continue to recommend this as a growth stock with risk, while stressing the need for a long term hold. It seems I've got the risk side covered, so my question is whether you have changed your position about the growth potential. I can wait on this stock and will hang in there if warranted. What are your thoughts? As always, I appreciate your invaluable advice.
Read Answer Asked by Warren on December 21, 2016
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