Investment Q&A

Q: Unfortunately I'm forced to sell a stock for some cash needs. I've identified these two stocks and would like your opinion on which one I should let go. Evertz or DH Corp. Thank you for your help.

Q: Hello,

OCT has been drifting downwards over the last few weeks. Any reason why this is happening? Is this still a buy?

Q: is the 10000 cash a 10% weighting

Q: On March 31, 2014 the B.E. Model Portfolio was rebalanced back to 5% weightings for all holdings, something that didn't occur at the annual review in 2015. Is there a new philosophy to let winners like CSU and ESL run and laggards lag or will this issue be addressed during April when the $10,000 cash is deployed (a 5.4% weight that could go to a new name)?

Q: Re: Balanced and Income Portfolios. What are their debts by percentage for the companies listed in these portfolios. Your answers may be of interest to other members. Thank You.

Q: I just finished reviewing the growth portfolio and I thought it was curious that there is no junior gold miner in the list. I can think of a couple like Teranga Gold or Lakeshore and I am sure that there are many more that have actual mines running and are low cost producers. If gold ever sees a substantive increase, many of these producing juniors should also move. Historically many investors have done very well by going into out of favour sectors.

Q: Hi great 5i team , I wonder how to buy and sell stocks e.g. TC with low daily trading volume ? How does the fund manager go around this problem ?

Q: I have been moving towards replicating, as much as possible, your Balanced Equity Model. I am with Scotia iTrade who now have a performance tracking system. In February, my return was 5.48% (March is not yet available). Your portfolio, on the other hand, returned 7%.
I do not yet hold AYA, CSU, DSG nor SYZ. But I do hold SLW and IPL plus some Low Volatility ETFs for international diversity. All holdings have a initial purchase balance of 5% or less.
Do you have any suggestions as to which I might sell and which I might buy with the proceeds?

Q: When starting to build the new Growth Portfolio,with $50,000.Is it better or more efficient to buy exact dollar amount ( $2500 per position for ex.) or by even lots? Also, should you start with the 5% positions first and then work you way to the 3% positions overtime?
Thank you very much for your expertise.

Q: When you close out a position, in this case Surge, do you still factor in the loss to the portfolio since inception. I presume that is the case.

Q: You say BCE,Telus, and A.Couche-Tard (ATD,B) are not rated. Why not
rate them? And, why not use only rated stocks for the Model Portfolios?
In addition, Why are you not replacing a A-rated stock with another A-rated stock in the Model Portfolios? Thus, why are you changing the value of the Model Portfolio?

Q: How should I approach buying the small caps in your new growth portfolio if they've recently taken a big run? Two of the four I want to purchase have recently jumped. Com Dev is up 8% in two days and DRT is up too. Is it best to just get in now or wait for a pull back?

Also, is IT (from your growth portfolio) a good alternative to AYA? Would I be safe to buy a full position in it or would half be better?

Q: It would be helpful if you could give a relative ranking of risk for each stock in the new growth portfolio. Do you consider them all high risk? Are certain ones not as risk as others? What do you consider to assess risk?

Q: The new Growth Portfolio was up approximately 2.28% yesterday while the TSX was up only .27% and the Venture was up .18%. Is the reason for this that 5i members are piling in, or are there other factors at work here?

Q: For people who own or are considering Alimentation ATD.B, this is an informative and interesting website: http://www.cspnet.com/. Enter "Alimentation" into the search box to see news and insights. The site covers every aspect of the convenience store business. It adds new dimensions of understanding to the world in which ATD.B operates and expands. How can you not like a website that devotes a major section to Snacks & Candy?

Q: Hi, pardon my ignorance but how do I access your growth portfolio?
GUY

Q: Hi,

Two quick questions on recent additions to the Balanced Equity portfolio:

1 - Do you think Alimentation Couche Tard may be able to acquire some retail locations in Canada or the U.S. from an integrated oil player that is looking to raise some cash? I heard that Suncor may be looking to sell Petro Canada? Not sure if its just speculation though.

2 - For Progressive Waste, the stock is near a 52 week high. Do you see growth in the U.S. market going forward or is this a play on lower oil prices improving margins and driving profit growth?

Thanks,
Jason

Q: On the topic of selling the stocks that 5i "dropped" from the portfolios, I wonder if a better way for us to think about this is to be aware that there are slightly more attractive opportunities in certain sectors for any new money or change of circumstance/rebalancing. Having listened to your advice on buying for the long haul, and finally desisted in trading so often, I find myself reluctant to sell companies ( SLF for instance) that are still "decent" even if I am a little underwater on them.

The new portfolios are great fodder for thought, but I suspect my reluctance to stampede after every idea is even better!

Any comments on the long haul hold vs better opportunity issue?

Many thanks,
Marilyn

Q: In your response to Kenneth you mention "SLF was changed for sector reasons, as was BDI." As a matter of fact SLF is still in your model portfolio. Last March I could not understand why you would want to sell BEP.UN, KBL, TOU, VRX and IPL. These were mostly all solid stocks and were replaced by CCL.B, DSG, BDI, SJ, MDA and SLF. The average gain of the stocks sold was 26.2% while the average gain of the new stocks added was only 2.2% over the past year not counting dividends. That's a missed opportunity of 24%! Fortunately I kept BEP.UN, KBL and IPL and unfortunately I had not bought VRX which turned out to be the biggest gainer. I should add that I kept WPK which was also sold in the model but is up >84% in my portfolio. Regarding your latest additions to the model portfolio i own WSP and agree with the STN switch, BIN and ATD.B are great additions but it appears by selling BDI now you are selling low and replacing with stocks at all time highs. BLSH.
Steve

Q: Hello, Peter & Co.
You have deleted a couple of stocks from your equity portfolio, should we assume that it is a sell recommendation if we hold them in our investment portfolio?
Ken