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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: Realizing that all the above listed securities differ, they all got battered like everything else. Your opinion would be appreciated as to slowly buying into these positions and your preferred ordering.
Thank you, as always!
Read Answer Asked by Sigrid on March 23, 2020
Q: SBUX: closing stores for 2 weeks. May be longer depending on how this COVID-19 pans out, I realize. On my buy list at some point. According to CIBC Investors Edge they have no debt. - is that right? Low P.R. and ROE of 22%. Buying back an additional 40M shares in addition to remaining 16M, for a total of 56M.

Do I have the right data going forward. Additional analysis appreciated.
Read Answer Asked by James on March 23, 2020
Q: Hello Peter and Team,

Thank you for your helpful guidance during this unprecedented turbulence. I know you've liked Docusign in the past, but do you like it even more now? Would it be a stock that potentially plummets after the virus is controlled, or would a raft of new users adopt it for the longer term? Any thoughts?

Brad
Read Answer Asked by Bradley on March 23, 2020
Q: I am trying to evaluate the appropriateness of selling covered call options in this market and thought with your experience and knowledge you might be able to analyse the situation. The premiums are high . But, I the risks are, too. You mention that a good way to get into this market is average into it. Well, if you buy Microsoft to sell a covered call on, you have to buy one hundred shares. That doesn't look like averaging in. You get a good premium But the market is so volatile that in a month, the stock could be much lower, and you have lost your opportunity of averaging in. Or, the virus could be more under control and the stock could be way over the strike price. And you may have lost the opportunity to have microsoft at a lower price. I know that this is always the case with selling covered calls, But, it seems that the current market exaggerates that situation. The only way that I can justify it is by saying that I dont think the turbulance will be over in a month and therefore go ahead. I suppose another safeguard would be to do limited covered call trading and average in with other money. I would be interested to know your perspective on this.
thanks
Read Answer Asked by joseph on March 23, 2020
Q: With respect to energy producers, would it be fair to say that producers such as Suncor, who also have refining assets, are better shielded against the current downturn in the energy sector, given that the cost of the input (crude oil) allows for a (theoretically) larger crack spread ? Unrelated to energy, do you believe that a company such as 3M, which manufactures various items used in the medical field, will weather the current corovirus downturn a bit better ?
Read Answer Asked by Mike on March 23, 2020
Q: I am looking at buying into these three companies over the next six months to take a small speculative position. Are these three good candidates for survival? Would their be an ETF in this sector which would be a better option given the risk/reward?
Read Answer Asked by Terry on March 23, 2020
Q: Which of these airlines would you choose given the market downturn and uncertain recovery time in the travel industry? I am looking at buying incrementally into a speculative position over the next six months. I would consider Delta, however USD are expensive at this time. Should that be a consideration?
Read Answer Asked by Terry on March 23, 2020
Q: I have a large cash position and am starting to re-deploy. Would like to take this opportunity to acquire a stronger US stock presence than I previously held. I am looking at about 40-50% in US to add to what will be a balanced diverse portfolio of Canadian stocks - many of 5i recommendations. I am happy with some overweight in tech .
I plan on putting in limit orders at lower prices than current and have my own price area for each identified, but as a "reality check" would appreciate some feedback from you as to what you think could be "suggested" buy prices on each stock.
Also, is there anything you would add to the list as Strong buy suggestions. Or anything you would delete from the list that you feel would not show a positive return in the next 1-2 years.
Thanks for getting out your crystal ball on this and congrats for coping so well with all the noise !
Read Answer Asked by Alexandra on March 23, 2020
Q: Hi,
A question about this company was asked to your team sometime in January and you mentioned that it was an expensive stock at that time, based on certain metrics.
Since then, DT has fallen significantly but I was surprised that on Friday (March 20th), it bucked the trend and closed up over 9%.
Has the stock reached a point whereby it is now cheap?

Your opinion is appreciated.
Read Answer Asked by ilie on March 21, 2020
Q: Re A.T.&T. (symbol T not in your database) states in cancelling a large share repurchase "impacts of pandemic could be material & unable to estimate impact on results."
I would have thought a telecom would see increased business from its various services and not be in a bind like this. What is the 5i take on this and would other telecoms be in the same boat as T?
Read Answer Asked by Jeff on March 20, 2020
Q: Hi - I've had about 4-5% in each of the above going into the recent crash. Do you have any thoughts on hanging on to AD vs moving money to the banks (for example). AD has been hit much harder, but the dividend is larger. I would hold on if it's clear they will come out the other side ok. Similarly with APO, if you can comment on the US side.

Thank you!
Read Answer Asked by Yasin on March 20, 2020
Q: Is this a buy today? Just read the headline below on the heels of hearing nothing but "not enough ventilators" on CNBC all day

Medtronic Boosts Ventilator Production in Response to Public Health Emergency
19 Mar 2020 04:37 ET
04:37 AM EDT, 03/19/2020 (MT Newswires) -- Medtronic (MDT) said Wednesday that it is doubling its production capacity to meet the high demand for ventilators which will be used by hospitals in the management of the COVID-19 respiratory disease.
Read Answer Asked by Tim on March 20, 2020
Q: When things seem like theyve settled down some, I plan to average down on some of my higher quality (less speculative) stocks. Im also planning to do this around dividend dates since this seems like a good time to compound DRIPS and collect extra shares.

Now, the core of my portfolio is still in a few broad market etfs. Do you think in the recovery that a certain market (S&P500, Nasdaq, DOW etc. - Im assuming not the TSX since Canada is fighting an economic war on multiple fronts) will happen faster than in others? Would you think in the recovery that buying hedged would be better since the US Dollar has been climbing recently? Thanks
Read Answer Asked by david on March 20, 2020
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