Investment Q&A

Q: Can you please provide a few of your favourite US companies with low beta, high ROE and no debt that would be worth buying now for long term growth? Thanks

Q: What US stocks is 5i staff currently buying and why?

Q: I have been following ABT and RMD recently. They have both been trading down the last couple of days when the market is up.

Could you please provide your thoughts on why these companies are down relative to the market recently? I would have thought that they would be doing well given the current situation.

Thank you.

Q: Just to alert your readers: there seem to be two Zoom's out there and one of them was a penny stock that has some pretty wild and expensive trading. You've been correct in noting that ZM is the correct one. Do you think ZM is currently too risky for this market? A lot of companies seem to be using Zoom for online communication, and it seems to work pretty well.

Q: Hi 5i,

We own NVDA in our RRSP on the USD side and want to increase our stake by 2%. We would then have a 4% position. We are contemplating the benefits to sell this position on the US side of our RRSP and buy it in our TFSA (now that we have room) or purchase it in CDN funds to benefit if the CDN dollar drops.

Do you have any recommendations?

Debbie and Jerry

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!

Q: Is QSR going to zero because of the Coronavirus? How long can it survive with restaurants closed? Is it time to sell?

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.

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

Q: Hello everyone just your thoughts on Altria Group. Would you consider a good time to purchase?

Q: hello team,
citigroup worth considering at this level? how does this company compare to its peers?
thanks

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

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 ?

Q: I recently heard on a podcast that small caps as a group tend to recover quicker than large caps. Can you recommend some Canadian and US small cap ETFs? Thank you.

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?

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?

Q: Knowing that you have recommended these stocks in the past, would you buy them now (with a short reason why)? Are they good candidates for a bounce?

Please take as many credits as needed. Thanks.

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 !

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.

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?