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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: In its most recent SEC filing, billionaire Carl Icahn’s Icahn Enterprises LP (NASDAQ: IEP) disclosed a 149 percent net short position in U.S. stocks. IEP has been declining since this position was taken yet in the last few days the market and the circumstances surrounding the market have been negative. I would anticipate that IEP should rise against this situation based on its rather substantial net short position but this doesn't seem to be the case. Do you see any reason why the shares of IEP are reacting in this manner?
Read Answer Asked by Patrick on June 15, 2016
Q: Are there any companies/organizations in the Artificial Intelligence sector that 5i believes are good long-term investment opportunities; perhaps focusing application to diagnostic medicine. (Not so interested in driver-less cars, but believe that there must be tremendous long-term plays for companies perfecting diagnostic tools, for example.)
Thanks for your excellent investment analysis.
Read Answer Asked by Brad on June 13, 2016
Q: A question related to portfolio weightings. I used to only have individual stock names and a fairly equal balance across various sectors. I just purchased an market ETF the other day (VUN) to get additional exposure and classified it as "other", but it didn't feel right when I noticed that the weighting of my other sectors went down.

As an example, if I had x% in a particular sector, but made a large contribution due to new cash into a market ETF, the original x% in that sector would now show up lower in my own calculations. How do you account for this? I don't want to be overleveraged in a particular sector by mistake.
Read Answer Asked by Mike on June 09, 2016
Q: I am still researching the US for additional opportunities & would like your advise on the 5 companies as listed. I am aware of certain similarities between SAP & KXS with respect to their Cloud collectivity modules & firmly believe this will become the wave of the future for thousands of large & diversified corporations in the foreseeable future. Recognizing however your sometime reluctance to comment on US entities, I would nevertheless appreciate your comments & guidance. Thank you.
Read Answer Asked by Robert on June 09, 2016
Q: Thanks for your quick response to my question regarding Cal-Maine foods. However I am not certain where you got your consensus estimates for earnings as my research shows a consensus/ mean estimate of earnings for the coming year as $1.80 a share based on 5 firms that cover the company. The estmates range from $1.05 a share to $2.83 a share. So that increases the PE quite considerably. I think that your earnings were for the past year not the coming year. While I am not trying to have you predict a share price for the company, which I agree you cannot do, cyclical companies will often trade at very low PE multiples at the peak and very high PE's at the
trough. I am not really sure how high a multiple is 'reasonable' based on previous experience. Your comments would be appreciated and if you concur with my numbers your thoughts on whether the current projected earnings support the current share price and if the next year's earnings projections are a short term event or more long term based on industry events and trends. Thanks!
Read Answer Asked by John on June 08, 2016
Q: I hold Cal Maine Foods as part of an option writing strategy on US companies. Projected earnings for the company have been lowered significantly and the stock has embarked on a steady downtrend. The forward PE for the company is about 26 which is very high given the current trend for earnings. Based on these estimates there appears to be little reason to continue holding the shares as further share price weakness seems likely. Is there any redeeming information regarding future growth,potential earnings recovery, the overall industry, etc that would encourage holding rather than selling the shares?
Read Answer Asked by John on June 08, 2016
Q: I am currently moving some of my portfolio from stocks to ETF's. I want only a plain vanilla flavoured portfolio. I have been going through your questions and answers regarding ETF's, and given the diversity of situations and dates, I am getting a little confused. i wonder if you could suggest the best for broad canada, broad U.S., and international?
thanks
Read Answer Asked by joseph on June 07, 2016
Q: I enjoy your reply to our questions very much and feel time to have your option about my holding for VRX ,CXR and AGN.specially about VRX which I have 700 shares. My healthcare mutual fund seems not performance very well. Should I hold ,sale or buy more?Thanks
Read Answer Asked by qing jie on June 07, 2016
Q: I have some room to diversify into some US stocks within my TFSA. How do I do this? Is it as simple as adding US account to TFSA and begin trading? Any important notes to keep in mind when adding US exposure to a TFSA?
Thanks in advance.
Matt
Read Answer Asked by Matthew on June 06, 2016
Q: Hi,
Would like to start an RESP for my grandson. I am looking at the new TD series of EFTs which started in March 2016. Specifically THU and TPU (TD S&P 500 CAD Hedged Index ETF and TD S&P 500 Index EFT). The cost of these EFTs are only $15. Similar hedged and unhedged ETFs at Vanguard,BMO and I-Shares are trading at about $30-$40. Please advise if these TD ETFs will be just as good or should I stick with the tried and true ones mentioned above.
Thanks
Read Answer Asked by Mike on June 06, 2016
Q: Hello 5i.
Would you please consider the following as recommend a company or two that may fit the bill?

I have been looking at the tech stocks run up in USA but not yet joined the ride. I do believe FB, Amazon and Google are super companies and stocks but can not seem to pull the trigger given high price and buying in US$.

Is there a Tech stock worth purchasing that would sub for these US juggernauts(business growth and price appreciation) - Or do I just move on Google or Amazon?
Does TIO fit the bill given its high score as one of Canada's fastest growing companies?

Thanks for your contributions.
Dave
Read Answer Asked by David on June 03, 2016