Investment Q&A

Q: Hi Peter:
Season greetings to you and your team.
I would like your opinion on the trade(s) I was thinking about.
1) Sell full positions in POW and NFI.
I've had POW for 5 years and it has done nothing during that time except go down about 20%. However, I also think that at $24.00 it has potentially hit a bottom support number. I would be happy collecting the nice dividend it pays.
I also think based on your recent answers to questions that NFI has potential going forward.
2) If I sold POW and NFI, I would add to the positions that I already have of the other companies that are mentioned.
I'm well diversified and this would not interfere with my sector or geographical weightings or the amount of dividends I am receiving.
I think both scenarios have their positive attributes and would appreciate your thoughts. Do the trade or remain the course.
Thank you very much for your valued opinion.

Q: I have capital gains in which I would like now to sell one stock in which I have a loss and can use against my capital gain. Of the stocks listed, LNR, MX, NFI, PBH, TOY would you sell? I do have the intention to buy after the 30 waiting day period.
Thanks

Q: Hi Peter,
Please deduct as many credits as you see fit. I have some losers (some big) as per below:

Margin account
CLIQ down 52%
PHO down 37%
MX down 20%
TFII down 23%
ECN down 13%
NFI down 11%

TFSA
GUD down 17%
CLS down 20%
DOL down 38%
TSGI down 47%

RRSP
DOO down 43%
COV down 26%

Here are my questions.
1- Should I claim the capital loss with CLIQ and PHO and repurchase in 30 days?
2- Are there any names there that I should just sell and move on to something else? What would be your top 3 replacements for the removed names in that case?
3- My initial thought was to inject new money in CLIQ, PHO, DOL, TSGI, DOO and COV to bring these names back to my initial weight. Would this be a good move in your opinion?
These names are part of a diversified portfolio and don’t need the funds for another 10 years minimum.
Much appreciate your service. Your responses to this market volatility have kept me from panicking as I did in 2008. I thank you for that.

Q: Hi,
For the Industrial portion in my RRSP account, I am considering the above companies. With RTN, I wanted to diversify outside of Canada with a large cap stock. Do you see any issue with this company at this time? Is there something else you would prefer? I know you don't cover the US but respect your opinion.

As for the other three (TFII, TCL.a & NFI) could you rank best to worse buys at this time? I am considering adding 2 of the 3 to limit the number of stocks owned. My criteria are: to hold for long term (5 to 10 years), lower impact by any slow down of economy, good growth in dividends and low leverage. Is there another stock or two that would be better than the ones I am considering?
Thanks as always for your help.
All the best,
Dan

Q: in the globe today an insider spent 24 million buyin stock at
35.00, is. that a typo,and what does this tell you about nfi, i do not own but seeing this is impressive. dave

Q: I would like to buy NFI, but have to sell something else to do it. After looking at all of my holdings, I think it should be CSU, or OTEX. I have other tech holdings, but want to hold on to those. I am about about even with the two tech stocks so there is no tax gain/loss. I realize it is changing sectors, but I like the dividend. Do you think there would be more growth in the future by replacing one of the above tech stocks with NFI? Thanks.

Q: In my last question I had asked you to rank the above companies with respect to risk.
"We would rank these: GSY, COV, NFI, PHO."
The order of the list was not clear to me, since it was a little different than I expected.
Is GSY the lowest or highest long term risk?
I'm including the rating and stability from the flash report for my benefit.
GSY: B+, medium
COV: B, low
NFI: A-, medium
PHO: B-, low

Cheers.

Q: The time is nigh...
I sold NFI, GSY, and PHO for tax loss harvesting on Nov. 8th, so I can now repurchase them on Monday the 10th. ( I still hold GUD and TSGI)
I already purchased a half position in COV on Friday as I was thinking of it as a replacement for PHO with respect to market cap and potential...however I am not ruling out repurchasing PHO as well.
Should I have any concerns repurchasing a half position or so of NFI, GSY, and PHO this week? Can you rate/order them with regards to risk...including COV.
My time horizon is long term. And diversification is not an issue.
I am also thinking of adding some NFI in my TFSA, as I think it probably has the lowest risk of the bunch. I already have SIS in the TFSA.

Q: What is happening at this company? The stock is going down. Should I sell?

Q: I am planning to realize losses on the above companies to offset capital gains with a plan to repurchase after 30 days. In order to maintain sector exposure in the intervening period I would like identify proxies for each holding. My thinking is as follows:

TECK.B == XMA
BNS == TD
TFII == ZIN
NFI == ZIN
WEF == CFP
VET == XEG
WCP == XEG

Please review my suggested proxies and add / amend as needed. Alternatively, if you think I would simply be better off holding cash until repurchasing please say so. Thank-you very much for your help.

Q: buy today or wait a bit?

Q: Just receive the dec.income portfolio and your NFI entry point is showing 8.78 ? is this a misprint ?
Thank You
Daniel

Q: I am a retired, conservative, dividend-income investor. My current equity-only asset allocation is 22% financials, 8% real estate, 25% tel-pipes-utilities, 15% consumer (owning CGX, PBH & others contained in ETFs and MFs), 3% health, 8% tech, 8% industrials (owning WSP among others), 9% energy, 2% materials. I am mostly invested with roughly 8% cash available to deploy.

I capitalized on tax loss selling of NFI and TCL. I am considering topping up CGX and WSP to a full position and re-initiate a partial position in either NFI or TCL or another suggestion from you.

Question 1 = Could you please rank these 4 stocks based on a) security of dividend, b) growth of dividend and c) potential stock price appreciation (rebound potential).

Q2 = I am normally a buy-and-hold investor and do minor-trims-adds around core positions. Being we are in late cycle, should I just maintain my existing allocations and avoid adding to my consumer cyclical and industrial stocks?

Thanks for your help...Steve

Q: Hello 5i,
I will be doing a bit of rebalancing and could initiate either a half a position in any two of these names or a full position in one of them.
Dividend safety is paramount with dividend growth secondary to that. From a rebalancing perspecive, TRI would be the most beneficial to add.
All transactions within a TFSA.
So, my questions are:
1. Is now a good time to add to any/all of these?
2. What ranking would you give them in terms of dividend safety?
3. What ranking for dividend growth?
4. What ranking for equity growth?
Please deduct as many credits as you feel are appropriate.
Thanks!!!
Cheers,
Mike

Q: I have significant losses on above names in my TFSA (Loss, Allocation, My Avg Price):
TSGI -49.20% , 7.10% , $49.48
WCP -47.83% , 1.70%, $. 8.70
WEF - 30.85% , 2.3 % , $. 2.62
NFI. -30.30% , 2.8 % , $. 51.81
PBH. -28.23% , 5.0% , $11.46
Other names in TFSA well diversified based on 5i Balanced portfolio with losses under 10% and some with gains.
Would you recommend buy to average down or any other changes.

Thanks in advance for your valuable advice

Q: Hi, I used a screener to look at companies that have had a hard down in the last 6 months, as well as a positive uptick in the last 10 days. I have found two in the subject line above. I also want a small dividend at least and both above are sufficient. I think both AIF and NFI missed last quarter, and they are expected to grow, however, it appears that AIF's growth into 2019 is significantly more (according to scotia) than NFI. I do know NFI has been a darling and this can be a good time to get in. Can you give me your opinion on both in contrast and consider which one you would add to a portfolio now for longer term. No need to consider any of my other holdings. Thanks.

Q: Due to 5 I's comments on management and the rising payout ratio I have sold my KWH.UN and plan to replace it with one of the following options. In a portfolio currently containing 16 stocks and ETF's. Going to replace it with either BEP.UN or NFI or both. Which would you suggest ? 2.75 % in each or 5.5 % in one ? I am leaning toward BEP'UN if one but would like 5I's opinion. I could also go 5.5 % in each as there is surplus cash. { 17% }

Q: With the recent market correction, I have several stocks that are down quite significantly and others that stayed flat or went up a little. This involves that the weightings changed quite a bit for some stocks. I know 5i isn't a big fan of averaging down, but in such context what would be your advice? I have the followings (%loss, weight) :
SIS (-19%, 4%)
PHO(-41%, 1.7%)
KXS(-10%, 3.3%)
NFI(-32%, 2.6%)
PBH(-28%, 3.4%)
TOY(-23%, 2.5%)
MX(-22%, 3.1%)
I currently have 13% cash and would consider reducing it to 7-8%. My sectors are well diversified. Which of the above would be your favorites today for a position increase?

Thank you!

Q: Ryan and Peter,
I'm looking to buy a company that has good rebound potential once the market turns. SIS AND NFI both seem to be oversold. In your opinion, which one looks like it is poised to impove its share price the most once this market improves. Which other companies, (sector doesn't matter) have excellent rebound potential. Thanks for your advice.

Q: I would like to top up these positions and trim them back in the future (12-24months?)

Are there any names on the list I should avoid or expect a longer recovery for?

Always appreciate your wisdom.