Investment Q&A

Q: Am looking at Magna for my TFSA with a 2 year rebound focus. The chip shortage seems to be depressing the stock ; would a 2 year period to fix the shortage seem reasonable ? It looks like a battle is looming to acquire Veoneer and the stock has been hitting lower highs over the last 6 months. Would you wait and see how the takeover ends, see some turnaround in the chip market ? In essence, buy now or wait until some clarity on these issues ? Thanks . Derek

Q: Please suggest a few stocks (CAN, US) that will likely see a rebound in share price when the computer chip shortage is rectified. Either for a trade or 5-year hold.

Q: Hi team!

I currently hold MG, NPI, QST, REAL in my TFSA and am down in all. Which would be your favorite to add another half position to at the moment?

Or would this be a better opportunity for me to take that money and purchase NVEI at this current lower price point?

Thanks for all you do!

Q: I am down on both companies, probably due to shortages of parts.
Do you agree selling and buying your highest recommended tech growth stocks or any stocks you suggest where short term gains are likely?
Once problems receiving parts appears to be resolved, sell the stocks and buy LNR and MG again.
While it is market timing it appears to be a more predictable type of market timing.
Thanks
Klaus

Q: Hi Team,
I read a news release sept.20 stating magna will acquire veoneer. I just wanted to confirm this is now a done deal. And do you see this deal as a long term positive or am I the only one judging by investor sentiment? Last I had heard Qualcomm had a higher bid?? Can you confirm ; and as well is it worth holding magna at these levels or should I be taking a tax loss on it (down 8% on it )? Are there any catalysts that could help the stock in the next few months or do you expect further down side? As of today it’s my only play on the EV sector. I had thought when I bought it to be a safe play on the sector and expected strong auto demand once the chip shortage went away. Thanks for your input !

Shane

Q: It appears that Mg is no longer one of your top favourites.It has a great run to reach $126 ATH in early June,2021,but since has declined to current $96.86.Is this a good entry point? Or U prefer one of U current favourites? Txs for u usual great services& views As a aside,I cannot find Acq in the Summary of accounts covered.It was on u previous list some time ago

Q: Any reason for Magna's sharp drop yesterday (Sept. 16)?

Q: I'm down 13.5% on MG in a non-registered account. Hold the course...take a tax loss now and re-purchase in 30 days..or take the hit and move on?

Thank you.

Q: Suggestions on how to invest to benefit from Biden’s proposed increased EV incentives to buy US manufactured electric vehicles? This potentially could speed up the transition (once the chip shortage is rectified).

Q: In a previous answer to the question "10 companies to hold for 20 years" your team selected BYD as one of 10 long term holds.

I'm curious, why you would choose BYD over MG?

Self-driving vehicles will soon be prolific and likely all electric powered, I can only imagine a dramatic decline in accidents, servicing and repairs and way fewer moving parts (internal combustion engines) to replace.

Seems like BYD is on the wrong side of innovation.

Q: With the drop in Chewy today, how would you rank it with the above Consumer Cyclical stocks?

Q: What stocks in Canada do you believe will do well with the passing of the Infrastructure Bill and Reconciliation Bill in the USA? Please list in order of preference. Thanks.

Q: Good afternoon,
I have about a 5% of both LNR and MG in my TFSA and have owned them since 2017.
Although I have seen reasonable returns LNR has lagged behind MG. I'm looking to sell LNR and get into something that has more growth can you please suggest two or three Canadian companies and a possible entry point.

Also I have owned AQN sing March 2020 and it has not done anything and thinking of switching over to POW BAM.A or any other suggestions and a possible entry point.

Thanks.

Joe

Q: Was up 30% on MG. Purchased at $84.50. Stayed too long at the party. I still like it longer term. I like the fundamentals. Do you if so why?
I hesitate to average up here. You have better insight on MG than I do. Also in my experience over the years September/ October are notorious months for market drop, I have 10% in cash for purchases just in case. It’s a large well diversified portfolio. Cyclicals make me nervous here.
Roy

Q: Greetings,

I am underweight consumer defensive and consumer cyclical and would need to invest about a $100k in each to get the right balance.

I also need more US and international exposure.

Can you suggest your top two individual names in each category that are listed in the US and Canadian markets?

Lastly, is there an ETF or two I should look at?

Keep up the good work… i am up substantially on TOI based on the guidance received here.

Q: Hello Team.. I am over weight in banks and considering selling either RY, BMO or BNS and starting a position in MG. I am considering magna as a play on the EV space-does this sound reasonable? Thank You and Best Regards. gary

Q: Bought MG about two months ago and down 15%. I suspect in part it's due to the global chip shortage. If this is indeed the case, I am not reassured by NVDA's recent comment that they anticipate the chip shortage to last through to the end of 2022. To what do you attribute the decline...and when - and why - would you anticipate a turnaround? Is MG a buy, sell or hold? Thank you.

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

Our intent is to increase our investments in the 30 companies over time. We have recently increased our positions in BIPC and MG. At this time we would like to increase our investments in 10 of the remaining 28 companies. The intent is to increase the remaining 18 in approximately 6 months. Which 10 would you add to today? Please rank them, include a small blurb explaining each choice and indicate an approximate buy price. Thanks!

Q: Based on the companies contained in the two portfolios above, which of them are you most impressed with, having gone thru the pandemic, which would lead you to expect even better results as the economy moves past the stimulus provided by the feds?

Q: Please rank the above listed stocks and an explanation for #1? I am more focussed on growth as I have a significant time horizon. Also, which account is preferred for the following? Tfsa or rrsp?

Also these are currently my holdings in my tfsa. Would you sell one of the following for one of the above listed stock, or wait for new money? Thanks

Nick

AQN
TD
WELL
NVDA
SHOP
BAM
KXS
LSPD
PLTR
PINS