Investment Q&A

Q: David Driscoll was on BNN Market Call early last week, and while killing surplus time at the end of the show he underscored the importance of eliminating correlation risk in a portfolio (also mentioned in his point #6 here: http://www.bnn.ca/david-driscoll-s-top-picks-august-21-2017-1.835439 ). If I understood him correctly, this would mean not holding significant positions in multiple stocks within similar industries or with overlapping product/service offerings, presumably so that if one industry got hit, it wouldn't pummel two or more stocks at once and do damage to the portfolio as a whole.

Is this the thinking behind you not holding CSU and OTEX simultaneously in any of your model portfolios? Are there any [other] noteworthy correlations of this sort between any of the other stocks you cover and routinely recommend?

Q: I am selling a portion of Shopify at a profit and considering either DSG or OTEX. Which of the two would you prefer for a 5 year hold and your reasons. Thank You.

Q: Good morning...current thoughts on these today please...

Q: My son is returning to studies and investing what he earned as buy and hold for 4-5 years. He put two-thirds in balanced mutual funds with Canada, US and International exposure and now wants to invest the remaining one-third in individual Canadian stocks. He has enough for 4-5 names and already invested in Enbridge. What would you suggest as solid names for the remaining four given his time frame? Thanks.

Q: About a year ago (Nov 2016), you provided 10 "forever"stock ideas. Would you still categorize those same 10 stocks as "forever" stocks today?

Q: Hi,

What is your list of 5 stocks which seem to you to be irrationally under-priced today?

Thanks,

Gord

Q: Would you purchase CSU at the current level to replace ENGH?

As well, is CSU an appropriate addition to my current holdings (OTEX, GIB and KXS)?

Thanks

Sylvain

Q: Hi 5i team,

Based on current valuations what are your favorite canadian tech names for the long term?

Thanks

Q: Hi,

What are your thoughts about Open Text's growth prospects in the next year or two?

If the growth is anticipated to be low and the return is going to be just the dividend, maybe I should look elsewhere.

Are there better growth/income options in the tech sector?

Thanks,

Gord

Q: Hi,
I have owned OTEX in the past. I recently bought it again around $44 after last earnings report which was good. Since then the stock has been sliding for no apparent reason. Momentum is negative. It recently bought Guidance Software. I thought it may recover but still hovering in low $39s range. I do not like to average down, but if I was looking at it as a fresh investment, it would give me pause to consider. Your thoughts please.

Q: I have a reasonably well-balanced portfolio encompassing many 5i suggestions. I have recently opened a TFSA account and would like your assessment of the above for immediate purchase in that account.
Thanks for your assistance.
Geoff

Q: What would be your top 5 dividend stocks (excluding banks & resources)which are presently undervalued based on their most recent earnings and would have the highest potential growth in the next 12 to 18 months. Thanks

Q: With regard to Bryon's question about Canadian AI investment opportunities, Open Text's recently announced Magellan platform is a significant move on their part into that space. Google "Open Text AI" to pull up some articles.

Q: Hi 5i,

In rebalancing my portfolio, I find that I am sadly lacking in tech stocks. At present, I have: CSU 4%, KXS 1.5%, Shop 0.4%. Could you suggest options to bring the total up to about 15% and designating whether they would be better suited for an RRIF or TFSA account? As a senior, I should be more conservative but, at the same time, I can stand some risk.

With thanks.

Q: Hi Guys,

I am once again trying to clean up my portfolio and currently have no tech stocks. Can you please recommend your top 5 tech stock picks, they can be US or Canada?

Thanks

Q: I have been following your balanced portfolio. Have been reading questions and answers. Am thinking of selling a full position in Engh and purchasing otex or constellation software. What do you think? T as always

Q: Is there any reason for 4% drop in open text?? Seems like the recent earnings was decent.

FJ

Q: Would appreciate your comments on Open Text earnings. OTEX quarterly results could be lumpy, as we know and stock is yet to recover from the sharp price drop after last quarter. What's your assessment, going forward ? Thanks

Q: Hi Peter and Company,

I have looked at metrics (beta, market cap, p/cash flow ratio, p/e ratio, dividend rate) for the above 3 mentioned IT/tech companies and feel that OTEX seems to have the best metrics among them. Would you please comments on these companies and rank them accordingly.

Cheers,
Harry

Q: hello 5i:
I'm looking at adding to my OTEX holding (conservative investor, underweight tech and financials). Open Text is not rated. What approximate grade would you give it today, and do you consider it buyable at the present price?
thanks
Paul L