Investment Q&A

Q: A recent analysis from Queen's University points out that consumers could see the prices of goods and services drop by up to 14.5% if free trade between the provinces were to be achieved. Which Canadian companies would benefit the most from elimination of interprovincial trade barriers?

Q: Hi Peter and the 5i Team,

PBH continues to be a very frustrating stock which we bought for a RRIF and a TFSA. Even though 5i rates it as a “B” and most analysts rate it highly, for those of us who purchased it when it was trading at much loftier levels, what is it going to take for at least a break-even position?

In the case of the RRIF, PBH was purchased for 96.24 per share. It closed on January 9 with a price of $79.26. When dividends are included, our loss is still $3900.

National Bank rates PBH as “sector perform” with a target price of $99.00. On the 5i website, the stock is trading in a range of $75.67 (year low) and $97.10 (year high). Even with all the positive news surrounding PBH (acquisitions, etc.), the stock is retreating to only $3.59 above its year low.

I read recently that beef prices are at an all-time high. The CBC had a story called “Beef prices hit record high at the grocery store — and on the ranch, too”. Is this somehow holding back PBH?

Is PBH a stock worth holding? Are there any tailwinds on the horizon that could lift PBH out of the doldrums?

Thanks as always for helping me to make informed decisions.

Q: considering a buy
i am looking for defensive but with potential for growth
i like the pharmacy/food stores they are rolling out
please advise on this buy and please suggest another 2 options in list of defensive stocks
i am generally diversified and hold financials and tech
many thanks

Q: A good portion of my smaller cap portfolio weighting is in these 4 stocks. They seem reasonably diverse sector wise but the first three have been trending down for 3 months or more, and EIF seems to be now following suit. From a lot of recent commentary I was thinking small and mid-cap names might have a bit of a tail wind, at least on a valuation basis. I know I shouldn’t focus on 3-6 months but still a bit “vexing” watching them slide. I’ve read the recent q&a on all of them, don’t see any alarming comments really, any new concerns I’m missing?

Q: Hi Peter and all at 5i. Wishing you the best of the season!

Peter, first of all, I really enjoyed your last article in the National Post. Your financial stories were highly entertaining.

I manage a RRSP for my daughter-in-law. She has approximately 24K in cash due to a GIC that recently matured. (She got 5.16% interest).

She has these commission-free ETFs: CEW, QQC.F, XHC, XIT, and XST. She would have to pay a $10 commission on the following stocks and ETFs: BCE, BNS, FTS, PBH, SLF, WSP, ZIN, and ZRE.

Question 1. In what order would you suggest she uses the cash to purchase more of the commission-free ETFs?

Question 2. If there are compelling reasons to do so, in what order would you suggest she uses the cash to purchase more of the stocks and ETFs where there is a $10 commission?

I’m hoping that this question can be answered before Christmas if possible. Please use as many question credits as you see fit to provide a comprehensive reply.

Thanks as always for your valuable insight.

Q: I have two questions re: tax loss selling. I have a three year old gain that I can offset by selling the above holdings.

1. First please help me with the math. If I buy a stock for $100, sell it for $90, I have a loss of $10 which would mean I can expect a $2.50 tax loss at a 25% rate. Does this mean that if I wanted to buy the stock back after 30 days, I would only be better off if I buy it back at less than 92.50 per share? Do you have a threshold whereby you must be down by a certain amount to justify a tax loss sale? e.g. 20%? Unless of course you are walking away from a company.

2. Which of the companies listed would you consider buying back after 30 days? I have too many holdings as it is so may just let them all go unless something is particularly interesting. I am overweight technology, underweight everything else but otherwise have a broad mix of funds and stocks.

Q: I have gains and outsized weighting in CSU, DSG, WXM. Planning to rebalance in the new year. I have been building positions in LMN and KXS and have a gain in those. I'm down and have smaller weightings in PBH, BYD, BEP.UN, AW. Which of these 6 would you suggest to add to in 2025?

Q: Hello Team,
I am enjoying 5i Macro Models services! Thank you! Could I have three Canadian Staples individual + ETF names please.
Thank you!

Q: Hi Guys

Premium Brands is almost $20 below where it has traded not too long ago. Is there light in the tunnel in 2025? Are there any positive signs that earnings and momentum might move this stock much higher in 2025 or is much more patience required?

Much thanks

Stuart

Q: Good afternoon!
I have some substantial cash to deploy, ideally into Canadian dividend payers at 4% or more. I already have many of the usual suspects, including the following: ENB, BCE, PPL, BNS, CM, LIF, SIA, T, LIF, BEP.UN, DIR.UN, FSZ
I have been waiting until the December sell-off (i.e. Benj Gallander’s suggestion that it is the best time to buy), hoping to find some that have made the sell list that are good candidates for bounce backs in the future. After observing the market in the early stages of tax-loss selling, would you have some names that might fit that bill? Ideally maybe 5 or 6, although I realize that is a tall order, perhaps! Again, I am seeking dividend paying Canadian equities paying 4% or more.
Thanks! Paul

Q: I need to increase my consumer defensive sector. Which would be your favourite among the listed companies or do you have a better suggestion on the Canadian market?

Q: For a 3 year hold,which would you choose?Thanks.

Q: Hello
My GIC has just matured in my RRSP. The rates are low now and was thinking of putting the money in either of the above two ETFs which have a higher yield.
MNY has a higher interest but higher MER but better return overall however seems riskier then CASH. What would your suggestion be, would you have another favorite or would you invest in some other "safe" income instrument in the RRSP, ie ENB?

Thanks
Jeff

Q: Im looking for a list of companies that might get a bump in January after tax loss season.

Thanks Steve

Q: Posted Nov 19th the 5i Stock Screener Canadian Stocks for Tax-less Selling (2024)
screened PBH as a company that meet the required criteria to sell before the end of 2024. And then on Nov 28 based on a question from a member, PBH was a stock identified for income/ dividends names, as you prefer to stick with high-quality companies with a long-term track record of consistent growth in dividends and a strong balance sheet.

Why do you suggest to sell the stock on Nov 19 and then on Nov 28 you suggest to buy the stock? Given that own this stock, and considering to sell my position for tax loss purposes, can you please clarify your position?

Thank you.

Q: What are your best ideas for income/dividend stocks/etfs in a non-registered account? Main goal is regular income.
Thank you.

Q: hi, I am down on all these names. I am considering adding to (some of?) them. I am looking for some growth in share price ( to match or beat inflation ) and a consistent growing dividend ( matching or beating inflation ). I also don't want to end up with another AQN or BCE scenario. could you kindly give us your advice on these names and include your thoughts on whether they are a buy (add to ), sell, or hold please.
cheers, Chris

Q: What are your current top 5 US and Canadian growth and value stocks to purchase for long term?
Thanks

Q: Recently I asked a question about premium brands. When I thought my question wasn't answered I re-asked the question. However I was too fast and you did answer my original question. So I apologize for being too hasty. My next question relates to the app. I have a new tablet and am having no luck in finding the app on Google playstore. Any suggestions? I'll wait patiently for your answer.

Q: Hello

What is 5is shortlist preferences for these 3 sectors: Materials, Consumer Defensive & Healthcare.
* 3 USA & 3 CDA choices per would be a great starting point