Investment Q&A

Q: Hello 5i,
If one wants a high concentration of very strong growth stocks and understands the risks involved with applying this type of investing strategy, can you please name 10 stocks that 5i would be very comfortable in owning for this purpose (a mix of USD and CAD)?

Q: Hi 5I, how would you compare Etsy and Shopify as to product, valuation (cheap or expensive), balance sheet, management, growth etc. Thanks
Mike

Q: KXS: FPE 113x, SHOP FPE 3490x: MS MV of $133.00 & $477.00 respectively. These prices make no sense to me. Of course, I wish I had bought SHOP not that long ago for $500.00+ per share; but, now both look crazy out of touch with any semblance of fundamental analysis to me. Both would need a super large correction IMHO. I own no Cdn. Tech. - just USD ETF IGM which is almost back to high prior to CV19. Any suggestions for buys on TSX - not interested in speculative stocks. I am looking for some growth as I own mostly large cap "dividend growers" in my portfolios.

Q: In the event of another sell-off which 3 CDN growth stocks would you be looking to take an initial position. Thanks Richard

Q: How do I play the demise of wirecard? Would a competitor swoop in and take all the market share? If so which company would in your opinion be the most capable of doing so? Pypl? Sq? Maybe even shop? Any others worth considering?

Q: Luckily I have SHOP in my Roth IRA and need to dramatically trim.
I am currently transitioning into retirement within 6 months and want to set the Roth up as a consistent 5 to 7% income yield. I am looking at VIG and NOBL although they maybe higher risk. Would you please offer some other lower risk alternatives?

Regards,

Steve

Q: Hello - I have some capital that i am looking to deploy and wondering if now is a good time or should i hold on to it.... in anticipation of another reset with news of a second wave, etc.

Also what are your top 10 -15 names right now regardless of portfolio balancing needs - open to American or CAD names - preferably limited small caps.

Lastly, i am kicking myself for not buying SHOP on the pullback.. is it still a buy right now in your opinion? or wait...

thanks so much.

Q: Shopify got an immediate boost from the announcement of its partnership with Walmart. It sounds like the two are vying to compete with Amazon, selling third party goods on the Walmart website. I had been thinking that the best way to play this for a more conservative investor would be to buy Walmart's more reasonable valuation. Interestingly, the deal did little or nothing for Walmart's stock. Is the deal insignificant from Walmart's perspective?

Q: Will the new arrangement SHOP has with WMT hurt it's business with AMZN? and why?

Steven Roach was speaking yesterday and says that he feels that with what the fed actions are and have been he sees the US$ retracing by 35% in the future. Do you agree and why? Also, what do you reccommend 5i readers do if they have substantial money invested in US equities?

Thanks

Sheldon

Q: Hello. Further to the Walmart deal, are there any one way limitations built into this deal prohibiting SHOP from pursuing similar deals with other large retailers? If not, does this serve as something of a template for future deals, or is this a one-off because of Walmart's specific attempt to grow its web presence? Any other details or thoughts on how this specific deal affects SHOP would be appreciated. Thank-you.

Q: Hi 5i Team:

I have been taking profits of SHOP but only to see it going up. Currently I still own some 8% of it in my portfolio after selling some early this morning. My capital is more than fully recovered. Should I still trim it down to 5%?

Thank you.
LL

Q: Kim Bolton on Market Call had 2 charts one for Cloud Consumer and Cloud Producer.
Cloud Consumer Stocks
TWTR, SPOT, SNAP, SHOP, NFLX, JD, Googl, FB, EA, DIS, BABA, AMZN, AAPL, ZS, ATVI.
Cloud Producer Stocks
ZM, WORK, WIX, WDAY, SPLK, RNG, ORCL, NOW, MSFT, INTU, DOCU, DDOG, DBX, CSCO, CRM, ADBE.

Can you please suggest 5 top picks from Consumer and producer in order which one would you suggest has Little or No DEBT and good management.

Thanks for the great service

Q: I know this is tough to answer but are there any companies out there you see today that could potentially duplicate the great returns of the SHOP,CSU,NFLX, LULU etc.. either in US or Canada? thank you

Q: Good day team i would like to hear your thoughts on shopify as a future hold What are the downside risks at current levels versus earnings Thank you

Q: Good morning,
I own a small house in Ottawa that is free and clear with a current market value of approximately $350,000.
A recent discussion with my trusted mortgage broker confirmed that a 5 year term (Closed & Fixed) term mortgage can be obtained at a rate of 2.29%. This mortgage is said to be:
a. insured through CMHC,
b. portable, and
c. transferable.
At that rate of 2.29% and given that the interest paid would be tax deductible if I use the funds for investment purposes, I'm seriously considering borrowing around $200,000 and investing this amount for an initial 5 year period with an expected net rate of return on investment of 4.5% .
Q1. With $200,000, what are your thoughts of splitting this amount in 5 different chunks of $40K in the following instruments:
a. Mawer Tax Effective Balanced Fund,
b. Mawer Global Balanced ETF Fund,
c. Vanguard Balanced ETF Portfolio,
d. IShares Core Balanced ETF Portfolio, and
e. BMO Balanced ETF

Q2. As an alternative to the above and given the 5 year time frame, would your preference be to invest the $200,000 in a selection of best in class individual stocks split between different sectors and if so, would you be so kind as to provide me with ya listing of your best ideas at this time.

I thank you and look forward to hearing your thoughts on both of these investment strategies.
Francesco

Q: I am intrigued - why did you trim your position in SHOP to 6% while at the same time allowing your position in KXS to run? ram

Q: Hello,

My partner and I heard about 5i from a friend whose been using you for many years. You came with the highest recommendation.

I feel like I should be copying one of your portfolios, especially due to my lack of knowledge, but it is very important for me that my investments to follow my ethics.

I would like to know which companies on your balanced and growth portfolios would be highest on positive environmental, social and corporate governance, which are low and should be switched and for which companies. I'm happy to do research, but I'm struggling to navigate the important statistics and feeling incompetent in finding good resources. I have seen your ESG scores (https://www.5iresearch.ca/blog/ESG-tsx-companies) and would be keen to know where to find information on how they are created. I would also appreciate other resources that you think would assist in building a portfolio, or simply which companies you would put on it.

Thank-you,
Ellen Perkins
Ucluelet BC

Q: Which stock of these three have the most up side.

Q: Hi , it is always great answers from you all. Can you comment on the high trading volumes at the end of day on 27th (+) and 28th (-). Thanks.

Q: I recently trimmed my position in SHOP in my TFSA. I would like to put the new found cash to work. Looking for growth at a reasonable risk and would appreciate your top 3 suggestions other than the companies named above.
Thanks ram