Investment Q&A

Q: Hi team,

I am heavy in tech as usual and have to scale back every once in a while. I now have some cash to deploy in other sectors. I offset my tech with industrials, financials, consumer and utilities. I avoid resources as I find it just drains my capital. I am growth and an “active” investor.

I am looking at adding a consumer stock, either BCI or ZZZ. I read your recent report on BCI and am intrigued by the trend of aging demographics and the increasing need for glasses and contact lenses. You give it a relatively strong B+ rating and it is in your Growth portfolio. I have been watching it the past week or so. It is a very thin trader. No trades at all today and bid/ask about $1.00 apart, a wide spread for a $35 stock. Would have been wider except for my bid which did not get filled.

I used to own ZZZ and got lucky in selling before the last earnings release when it missed estimates. I have been watching that lately as well. It seems to be moving up steadily from $32 and now hovers above $33, still well off its 52 week high. On Monday, the TSX approved a NCIB for ZZZ that is normally supportive of the share price.

So, should I buy some eyeware or sleepware or a bit of both to get a good night’s sleep?

Thanks again,
dave

Q: Hi 5i,
My income portfolio is light on consumer discretionaries. What would be a good stock or two that would compliment my current holding in that space - CGX.

Looking for a bit of growth and income growth.

Thanks!

Q: Hi Peter and Team,
For this year's RRIF payment, I need to sell approximately 14K of stocks as I've been almost fully invested over the last year, in large measure due to 5i's superb recommendations. The stocks listed above are in sectors where I am overweight. I have several questions, so please deduct credits as you see fit:
(1) If I sold CGX outright, I'd obtain roughly 14K and would reduce my total number of holdings and lower my overweight consumer discretionary stocks. Even though CGX has fallen from its lofty heights, I'm still up, especially when factoring in the accumulated dividends. Also, there would be only one sell transaction. Are you OK with this plan?
(2) Are there any others in the list that could/should be an outright sell?
(3) Or, would a better plan be to reduce holdings in each stock by taking profits?
Of course, this would mean more sell transaction fees.

As always, I defer to your recommendations, and have been rewarded for doing so. Thanks in advance.

Q: Good morning Peter and team,

I am planning on setting aside 3% of my total portfolio for stocks that either have a good potential for long-term growth (i.e. set it aside and hope to have a multi-bagger in 10 years).
I currently own SHOP and would appreciate 3-4 more names you would suggest I consider, including a way to play the Artificial Intelligence space (is Horizons ROBO ETF a suitable option?).
Please disregard all B.E. Portfolio stocks (which I already own) and sector/market cap don't matter. I would prefer to stick to Canadian exchanges.

Thanks in advance,
Rory

Q: Hello 5i,
As always I appreciate your very valuable advice!!
Earlier in Nov. you commented on the demise of Sears and the impact on other mattress retailers. In the comment you indicated that the mattress market in general is shrinking. If this is true should I be concerned about holding Sleep Country for the longer term?
Thank you
Dave

Q: Gentlemen,
I need to add 2 to 3% to my Consumer Cyclical/Discr. sector.
I have MG (2.8% +25% ) ACQ (0.35%, -50%).
I have also GSY but I consider it financial sector.
Can you please suggest 2 mid cap stocks with some growth.
Thanks
Best reagards

Q: Love all the improvements to the website!

I recently purchased ZZZ @37.50 in my RRSP (3.75% weight). Poor timing as it appears that the market is no longer anticipating any strong future growth potential. Should I keep holding (as per your earlier comment that the market reaction was overdone), average down or just take my loss and move on. If it's a sell, can you recommend another pick in the same space that I could hold for 3- 5 for growth and some dividend income (prefer more growth over dividend).

TX

Q: Will the closing of Sears (SCC) directly effect any of its rivals?
Hudsons Bay (HBC)
Sleep Country (ZZZ)
Leon’s Furniture Ltd (LNF)

Is there a significant chance for these companies to capitalize on a hole in the market with Sears gone?

Q: So you write that the qtr. was challenging, and it missed analysts call by a couple of cents, but with same store sales up 7.3% and revenue up 10.1%, if DOL reported this growth, the stock would rise. Since they have gone public again, management says growth has been higher that they projected. As Warren Buffet said once , one of his companies earning were in line, it was the analysts who got it wrong and did a poor job, blame them not the company.

Q: What are thoughts on Sleep Country, given the recent pull back would you consider it a buy? (If anything it has a cool stock symbol!).

Q: Every time I think about buying it goes up 20%. Should i test the waters with it down today on earnings. Always great service.

Q: Why the weakness in ZZZ.Is it because of Sears having to liquidate their mattres , bedding, pillows towels etc or is there something else. Have they saturated Canadian market. Will they try USA to expand ? RAK

Q: Hi there, I am looking to add 3 of the 5 names to my portfolio. I know you are a fan of all 5 but how would you rank these? I like a balanced approach but am open to growthier names and would be purchasing for a longterm hold. Thanks!

Q: Speaking from a momentum perspective, can you please provide 5 of your favorite momentum plays for a med risk ,div income investor?
great service, many txs

Q: I have a question about ZZZ.
The stock has been in a downward spiral since I bought in in early August.
What is you take on the reason for the daily drop in price.
Would you average down at this level ?
Thanks as always, Steve.

Q: Hi there,

I know you like both companies but what would be the better name at this point? Would you buy 1) ZZZ 2) DOL or 3) half of each?

Thank you!

Q: I own MG and MTY in consumer cyclicals and contemplating adding another name among GIL, RCH, ZZZ or CTC.A. Please order them from best to worst as a solid complement to the two I already have, as part of an RRSP account with a 15+ years time frame. Please give a brief rationale and suggest another company if there is an obvious better choice. I note that the stock value of RCH is surprisingly stable on multi-year charts for a c. cyclical.

Q: I am considering moving IPL out of my TFSA account and replacing it with either ZCL or ZZZ. At present I do not have any other energy related stocks in my TFSA but, I do have 3 consumer stocks, ADW.A,ECI & TOY. Your opinion please.
Thanks
Roy

Q: I hold equal shares of each in my tfsa, please share your thoughts is tweeking required. I have a well balanced portfolio outside the TFSA

Callidus Capital Corp CBL
Dollarama Inc DOL
Exco Technologies Ltd XTC
Inter Pipeline Ltd IPL
Photon Control Inc PHO
Sleep Country Canada ZZZ

Q: I have been looking to add ZZZ for a while now. The stock price has declined since earnings and I have decided to start a position. My portfolio consists of 25 stocks and since I do not want to increase this number I have to find a company to swap out. While I have done pretty well on MTY I feel the long term trend of online shopping and decline of big department stores will eventually hurt food court sales. Do you have any comments on if a switch to ZZZ from MTY is needed? Would you agree that ZZZ has greater long term potential?