Investment Q&A

Q: I have a large cash position and am starting to re-deploy. Would like to take this opportunity to acquire a stronger US stock presence than I previously held. I am looking at about 40-50% in US to add to what will be a balanced diverse portfolio of Canadian stocks - many of 5i recommendations. I am happy with some overweight in tech .
I plan on putting in limit orders at lower prices than current and have my own price area for each identified, but as a "reality check" would appreciate some feedback from you as to what you think could be "suggested" buy prices on each stock.
Also, is there anything you would add to the list as Strong buy suggestions. Or anything you would delete from the list that you feel would not show a positive return in the next 1-2 years.
Thanks for getting out your crystal ball on this and congrats for coping so well with all the noise !

Q: Hi, my respected 5i team
I'm looking for some US stocks to buy in order to take advantage of the current market dip. Could you please recommend 4 or 5 solid names that worth buying now in the order of the most attractive to the least if possible? My time zone is about 3 to 5 years. Could you also comment the reasons of recommending?

By the way, I bought GOOG and NVDA last year upon your suggestion, only half position. Do you think it is a good idea to add more now?

Thanks in advance!
Jane

Q: Can you rank these 3 companies and justify the ranking?

Q: Hi 5i Crew,
I have the funds to purchase a position in one of either NVDA, TEAM or TTD (in a fairly diversified portfolio). Considering the recent pullback and economic deterioration due to covid19, what is your take on these companies short and long term? Would it be prudent to jump in now with depressed valuations? Thanks in advance.

Q: Hello Peter,
Looking for your opinion.
Could you please rank the following stocks highest to lowest for total return between now and the US election.
ALA TTD NVDA AD AFN and MX.
And if I may, what are your odds on a federal election in Canada this year?
Thank you.
Regards

Q: Hello Peter and Co,
My 20 year old grandson has opened a TFSA with $22000 in cash, and is asking for advice how to start investing. Our suggestion is that he put a fairly large amount into an index fund ETF, such as VFV, and then buy several individual stocks with the rest. They would be small positions (~$2500 per stock) but a good way for him to start learning, and with markets down, the timing seems quite fortuitous.
He is considering the following:
100 shares VFV: ~$7500
40 shares GSY: ~$2500
35 shares BEP.UN: ~$2500
1 share AMZN: ~$2500 (CAD)
7 shares NVDA: ~$2500 (CAD)
200 shares VET: ~$2500
-------------------------------
TOTAL: ~$20000

We had also suggested CSU, SHOP, KXS, PKI, TTD, GOOG, AAPL, ROKU, FB

What do you think of the above approach, and what changes might you suggest? I realize VET stands out as quite risky, but should probably do well long term.
Are there any sectors or stocks or ETF that you would suggest adding/replacing? Obviously he has a multi-decade time horizon.
Thanks for your sage advice!

Q: "This is the chance I've been waiting for". Based on the market sell-off and a scenario where I have no stock holdings and want to build a new portfolio, which 6 Canadian companies do you believe:
1. have the most short and long term upside potential based on the fact that they are now undervalued
2. have the strongest fundamentals to power them upward
3. are located in the right sectors
Yet still, because of the nature of their business, are somewhat insulated from the current negative market conditions.
Which companies should I buy today?
I thank you for your guidance.

Q: You provided a CDN wishlist in today's comments to get us started. Thank you. Could we please get the US equivalent?
Thank you.

Q: of all the chip stocks am i to assume your favorite is nivida.
dave

Q: Hello Peter,
Convention says do nothing in a sharp downturn, although this has the potential to be more like 2008, deep recession included.
What would you say if i were to sell some or all of AFN, MX,FLIR, BAC, GH (US),GIL,TD,CCL and SIS? And buy COST, MSFT, AMZN(GOOGL), DSG(add) and NVDA(orQCOM).? The thesis being, that these would do better from where they are now, over the next 2 quarters. Or just sit tight.
Thanks for your advice.
Regards.
P.S. Which would you prefer- AMZN or GOOGL? NVDA or QCOM

Q: Thanks for the virus update. Good to get a consolidated view. Regardless of the pullback do you think semi conductors are attractive and would you prefer an ETF or a specific stock.? Thanks

Q: Would you suggest waiting for things to calm down or view this as an opportunity to top up smaller positions during this pullback? My question relates to my underweight yet more volatile holdings SHOP/LSPD/NVDA.
Thanks
Mike

Q: In response to the question by Satish, your suggestion was to look at tech growth stocks for a faster recovery. I had been considering TTD, NVDA, MSFT, GOOGL ,AMZN, COST and UTX before the correction; waiting for pullback. While UTX and COST have held up the others have dropped by varying degrees.
Could you please suggest your order of preference to buy in this volatile period.
As always, value your opinion.
Regards

Q: Dearr 5i
What are the expected earnings growth rates for AMAT , AMD and NVDA over the next 1-2 years and which would you recommend for an RRSP assuming a balanced portfolio .
Thanks
Bill C.

Q: I'm a big fan of tech.

NVDA was my first chips play. The semis look very cyclical.

So I almost have a double with NVDA.

Not sure whether to take some off, half off.

I don't think that this is going to do a SHOP or a TSLA.

Your thoughts please.
Mark

Q: Hi guys, I own the following with the respective total portfolio weightings. My TFSA is all CDN and RRSP is a mix of USD/CDN. When I rebalance, should I try and rebalance with respect to % of TFSA and % of RRSP or rebalance each holding as a percent of overall portfolio? If the latter, I would consolidate some of the holdings in my TFSA to bump up the individual weightings. Are there any obvious adjustments that I should make? I’m heavy on AAPL but have sold so much of it over the years I’m very tempted to let the remaining shares ride.
Please deduct as many credits as you see fit and many thanks for the excellent service you provide. The Q/A is invaluable as are the periodic market summaries. You’ve pulled me away from the panic button many, many times.
RESP:
VFV 1.30%
RRSP:
GOOG 4.78%
AYX 3.77%
AAPL 11.77%
BNS 5.26%
ENB 5.50%
GH 3.69%
XQQ 6.23%
JPM 4.80%
GUD 1.63%
NVDA 5.91%
DIS 3.25%
VXC 24.23%
TFSA:
ATD.B 1.96%
CAE 1.30%
WEED 0.48%
CSU 2.73%
GSY 1.94%
GC 1.59%
KXS 1.42%
LSPD 1.80%
MX 0.67%
PHO 1.14%
SHOP 2.69%

Q: I have been watching AYX, NVDA and ROKU for a while, but haven't bought any of them yet. If you were to buy them today, please rank 1st, 2nd, and 3rd in the order that you would buy them.

According to RBC, ROKU has 118.1 M shares, and of that only 64.235 M are floating shares. The short interest is about 14% of the float. On Friday Feb 14th, the volume of shares traded was 63.1 M. That's 98.2% of the floating shares were traded. Can you help me understand what this information can tell you? On the surface every floating share was traded, but really some shares were traded multiple times throughout the day. When the volume of trading is this high compared to the float, what does this trading pattern indicate?

Q: Due to fortunate timing following some great advice (thanks 5I!!) combined with the recent market surge, we find ourselves overweight in Tech. With relatively equal weighting, which of these 7 companies (if any) would you consider selling? In what order?

Q: I own the above stocks and under water. Do I hold or go sell at a loss for possible gains in a better us co. If so, what would you recommend.

Thanks

Q: Hi, I am looking to deploy some US dollars I have in cash. My thinking is to focus on US tech - in particular the software, internet and semiconductor industries. Could you recommend names in each industry you feel would be a good choice, considering solid companies with growth prospects that could be held longer term?
Thank you for all your hard work!
Dawn