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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello 5i,
I try to heed the advice to diversify into U.S. stocks because they have stocks which we just don't have here in Canada. I have been wondering what some of these stocks might be for a fairly conservative, retired investor?

Right now I have the following companies:
3M
Apple
Calmaine foods
Goodyear Tire and Rubber
Conagra Foods
IBM
Pepsico
Proctor and Gamble
Bank of America

I have Calmaine for selling options on and it may go some day. I know that no one likes IBM but i believe it will turn around and pays a good dividend in the mean time.

But, I was wondering what to add or subtract from this list in order to have a well balanced, U.S. portfolio?

I have thought of adding Disney and Johnson and Johnson. I have looked at your suggestions, such as EBIX, NOC, LLL, JPM, GILD and ITRI and they look very interesting but maybe not for a person in my position.

I would certainly appreciate your thoughts on this process.
thanks


Read Answer Asked by joseph on August 15, 2016
Q: Good morning everyone,

Something is not making sense in the market here. Disney buys 33% of Neulions competitor BAMtech for $1 billion.

$1 Billion / .33 = assumed market cap by Disney (liquidity discount most likely applies, but lets negate it) of $6 billion.

Neulion has a market cap of $220 million.

Neulion has, NBA, NFL, global soccer, UFC, tennis locked in, BAMtech has NHL, MLB, PGA. Therefore Neulion > BAMtech in my mind.

$3 billion > 220 million by 13.6x. Is there something I am missing in regards to this massive valuation difference? Technology? Does Disney see some second level of montetization that the market can't comprehend? A special deal perhaps? I picked up more to make a medium sized holding, but will sell if you guys could potential shave off the valuation gap.
Read Answer Asked by Liam on August 11, 2016
Q: Hi Peter and team,

Understand you don't follow the US Equities that closely but I have owned Disney for some time but its valuation seems a little overdone here and I was considering the switch to TWX since it is trading at a much cheaper multiple. My question is will the sell off of the cable division impact TWX overall and do you think this is worth the switch?
Read Answer Asked by kelly on February 28, 2014
Q: Hi Peter,

My kids have saved up some cash from Birthday gifts and holiday gifts over the years. They are 12 and 10. I have convinced them to put some into their RESP A/C and they would get 20% from the gov.
On an earlier question you had suggested picking up DIS for long term stability.
At a PE of 20.9 would it be ok to do that as the kids can relate to DIS.
If ok would you hold it in US$ for diversity?

Always appreciate your input.

Thanks Irshad.
Read Answer Asked by Irshad on November 05, 2013