Investment Q&A

Q: First of all, thank you for your amazing work. Cannot express how helpful my 5i subscription has been. Life-changing in all honesty.

My positions in LSPD (17.3%) and GSY (12.7%) have gotten a little out of hand. I was fortunate to pick them up near their lows in April. I've already trimmed both a couple of times, but I am really struggling to sell more given the positive outlook 5i has of both for the future. I've seen similar questions asked about trimming and selling positions with phenomenal growth and seen your responses suggesting to trim positions to reasonable weightings. I thought I might have an easier time doing so if you suggested some positions to add to or some new ones viewed as favourably as LSPD and GSY.

I have the following companies in a TFSA and have included the weightings only of positions I think might warrant a second look. While I anticipate a comment about weightings needing to be personal what would YOU suggest as the highest weighting for LSPD and GSY? And, again, please suggest some positions to add to or new ones.

Feel free to take question credits as you see fit.

DOO (2.1%), ATZ (2%), AW.UN, BYD
ATD.B
BMO, BRK-B:US, GSY (12.7%)
WELL (4%), VEEV:US (1.3%)
CAE, DAL:US, AC (1%), XBC (3%)
LSPD (17.3%), KXS (7.6%), DSG (3%), CSU, PHO (1.1%), AMD:US, CRWD:US (2.4%), U:US (2.1%), NVDA:US (0.83%), TTD:US(1.2%)
ROKU:US (1.9%), TTWO:US (1.2%), PINS:US (1.5%)
AQN, BEP.UN
REAL

Thank you again

Q: Have been a long time member and so gratefully appreciate the opportunity to read your Q&A amid these isolated times. One of my joys in the day.
Please rank BAM.A; BEP.UN; SIS;T; SLF;BNS long term, all balanced sectors for a TFSA.

Q: You answer by pervious question on BEP.UN that the div is .28933 per mo. My numbers show that a $10000.00 investment @ 57.35 equals 174 shares times .28933 =$50.34 per qt. American Four payments a year = $201.37 per year times 1.30=2.62%yield. Where am I wrong??? Thanks Ken

Q: do you know of any green building carbon neutral type companies in Canada that may have a rosy future?

Q: Much has been discussed about the apparent disconnect between the value of these two entities. If, as you suggest, the price discrepancy is too wide, in your opinion is it because BEP.UN is undervalued or that BEPC is overvalued? In other words, if the difference in price shrinks, which stock should move the most?

Appreciate your insight.

Paul F.

Q: Thanks for all your excellent work. Having recently moved to the US and opted to convert my young-ish Nova Scotia pension account to an RRSP and a LIRA, I’m looking to invest the ~100k in these accounts. Horizon: at least 5 years, but probably much more (I’m 40). Having narrowed down a tentative list of names (see below – tech-heavy, I realize), and with a focus on growth, I’m hoping to sort out the best buying strategy. Specifically: (1) At this moment, does the conventional wisdom to buy each stock gradually makes sense to you as good rule of thumb (e.g., over the course of a year, for each stock, adding a quarter of the total intended position once every few months or so)? (2) Also: I’d greatly appreciate seeing a ranked list of, say, which five of these stocks you think it would be especially wise to start with (i.e., buy now, or buy more of sooner) and which five you think I should wait to buy. Feel free to dock me for two questions! Thanks a ton, Chris

CSU, SHOP, LSPD, XBC, SYZ, BEP.UN, PHO, KXS, ENGH, WELL, GUD, EGT, SJ, BNS, WSP, STC, ATZ, LAC, BYD, REAL

Q: I would like to buy either BEPC or BEP.UN for my son's TFSA. Which of these is preferable, given the price difference?

Q: In response to a recent question from Alan regarding what you felt the BEPC over BEP.UN price premium should be you said "We think 10% to 12%"

What about the premium for BIPC over BIP.UN? Do you think it should also be 10 to 12%? BIPC is currently trading approx $11 or 32% over BIP.UN.

Q: My holdings in these two companies have grown substantially even though I recently sold a bit of NPI. Given that I think the sector has a very strong future, I am loathe to sell too much even though you'd say I am still overweight the sector (13%, not including other utilities like FTS).

Does it make sense to move some of my holdings into AQN, or would you really prefer to advise me not to let the holdings in this sector get too big?

Thanks for all your help.

Q: Given your answer today about BEPC having too much of a premium, do you advice selling it and buying BEP.UN instead?

Q: Mainly follow your balanced portfolio. Should I sell AQN and buy BEP.UN . As well would you purchase Aritzia and AC today. As well give me 3 growth names for the next year.
T Steve

Q: The above holdings now represent 10% of my equity portfolio. Should I bring this back to 6-7% or should I let these run? If so,
to what extent? Thanks, Martin

Q: BEP has done well but most analysts rate it a hold now. What is your take for it moving forward?

Q: I know that you rate AQN highly, but why has this stock underperformed the others by like night and day in the last year. What is it that has held this stock back?. This has been a hot market for these stocks here in Canada and the USA.
Seasons Greetings

Q: Can you please comment on your outlook for Bep.un for 2021?Kim

Q: Hello 5i
Both BEPC and BEP.UN have grown a lot in non-registered account. Is it Okay to keep them both in this account ? Since they have grown so much I plan to trim some and I wonder which one you would recommend to trim. BEPC is majority due to splits.

Thanks for all the hard work.
I wish your team a happy holiday season.

Q: I wanted to respond to Roy's concern that the answer I received from TD Waterhouse was a "load of crap " as I believe it could cause a lot of concern among your members that they are being cheated by their online brokers. The best way to do this is with math - Lets say that in total  TD WaterHouse  held 101 shares, split with 19 clients holding 5 shares and 1 client holding 6 shares.  Their total of 101 would be rounded up to 152 shares in the 3 for 2 split and that would be what TD Waterhouse would receive from BEP.  If you look at the clients accounts separately the 19 people would be entitled to 7.5 shares - 7 physical shares and cash for the .5  and the one client with 6 shares would receive 9 shares post split  for a total of 19 X 7.5 + 9 = 151.5 share equivalent in compensation..... So if the total number of shares that the broker holds in trust is an odd number they are making at most .5 of a share - not .5 of a share on each client as Roy implied. As well its the only fair way to treat us. I would be upset if I was the guy holding 6 shares as I am getting 9 shares or 1.5X the number of shares post split whereas if the guy holding 5 shares was rounded up from 7.5 to 8 shares he is getting 1.6 X the number of original shares. Nothing looks deceptive or dishonest to me.

Q: National Bank Financial did the same thing to me. I had 85 shares and was only given 42 shares,
I have told my advisor.
What are the next steps?

Q: There have been a number of questions/comments concerning the recent 3 for 2 stock split of BEPC and BEP.UN and how fractional shares are handled. I reached out to TD Waterhouse and their response may be of interest to your members:

"When we received payment from a Split we as a Broker receive payment on our one bulk position. We do not get paid for each client individually. If the client had a physical certificate or held shares directly with the Transfer Agent in their name only than yes they would have rounded up but the company says for "Registered Holders". The shares in the clients account are registered "TD Waterhouse ITF the client" so when we get paid we get one payment for all our clients because all of our clients shares are registered the same way TD Waterhouse ITF. But the client will get some cash for the fractional shares. The CIL usually comes in about 10 bus days after the Re-Org was processed. "

I would assume the same would be true for all online brokers.

Hope this is helpful
Cheers
Scott

Q: Hello, this is in regard of Roy’s comment about the share splits of BEP.UN. I had the exact same situation with a calculated odd number of shares. In my case it has not been rounded up, so I phoned my online broker and they told me that the 0.5 missing share of BEP.UN would be paid in cash. I just check my account and an amount of $24.95 has been deposited. Gervais