Investment Q&A

Q: Buying opportunity or just wait ?

Q: Hi, Could you please comment on Stella-Jones preliminary results for 2016 released on Friday evening. 4th quarter was soft as expected due to lower railway ties demand. Guidance for 2017 is same as 2016 level. How do you see the stock prospects during this year ? Thanks

Q: I currently hold these stocks in my TFSA. I want to max out my TFSA account for 2017. I have equal positions in all. Would you recommend to add to the exiting stocks or add a new stock(s) like SHOP, TOY, or KXS. Current holding are in the six figures. Thanks for your input.

Q: 5i Team:
thanks for all the help in 2016 !!.
The idea is to capture the electrification process of our society. It is a slow, but secure process/trend, in particular if use of electric cars increases, and robots and so on. This means more elect power will be required. Are Fortis (despite increase in interes rates) and Stella Jones good candidates ??. If not, are there other safe companies to capture the trend.
Also, if interest rates go up, would not ECI benefit more ?, as more people would preffer to rent than buy due to increase cost of capital.
thanks again ! Should I start buying now ?

Q: Joining 5i (and following your advice!) has been my best investment decision ever. Thanks for a wonderful service.

I'm planning to move one of Cineplex, Stantec, or Stella Jones from a RIFF to a TFSA, and am wondering which of the three you would think would be poised for greatest growth over the next few years.

Q: I am sensing that Stella Jones may suffer as a result of the very real possibility of NAFTA disputes under a Trump presidency. I note that the stock price has been moving south lately. I am considering sale of my SJ stock and using the funds to add to my holdings in GIL. I would appreciate your comments.

Q: I hold the above stocks in my RRIF and plan on transferring 'in kind' one of the stocks into my non registered account. Which one do you consider most appropriate and why?
Thanks and enjoy your time off. RAM

Q: Since Trump's victory markets have reached new highs including the financials on both sides of the border.Note that 5I has been relatively quiet.Yet many stocks including the aforementioned but not limited to,have fallen quite a lot(some more than others.The primary reason could be rotation to other sectors.If co. specific,please advise.Please advise if it is time to start buying them,& if possible list them according to your preference.Appreciate your usual great advices & services

Q: In a reply today, you suggested a swap of SJ for MX for quality. In the past five years, MX is up 182% and SJ is double at 363%. Am I missing something here?. You recently added MX to your Balanced Equity portfolio and I would like to follow it but lack the cash right now. SJ is certainly "correcting" but is still in your portfolio. Are you expecting softer returns going forward?

Q: I am trying to high grade my portfolio and looking 2-3 yrs out for total return, would you swap the stocks in the following 3 scenarios or would you stay put. 1. TFI for CNR, 2. MX for SJ, 3. Bad or RUS for SIS. A small explanation as to why would be appreciated. Thanks and keep up the fantastic work.

Q: As a follow up to my previous question regarding the drop in the price of Stella jones shares I too did not see anything in the company specific news that would affect the price of the shares. But when you see the shares dropping as they have there may be other underlying reasons for other investors to sell their shares. Under a Trump led government in the USA is there anything in the policies, attitude toward free trade etc that you can see as potential negatives for the company?

Q: There are two companies in your model portfolio ( SJ and KXS) that are being taken out behind the wood shed and being thrashed severely. Can you offer any reasons for this? Are there any possible concerns regarding the companies that we should be aware of and should we continue to hold the shares. Stella Jones is of particular concern with its downward spiral and down around 5% this morning.

Q: At the recommendations of 5i I purchased these stocks in April/16 for my TFSA account. I have additional funds of $11000 to add. Would you recommend adding to these positions or purchase other stocks? My return has been in excess of 30% and therefore value 5i opinions. Thanks for your excellent service.

Q: Good afternoon, I had moved everything to cash, believing that we were overdue for a bit of a correction, and also because I did quite well on atd and ccl. . Do you think a correction will occur when the honeymoon is over with Trump? I know no-one has a crystal ball, but do you think it is likely? If no, would you be content with the above choices for a moderate risk? I plan to keep my US in cash for now.
Thanks as always.

Q: Hi 5i - I own the following stocks (in a diversified portfolio) and Im looking to top them up to a full 5% position. At todays prices (for a long term hold) which ones would you top up first? Thanks, Neil

Telus - 3%
BNS - 2.5%
SIS - 2.3%
PKI - 2.1%
KXS - 1.2%
SJ - 1.1%
NFI - 1.1%

Q: I appreciated your answer to Michael regarding SJ (which we hold in several accounts) and the effect that Trump's position on coal may have on SJ. I came across this quote when a google search about this topic came up with this: "Why Trump Probably Can't Bring Back Coal (or Kill Renewables Either") The reason, as this former coal miner stated is that, basically, coal isn't as competitive as it once was. He said: “Big picture, I would imagine the U.S. is slower to phase out coal than a president who would have retained the Clean Power Plan. I think coal power is not coming back in this country regardless of what regulatory changes a President Trump is going to make. Economically, it is no longer as competitive as it used to be.”

My own personal opinion is that we shouldn't make rash decisions about what Trump may or may not do. This would apply to stocks that 5i covers or has commented on, such as BEP.UN, and others.

I do appreciate the 'tune out the noise, level-headed advice' that the small retail investor consistently receives from Peter, Ryan, and the 5i team.

Q: I have recently joined 5i and have started converting one of my portfolios to the 5i Balanced Equity Portfolio. Given the limited funds, I am only comfortable holding about 10 positions. I am contributing to this account regularly, with the intention of building up to a full 20 positions within 12-18 months. Given today's conditions, which companies would be best to get into first?

I already hold full positions in CSU, KXS, NFI and SIS.

Thank you

Q: Hi, can I gave your insight on SJ's outlook in a recessionary downturn in North America? Is SJ tied to the coal industry? If yes, would a return to US coal positively impact SJ?

Q: Hi,

I would like to initiate a position in one of these 2 stocks and plan on owning both over time. Given that both are down about 15% from their recent highs last month, which one do you think has a better entry point right now?

Thanks for your time

Q: Hi Gents,

Is the continued sell off in SJ warranted by yesterday's surprise electoral news? Could you please comment on your understanding of how the company's long term prospects may be affected?