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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: Although the market has had a good run lately, many companies are simply beating reduced expectations. I saw an analyst on BNN this morning note that top line revenues will be down about 7%. The economy is coasting along and showing no signs of a big jump. My intuition tells me that this may be a good year to "sell in May and go away." Or at least lighten up. Since you rely on more than intuition, I would be interested in your opinion on this.
Read Answer Asked by Ken on April 26, 2016
Q: Hi,
I have taken up a few half positions in stocks with the following details in my portfolio:
Full position = 4% of total portfolio = $6400
Half position = 2% of total portfolio = $3200
Transaction fee = $9.97

For full positions, my strategy as been to consider trimming them if they get $2000 or more above a full position. I will consider adding to them if they drop at least $1500 to $2000 below a full position. This keeps my transaction fee at about 0.5% to 0.75%

This same strategy with half positions will cost me more on a percentage basis. Should I ignore this and just be happy I'm diversified, or would you employ a different strategy? My current half positions are HCG, CXI, GUD, and PHM.
Read Answer Asked by Mike on April 26, 2016
Q: I have managed my own registered portfolio for the past few years(with valuable input from 5i). I have sold my GTA house and will have this house money during a 2 year relocation period and then will likely be buying real estate again. Any advice for managing registered vs. non-registered investments during that time. Also, any allocation ideas related to type of stocks, fixed income or other investments keeping in mind the two-three year time frame with the new money. I currently have a registered portfolio with a number of dividend payers. Am i better to switch the registered funds too a more growth oriented approach and buy some utilities/banks/telcos in the non-registered.
Also, are Canadian based ETF's that hold non-Canadian stocks eligible for the dividend tax credit?
Thanks team
Read Answer Asked by Robert on April 22, 2016
Q: Hi all at 5i! Could you please explain to me the concept of " dumb money"? I gather it refers to us retail investors...the ones that are not large enough to influence the markets and have no insider information to get ahead of the game. There has been a lot of commentary from some investment companies and bearish investment advisors , that the smart money is leaving stocks and the dumb money is piling in. I guess that is me since I am selectively adding stocks. Again, is this concept of dumb money fear mongering or just a label given to us little guys by some financial smarty pants? Do you agree ,that as little guys,we should just stick to our investment plans and ignore the negative labelling. Your thoughts on the matter would be welcomed. Cheers, Tamara
Read Answer Asked by Tamara on April 18, 2016
Q: Hi Team,
In regard to valuation metrics such as P/E, EV/EBITDA, P/CF. Can you guys explain a bit on how to interpret these numbers to determine what is under or overvalued. I know you have to look at industry, earnings variability, growth of earnings etc. If your answer would take too long is there some reading material we could look at to learn?
Keep up the good work!
Read Answer Asked by Marie on April 18, 2016
Q: I have been researching Ridley, and have noticed that they seem to have paid generous dividends (all by way of special dividends, annually) all (well, three years, anyway) in excess of per-share net income and very close to or sometimes exceeding per-share cash flow.
That doesn't appear to be sustainable -- or what am I missing or misinterpreting?
Have the last three years merely been a "catch-up" to investors for prior years without dividends?
I understand that dividends under a policy such as theirs (i.e. special dividends) is less certain than a regular quarterly or monthly stream, but how much comfort level can we take on future dividends from RCL?

Thanks for doing your part in distinguishing investors in quality companies from "investors" in the market!
Read Answer Asked by Lotar on January 07, 2015
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