Q: Is there any consideration to add Reddit style discussions with 5i members? Having such chats and posting the conversation may allow regular questions be answered and allow for follow up discussion. I'm sure there is some hesitation to get into lengthy debates over a specific investment, however you can also moderate the discussion to focus on a specific topic, such as what you are putting together with the video series.
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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: I had to respond to comments respond to comments regarding 5i's reluctance to issue early sell signals.
It's OK to want this, but the onus is on the individual investor to make those decisions him or herself. I'm shocked every time I see someone say I'm down 50% on this stock, is it time to sell?
If it's down 50% you need a double to break even.
I would suggest a stock rolling down a hill is unlikely to double in anything resembling a short time frame.
There are plenty of ideas on how to mitigate losses. Stops (I prefer mental because it gives me more freedom) to charting to just plain, common sense.
If people are willing to let their investments ride the roller coaster down, blaming the messenger won't fix the problem.
Sorry for the rant, but I pay attention every day. And make corrections as needed,
If a person doesn't have the time to invest it seems unlikely, to me, the money they invest will perform up to their expectations..
It's OK to want this, but the onus is on the individual investor to make those decisions him or herself. I'm shocked every time I see someone say I'm down 50% on this stock, is it time to sell?
If it's down 50% you need a double to break even.
I would suggest a stock rolling down a hill is unlikely to double in anything resembling a short time frame.
There are plenty of ideas on how to mitigate losses. Stops (I prefer mental because it gives me more freedom) to charting to just plain, common sense.
If people are willing to let their investments ride the roller coaster down, blaming the messenger won't fix the problem.
Sorry for the rant, but I pay attention every day. And make corrections as needed,
If a person doesn't have the time to invest it seems unlikely, to me, the money they invest will perform up to their expectations..
Q: My question has to do with the timing of portfolio rebalancing. I tend to rebalance at least semi-annually (summer, year-end) but don't have a hard and fast date at which I do so. I also do not tend to keep any cash in the portfolio and I tend to trim winners fairly quickly once they exceed 5% of my portfolio.
When we go through periods of sudden volatility, like the past week or two or when an official correction/recession hits, though, is the best time to re-balance? There are some stocks I consider to be good buys currently - KXS for example, that I do own already but, of course, my percentage weighting is now lower than it was a week or so ago. I fully expect it to go back up, at which time it would once again hold its "proper" weighting. But other stocks, PKI for example, has increased to the point where I might want to trim it. So do I sell some PKI to buy some KXS now, should I wait until I do my next official rebalancing around December, or rebalance now to take advantage of what I think are some good buys?
Appreciate your insight.
Paul F.
When we go through periods of sudden volatility, like the past week or two or when an official correction/recession hits, though, is the best time to re-balance? There are some stocks I consider to be good buys currently - KXS for example, that I do own already but, of course, my percentage weighting is now lower than it was a week or so ago. I fully expect it to go back up, at which time it would once again hold its "proper" weighting. But other stocks, PKI for example, has increased to the point where I might want to trim it. So do I sell some PKI to buy some KXS now, should I wait until I do my next official rebalancing around December, or rebalance now to take advantage of what I think are some good buys?
Appreciate your insight.
Paul F.
Q: Hi team,
I really like the indepth company profiles. Well done! Would you consider creating a special report showing 3-year and 5-year dividend growth rates for all companies? Perhaps alongside other growth rates (earnings)? Growth (or lack of) rates often tell a better picture than "todays" rates. Which can cause blindness! Or do you know where I can find this information with few clicks on another site?
Thanks
I really like the indepth company profiles. Well done! Would you consider creating a special report showing 3-year and 5-year dividend growth rates for all companies? Perhaps alongside other growth rates (earnings)? Growth (or lack of) rates often tell a better picture than "todays" rates. Which can cause blindness! Or do you know where I can find this information with few clicks on another site?
Thanks
Q: For lack of better words, many stocks are presently on sale OR are atleast much lower than we paid for them, sometimes by a huge (very huge) margin. Assuming these opportunities are real, it would be an ideal time to add a little.
My understanding of your assessment is that you have high hopes for this company, believe that nothing has changed other than unpredictable market forces.
The stock has really dropped, which does not imply a bargain if it is still overpriced; however, my understanding is that we liked the stock at $2.00 and nothing has changed, so I must believe that this a great buying opportunity as long as we continue to properly diversify and understand that this may take 5-10 years. Your thoughts on this as a buying opportunity? Any new input from their mgmt? Any concerns with cash burnout over time? Other than wishing there were more sales contracts (which is definitely key), any other issues?
I ask these questions because I feel that we like to jump on the bandwagon when it is moving uphill with great momentum but want to ignore it when it is unwanted, even though it is the same bandwagon (i.e. same fundamentals). As a general comment are we not following a herd mentality (which is not wrong in itself on many occassions)? Should we not be greedy (at times) when others are fearful? I know this these are hard, fundamental questions about investing but your thoughts are appreciated OR maybe this could be the theme of a future blog... (I think that these are opportune times to pick up shares in companies we like even though their momentum is negative, even though we are buying the dips, even though we are possibly doubling down...)
As an aside, this was recently published. I just saw it this morning.
https://patient-monitoring.healthcaretechoutlook.com/vendors/top-patient-monitoring-solution-providers-2018.html
Thanks again!
My understanding of your assessment is that you have high hopes for this company, believe that nothing has changed other than unpredictable market forces.
The stock has really dropped, which does not imply a bargain if it is still overpriced; however, my understanding is that we liked the stock at $2.00 and nothing has changed, so I must believe that this a great buying opportunity as long as we continue to properly diversify and understand that this may take 5-10 years. Your thoughts on this as a buying opportunity? Any new input from their mgmt? Any concerns with cash burnout over time? Other than wishing there were more sales contracts (which is definitely key), any other issues?
I ask these questions because I feel that we like to jump on the bandwagon when it is moving uphill with great momentum but want to ignore it when it is unwanted, even though it is the same bandwagon (i.e. same fundamentals). As a general comment are we not following a herd mentality (which is not wrong in itself on many occassions)? Should we not be greedy (at times) when others are fearful? I know this these are hard, fundamental questions about investing but your thoughts are appreciated OR maybe this could be the theme of a future blog... (I think that these are opportune times to pick up shares in companies we like even though their momentum is negative, even though we are buying the dips, even though we are possibly doubling down...)
As an aside, this was recently published. I just saw it this morning.
https://patient-monitoring.healthcaretechoutlook.com/vendors/top-patient-monitoring-solution-providers-2018.html
Thanks again!
Q: Peter,
To get copies of financial statements on Canadian companies I use SEDAR. What one can I use for American companies such as Pepsico?
Thank you,
Paul
To get copies of financial statements on Canadian companies I use SEDAR. What one can I use for American companies such as Pepsico?
Thank you,
Paul
Q: What would be your guess, in percentage, of another correction happening now like the one last Jan-Apr? It seems to me that there are more real risks now then there were then (interest rate fears, China tarrifs). Do you think if there are strong earnings in November it would move this market up? For some reason I don't think they would.
Q: Which stocks are screaming buy after today's meltdown?.
Q: Peter,
I am trying to come up with a range of debt to equity (ratio) that an investor should look at to determine relative safety of a stock. Do you have a specific ratio you consider acceptable or is it very industry and economic cycle specific? Do you trust the reported numbers you see in various on line publications or is it best to go to Sedar and figure it out oneself?
Thank you
Paul
I am trying to come up with a range of debt to equity (ratio) that an investor should look at to determine relative safety of a stock. Do you have a specific ratio you consider acceptable or is it very industry and economic cycle specific? Do you trust the reported numbers you see in various on line publications or is it best to go to Sedar and figure it out oneself?
Thank you
Paul
Q: Interested in your view of this small stock.
Thanks,
Nancy
Thanks,
Nancy
Q: Which is more relevant when looking at cash rich companies to invest in; cash per share or 5 year cash growth rate?
Q: Hi there,
The last week has had a mass sell of in stocks - particularly the tech sector - do you think this is another dip and then the bull market will be back to the races? Or is there going to be a long term downward correction? I know no one knows the actual answer but in your opinion and with your experience and expertise, what are your thoughts?
Thanks!
The last week has had a mass sell of in stocks - particularly the tech sector - do you think this is another dip and then the bull market will be back to the races? Or is there going to be a long term downward correction? I know no one knows the actual answer but in your opinion and with your experience and expertise, what are your thoughts?
Thanks!
Q: Of the following Canadian stocks, which three or four would you consider will provide the lowest total return over the next, say, five years?
BEP.UN, EMA, FTS
IPL, ENB, TRP
BNS, NA, RY, TD
PWF, SLF
CAR.UN, CSH.UN, HR.UN, REI.UN
BCE
BEP.UN, EMA, FTS
IPL, ENB, TRP
BNS, NA, RY, TD
PWF, SLF
CAR.UN, CSH.UN, HR.UN, REI.UN
BCE
Q: I keep hearing about a tech company that has developed a method of replacing cyanide extraction for the benefication of gold ore at a better recovery and lower costs. Have you any info on this?
Q: Can you recommend any books about bonds? Something that covers the investing aspects as well as the mathematics and incorporates some bond market history would be ideal. Thanks.
Q: I seem to not be able to find your News Update (update referred to in a question from Tom on 3 Oct). I am often puzzled about where to find them. Plse direct me.
Q: Hello 5i.
In assessing companies you mention ROA, ROE and ROC. Aside from these would it be beneficial to compare ROC (sic. ROIC) with WACC? If WACC is more than ROIC and the company is shedding unprofitable assets, then would there be a case for still seeing that company in a favourable light?
Thank you
Stanley
In assessing companies you mention ROA, ROE and ROC. Aside from these would it be beneficial to compare ROC (sic. ROIC) with WACC? If WACC is more than ROIC and the company is shedding unprofitable assets, then would there be a case for still seeing that company in a favourable light?
Thank you
Stanley
Q: Is there a free site that provides information about moeny moving into and out of various sectors. (Sector rotation)
Q: From today's Globe and Mail: Equity markets opened lower Thursday as global bond yields surged higher. Mehul Daya, an analyst from South Africa-based Nedbank, believes bond yields are approaching the “Rubicon level,”
“The JPM Global Bond yield, after being in a tight channel, has now begun to accelerate higher. There is scope for the JPM Global Bond yield to rise another 20- 30bps, close to 2.70%, which is the ‘Rubicon level’ for global financial markets, in our view. If the JPM Global Bond yield rises above 2.70%, the cost of global capital would rise further, unleashing another risk-off phase."
Normally, 'risk off' means purchasing the very stocks which perform badly during rising rates, ie. dividend stocks. That would not seem to make much sense here. What sectors do you believe would be most and least affected by these rising bond yields? I know it supposedly helps the banks and insurers but we have been hearing that all year without much sustained impact on their stock prices. So I'm uncertain where to put new money.
“The JPM Global Bond yield, after being in a tight channel, has now begun to accelerate higher. There is scope for the JPM Global Bond yield to rise another 20- 30bps, close to 2.70%, which is the ‘Rubicon level’ for global financial markets, in our view. If the JPM Global Bond yield rises above 2.70%, the cost of global capital would rise further, unleashing another risk-off phase."
Normally, 'risk off' means purchasing the very stocks which perform badly during rising rates, ie. dividend stocks. That would not seem to make much sense here. What sectors do you believe would be most and least affected by these rising bond yields? I know it supposedly helps the banks and insurers but we have been hearing that all year without much sustained impact on their stock prices. So I'm uncertain where to put new money.
Q: Since the announcement of the new USMCA agreement I've noticed the Canadian market trending downwards, even the Balanced portfolio has taken a broad based hit from it. Any concerns you can see with the agreement that could be causing this distortion (while the US market rallies)? Or is this more sector specific?