Investment Q&A

Q: Do you think the natural gas issues in Europe present a real opportunity for PEA (One which they will be able capitalize on)? Is it a reasonable trade or investment now?

Q: I am wondering about the Hamilton ETF offerings and if they may offer a benefit when markets ever "turn the corner". I know it is impossible to time the markets. Could you comment on these few points:
- Will these slightly leveraged products provide extra torque over the base holdings, dollar for dollar, when markets are rising?
- Is slow buying a reasonable option or with leveraged products do we need to look for a clear bottom and changing market sentiment so the leverage doesn't also leverage any ongoing declines?
- Do covered call products provide any downside protection when markets are well off of a growth phase and could slide further?

Thank you!

Q: Hi 5i,
In regards to XEI and VDY ETF's.
I looked at their T3's for the last couple of years using the CDS services site
and found that: XEI seems to consistently have ROC and for VDY it is inconsistent from year to year. These are supposed to be Canadian equity income ETF's so why do they pay a portion of their distribution as ROC? Can you help explain why this might be happening to other ETF's?

Q: Based on your last comments on Pliant therapeutics(PLRX) from May 12, could you please update on those specific comments and on the recent news that made the stock double. Where do you see it going from here? This is what you wrote last time…

Asked by James on May 12, 2021
5I RESEARCH ANSWER:
PLRX has $277M in cash, but only expected revenue of $16M this year. Cash burn was $37M in 2020. 1Q loss of 64 cents per share was 6% worse than estimates; sales of $2.2M were 49% worse than expected. Insiders own 3.5% directly. We do not know management but see no concerns there. There is not much to go on here. As a clinical stage company, performance is going to depend on trial results. It has two main trials (early stage) that will be releasing results later this year. The pipeline is decent but again, early stage. It has been public less than a year, but shares have nearly doubled in that time. There is upside potential for sure, but the future may also be binary based on good/bad trial results.

Q: These six companies comprise my “Small Cap Canadian Technology” holdings. As I like their long term prospects, I am content to hold all of them for their recovery potential over the next few years. However, I would like a second opinion from you: would you agree they are all good companies worth holding, or would you switch any of them out for better quality names? If so, what would be your suggested replacements and why?

Q: Hi, do yo feel they manage to survive or go bankrupt. Greetings Peter.

Q: CSU and BEP.UN are graded A and are your only A grade companies in Canada. What might be an A grade company from the U.S. if you were to grade?

Thx

Q: I'm thinking of switching out of some or all of the above securities to better balance my portfolio. Do you see the potential for a significant bounce on any as negative sentiment or other conditions improve?

Thanks.

Q: Hi, Current Energy Sector weight in 5i Portfolios is as follows:

Balanced : 10.10 % ( SU,ENB)
Income : 7.00 % ( ENB)
Growth : 3.00 % ( KEL,TVE)

Your general recommendation is 7-10% weighting in the Energy Sector, based on individual investor profile/risk/objectives. Could you help understand following:

1. Should we include ENB, as a part of Energy Sector exposure in our personal portfolio like 5i does. Or, ENB should only be considered as Energy Sector exposure for individuals with low/moderate risk tolerance and objectives, suitable for Balanced or Income Portfolio allocation - Not for individuals with Growth as primary Objective.

2. Your general recommended allocation to Energy sector is 7-10%. Do you see current valuations in Energy sector, specially after a recent 15-20% pullback, attractive to increase the weight in Balanced and Growth Portfolio ( specially Growth portfolio - from current 3% ). Any reason Growth portfolio has a low allocation?

In your recent responses, you have made a strong case that the sector still has legs and investors should continue to have a reasonable exposure to the sector. Your recommendation is also well supported by Demand/supply factors, Ukraine and China situation etc. We currently have a 9% weight through CNQ,SU and TOU and an additional 6% through ENB. Just reviewed all 5i portfolios and trying to assess, if there is a need to reduce some positions. Our main objective is income but we are also comfortable to participate, if Sector shows promise of Growth ( of course, with attached risk ). Thanks

Q: can you comment on dnd and acquisition offer being refused but looking for a higher price. how material is the deal to dnd's valuation. what do you see happening.

Q: Does it make sense to park some money from fixed income CVD to TD, which is close to 52 week low, and move it back to CVD, if and when TD shares have moved up.

Q: What is your opinion on this company although small, rumor has it could have prevented the rogers crash.

Q: Hello:

Wondering if TXF is beaten down enough to provide a good entry point. Is there a better ETF for similar exposure in CAD?

What are 5i's thoughts on HHL for weathering the next year or two with possible recession and general market uncertainties? I expect healthcare may see less volatility but would like your perspective, please.

Thank you for your great service!

Q: hi folks:

can you provide an update/outlook on these 4 pot stocks?

thanks

the pot industry has been decimated, likely due to massive over capacity

soooooooooo, can you provide a quick review of these 4 as the ones i think are the potential eventual survivors?

and, should you feel strongly about any others pls note (or, no thanks anytime anywhere!!)

thanks in advance for your ongoing advice and insights

Q: Is there any issue with withholding taxes and holding XBAL in a RRSP?

Thanks,

Joe

Q: would you buy one or both of these stocks Thanks

Q: Thoughts on VQS?

Tks.

Q: Do you know if there is a ROC which is included in the yield?

Thks

Q: I currently hold investments in Fidelity Balanced Income Private Pool and Franklin Quotential Diversified Income. I will be transferring the funds from these mutual funds to ETFs with lower management fees. Please provide a list of 5 suitable ETFs and rank them from 1 to 5. Thank you.

Q: 5-I,

What is your opinion on ETF that are not cap weighted? I am looking for one that covers the S & P but may have reduced volatility if for example the FANG stocks were not such large component? Are there any other ones that would cover outside North America as well?

As a side comment I hope the membership really appreciates how valuable it is to have a service such as 5-I in times like these. The answers are thorough , very specific and absent of spin, from a highly educated and experienced source.

Paul