Investment Q&A

Q: Hi,
In your recent blog on 5 investing principles, you say it is important to distinguish between permanent and temporary market losses. However, you do not say how to do that. DOCU, PTON and NFLX all did great in the pandemic. All are floundering now. So, do you view the market losses in DOCU, PTON and NFLX as permanent or temporary and why?
Thanks.

Q: News this morning that this company is suspending aquisitions. Can you explain how this could be a positive for the stock and the company. Stock is up nicely this morning. Tnx for the great work.

Q: You had a question about how to view Topicus’ mergers and acquisitions activity. It turns out that Total Specific Solutions (one of Topicus’ three business units) has a Linkedin account and they post their acquisitions there. For you to post if you wish.

Q: Hi there. In light of last week's BoC's decision to raise interest rates by 75 basis point I was hoping you can help me understand why the banks have yet to raise the rates they offer on their 1-5 year GICs. When I look at the rates that were offered last month vs. now they are basically the same. I was hoping, maybe naively, that I'd see at least a 50 point increase across the board but nothing yet.



I know when the BoC raises rates the banks will increase their variable mortgage rates the next day so what gives? Did the banks already raise their GIC rates in anticipation of the announcement, is there a lag and they’ll raise rates in a few weeks or will they gauge market demand and offer the lowest rates they can get away?


I'm looking to create a 1-5 year ladder and I'd hate to do it now only to see the rates offered on GICs go up 50-75 basis points in a few weeks. Thanks for your insight.

Q: Hi Team,
I am looking for your opinion. I am thinking of adding 5k to my kids RESP after todays ugly selloff. I am banking with the ATB and most of the resp is currently in the atb compass growth fund. My question is...do you feel that I am best off adding to this fund, or buying an idividual stock? As far as stock I was thinking stable growth with a dividend. I had either BNS or SLF in mind. What are your thoughts? Or any other better suggestions as opposed to the ones mentioned? I don't plan on using any funds for at least 2 years. Thanks

Shane.

Q: Dear 5i,
COWZ is a US listed ETF which attempts to select the highest FCF Yield companies from the Russel 1000 index. The reported ETF Operating Expenses are 0.49% and the latest reported portfolio turnover is over 100%.
It seems that US listed ETF's do not provide TER fees in any of there documentation. I would like to know the impact of excessive trading has on the overall Total Return for an ETF. Am I correct in that US ETF's are not required to disclose TER fees?

Q: Are there any compelling reasons NOT to buy META at these prices (under ~$160 USD) for a long term investor? Very profitable, ~11x PE, ~7x cash flow. It is the same price as 5 years ago but the company has doubled revenues and profits since then. They are spending a lot on metaverse development and AI but Zuckerberg has always sailed the ship in the right direction. Huge user numbers and WhatsApp is barely monetized. It feels like all the bad news is baked into the price today (revenue decline of 1%, Sandberg leaving, metaverse capex). They are also buying back about 1% of the company per quarter at this valuation.

Q: Could you please comment on TCS recent results as well as whether you believe there might be further deterioration in their stock price.
Thank you

Q: Considering the recent announcement regarding the declining ad revenue going forward , how safe is the dividend? Please rate On a scale of 1-10 where 10 is extremely likely to cut the dividend. Is there a turnaround story here at all? How low can it go, what’s the bottom? I’m down around 48% and very disappointed and frustrated with this investment. I’m wondering whether to cut my losses now and take a 50% loss or wait for a possible turnaround or takeover. Many thanks for the amazing service you provide.

Q: I would think that with todays cpi numbers , and expectations of at least a .75 increase in the fed , that tlt would react very negatively. As I type tlt is just down .19%
Why is it not down more

Q: would appreciate your current thoughts on GGD. Gold has been fairly near its current lows but GGd keeps making new lows lately. Their exploration results have beefairly good.How much money do they currently have and what is the outlook going forward. Thanks

Q: I am on the sidelines right now. If the market drops significantly I will buy back in. If it does drop enough for me, which 6 oil and gas stocks would you buy? Majors, micro, US, Canadian. It does not matter to me.

Q: Hello 5i. Can you explain some market psychology. First of all who is buying shares that are being sold in this market downturn. How can the markets get spooked one day and fall 5% and yet climb 2-3% next day. Its been known for a while that the fed will be raising rates to tame inflation and yet the market reacts as if this is a surprise. Very confusing market. What would be a few indicators that we have reached a bottom in this bear market and are back in a bull market?

Q: It's been a while since I have read comments on Cineplex. The analysts I saw believe it is a buy now at $9.43. What are your thoughts.

Thanks
Jim

Q: Retired, dividend-income investor. Not a market timing question...ok maybe it sort of is.

Looking to potentially add to ZRE and just wondering where we are at in the investment cycle and if now is a reasonable time to be adding to ZRE?


Also, is there a seasonality to REITs? When looking at a 10 year chart, it appears to my amateur eyes that the last portion of the year looks to be trending down most of the time? It looks like the January to early fall period is usually positive?

Thanks for your help....Steve

Q: Hi Guys

I have owned Smart Centres for a while and done prety good by it but thinking I might sell that and add to my 1% position in Tricon. Where do you see them in terms of current pricing and future potential? Looking ahead over next 5 years which do you think will be the better position to hold?

Much thanks

Stuart

Q: Morning 5i team, thanks for all the great advice you supply to the members.
I have $50K to invest and would like your advice. This is what I’m currently holding in my non registered account.

Canada
AC, BYD, GSY, LSPD, SHOP, TDB3098, TOI
US
AAPL, SQ, CRWD, CSX, ETSY, MA, MSFT, NVDA, PYPL, UXI, ROBO, U

Considering my high exposure to Tech and your last market update, I might need to consider more consumer cyclical and financial stocks as well as others to balance the portfolio. I’m looking to have a mix of growth and value holdings.

I would appreciate your recommendations on new Canadian or US acquisitions and possible entry points. Can you recommend one of two of the US Tech stocks to sell and replace it with GOOG.

Please take as many credits a you see fit.

Thanks
Joe

Q: It looks like this is close to the time to start buying cyclical stocks. Would you agree? Which cyclical companies do you think have the most potential to become three baggers in the next three years. Not looking for ten baggers! LOL

Q: Hello Peter,
i am starting to realize, buying stocks based on previous success does not always work out as in Knights and Topicus case. However, i was wondering with current environment, is it a good idea to initiate a position in Knight with hope of good returns in future as i see little downside.. Please let me know . i am thinking of selling TOI, for Gud. Thanks

Q: Travelling this summer I have noticed the hotels are full and very expensive.
What companies or ETFs would you reccomend in what has to be a large increase in revenue.
Thanks Terry