Investment Q&A

Q: HI!
I thinking of investing in HCAL but wonder how much growth the Canadian banks have for the next year as they have recovered so well. What are your thoughts?

Q: It looks like 5I likes Brookfield Renewable and since 2012 the stock has been fairly steady. There has been a nice price pullback (for those not already owning stock) but a few numbers in the annual reports are confusing. Specifically Net income (loss) attributable to Unitholders has been very low or negative for a few years.

Any thoughts on this Net Income comment and overall you current thoughts based on the price pullback?

Q: Dorel was recently a planned privatization but this was rejected by shareholders and now the stock trades well below the offer price. Is now a good time to buy shares?

Q: Considering how Trudeau and Freehand are cranking up our deficit what are thoughts longer term thoughts on the direction of the loonie?. I’m guessing that with the strength in oil lately our dollar does rise but when does debt override the price of oil? I am leaning more and more towards the world’s reserve currency because of the current “green leaning” government but the recent loonie strength gives me reservations.
Your thoughts please.
Thanks for your great work!
Bob

Q: Hey guys,

I have $18,000 in an RRSP and I am looking to split up my Money into Canadian Currency ETF's. I am thinking of an S&P 500, TSX 60, Emerging Markets and European ETF's.
What are your recommendations and allocation % for each. Timeline is 25-30 years.

Thanks a bunch

Q: Hi 5i,
Can you please identify 2 energy names (stock or ETF) each in Canada, U.S. and international that are good to buy now? thanks.
Martin

Q: the stock action in xebec the last few weeks has been telling us something is not right.
In my opinion, this company cannot be trusted.
i read the previous questions and answers and wonder why your hesitating.
xbc has missed before-this is not the first time.
and how does the trust return-i doubt it does.
please comment
dave

Q: A general comment in response to the flurry of questions pursuant to XBC's recent declines. I, too, have taken a paper hit on XBC (down by half). But I went in knowing the risks and am playing the long game. This could turn out badly, or not. But it is part of a well-diversified portfolio, so the one hit is tolerable.

I'd like to remind fellow members all stocks have risks, and 5i to its credit has been consistent about potential risks of XBC and the view that it is a longer-term hold. Below are quotes pulled from 5i's December 21, 2020 Review (Report), followed by answers to some recent questions from members.

REPORT

"Xebec has customer concentration risks with five main customers accounting for ~40% of Xebec’s total revenue."

"...XBC faces risks associated with volatility of oil and natural gas prices as many of Xebec’s customers rely on the sale of natural gas."

"While the stock can see severe volatility in any short-term period, we think XBC is a name in the renewable energy space that has the potential to reward patient investors over the long-run."

"B+. Fundamentally strong. ... Good for the long-term, but some risks exist."


ANSWERS

Feb. 11, 2021 to Garth: "We like XBC's prospects and growth. It is still quite high risk and the higher valuation today adds more."

Feb. 1 to Ilie: "We think XBC has room to run from here, but we would take a long term approach."

Jan. 26 to Warren's question in which he states he's looking for growth and has high risk tolerance: "We would consider ... XBC..."

Jan. 21 to Kay:
"...would be fine buying XBC today with a long term view."

PS: I'm a paying member as everyone else and have no relationship whatsoever with the company or any of its owners or staff.

Q: Hello 5i,
Fortunately I did well with XBC. Held since May 2019 and trimmed twice on the way up. Sold balance on Friday. Do you have any suggestions for replacement with in the same sector/sub sector?
Thanks

Q: stock pulled big Friday. this an opportunity to buy? think the guidance is temporary? this company has been a favorite in the renewable space.

Q: I have lost confidence in XBC and plan on selling my position. I am considering Qst as an the alternative. Your thoughts please.
Thanks
John

Q: Hello Peter,
I am thinking of taking a speculative position and would like to choose between the two, unless you suggest another one that you would prefer in the EV batteries domain.
Regards
Rajiv

Q: Wef announced Sunday night that it had sold non core assets at Port McNeil for 36 million. What asset was it and does this improve the Company’s prospects?

Q: Not a question, but a comment on the question of when BFT will merge with Paysafe, the merger vote has been set for March 25 (https://www.sec.gov/Archives/edgar/data/1818355/000119312521060961/d81873ddefm14a.htm). If approved, PSFE should start trading on March 26 or possibly the 29th. https://spactrack.net/daniel/ is an excellent resource for tracking SPAC mergers.

Q: Hi group MLM stock price is rising as of late. Its had a decent jump what do you see going fwd - is it a buy as it is approaching its 52 week high . I have some cash in my TSFA and i hesitate to buy it in that account due to the 25% holdback what's you view on buying it in my TSFA Thanks for your guidance

Q: Can I get your take on this US ETF. It seems to have out-performed all the other smallcaps this year. I have some money in it and am thinking of increasing my holding here.

Q: Comments please on the latest quarter's results. I have half a position. Is increasing my holding justified?

Thanks, Tim.

Q: With the price of gold bullion falling the dividend yields for several gold miners is looking attractive. At a selling price of $1,700 and a production cost of ~$900 it would seem that dividends are not at risk. Would you agree that this is an opportune time to purchase some the miners who have attractive dividend yields? I have listed three which are on my watch list. Are there others you consider worthy of further investigation?
Thank you

Q: This is more a comment about covered calls. I invested in a few of the covered calls in October 2017 primarily for the income. A larger percentage of the investment was in the BMO Canadian Covered call and when it was purchased the TSX was at 16,000 and the unit value was approx 20.00. Now the TSX is at 18, 837 and the unit value is $17.46. The energy stocks in general are still down about 10% compared to October 2017 however the banks that the ETF holds are around 20% higher. The downdraft in March last year was painful but I needed the income so I did not sell any of the BMO covered calls. Most of them are still lower except the US ETF. I do expect that over time the stock market will continue to rise (as it has over the last 100 years) and I will get back to what I paid for the ETF's however my story shows how these work with a major downturn in the market.

Q: Dear 5i
I currently don't own any individual bank stocks as i have achieved this exposure via the ETF`s CDZ and ZLB . I'm beginning to think though in the current climate that adding individual bank stocks might not be a bad idea in all 3 of our RRSP accounts , as opposed to adding more to the above noted ETF`s . I'm also planning on adding SLF and GSY .
So do you recommend sticking to the original plan and just add to the ETF`s or start accumulating individual bank related stocks for each of the accounts to add a bit more banking punch?
Thanks
Bill C
Ps Retired