Investment Q&A

Q: Hello 5i,
Can provide and info on this company?
Thanks
Dave

Q: Hi 5i,

Thanks for the advise and I brought it at $9. Now is almost doubled within two weeks. Today is closed at $17.86 and it is the highest clue price since past 8-10 years.
What is your suggestion, do you think the momentum is go even further or time to sell all? In Bloomberg news today, "Chief Marketing Officer Mark Wilson on Jan. 20 sold more than $990,000 of BlackBerry stock, reducing his directly owned shares by nearly 60%. Chief Financial Officer Steve Rai also sold nearly $430,000 of the stock on the same day, liquidating all directly owned shares." is it a bad sign?

Q: I have $60,000 in an RDSP that I am transferring to a self directed account. At least $6000 of new money per year will be available for new investments. I have a 20 year investment horizon with a balanced to growth focus. Luckily I subscribed to 5i in September and have been closely following the Questions and Answers, your posts and updates, and company reports.

I will use the sector allocations you provided to Tom on Jan 6th for 2021. I need your guidance on how much of the portfolio to invest in the Canadian and US markets, and other geographic regions / countries. For the Canadian market I plan to invest in individual stocks. For the rest of the portfolio I will use ETFs.

Q: So my question is a general one and maybe kind of dumb since I'm far from an expert. But why is it that I wake up some mornings and the market is up 250 points - or down 250 points before it's even opened? I get that there's a limited number of people who can do 'pre-market' trading. And that this trading is very thin. This means a very few trades can have an outsized influence on the market. But how is it this can set the tone for the day, with almost everything being down or up 250 points at the start? This rarely reverses, so it seems like what people do in the daytime has less influence on the market than these nighttime or early morning traders. If there's some huge event overnight I could understand, but some mornings I wake up and gold is down, bitcoin is down, commodities and oil are down, and all the markets, from high flying tech to utilities are way down, for no understandable reason.

Q: hi folks

can i have your current update re: prospects, business outlook and dividend sustainability?

thx

Q: Good morning.
I am looking to buy one of the 4 listed. My distillation of reading your responses to questions is that you would recommend NVDA. Is this correct? Thanks.

Q: Hello 5i team,
WM has gone down 45% from its high in Sept. 2020 of $1.30 to $0.72 today. All the drilling results have been excellent, what is the reason for such a huge decline as gold is still at $1860? Secondly, does the 790 million shares outstanding have anything to do with the decline. I am losing faith in the stock. Thanks George

Q: I own ICLN but have been looking at the description for HCLN and think that they are different enough I could hold both if I really want to catch the clean energy wave. What do you think? And what do you think of HCLN realizing that it is brand new and small? Thanks!

Q: What competitive edge has SWKS over QCOM in the 5G market.

Q: What does cyclical actually mean in the context of the investment world? Are there indicators associated with phases of the cycle assuming cycle infers ebb and flow. Thanks Donna

Q: Re the question of withdrawals from RIF's rather than RSP's it is my understanding that RSP withdrawals are not considered pension income by CRA and thus do not qualify to be income split. Also I believe the $2000.00 dollar tax credit does not apply.
Am I correct in this belief?
Thanks

Q: Good Afternoon I am looking for your thoughts on VISA,

I held it pre-covid as I love the type of business it is and the margins it has, and at the times I figured with trends and expecting e-commerce to grow steadily I felt it was a good long term hold and certainly still do. Now with Covid transforming the way we live our lives, I feel like its dominant position as a payment processor should only help its business, with the accelerated growth taking place in e-commerce and contactless payments. The stocks is essentially even since Jan 2020, PayPal is up over 100%. I own both so I am not complaining and I get why PayPal is up a ton, as its more of a true cash-less play with bitcoin helping it gain more exposure. But any reason as it why it has lagged so much?

Considering Visa's moat, financial health and the fact that consumer trends are aligning perfectly with its business, where would you rank Visa in the realm of the other large cap stocks (FAANGM etc)? top 10, 15,20.... I look at it as "set it and forget it" stock for 15+years but I am very tempted to add more. Have a great weekend!

Q: Could you please comment on SPG's current balance sheet? Would you still recommend against investing here (as you did in July 2020) because of company's debt vs. cash position?

Q: Should investors change their goalpost metrics of valuing companies when investing?
Nowadays many complain about seemingly high valuations of many companies.

In the past, companies with a high P/E ratio would raise alarms - now it seems it's de rigeur - Apple has a P/E ratio of 43 for example! Does this go hand-in-had with investors accepting very low interest rates?

At first I thought it crazy that a company like Apple would earn $1 for every $43 dollars of share price but then realaized the US 10yr treasury currently gives me $1.09 for every $100 of principal .

Should the yardstick of what constitutes fair value be changed in light of these lower interest rates?

I know there are many ways to value companies but what would you say would be a 'fair' P/E ratio nowadays? Benjamin Graham had a formula and I'd like to see your opinion.

Q: Can I get your opinion on Axon Enterprise? I have wanted to own stock in this company for quite some time but am concerned about the valuation. Also the price has spiked recently.

Q: I am low on utilities as per the portfolio analytics. I currently own the above stocks. my question is would you add equally to these or do you have a preferred stock of the three or perhaps one more to add to the group?

thanks Dave

Q: Of these two, CRWD and SAIL, which has better growth opportunities?

Q: "WIR's historical tax allocation has been 40% foreign non business income and 60% return of capital (ROC). ROC is included in the distribution and is not a separate payout. There certainly is no Canadian dividend tax credit. We would be fine with this in a cash account".
One more question on this CDN Cie !
I keep WIR.UN in my non registered account, since 1) the dividend is excellent and 2) The Cie is well positioned ,are those 2 arguments are enough to justify keeping WIR,UN in my non registered account and to pay the 15% US withholding tax + CDN tax ? any other argument ? since the dividend is 4.8% -15% US tax - CDN tax on 40% foreign non business income ? Thanks again !

Q: In your last article in the financial post, you explained five ways to hedge your portfolio if you think this market has run too far, too fast.... if I want to buy the etf sh, what would be the suggested percentage to allocate compared to the portfolio in your opinion ? Thanks

Q: Howdy,

AYX seems to be at a crossroad. It may turn things around and resume high growth by upgrading their cloud offering or perhaps be displaced due to their older server based software architecture. Should I sell AYX to initiate a position in NVDA or increase an existing CRWD position? Or just stay put with AYX to see how it turns out? Appreciate your opinion.

Thanks.