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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: Hello and thank you for the great advices as always! In a locked-in RSP, about 10% of my portfolio is exposed to oil&gas since I bought WCP, ERF, BIR, TOG AND VII in the big drop of March. Although I am Extremely happy with the run up so far, I've started to add stop limits to TOG, BIR and VII as I am A) scared of another downturn in the second half of 2020 (COVID related risks and current valuations) and B) I've also noted from reading the Q&A section that 5i isn't particularly bullish on oil short term and that you often categorize these companies as not a ''must have'' for the sector.

1) I haven't been able to get myself to think of selling or putting a limit on WCP. I know you aren't too much excited about the company, but I am emotionally attached to it. One of my best play. Love their Greener-ish Footprint. Love the monthly dividend(DRIP). Love that the operations are located in Canada. I think it will be a good consolidator (Manulife's NAL resources for a start). What's your view on the company today and would you consider my sentiment for the company irrational (or financially dangerous)? I've seen 5i recommend VET over WCP, but I don't understand why. I find VET very disappointing this year, not well paid to wait and its geographic dispersion a headache.

2) Similar story about ERF. They have one of the stronger balance sheet for the sector I hear and wanted your take as well on the company as of today. I found their planned approach for the future a little too conservative on their latest earning call. My two fears with them is that they are a much smaller player and with the US elections coming up, their Dakota operations are stressing me more especially with Biden's statements on energy.

3) I hold some Suncor&CNQ in other accounts and I will eventually reduce my total exposure to the sector, but for fun's sake : If you could only keep one position between ERF and WCP (drip active) for the next 5-10 years, which one would it be and why?

Thank you very much again for the help and the great service.
- Michael
Read Answer Asked by Michael on September 01, 2020
Q: Hi 5i team.

Any news today causing even the highest regarded apartment reits to sell of significantly? CAR.un, IIP.un, and MI.un all down close to 5%.

Thanks.

John
Read Answer Asked by john on August 31, 2020
Q: Hello guys,

I was hoping you could help to interpret the reports from Canada's banks this past week.
On the face of it, earnings did great compared to expectations. However they largely reported these gains based on outsized returns from their capital markets divisions. I am trying to make sense of what this means in the short and long term.
Firstly, capital markets are comparatively small parts of their businesses (at RY it is normally 20% of income). Is it also safe to say that this is a reflection of both turmoil and government stimulation, and I wonder if governments will be remiss to see its money land there. A d is it repeatable.
Second, with low rates on the horizon increasingly, the Fed and other central banks appear torn about the inflation theses that they have and what to do next. For banks I understand this means margin erosion as well as potentially demand destruction from customers.

Any thoughts on progress of the sector and possible ripples to the economy are greatly appreciated.

Thanks,

Peter
Read Answer Asked by Peter on August 31, 2020
Q: Hi Folks, my question is on GILD. I purchased this back in June - I am down about 15% as of today. What has happened to this stock to justify this decrease ALSO would you still recommend holding on to GILD or is it time to sell ? Greatly appreciate your comments.
Thanks
Read Answer Asked by JOHN on August 31, 2020
Q: Wondering about getting returns from non-tech companies, since I have plenty of tech. The world largely still runs on oil. Of course Russia and Saudi Arabia can swing the market, as we have seen. I have some Suncor (SU) and Exxon (XOM). Is Exxon's (XOM) dividend safe? Any wild guesses as for how many quarters out an upswing for energy might be? Thoughts on adding to XOM or SU? I feel like there is potential there that might be better than say Loblaws or other basics.
I appreciate any insights.
Read Answer Asked by Marilou on August 31, 2020
Q: Somewhere in my past I read an article that proposed the idea that an investor should develop a list of 10 companies that are so well managed and poised for long-term growth that they could become a 'hold forever' portfolio. I guess you could call them the 'best of the best companies'. I'm 75 years old which seriously limits the amount of time for my investments to grow, so I have begun to think of my investments as ones that my children would benefit from inheriting.
Keeping all this in mind, I would greatly appreciate it if you would provide me with what you consider to be the absolute best 5 Canadian companies to buy AND although I realize you don't deal directly with American companies, the best 5 American companies to include in the portfolio.
Thank-you for your continued support and I would appreciate any suggestions you can give me.
Read Answer Asked by Les on August 31, 2020
Q: If one anticipates a significant pick up in inflation due to all the extra costs related to Covid-19, what are the sectors likely to benefit? Could you give 3-4 suggestions for Can and US companies which would be expected to do well in that scenario? Thank you for your great insights?
Read Answer Asked by jacques on August 31, 2020
Q: Hi group thanks for taking my question - its on W - the last 2 days have seen the stock come off 10% there was some news that they were buying some $700 Million of the stock back. I bought on dips over the last 2 days/add to my 2% position (now I have a full position . I figured it was lots of folks taking some profits because of the huge run up over the last 3 months (last quarter finally put them in making $ category. This stock should continue to benefit from the virus Can I have your thoughts Thanks PS I do realize that your do not focus on US stocks but would value your opinion anyway
Read Answer Asked by Terence on August 31, 2020
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