Investment Q&A

Q: While my question involves SBB, it is really more of a general interest question. On Friday Dec. 18, SBB traded over 22 million shares and 20 million of those shares were traded in the last 15 minutes of trading. The 50-day average volume is 764K.

So I went looking for an answer to this anomalous trading and found the following on Sabina's website:

"Sabina is pleased to announce that effective at market close on December 18, 2020, the Company will be added to the GDXJ.

Qualifying for addition to the GDXJ is another benchmark of how Sabina’s successes have translated into share performance and liquidity. Inclusion on this index provides an increased level of validation of the Company to a broader base of institutional investors, bringing additional trading flexibility and value to our Company.

The index initial position in Sabina is estimated at approximately 17M shares."

Clearly, Friday's sky-high volume and SBB's inclusion in GDXJ are related. However, SBB's announcement states it only becomes part of GDXJ AFTER the market closed on Friday. Can you help me to understand how so much trading occurred BEFORE market closing on Friday? Who is coughing up 20 million shares in the last 15 minutes of trading when the entire float is only 326 million shares? Does Van Eck purchase the shares outright or is a middleman involved?

Thank you.

Q: Thanks 5i for your great services all year round. Merry Christmas and Happy New Year. What will be your top 10 small cap growth stocks to be put in a basket?

Q: If I purchased any of these, are they subject to capital gains tax? If I wanted to redeem the physical silver in exchange for the shares, what would the charges be over the spot price? Does the share price follow the spot price dollar for dollar? Wouldn't mind having answers for any questions I haven't thought of.

Q: what do you mean by" a transition in shareholder base" for Real? could it be that institutional sellers feel the stock has lost momentum or there is short term problems with the financial metrics? thanks for the clarification Richard

Q: Trimmed my SHOP (thank you for that one!) above 1500 as it got to be too big part of my overall portfolio. I'm considering WYNN, WSP, EXPE or BKNG with the proceeds to buy now. Probably will buy 2. I have lots of industrials already but little in the way of recovery trades. Please rank them in order of preference please. Merry Christmas and Best wishes in 2021. Martin

Q: IS THERE AN ETF THAT COVERS ALL THE FANG STOCKS ? does it make more sense to just invest in the Nazdaq index that seems to have outperformed all other indexes by a long shot do you have another suggestion how to invest in american outperform growth stocks several questions ---deduct credits accordingly thanks

Q: I know you don't like target prices but I would still like to ask for a rough shot at one for KRR please. Thanks as always for this great service,

Q: What time of day and days of the week are normally best for individuals to buy and sell stocks?

Q: Hello. I'm preparing to buy a couple of tech stocks. Unity Software (U) is one; which is a go. Also, 5i seems to like it. But my Q is about Elastic N.V. (ESTC). One Q&A in 2020 with only a few others dating from 2019 in 5i's Q&A section. It looks interesting to me, but I'm not sure. I'd appreciate your updated look at the stock and your opinion about adding it (currently trading at all-time high -- but cash flow is still negative). Thanks!

Q: Hello Peter and team,
Echoing the comments of so many others, I would like to extend great thanks for the wonderful service 5i provides and wish everyone a wonderful holiday season.

I currently own GC, but as part of a portfolio re-balancing, was planning on selling it when adding new money at the start of January. It appears the current offer will be voted down. Having never owned a stock that has had a tender offer fail, I am a little unsure as to how this might play out. I would hate to lose some (most?) of my gains by holding onto the stock too long.
You have already expressed the opinion that Apollo will likely increase their offer rather than walk away. If that were to happen, would Apollo make their intentions known before or after the vote happens? If comfortable sharing, what is your best guess as to how the stock price will react over the next few days.
Thanks in advance,
Rory

Q: I know you generally don’t advise making decisions in what “might” happen, but I need to absorb some capital gains in a non-registered account in the next 6 months and I’m thinking about the potential for changes to the taxation of capital gains. It would seem that taxing capital gains at a higher rate is a likely target to pay for some of debt that government is accumulating due to COVID. Should I hedge my bets and absorb some of the capital gains this year?

Q: Good afternoon, team. This morning on BNN it was announced that CP is planning on developing a hydrogen locomotive. The G&M had an article identifying stocks it felt were positioned to make a pivot to the "hydrogen ecosystem". These seemed to be mostly drillers: HAL, BKR, SLB and, in Canada, PD and EFX. Also today my Economist arrived with an article hydrogen powered flight. Something seems to be happening here. I have had Ballard Power but it hasn't ever made a profit. Is XBC in this field? Can you identify two or three US and Canadian companies that might be good for investment now?

Q: Hi!

As part of my industrials sector weighting, I have 4% allocated to transportation. Given the current environment, I believe airlines are the best value, but probably also the riskiest. Nevertheless, my portfolio is reasonably well balanced. Do you think it is prudent to invest my 4% allocation entirely in AC? It clearly provides better value than the railroads and trucking, but as I said, with increased risk.

Thank you,
Jason

Q: Retired, dividend-income investor, who normally employs a buy-and-hold strategy. I have long term core positions of mostly conservative equities (ETFs = CDZ, XIT, ZLB, ZWC, ZRE, LIFE; Stocks = AD, AQN, BCE, CSH, FTS, MFC, NTR, NWC, PBH, PLC, RY, TRP, WSP) and fixed income of annuities, Fisgard and Gov't-Private pensions. I believe my portfolio is set up fairly conservatively.

I have cash for another position in my Cash Account. I have been reading several 5iR questions lately about various themes for 2021 (Recovery Trade, Swap from Growth to Value, Emerging Market improvements, Take-Over Candidates, etc.). While I'm not even sure if this is possible, I'd like to ask you to screen for as many of them as possible (all thrown into one big ball) to create a half dozen candidates for me to do more research on. I'm looking for a starting point. I'm not even sure where to start, hence the request.

I'm looking for a Canadian (preferably) or USA company, potentially a take-out target, benefitting from the recovery of the economy. I lean towards the Value spectrum, as I inherently find it difficult to buy a stock that has already had a good run. If a dividend could be thrown in, that would be a bonus. Market cap and sector do not matter.

This is sort of a "kitchen sink" kind of question. If that results in zero candidates, then please use your discretion and drop various filters. As you can tell by my current holdings, they are for the most part, blue-chip companies. If we could identify something like an Enercare (that was taken out by Brookfield), that would be a homerun.....happy to hold it but ecstatic to have it taken out. But Enercare is just an example.

Please rank them from best candidate to least...maybe 3 Canadian and 3 USA companies or all 6 from Canada if possible.

If you can run this exercise, then I'll do some further research on your list. I know this is a crazy request...thanks in advance. Take as many credits as you need to throw some brain power at this....I'll never use all of the credits I currently have.

Much appreciated...Steve

Q: Engh took a big hit,undeservely so, after decent results What is a good price to enter ? Thanks for u usual great services & views

Q: Do you know why there were 9.5 million shares of GUD traded on the 18th? What should we do on this news?

Q: I would like to diversify a little more internationally in the coming year. I was looking at these two ETFs EZA and ZWP for a combination of yield from ZWP, and growth and yield with EZA. Naspers, I believe has a large interest in Tencent and has not followed the SP growth to the same extent so I am thinking this might be a good way to play this within an ETF. Could I please have your thoughts or other recommendations to expand internationally?
Thank you
J

Q: In a previous question I asked the following:

I am looking to purchase both XEF and ZEM to increase my international exposure. Any recommendations of percentage allocations to each? Thank You
Answer:
We can't personalize allocations, but if we owned these we would look to 10% XEF and 5% ZEF.

In relationship to your answer, Portfolio Analytics suggests I have 35% in foreign market exposure and the answer given would make up 15% of the 35%. Are there any other ETF's you would suggest to make up the remaining 20%? I realize you don't give personized advise, however I'm looking for a generalization to increase my international exposure?
Thank You

Q: Can I have your opinion on the takeover of BioTelemetry by Royal Philips at $72/share.

Thank you and Happy Holidays.

Q: I have a full position in MX in my TFSA. Even after the recent rally, I'm still down about 15%. It seems to be having good momentum, so I'm a bit hesitant to sell, especially when I can't claim the tax loss. But a part of me just wants to just get out and buy something like WELL, XBC, or STC.

Any thoughts, or advice? Thank you for all that you do.