Investment Q&A

Q: Ray.a did not participate in the last 3 great up days.Today closed@ $3.25 down 0.24 on big vol.of 440k(av.133k) with a 1yr low of $3.18. On Mar 23 increased NCIB to max 4.9m shares from 2.9m As at Mar 20,bought back 2.9m shs at av.price of $6.01. Between Mar 12 to 19 CEO bought 200k shs at av.$4.33 & Chair bought 251.7k @ av.$4.49(total shs held- 2.91m).At last Q div was increased by 7%,now the yield is 9.23% in part due to drop in price. Why the price keep dropping? Is it because of its business?. My p/p $9.10,now 1% position.Is it time to move on to some better stocks(if so,please give 2 names} or stay put. Please comment.Txs for u usual great services & advices.

Q: Please comment on the welcomed great performance of LSPD today--$23.75 up $5.75(32%) on huge vol.of 2.1m(av.536k) Txs for u usual great services & views

Q: Just a comment about your answer to Stephan's March 26 question regarding Genworth (MIC). You mention that Genworth's payout ratio was over 95% in 2019, but that was just because of all the special dividends they paid out. The company paid 5 (yes, 5) specials totalling almost $9.00/share between Jan 1, 2019 and Feb 29, 2020. The regular dividend is only 54 cents a quarter, or $2.16 annually, compared to 2019 net earnings of $4.92/share, so the regular dividend is very well covered, and I doubt you will be seeing any more specials for a while. Of course, the net income this year will likely be lower.

Q: Follow up question on Depression
Do the interest rate and unemployment goes up or down.

Thanks for your great service

Q: Due to the Coronavirus,mines have been closing down.Will this affect royalty income to FNV?
Will reduced supply from gold mines support the price of gold?

Q: Is there nay news as to why WCN is doing so poorly, Thanks

Q: I hold a couple of Ford Credit Canada bonds with one issue maturing in 12 months and the second issue in 36 months. With today's downgrade I've taken a hit on the market value of the bonds, particularly the longer maturity. Is there a risk of default by Ford Credit on these bonds?

Q: If DFN moves over $5.00 per share in April will they reinstate the dividend for May ?

Q: Hello
I will appreciate your comments as to how the coronavirus will affect TRP and ENB.
Do both companies have high exposure to the virus like the automotive manufacturers or low to moderate exposure to the virus ?

Thank you

Q: Hi Folks
can you comment on Enbridge and TransCanada ( TC Energy ) - are they still okay to hold at this time ? In particular are they okay to hold at the same time - I have both BUT not in the same portfolios. I have ENB in my RRSP (2.5% position), in my wife's TFSA (2.5% position) and in my non-registered account (2.5% position) . I have TRP just in my wife's RRSP (4.5% position ).
Appreciate you comments.
Thanks

Q: Good morning,
what do you think of Morguard Corp. (MRC) here at 119ish down from 220 - i know they will get hit from the hotel exposure but it seems like a decent opportunity perhaps due to illiquidity? Some of the more liquid REITS have bounced but not this one.

Q: I have the above 3 holdings with losses ranging from -60% to -85%. They each now represent less than 0.5% of my overall holdings so whatever happens they will barely move the needle. I am at a point where I feel I need to do some type of clean-up and would appreciate your advice. I see 3 possible choices:
1. Dump them right away regardless of price in the name of cleaning up my portfolio
2. Given that we might be close to a bottom wait (say between 1 month to a year) to hopefully sell at a better price
3. Top them up to at least a quarter or half position and hang on to them long term
They are all in registered accounts so there are no tax benefits in selling. Furthermore I went into this downturn with 30% cash and have since bought into the drop (other positions) bringing my cash down to 15%, with plans to do additional purchases if the market drops further. So at the moment, I have no immediate need for the little cash that selling these right now would bring. What would you suggest?

Q: Hello Peter and co,
Thank you for your voice of reason in these crazy times! My 18-year old granddaughter has been talking about investments, and recently announced that she has decided she wants to invest in a cruise line company, since they are probably way down. Her thinking makes some sense to me, as the cruise industry will survive, and the strongest players may benefit from assimilation of weaker players assets. Similar thinking regarding airlines. In both cases, bankruptcy may be a risk. Is it safe to assume that buying these sectors is a good long term strategy, and if so, which companies would you suggest? Presumably strong balance sheet is a must. I think I read that Warren Buffett bought some Delta Airlines shares recently. Considering all that, what would you suggest for a young 18-year old?
Thanks.

Q: I get most of my income from dividends. Please name 4 sectors where dividends might be relatively Less likely to be suspended and 5 companies that will do best with the criteria mentioned. I understand that at this time it is hard to project but I ask for relative possibilities with the current situation that may change. 
thanks 
Yossi

Q: While our politicians and others say this is unprecedented, the truth is it has happened before. The 1918 Spanish Flu killed 33 million world wide because they didn't know much about prevention and soldiers were returning from war. Some areas did close borders and practice self-isolation. Even the word quarantine comes from the 40 day isolation period in the middle ages. What happened after 1918?
Markets improved, then there was the 1920-21 depression (maybe war related) followed by one of the biggest bull markets ending in the 1929 Great Depression.

We haven't used the word depression yet but a depression is a fall in GDP of 10% or more or a Recession lasting more than 2 years. I think it is likely that we will have a technical "Depression" and using the word may send markets lower. Either way we are not finished and we need to test the lows and see some real light at the end of the tunnel. But it will end and return to normal and higher prices. My thoughts as I sit in self isolation. Stay safe everyone.

Q: Assuming markets will tank again, which would you suggest be purchased for a long-term hold at that time: BAM.A, SLF or TRI? Retired investor looking for dividends with some growth.

Many thanks to the entire 5i team for your collective efforts to provide us with timely, thoughtful information and a much-needed balanced perspective during this most challenging of times.

Q: Thank you for Portfolio Analytics. I have found it a quite helpful. Last year it was a very timely wake up call for me to make adjustments to the portfolio and allow for higher fixed income exposure and better geographical exposure. Thanks again in your guidelines

Q: 3 days up in a row. Should we be buying?

Q: The above TFSA holdings have not performed well and of course, are not eligible as tax loss harvesting. This is one of the potential downsides of TFSA investments. Please give me your thoughts on which ones you would move on from and without worrying about sectors, some replacements you think will recover well. Thanks again for your guidance.

Q: Hi there,

Can you please tell me what your top 5 bullish ideas are from your Growth Portfolio in order from first to fifth?

Thank you!