Investment Q&A

Q: In reference to Donald’s question about the Td GIC linked to banks and utilities:
I agree generally with the reply provided by 5i. However, in your response you talk about “going to cash” and I think this may be confusing. The product offered is a GIC and is insured. The principal is protected so there isn’t an issue with “going to cash” in a bad market. You will get your money back at the end of the term. It is essentially a cash investment all along, although one is locked in for the term.
What motivated me to write this was the deceptive way, in my opinion, TD is offering this product. It says the MINIMUM return is 2% and states quite clearly that this is an annual return on the main webpage describing the GIC. However, if you read through the prospectus (so dry and complicated it will give you a migraine) or click on the tiny footnote you will see that the 2% is actually a 3 year compounded return of 0.66% per annum. The 2% is a total return. If the market goes down or sideways, you will get a whopping $20 per $1,000 invested over 3 years.
I am a long time TD client and shareholder but I am disturbed by what I feel are decptive practices and the “pushing” of products on Canadians. This is approaching Wells Fargo behaviour, IMHO. It can’t end well for anyone. Sorry to take up your Q&A time with this but I feel the investment community needs to speak out about this.
Good luck fellow investors!
John

Q: Hi Ryan, What do you think of the bank for a buy at this time.Thanks for everything,. Cliff

Q: Hello,

How can CBL continue to pay it's dividend? With the public float continuing to shrink, what do you think the companies strategy is?

Cheers,

Robert

Q: TD is offering Market Growth GIC’s and suggesting “earning up to 18.8%” on Canadian banks and utilities. Guaranteeing the principal.

For a retired income focused investor would this be a meaningful part of the fixed income part of a portfolio?

Too good to be true?

Thanks for your help.

Q: This company has a 5 BILLION line of credit in australia pay a good dividend is ijn fleet truck management serves world wide companies EFN trades at $6.38 on TSE

Q: I can’t believe it’s been 7 years for 5i already...congratulations! I clearly remember the day I saw Peter being interviewed on BNN, explaining why he was launching 5i Research. His reasoning resonated with me and I couldn’t wait to join. I have learned SO much, have become a calmer and better investor, and needless to say, my investments have done extremely well. THANK YOU!

Alan

Q: I think looking at chart at $ 16.00 SIS is a buy. When do they report next eps. I see ACORN ads on TV . Same product Chair Lift. I believe Acorn is a UK Company. Your thoughts pleas. RAK

Q: Could I please have your thought on IMG? Is this a good long term growth potential stock? Any debt? Insider own how many percent? Technical analysis said continuation diamond bullish from TD website? Do you trust that? Thanks always

Q: Hello 5i team,
How does NPI now compare to other utility stocks like AQN, Fortis, with respect to growth prospects, and other metrics P/E, debt load ? I thought it might be a takeover candidate at one time.
Bernie

Q: Though BMO lowered their target from $ 18.- to $ 16.- it still
looks to have good potential.
What is your opinion at this time ?

Q: Good day,
You had a fairly neutral comment on ZEBRA (ZBRA) two years ago. Has your view changed since then ?
It seems difficult to find interesting stock (high potential growth, reasonably secure) in the industrial sector now. Would AVAV, BOOM, NSP, NVEE be good choices or what else you recommend ?

Many many thanks,

JD

Q: Am just wondering, if the deal with Baytex did not go through do you think there is enough value in Raging River alone to justify it returning to its price before the announcement of the deal. Also, again on its own, does Raging River have decent fundamentals: P/E, cash flow, debt level, growth potential, etc.
Further to this, could you explain how the deal with Baytex, assuming it goes through, would subtract from those fundamentals. Thanks.

Q: Hello,

I'd appreciate your feedback on Friday Night's Third Quarter Financial Results released on Friday Morning.

Thanks,

Francesco

Q: What are your recommendations for a 12 (Canadian) stock TFSA from your BE portfolio with a 3-5 yr hold with average to above average risk tolerance? Looking for individual company names.

Thank you

Q: I am down 5% on a half position, would now be a good time to add more? What do you think of the prospects going forward?
Craig

Q: I would appreciate your comments on Flyht Aerospace Solutions (FLY) Second Quarter Update released today. The stock is up over 5% on this news release but down 50% on a year to date basis. Is this a buying opportunity at today's price? What will it take for Flyht stock to move significantly higher? Thanks

Q: I’m investing for a parent who is currently 100% in cash, is nearing retirement and has never invested. They will not actually need income for another 3-5 years, but I would like to generate some dividends, so they can see actual cash coming off their investments (this may be reinvested). I think dividends will help psychologically if the equity portion declines as they will at least “be paid to wait” while the market recovers.

I am considering constructing the portfolio as follows:
30% Cash – PSA
50% Bonds – ZAG
10% Equity – International Dividend – PID
10% Equity – International Broad Index – XAW
10% Equity – Canada Growth – 5i

Can you provide 5i’s 2 or 3 highest conviction calls right now. I’m looking for growth at a reasonable price. Not looking for yield, but would like it to at least pay a modest dividend.

I would also be interested in any views you have about the suitability of the portfolio and any alternative / additional suggestions you may have.
If there is a correction in the equity markets in next few years or one of 5i’s A companies slips on a banana peel, I may look to put some of the cash to work and increase the equity potion.

My tactical views are: interest rates will rise with the US leading the way, the US broad equity markets are looking very expensive, Bonds are generally not a good investment and at low rates they will get killed by inflation over the long run (but they reduce volatility).

Also, in terms of allocating these investments between non-registered and TFSA, how should I generally be thinking about this? International stocks and bonds into the TFSA until it’s full and cash and Canadian stocks in the non-registered account? I don’t think they will be making any new contribution so perhaps there is no way to use the RRSP.

I look forward to your thoughts and apologise for asking a multi-part questions. If you start to run out of steam, don’t worry about the tax questions.

Thanks

Q: Peter; Which companies would benefit most from an increase in the price of Brent? Thanks. Rod

Q: Hi !

I invest mostly in growth stocks but with 28% of my portfolio in tech, I may be overloaded in this sector. My present holdings are: CSU (2.7%) PHO (2.5%) KXS (3.2%) SHOP (3.5%) ADBE (3.1%) FB (2.7%) GOOG (2.6%) MU (1.8%) NVDA (2.2%) SQ (3.%). If I were to reduce the number of holdings as well as my tech %, on which stocks would you suggest to concentrate, identifying those with most growth potential and those more risky ? Are there any other stocks better suited to my goal ? Or should I stay the course here ?
Thank you for your good attention,
JD

Q: Howdy!
I am slowly repositioning the Canadian equity portion of my RRSP portfolio to emulate your Balanced Equity Portfolio.
About 27% of my portfolio is sitting on cash right now; I do not yet own the listed companies - Are they all good to buy today? Or please rank them in order of value for purchase today versus perhaps holding off a quarter or two.
Thank you