Investment Q&A

Q: Peter, if you became a fund manager again starting this week, what would be the first stock you would want to buy?

Q: I realize 5i refers to this type of stuff as noise but hopefully you can elaborate a bit about these comments made in the media. Seeking Alpha reported that Amazon might be getting their own type of pay system which will affect PayPal and Square and notice these two stocks dropped off more than the norm on Friday.
MU - Micron - I read the same article as another member about Micron was downgraded with a low target price. The following day, Seeking Alpha posted pictures of Micron's headquarters stating that at this price Micron was a definite buy and they had a good article on all of the great things about it and a high target price I believe of $75.00. Who do you believe?
A regular analyst on BNN - David Price was stating how he felt the market would not hold the February lows and was showing some charts and saying when it got down around the old lows the automated trading would kick in and the market is going to go quite a bit lower. He sees it as a rough couple of months and more or less said that it would be 2019 before things come along. David Price back when oil got down to the $40 mark, some time ago he said oil would be going to $20. He was wrong. Let us hope he is wrong again. Your thoughts.

Q: You, at 5i, represent yourselves as fundamental analysts but according to your answer to Darcy on April 5th, you show yourselves to be at least aware of technical analysis as well, with your answer of the death cross re ATD.B. You might be interested to know that, on the weekly charts, the 20 week moving average just crossed below the 50, often considered to be a selling point for many long-term investors. As well, the weekly RSI broke below the 50 line as did the Full Stochastics and both lines are still pointing downward. There is a support band between about $50 to $55 with the current price at $55.58. The price could easily drop to $50 or less.
Technical analysis is more an indication of investors' attitude than is fundamental analysis and I assume your are still okay with ATD.B's fundamentals or you would have sold it out of your portfolios; is that a fair assessment?
(I gave up timing the market a long time ago as I could never maker any money at it. But I am still fascinated by technical analysis and watch it, I guess, as a hobby).

Q: Diageo has seen a significant gain since the binging of the year. Wondering what your thoughts are on this company and whether I should buy at this level or wait for a pullback

thanks

Q: What are your thoughts on this company, at this level? Thank you,

Q: Hi Team,

What are your thoughts of initiating a position in shopify at these levels for a long term hold?

Thanks

Q: I'm looking to add a stock to my TFSA. Thinking of KXS-T. Do you agree or have another suggestion. Thanks

Q: Considering the ongoing volatility in the markets, probably caused in a large part by threats of trade wars, I'm considering adding a gold component to my portfolio and I'm favouring Goldcorp. May I have your opinion as to this stock or in your opinion a more suitable choice. Thanks, Al.

Q: Mr. Hodson, could it be that GUD is precluded from buying back ENDO by virtue of a non-compete clause for 3 years ? If so, one would have to abide by that clause. It would no be possible to avoid such clause. Therefore, one would have to await the passage of such time, as this would be binding for both parties. Does that makes sense ?

Q: Going forward, which would you pick as an income stock with preservation of capital as paramount and why. Thank You Ron

Q: Good day...I hold both kxs and dsg and other 5i tech stocks ...my overall tech allocation is 17%...my question is whether it makes sense to hold both kxs and dsg as their software tends to be similar but different ...could you please help me with this concern....Eugene

Q: I’m worried about ECI. The price trend has been down for three months, but my bigger worry is about criticism of its core business model in the media recently. It seems some of ECI’s clients are complaining they were locked into high-priced long-term (14+ year) water heater rental contracts unknowingly, and without the ability to opt out, when they bought their new homes. Apparently if they want to get out of these contracts now they must pay huge sums of money that make doing so very uneconomic. There are demands for government action to regulate such predatory contracts. Some water heater rental companies are doing this for sure, though I am unsure about the specific terms of ECI’s contracts compared to other companies. Can you shed any light on this? In your view, how much is this raising the risk profile of ECI?

Q: Between American Express AXP and Discover Financial DFS, which one would you buy (IF not both)? I am interested in value with some dividend growth. I have a half position in DFS. Is it worth selling DFS to buy AXP? I look for companies with manageable debt, decent free cash flow, good ROE and reasonable PEG

Q: Good day 5i team
I would like to know why and when to change a companies sector (TSX) to one I feel is more appropriate in my portfolio. It is something that skews a balanced portfolio as stocks will move with their sectors? I am using the examples from your balanced portfolio that have different sectors listed from the TSX. Or does it matter at all as all these companies are touching on both allocations?
Thank You J

Q: I buy Creit at $50 and wait for the takeover to complete.
No shareholder is going to vote against the merger and watch their stock tank to around $40.
Looks simple so I am confused.

Q: I have some Vee in my rrsp and I am looking for a Canadian etf for developed East Asia that would compliment these holdings. Do you have recommendations and would you please provide a detailed synopsis and your recommendation? Thanx.

Q: Corus earnings were almost double estimates. Do you see more improvement in the future or was this the result of one-offs?

Q: Although it is in the very early stages, can any type of valuation be put on RHT in terms of EPS or even revenue (one year out), with the patient enrollment program they have in place?
Thanks

Q: My average cost 62.50 and I am down quite a bit since the last quarterly report. Reading through your comments on this stock, you feel that the stock has lost its momentum. The company reports next on April 30. Do you see any reversal in the next 6 - 12, should one continue to hold or should one just sell now and replace it with a better choice. Regardless, if I should decide to sell now, could you suggest a couple of US replacements with some growth prospects that have positive momentum. (I was thinking of businesses like Visa or Mcdonalds or something you may consider more appropriate with similar moats). This security is being held in my wife's RRSP and she also holds: AT&T, MSFT, FB, MS, AMTD, JNJ & MO. I am more interested in preservation as my wife will have to begin withdrawing in a couple of years.

Thanks,
Joseph

Q: What's wrong with GS? Metrics look good and the dispute with former owners has been resolved, yet stock does nothing but decline for the past 3 yrs.