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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: I'm confused by the following 5i answer excerpt in response to Dave's question on August 16th.

"5i Research Answer:
The key here is that when reading our remarks, our comments are meant to reference the 'company' and not the stock price. A declining stock does not make a company 'bad'. We cannot predict sector movements nor stock prices, but we try to focus on the quality of a company."

Do I take from this that 5i doesn't take into account the fundamental "value" of a stock when making its recommendations? If so, I feel this is missing the point in making profitable investment recommendations. The highest "quality" company may be the worst possible investment if its stock is outrageously over-priced.

There also seems to be some inconsistency here as well. In the same answer, it was stated that a company like CRH may have more investment potential than another company since its stock is oversold. Another answer on the 17th suggested that the asker not chase the stock of Chorus Aviation (CHR). These answers indicate to me that stock price is being taken into account in 5i Research recommendations.

So what is it, is stock price ("value") taken into account in 5i Research recommendations or is the "quality" of a company the only criteria used in making the recommendations?

Thanks,
Colin
Read Answer Asked by Colin I on August 17, 2017
Q: Regarding the " legal reserves " question on Crius Energy. I wrote Investor Relations and asked them. This is the reply I got ........
Hello Garth,

The legal reserve charge is related to various claims and proceedings that Crius Energy is a party to, arising in the normal course of business, including several ongoing litigation and regulatory matters relating to certain sales and marketing practices. The company is significantly closer to resolution of these pending claims and has entered into an agreement in principle to settle these matters.

I hope you find this helpful,
Kelly.
Read Answer Asked by Garth on August 17, 2017
Q: Greetings,

I have a full position in Altagas spread across three registered accounts. I've held this for years and plan to keep it but I was wondering whether it would be a good idea to sell the shares now and buy the subscription receipts. Seems like the only downside to that would be a case where the big deal falls through but the stock prices goes up. Can't see that happening. Am I missing something?
Read Answer Asked by Gerald on August 17, 2017
Q: Hi there, just looking for further clarification on PLI, have you assessed the risks in Prometic not receiving approval for the Plasminogen BLA from the FDA? Could it be possible that PLI raised further funds very quickly, at a substantial discount, at $1.70, trading well over $2 at that time, suspecting they will not be approved?
"The Corporation is responding diligently to all FDA requests in relation to the BLA review. The Corporation will provide further updates on the expected timeline of regulatory approval as soon as available"
Could it be possible that PLI is suspecting the FDA is looking for further clinical data for approval, which could take an additional 12 to 18 months for final approval? Have you assessed these types of risks in your modelling for the Growth Portfolio holding? Where do you see the stock price trading at, if the above scenario does occur?
Hope I am wrong above!
Thanks!
Read Answer Asked by Hussein on August 17, 2017
Q: Hello 5i,
In response to a fellow member, I was also a very frustrated investor a couple of years ago, just after joining 5i. I have made and sometimes continue to make poorly researched decisions that are outside of my risk tolerance. I have purchased many disaster stocks (CXR, HCG, PHM etc.) since joining 5i, what is very apparent to me is that it was me that decided to make each and every trade, not 5i! The reason for the trade was an attempt to make some easy fast money (greed). The 5i information when used as a starting point for a shorter term trade or longer term investment idea, enables me to make much more informed decisions than I was able to do prior to joining 5i. I appreciate the unbiased information, experience and opinions, and the voice of calm reassurance in times of volatility....thank you very much!
You may publish at your discretion.
Read Answer Asked by Randy on August 17, 2017
Q: Hi Ryan, I've held theses two companies from 2012 when they were doing well, in your opinion what would it take for oil to get back to a level where these two companies would not be worth selling or is it even worth waiting. BTE is a .52% and CPG 2.07% weighting in this RRSP stock account. Thanks, Nick
Read Answer Asked by Nick on August 17, 2017
Q: Question: Hello Peter! Can you please comment on my portfolio.I currently hold in my portfolio (stocks - Weightings): CSU-10.9%,CCL.B- 12.2%,BYD.UN-8.5%,ATD.b-10.2%,KXS-7.0%,PBH-5.4%,NFI-6.8%,SIS-6.2%,SHOP(CAD)-9.1%,ECI-3.7%, FB-3.9,SHOP(US)-5.3%,CGNX-4.2%,AMZN-2.7%,NVDA-3.8% . I also have 30K CAD to invest. Would you please give me your 3(non energy,CAD or US)buys today to complement or increasing my holdings in existing portfolio. Thanks Andrew B.
Read Answer Asked by Andrzej on August 17, 2017
Q: I have been looking to add ZZZ for a while now. The stock price has declined since earnings and I have decided to start a position. My portfolio consists of 25 stocks and since I do not want to increase this number I have to find a company to swap out. While I have done pretty well on MTY I feel the long term trend of online shopping and decline of big department stores will eventually hurt food court sales. Do you have any comments on if a switch to ZZZ from MTY is needed? Would you agree that ZZZ has greater long term potential?
Read Answer Asked by justin on August 17, 2017