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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: Hi 5i,

Back on Oct 17-20, a few questions were asked about the waterfall in stock price of BIP, but there was only comments with regard to dividend stability and a few big sellers like BMO and Morgan Stanley. Yesterday (Oct 28th) a short report, by Keith Dalrymple, was discussed by Seeking Alpha (found under BIPC:US). Alpha wasn't too impressed and here are their conclusions:

"I held BIP for more than 10 years until I sold everything upon reading and thinking over the report.

Even though his report specifically targeted BIP, all Brookfield companies will be affected if the report is only partially true. In the world of alternative asset managers, reputation means a lot and it is questioned by the report."

Can I please have your opinion. Thx.
Read Answer Asked by Christopher on October 30, 2023
Q: These two stocks (and others) have relentlessly been sold off over the last 4 months. The main reason given by the experts typically is that interest rates are going up and are approaching/exceeding 5%. OK. I get that. But these both pay dividends which are 5%+ and dividends from a tax point of view are better than interest bearing instruments. So it must be that these sellers believe these dividends will not be paid in the future. Is that what is going on here and are they right? Is there a cash flow problem at these companies?
Read Answer Asked by John on October 30, 2023
Q: RE purchasing US treasuries

Hello 5i,
Once or twice I have tried to purchase bonds from my discount broker RBC direct investing. The process to purchase is fairly easy (you will face a hit up front on the bond price compared to the open market). However, when selling a bond or treasury that's when a DIY investor is really at a loss. You call up RBC and then the agent will consult the "manager in the bond department" and they will decide on a price they will give you for the asset you wish to sell. Kind of like a car dealership! It truly is a grey market where your discount broker has all the control of the sale of that fixed asset. Also, if looking at treasuries, you must commit to $10k USD and can't buy, for example in smaller increments, like I wish to do for a family member in a conservative TFSA.

IS there an ETF suggestion for a 10, 20 30 year treasury in USD? Not what i really want, but will mirror the moves in this market, I suppose? TLT is the 20 year. What is the 10 year, 30 year?

Also, can you confirm that the interest paid on the treasury would be tax exempt if held in a TFSA? If tax on interest is exempt in a TFSA, would it still be exempt if one holds the ETF and not the treasury itself?
Read Answer Asked by Kat on October 30, 2023
Q: Last week we sold BN and BIPC (U.S. $) for tax loss. Since almost everything will be in decline over the next few weeks, do you suggest we leave the money in cash or buy another stock or stock which we could sell at a (probable) further loss to rebuy the original two? Could you suggest a couple of U.S. candidates please?
Thank you
Read Answer Asked by J on October 30, 2023
Q: Hello 5i Team,

Given the recent drop in dividend stocks, I'm planning to set up a long-term income portfolio in a non-registered commission-free account. I realize your income portfolio would be a good place to start. However, I'm wondering if you could suggest 20 Canadian stocks, with a minimum yield of 3.5%, that you would purchase NOW. This list could include ETFs.

While the primary goal is income, I'm also looking for some long-term growth or, at the very least, to maintain my principal investment.

Also, I do realize the Canadian stock market does not allow for full sector diversification.

Please subtract as many credits as you see fit.

Thanks in advance for your always helpful advice!
Read Answer Asked by Keith on October 30, 2023
Q: The IV on this stock is unreal. Its possible to do a short $70 put and $165 call for a profit of $15 if the price remains within those 2 strikes by November 24.

Obviously there are some major risks happening with the company. Do they have any clinical results or anything similar to that happening in the next 3-4 weeks that would cause such a high IV, to your knowlege?

Sheldon
Read Answer Asked by Sheldon on October 30, 2023
Q: Please rank these companies, or suggest alternatives, as investment opportunities in the build out of the electric grid to accommodate changes in energy delivery - based on their current stock valuations.
Read Answer Asked by John on October 30, 2023
Q: Savaria has had a precipitous fall and only seems to be accelerating to the downside. I am still in the black having held it a long time but am questioning if something has fundamentally changed with the company, flagging it as a "sell"? It just dropped significantly after announcing the upcoming date for its quarterly results and I can't count the number of times I have seen this happen where when the results come out it appears to confirm that there was "leak" of inside information, we will see. (On that note, I figure if 5i was a listed company, it would be classed as having a "wide moat", because it seems like wherever you look there is a dearth of people, organizations and institutions with integrity these days).
Read Answer Asked by Stephen R. on October 30, 2023
Q: When looking at the results since inception for both Growth and Balanced Portfolios I find that ultimately the BPORT generates a lot more return than the Growth .
BPORT generated 263% since inception against the S&P 229% during the same period. The GROWTH is not even close to that of the S&P and the growth part of my portfolio suffer from that . Do you have a comprehensive explanation?

I love the service but I can't wait to hear from you on this topic.

Yves
Read Answer Asked by Yves on October 30, 2023
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