Investment Q&A

Q: I just reviewed the FP Investor I received in my email this past week.
In their review they reviewed the 5 worst performing stocks on the TSX during 2022

4 of the 5 were as follows:

SHOP Down 72%

LSPD Down 65%

DND Down 55%

NVEI Down 62%

You guys are running the 3 5i portfolios and are recommending buys and sells.

William O'Neill whom I'm sure Peter has read has one of the prime principles of his CANSLIM model is LIMIT YOUR LOSSES. He recommends as soon as a stock falls 7% it should be sold. To limit your loss. This will prevent catastrophic losses from affecting the portfolio in a major way.

Now I'm not saying that 5i should have this principle exactly but as responsible portfolio managers I do feel that 5i should have a loss containment strategy for those who follow the portfolio and might not be that experienced.

I know in past posts you suggest readers utilize mental stop losses rather than real time stop losses. I feel that 5i as portfolio managers should do the same. Going forward there should be no holding in the portfolios that are down as dramatically as those listed above.

Hope you adopt this as a New Years Resolution Investing Principle to add to your Investment Strategy Guidelines

All the best


Sheldon

Q: Hello 5i Team
Has there been any negative news on Tsu the last few days. I Checked my portfolio today and I am down over 10% , but I was up about 2% only 5 days ago.
What could have caused the price drop?
Thanks

Q: what seperates this company from their competition

Q: Merry Christmas and Happy New Year all at 5i
This is another crystal ball question. I have a sizable loss on Shopify and today is the last day to claim it for this year. I am caught in the headlights a bit, though, thinking that January could be a very good month for stocks and that i would be better to wait until towards the end of January. What kind of chances do you give it for rising a lot in January?
Thanks

Q: Happy Holidays, thank you for guiding us through this difficult investment year!

Could you please comment on ATD to acquire True Blue Car wash? Will this be positive to share price of the Company? Thanks.

Q: If you could only buy either TOI or SHOP which one would you buy?
Thanks

Q: For a high risk tolerance and growth oriented for the next 5 years what other 4 mutual funds would you recommend with style similar to FID Special Situations that would have not to much overlap

Q: I want to do an option strategy on this company. I really like the premiums on these.

However when I go to trade the options, I see, for instance on the Jan 20, 23 strikes 3X 10 strikes, 3X 125 strikes 3X 120 strikes etc etc.

What are the various strikes for. I just want to trade the option for the stock not any bundled equity package.

Can you shed light on this ?

Sheldon

Q: Is this a stable dividend and is it a safe add to now? Thx James

Q: WHAT IS THE LAST DATE THIS YEAR TO SELL CANADIAN AND/OR US ST0CKS AND GET A TAX LOSS FOR THIS YEAR 2022?
WISH YOU HAVE A SUCCESSFUL COMING YEAR 2023

Q: Do you like the gold sector in today's environment and if yes, what are your top picks in the sector?

Q: Which of these do you think currently looks more attractive (taxable account, if that's meaningful)?

Q: Does ARG still have a low payout ratio? Do you expect any geopolitical issues operating in Chile? (largely friendly or indifferent)?

Are there any profitable, or cashflow positive, Canadian-listed Lithium producers?

Thank you.

Q: I bought these shares today at the open after I saw the news of the amendments to their credit facilities and government support.
Is this company another Bombardier or is there a real turnaround opportunity here?

Q: If one were to sell BNRE or BN at a capital loss and purchase BAM with the proceeds would this stay onside with 30 day rule?

Q: We just received notice from our broker Questrade. Some securities, notably LPs will be affected by an extra tax on dividends, and a 10% witholding tax on sales of said securities. The list, https://email.questrade.com/NDE1LVRSVS0xMzEAAAGI2aUK0lRlxgseeoLC1Eghn1II_fBto39UgUhfF225XXBg6TyuY3qXPyY6am5dK1dIACvlnN0=
is quite large and include even names like Lazard,LAZ which i believed was a regular trading stock.
Will that affect holdings in RSP accounts? Is there to be a rush to the exits from a number of these? If it affects holdings only in regular investment accounts, would it be a good opportunity to to catch a few discounted names in a registered account?
Sorry for a lengthy and intricate question.
Thank you and Merry Christmas.

Q: Note: Allkem Ltd trades under the ticker AKE. Very few questions, last in 2021. Now established operations and profitable. I know it's out of your geography of reporting but could you do a quick analysis of its fundamentals, new projects nearing completion and, particularly, its recent decline in share price, as it's sharply off it's recent all-time highs

thanks for all you do and all the best for the Festive Season and 2023
John

Q: Hello 5i team,
I currently have XRE for real estate coverage in my TFSA for income. I was thinking of switching over to ZRE since it gives a slightly better payout.

I was wondering if there is any advantage for either of these ETFs? Aside from stock purchase limitations (XRE is capped, ZRE is equal weight), does one hold a better real estate portfolio overall?


Thanks,
Andrew

Q: Hi,

Now that the dust has settled and the BN/BAM spinoff is complete, I have the BN shares in my accounts but wanted to confirm the split and avg. costs showing before and after in my brokerage account and if its correct. Sometimes when they manually update avg. prices for these kind of things, they enter it wrong.

Before spinoff and after spinoff shares and avg. cost:

Account 1: BAM 393 shares @39.09 ------- BN 393 shares @33.11, BAM 98 shares @29.50

Account 2: BAM 601 shares @51.60 ------- BN 601 shares @33.11, BAM 150 shares @29.50

Account 3: BAM.TO 151 shares @44.97 ---- BN.TO 151 shares @45.22, BAM 37 shares @40

Account 4: BAM.TO 150 shares @65.64 -----BN.TO 150 shares@45.22, BAM 37 shares @40


1. For account 3 and 4, if I had 151 shares and 150 shares and divide by 4 to get new BN shares, I get 37.75 and 37.50 shares after. Do brokerages usually round down? I thought I would have gotten 38 shares of BN after the spinoff.

2. When I compare my cost basis before and after, it should be the same correct? Looks like they assigned these prices of $33.11, $29.50, $45.22 and $40 to each of my BN and BAM shares after. Where did they get these from and if incorrect, what should they be after for BN and BAM?

3. When I look at account 2:
Before: BAM 601 x $51.60 = $31,011.
After: BN 601 x 33.11 = $19,899, BAM 150x$29.50= $4,425 (Total = $24,324)
Why did my cost basis go down from $31k to $24k? Something is not correct here.

I would like to contact my brokerage and have them update my avg. cost for BN and BAM but wanted to clarify these few things before I do.

Thank you for your help!

Q: My question in general is how reasonable is the current valuation for BEP.UN ?

I believe the historic high yield is somewhere around 7%, so we're a long way off from that. I think we're close to 4.9% (?)

P/C seems pretty reasonable now relative to the past, but P/BV is still high compared to the 1.1 low.

How about price/FFO ? I can never find this. What is it currently? I think the low was about 4.6 in the past.

Thanks as always for answering the above, and Merry Christmas to your AWESOME team at 5i.