Q: the question I keep asking my self is why do I buy recommendations. These three are your picks so bought but all have declined since purchase. I have no problem with volatility but what is the percentage decline that yo u should expect on these kind of stocks, down 12,10, and 15%. My limit is usually 18-20. so should I wait for my target or move on.
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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 Peter
Just went through my portfolio and these are my asset mix results.
Tech - 19.8 %
Basic materials - 17.9%
Consumer Cyclical. - 11.7 %
Consumer Non Cyclical - 9.4 %
Energy - 9.0 %
Financial - 8.0 %
Reits - 4.5 %
Health - 3.4 %
Telecom - 3.8 %
What do you think of my sector waiting? Any thoughts on sector performance going forward... Should I be shifting my percentage on any of the above sectors going forward from here?
Appreciate your advice always!!
Just went through my portfolio and these are my asset mix results.
Tech - 19.8 %
Basic materials - 17.9%
Consumer Cyclical. - 11.7 %
Consumer Non Cyclical - 9.4 %
Energy - 9.0 %
Financial - 8.0 %
Reits - 4.5 %
Health - 3.4 %
Telecom - 3.8 %
What do you think of my sector waiting? Any thoughts on sector performance going forward... Should I be shifting my percentage on any of the above sectors going forward from here?
Appreciate your advice always!!
Q: Would you please give me the info or where to find the info that company stocks are being shorted. I just bought TSGI a few days ago and every single day this particular stock just keeps on going down. Thanks, Catherine
Q: Could you please elaborate on this statement given in response to a recent question on converting Canadian funds to U.S.? "The Canadian dollar has been very strong; this is not likely sustainable at the current rate." Thank you for your great Q&A offering, which I am sure keeps many of us on track.
Q: What is meant by a "position". Lots of people reference half positions, but I am not sure what this means.
Q: Peter and His Wonder Team
A clarification please...I notice some small USA companies require that all BIDS and ASKS have to be in denominations of 5s or 10s. So how is it that some transaction are filled at 6,7,8 or 9? Thanks!
Dr.Ernest Rivait
A clarification please...I notice some small USA companies require that all BIDS and ASKS have to be in denominations of 5s or 10s. So how is it that some transaction are filled at 6,7,8 or 9? Thanks!
Dr.Ernest Rivait
Q: Buy the dip. I hear this all the time. I understand and accept the concept of buying a stock which is down temporarily. But as a conservative investor, I look at the long lists of stocks on my watch lists and in a sea of red, my eyes are drawn to the green, to the stocks which keep chugging forward even on a day when the markets are way down. Unless there is some immediate news driving that stock, my inclination is to think "This is a stock with strong demand, and whose owners don't want to sell. I should buy that, not the ones which are dropping like rocks." What do you think?
Q: Hi,
Can you refresh the concept of EV (entreprise value) used by analysts.
Example, Cameron Doerksen (FBN) speak about implied EV of core business of 675mm. what does it really mean?
Can you refresh the concept of EV (entreprise value) used by analysts.
Example, Cameron Doerksen (FBN) speak about implied EV of core business of 675mm. what does it really mean?
Q: Do unused credits carry forward to the following 12 months when membership is renewed ?
Q: Good morning Peter and Team,
I just read about David Driscoll's recent appearance on BNN, where he summarizes his eight steps to a winning "investing recipe":
Here are eight steps to a winning recipe:
Low fees: The lower the fees, the more you make.
Low turnover: By investing in businesses and not trading stock prices, transaction costs stay low and you keep more of your capital for growth.
Invest in companies that consistently grow their free-cash flows: These companies have the financial flexibility to raise dividends, invest in innovation and make strategic acquisitions.
Diversify globally: Long-term returns outside North America have historically been one per cent to two per cent higher.
Re-balance the portfolio when necessary: Having a high concentration in one stock can lead to trouble if that company’s stock price crashes to Earth (i.e. Valeant).
Avoid correlated assets: In 2008, all the Canadian banks fell 40 per cent, not just one of them. Pick one Canadian bank and move on.
Manage your cash prudently: Given that the market has risen for eight years, it’s prudent to hold some cash to take advantage of opportunities if the market corrects.
Choose stocks with above-average annual dividend growth: The average growth rate of stocks globally is about seven per cent. Those that grow their dividends faster provide investors with greater income to use in retirement. Their share prices also tend to grow at a faster rate.
Seems to me that Mr. Driscoll must be a 5i member, since most, if not all, of his points have been mentioned from 5i over the years! In any event, it's always reassuring to see other financial types who share 5i's philosophy!
You may publish at your discretion. Thanks for everything you do to help the small retail investor!
I just read about David Driscoll's recent appearance on BNN, where he summarizes his eight steps to a winning "investing recipe":
Here are eight steps to a winning recipe:
Low fees: The lower the fees, the more you make.
Low turnover: By investing in businesses and not trading stock prices, transaction costs stay low and you keep more of your capital for growth.
Invest in companies that consistently grow their free-cash flows: These companies have the financial flexibility to raise dividends, invest in innovation and make strategic acquisitions.
Diversify globally: Long-term returns outside North America have historically been one per cent to two per cent higher.
Re-balance the portfolio when necessary: Having a high concentration in one stock can lead to trouble if that company’s stock price crashes to Earth (i.e. Valeant).
Avoid correlated assets: In 2008, all the Canadian banks fell 40 per cent, not just one of them. Pick one Canadian bank and move on.
Manage your cash prudently: Given that the market has risen for eight years, it’s prudent to hold some cash to take advantage of opportunities if the market corrects.
Choose stocks with above-average annual dividend growth: The average growth rate of stocks globally is about seven per cent. Those that grow their dividends faster provide investors with greater income to use in retirement. Their share prices also tend to grow at a faster rate.
Seems to me that Mr. Driscoll must be a 5i member, since most, if not all, of his points have been mentioned from 5i over the years! In any event, it's always reassuring to see other financial types who share 5i's philosophy!
You may publish at your discretion. Thanks for everything you do to help the small retail investor!
Q: The Canadian Securities Institute offers a non-licensed course for Investors. I was wondering if it is worthwhile taking.
Q: Convertible bonds are obviously not exactly the same as corporate bonds due to the possibility of converting them into common stock. I was wondering if they are treated exactly the same as the other bonds a company may have issued as long as they are still in the bond form? That is are they they still guaranteed to be paid as long as the company is solvent and are they at the same debt obligation level as other bonds issued? Thanks you.
Q: According to rate hub.ca Oaken Financial has the highest GIC rates. I've never heard of Oaken but they are a member of CDIC so would you say the risk to invest in their GIC is low?
Q: Can you recommend a free method of finding insider ownership as a percentage? I haven't seen this in Google Finance, TMX, or Morningstar. Some of them show insider activity and TMX it can be added to a stock screen but I don't see it in specific stocks info.
Q: Good morning 5i Team:
My question regarding the six companies mentioned is about Equity by Geographical location.
Lets say I only have the aforementioned companies in my portfolio.
With the exception of BCE, all the other companies have a portion and sometimes a sizeable amount of their revenue coming from US or International divisions.
From the Equity by Geography scenarios I have seen; this portfolio would be considered 100% Canadian.
Am I misunderstanding this or should some of this portfolio be considered US or International even though all companies are Canadian.
Thank you as always for your concise, informative and professional advice. Wouldn't have the confidence to be a DIY investor without 5i.
My question regarding the six companies mentioned is about Equity by Geographical location.
Lets say I only have the aforementioned companies in my portfolio.
With the exception of BCE, all the other companies have a portion and sometimes a sizeable amount of their revenue coming from US or International divisions.
From the Equity by Geography scenarios I have seen; this portfolio would be considered 100% Canadian.
Am I misunderstanding this or should some of this portfolio be considered US or International even though all companies are Canadian.
Thank you as always for your concise, informative and professional advice. Wouldn't have the confidence to be a DIY investor without 5i.
Q: Can you explain why there is a difference in quoted Gold prices between Kitco and Comex. Thank You
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
"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
Q: Hi 5i Team,
I'm still new to investing and in my spare time I enjoy reading the responses you guys give to other member, but I feel like there are always more to know. I'm wondering if you guys have any suggestions on books that can help fill these gaps. Hoping for suggestion on books for new and intermediate investors.
I'm still new to investing and in my spare time I enjoy reading the responses you guys give to other member, but I feel like there are always more to know. I'm wondering if you guys have any suggestions on books that can help fill these gaps. Hoping for suggestion on books for new and intermediate investors.
Q: Hello 5i,
Please post only if you feel this might be beneficial or appropriate.
This is for Dave, who, I hope, gets to read it. I have been with 5i for several years now and find them not only invaluable for my portfolio structuring, but interesting, informative and often even humourous. The members and the Q&A are a huge benefit to me. But now, speaking to Dave's specific concerns: I have had the identical situation happen to me as well with some companies. But, the reverse has been equally true. One of the things I have noticed over time is that time is the crucial element. You must have patience - without it, you will be up the proverbial creek. Sometimes good things happen to bad companies and bad things to good companies and the market reacts, perhaps out of proportion. CGX is a case in point at this time; however either positive returns from their diversification efforts and/or a strong Fall or Christmas movie slate or even an acquisition can change that on a dime. More than once I have a chosen to sell a 5i - recommended stock for a particular reason while it was down, only to see it spiral up to new highs within weeks of my selling it. More patience on my part could have vastly enhanced my profit margin, but the fault is wholly mine, not 5i's because the stock tanked at one point for some reason.
I don't know if this has helped, hindered or confused, but I hope that Dave will take heart from my lessons and give 5i a bit of a break and perhaps consider why he is buying any one stock that 5i is recommending and give more weight to the time-frame for holding an equity.
I apologize if this isn't a particularly clear or cohesive post, and for the length, but I really felt compelled to let Dave know that he isn't alone, but also, that being really clear about what you are buying, why you are buying it and how long you can really afford to keep it if/when it does take a downturn are our (5i members') responsibility, not 5i's.
So, Dave, please give 5i another look within the context of the above and you might see more positive than negative.
Wishing you all the best!
Cheers,
Mike
Please post only if you feel this might be beneficial or appropriate.
This is for Dave, who, I hope, gets to read it. I have been with 5i for several years now and find them not only invaluable for my portfolio structuring, but interesting, informative and often even humourous. The members and the Q&A are a huge benefit to me. But now, speaking to Dave's specific concerns: I have had the identical situation happen to me as well with some companies. But, the reverse has been equally true. One of the things I have noticed over time is that time is the crucial element. You must have patience - without it, you will be up the proverbial creek. Sometimes good things happen to bad companies and bad things to good companies and the market reacts, perhaps out of proportion. CGX is a case in point at this time; however either positive returns from their diversification efforts and/or a strong Fall or Christmas movie slate or even an acquisition can change that on a dime. More than once I have a chosen to sell a 5i - recommended stock for a particular reason while it was down, only to see it spiral up to new highs within weeks of my selling it. More patience on my part could have vastly enhanced my profit margin, but the fault is wholly mine, not 5i's because the stock tanked at one point for some reason.
I don't know if this has helped, hindered or confused, but I hope that Dave will take heart from my lessons and give 5i a bit of a break and perhaps consider why he is buying any one stock that 5i is recommending and give more weight to the time-frame for holding an equity.
I apologize if this isn't a particularly clear or cohesive post, and for the length, but I really felt compelled to let Dave know that he isn't alone, but also, that being really clear about what you are buying, why you are buying it and how long you can really afford to keep it if/when it does take a downturn are our (5i members') responsibility, not 5i's.
So, Dave, please give 5i another look within the context of the above and you might see more positive than negative.
Wishing you all the best!
Cheers,
Mike
Q: Peter and His Wonder Team
Recently CDI was bought for $8.25 by a private company to close this quarter. For several weeks it has been trading between $8.20 and occasionally touching $8.25. Today on heavy volume of 837K it traded as high as $8.32. I did not think it would go above the purchase price of $8.25. What do you think is happening here?
Thanks for your speedy reply and great service!
Dr.Ernest Rivait
Recently CDI was bought for $8.25 by a private company to close this quarter. For several weeks it has been trading between $8.20 and occasionally touching $8.25. Today on heavy volume of 837K it traded as high as $8.32. I did not think it would go above the purchase price of $8.25. What do you think is happening here?
Thanks for your speedy reply and great service!
Dr.Ernest Rivait