skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

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 Research team, what do you think of the idea of not strictly using the official sector classification when calculating sector allocation? Would you agree that I split the sector allocation of some companies when appropriate (an option not available for the official classificator)? For example, would you agree with: SIS (healthcare 75% + industrial 25%), ZCL (industrial 25% + energy 75%), TNC (financial 50% + technology 50%), AF (industrials 25% + consumer discretionary 75%)? Thank you, Eric
Read Answer Asked by Eric on September 12, 2016
Q: I am putting together a portfolio called "Big Dogs"
I broke out the 10 largest stocks by market cap in each of the 10 sectors
I will invest in 3 of those stocks in each sector for a total of 30 stocks.Determining which 3 has been a challenge,looking at the usual--
dividends--eps--p/e-- market cap etc.Also have a bias toward your favourites.
Since I am only looking at the top 10 do you think I will be overlooking some better opportunities?I think perhaps, but I would go
crazy trying to look at the whole sector or even the top 20.I feel my odds of success are better sticking with the "Big Dogs"
Over all I will put 10k in each stock but not until I see a market
pull back which I feel is imminent.Perhaps I could have your thoughts on that as well.
This is not something new---What do you think of my idea and approach?
Read Answer Asked by peter on September 12, 2016
Q: Hi 5i Research team , I am preparing for my next round of investments when the market decline broadly. I would like to capture the illiquidity premium: What percentage of a stock portfolio would you recommend for an average investor (1) and a lower risk aversion investor(2) to put in illiquid stocks (market cap between 1000 and 100 million $ and average daily trading value < 200 000$) such as VLN, TCS, TC, SCB, RX, RPI-u, PSD, PEO, MRD, MDF, LNF, LGT.B, LAS.A, ISV, HNZ, GDL, EFH, GBT, CXI, BCI, AF?
What would be your top five selections among these from total return/quality perspective over the long term? Would you have other such companies to suggest? Several of these companies do not have coverage from analysts neither conference call after quarterly results. Besides reading documents on sedar (press releases), how do you suggest following/analyzing those companies? Thank you, Eric
Read Answer Asked by Eric on September 12, 2016
Q: Hi,

I know you like the following: PPL.PR.M and ALA.PR., TransCanada (series 13), Canadian Utilities (series FF) and Brookfield Asset (series 5). With these type of minimum reset preferreds, where would you expect the prices to be in 3 or 4 years under the following scenarios:
1. Current govt of Canada rates 0.5 point lower than today
2. Current govt of Canada rate same as today
3. Current govt of Canda rate 3 or 4 points higher than today

Regards,

Robert
Read Answer Asked by Robert on September 12, 2016
Q: I have a $300,000 lump sum to invest for a little more than 10 years before there will be a need to start to taking income. What would you suggest is a reasonable time frame over which to make the purchases? I was considering equal purchases over a 3 month time frame (as opposed to a doing it all right away) but with the US presidential elections, all the talk of interest rate increases and tax loss selling I am wondering if three months is too quick.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on September 12, 2016
Q: I have a Canadian dollar RRSP with a significant portion of US dividend paying stocks, to avoid dividend withholding tax. My RRSP is charged $10 per trade but otherwise there are no fees appearing on my statements. The dividend amounts from US stocks appear in Canadian dollars. Although my investment company has US and Canadian dollar accounts for non-registered investments, there are no US dollar RRSP's. I often wonder if, and how much, I am paying in exchange fees when my US dividends are converted to Canadian dollars. Will those currency fees be included in the new disclosure rules? Thanks!
Read Answer Asked by Linda on September 11, 2016
Q: Greetings: In one of your recent answers you indicated that best current GIC rates are in the 2.75% range. The best rates I see in Vancouver (2% one year, 2.5% fiver year) are with Oaken Capital, part of the Home Capital Group (Home Trust, Home Bank). Is Oaken Capital a pretty good provider? Are those rates in line with what I should expect? I intend to set up a laddered series with about $100K
Thank you
Read Answer Asked by Gordon on September 11, 2016
Q: In 2016 I had significant realized capital gains as I sold off shares to re-balance my portfolio. Currently I am in a loss position with the above mentioned companies. I was thinking of selling shares in these six companies to help offset the realized capital gains. Which of these shares do you think I should buy back after 30 days to avoid the superficial capital loss? Normally I would not be selling them, but for tax purposes I am contemplating doing so. AAPL makes up a significant part of my Info Technology sector and GILD is my only exposure to the health care sector. If I do not buy back the other four companies it will not impact my asset mix in my portfolio significantly. Is this the right time of year to do tax loss selling for these companies?

Thank you
Read Answer Asked by Robert on September 09, 2016
Q: Hello 5i team,
I have been following Pure for awhile and have been tempted. What causes hesitation is the size. you mentionned in one of the comments that there are some companies that a relatively conservative, retired investor should not own, as they are too risky. I make more than I need to live and so I am not adverse to a little risk. But, I was wondering how you see a company like Pure under this perspective? It would be great to have your comments on that subject in general, if you have time.
thanks
Read Answer Asked by joseph on September 09, 2016
Q: Would you agree this still happens daily?

For well over 100 years there have been stock manipulators, stock operators and stock traders...such as one of the classic and considered the best all time operators, and he did it back in the ~1910 - 1920 era, Jesse Livermore who was more concerned with beating the market, specific stocks & futures, than actually concerned about making $$$ even though he could and did routinely make millions in a year back in say 1920!

They, the "movers" will move a stock - buying or selling some - to get it moving and then once other investors, such as retail investors and institutional investors, take notice and start buying into the stock the "movers" starts selling or close their short for a profit.

This is often all that is happening when a stock moves and there is no news or incident to be found. Most "Investors" want to know why for everything but in reality there is nothing to know other than movers doing their daily business of attempting to make $$$ in the market.

There are so many different interests and money making approaches used from around the world.

Not everything is explainable. Such as why GUD or CSU is rising lately. Note CSU is down today as it just hit a resistance level from before. Kinda predictable I think from a technical perspective.

Have a great day.
Read Answer Asked by Stan (1) on September 08, 2016
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!