Investment Q&A

Q: I have purchased stocks and ETFs in the past and am considering the purchase of a coupon bond. I am not familiar with this type of investment and would appreciate some comments on this type of investment. The following information is provided for the bond;
Inventory - $150,000
Coupon - 6%
Maturity - 2/27/2030
Price - $70.375 CAD
Yield - 12.90%
DBRS rating - BB
Please explain the information provided for the bond. What are the risks associated with this type of investment.

Q: I have used a direct investing account with a major bank to purchase and hold my investments for several years. I am looking at other options such as WealthSimple and Questrade for investments. Please comment on the advantages and disadvantages of WealthSimple and Questrade as compared to the major bank direct investing accounts. Thank you

Q: I have a question that I haven't seen raised on these boards. If you have addressed this please forward me a link to the info.

I am not aware at this point as to what the 5i personnel structure looks like.

Currently what exactly are Peter and Ryans roles in 5i?

Who chooses the buys and sells in the portfolios?

Are there other team members other than Peter and Ryan that we should know about? Their Education, CV, etc? Who is Chris?

The reason I ask is because when I joined 5i at the outset it was because of Peter, who I had been following for years.

Many thanks in advance for your answers.

Sheldon

Q: You listed 6 high credit quality preferred shares for Christian this morning. For any preferred, how is one able to determine it's type ie. perpetual, floating, rate reset? I would be interested in a short list of high credit quality perpetual preferreds that you would recommend.
Thank you.
Dennis

Q: How could I find easily the CUSIP number for Canadian Mutual Funds ?
EX: Ninepoint Energy Series A (0P0000732C.TO)

Thanks & good week-end ...

Q: On a discounted cash flow basis, the intrinsic or fair value of DOL is $74.52.  But the current price is $87.56. And this seems to me to  signal DOL is overvalued by $41.50  or 35.77%. My question is how much weight should be placed on this method of valuation? And what other metrics should I consider along with the discounted cash value valuation? For example, is this valuation a signal to trim to a base weight of 4%?  Curious me...and also a fan of DOL......Tom

Q: Recently, you offered a general perspective on investing, which I found valuable - somthing along the lines that you never made money buying cheap, better to buy expensive. Did i get that right? So, what are some of the current expensive stocks that you would advise taking an intial position and entry prices. Might as well rank, as well.
Thanks
Sam

Q: There was a question yesterday by Dave about buying US currency.
One option to avoid the fees that banks charge for the exchange is to buy Horizons DLR.CA and then journal it over to your US account (DLR.U.CA).
You still pay the exchange rate and maybe trading fees (depending on your brokerage) but you save the bank fee.

Q: I have come to accept that I will likely never convert my entire RRIF in my remaining years and it keeps on growing . ( contributing to my RRSP when I was making 25K/yr in my 20s was ill-advised ) .
Usually I am upset about losing $ in my RRIF because I can't claim the loss.
WHY. ? - it doesn't matter.
Since the government is going to get half of it anyways,
SO
What is your opinion about changing my RRIF strategy from conservative blue chip investing to higher growth /higher risk ?

Q: Follow-up questions. - Do you suggest P/E below is considered a value stock? If not please give us what is considered as value P/E.

The current forward P/E for each sector is:

Materials: 17.4X
Real Estate: 28.2X
Financial: 13.4X
Services: 16.5X
Discretionary: 24.4X
Utilities: 16.1X
Energy: 11.6X
Health: 17.5X
Staples: 19.4X
Industrial: 18.2X
Technology: 25.5X

Thanks for the great service

Q: Hi 5i,
Perhaps this question should be under Miscellaneous, but here goes:
I have my accounts at CIBC Investor's Edge, but they are all strictly CDN accounts - RRSP, TFSA and unregistered. I've now learned that I can buy CDR's in a number of US companies through those accounts, and I'm thinking about getting my feet wet 'down south'..
As an example, NVDA is available and as of Friday was trading at CDN $46.24. On May 31 the NVDA CDR was trading at CDN $36.30. Thus, the CDR has appreciated 27.4% over that period, whereas the US NVDA went from $378.34 on May 31 to $485.09 on Friday, a gain of 28.2%. So very little difference in the return it seems.
If I were to acquire some US names through the CIBC CDR's, they would all be in registered accounts.
Is there a downside or risk to doing this that I should be aware of (other than the normal investment risks) and are there tax ramifications arising out of either capital appreciation or dividend payments if they are in either an RSP or a TFSA?
Thanks - any information you can provide will be appreciated.
Peter

Q: Dear Peter and team,

Thank you for answering my earlier question on heavy oil and suggesting your picks. Doing my "homework", I see that these three are cross listed in the US and Canada. NYSE/TSX.
As I plan to hold them for a sometime I plan to write covered calls to augment the dividends. (One of your favourite strategies if I recall.)

With this in mind, may I ask you if it is more prudent buy these in NYSE as the options market is more vibrant on NYSE? Or stick to TSX? I understand that there is a currency risk if I buy them in USD. As the will be in our Regd accounts not too worried about tax consequences.

Many thanks in advance.

Mano

Q: Im looking for a site (free if possible) which notes company's yearly and quarterly metrics such as ROE, ROA , revenue growth, eps etc going back 10 years or so. Morningstar used to have quite a nice table, under the heading KEY RATIOS, gong back 10 years on most stocks such as CSU outlining these metrics, but its gone from their site. It gave a great history of the company in a one page table.
Thanks
jeff

Q: Do all companies restrict questions on earnings calls to sell side analysts?
Mike

Q: In Canada under a NCIB an issuer can only repurchase 10% of the public float in one year. Does the SEC have a repurchase limit based on shares outstanding/float or is the only limit that repurchases not exceed 25% of the average daily trading volume?

Q: Please explain what deferred share units are and grant of rights

What does this mean?

Director Deferred Share Unit (DSU)
56 - Grant of rights
+263,366 vol

Q: Could you explain what rights are and the difference between them and warrants. Is it beneficial to own these and how does one buy or obtain them?
Thanks
Jeff

Q: Subscribers sometimes ask 5i for the current P/E versus the historical P/E range on a particular stock. Is there a reliable, free and user friendly source of historical P/E ranges on Canadian stocks?

Q: Hi 5i team,

Your answer to the question asked by Lisa on June 27, 2023:
"we prefer one-month options at just above (or below for puts) current prices. The reason is that many estimates mis-judge short term volatility. In a 'normal' year (not the past three!) stocks do not really move that much, on average, in a month"

1. Can you provide more details or materials on this strategy?
2. Are these one-month options for buying puts or selling calls?

Best,
Matt

Q: Good morning, have you ever invest on margin in the past ? If yes what was your experience and the outcome that you had ? Also what is the maximum % of your portfolio do you think is safe and feel good at night if you invest with borrowed money ? thanks