Investment Q&A

Q: Can you list the three companies in order to purchase for a 10+ year timeframe.
Thanks

Q: Hi team,
I have been a long term holder of ADW and overall with dividend and trimming at prior highs will come out just above par with this holding, which is not desired for multi year, but a nice learning experience for me.
I am thinking of selling and splitting between tc energy, sun life and alphabet. The first two for greater yield play, and all three on the belief that on positive macro news all will perform better relative to ADW (small cap, debt level, your B rating, consumer lag on discretionary).

Thanks for your thoughts.

Q: Would you endorse a switch from saputo to converge tech for future growth?

Appreciate your insight.

Q: Hi, Thanks for today's Market/Portfolio Update, specially the explanation of inverse relationship between value of USD (DXY) and risk assets ( S&P 500, TSX and Stocks in general). Do you think, the market bounce on Wednesday, was for no fundamental/technical reasons, but was a reaction to news from UK of BOE market intervention through Bond buying to support the fledgling economy and a one day breather to unstoppable US Dollar ascent ? Based on this thesis, besides other technicals, would it be prudent to keep an eye on USD uptrend breaking down, before entering into new long positions. Mr David Burrows of Barometer Capital was on BNN recommended to stay on the sidelines, until the market downtrend breaks and at least 2 days of Buying with High Volume is confirmed with follow through for 5 days. Their firm has 30% cash ( due to Stop Loss liquidations in Tech/Financial and others sectors). They own only defensives like Energy, Utilities and Telcos with 0% Tech. Does this strategy make sense, in your view, as most of us are almost fully invested presently as well as in past ? That seems to be the case for past several weeks and months - we buy/add to positions and stocks only get cheaper over following days. BTW, stocks with higher yields in sectors like Utilities/Telcos/Pipelines continue to get decimated - even though, bond yields declined over past 2 days - Any comments , please ? Thank You

Q: I see a lot of questions about tax loss selling with the intent to re-buy after 30 days, and I've never utilized this before. I have approx 250k in an unregistered account across 15 companies, and I'm obviously down on many of them (a lot of tech). Is it okay to not try and take advantage of tax loss selling in this way, given that I'm planning to hold many of these name for at least the next 3+ yrs, and potentially much longer (like 5-10+)? I will be continuing to add to my unregistered account (since I've maxed rrsp and tfsa), and hope to become an increasingly savvy investor, but I'm a bit scared of screwing up tax loss selling to this end, especially at this time with the current volatility. So, would you recommend that this is something I must add to my "arsenal", or just ignore it for now? Are there many successful investors that stay away from the sell then re-buy in 30 days approach all together? Thanks!

Q: Why are these two being hit so hard today??

Q: Good morning 5i team, As share prices decline are there any Canadian companies that you see as potential takeovers or privatizations.
Thoughts on the possibility of Evertz going private or agreeing to being bought with the founders already owning approximately 2/3 of the company?
Thanks

Q: Is it timely to average down on these 3 stocks? Please provide short comments, and good entry prices for each. Txs for u usual great services & views

Q: What are some companies that are sitting on cash which they can easily deploy to acquire other companies on the cheap? Would ECN and GUD be on this list?

Q: Hi,

Can you please give an overall view of this garbage stock..ie balance sheet, 5 year prospect. Also, can this stock be considered has having a moat? Finally, which price point would make it a fair price to enter this stock?

Thank you

Q: Having sufficient cash flow and/or ready liquid cash on hand plus sufficient prospective new business in the hopper to get to the other side of this nasty market being the criteria, in which order would you liquidate?

Carl

Q: looking to sell one of these stocks in a non registered account for tax loss and raising some cash. looking for advice on which one to let go?

Thanks Dave

Q: With free cash flow and/or sufficient ready liquid cash on hand and a healthy prospective new business list in the hopper, in which order would you liquidate. Obviously the weakest one being the 1st to go.

Carl

Q: I've been curious about the Buffett Indicator (the ratio of total stock market valuation to GDP) for Canada. Am I correct in saying that it is about 1.7X or so, whereas it should be closer to 1:1 ? If so, what TSX stocks / sectors are pushing it up so high? I grabbed three large caps from different sectors to have a look at their present valuations...

You mentioned that BNS is historically cheap with a P/B of 1.2, so I'm guessing this one is fine.

If one looks at BCE's present P/E ratio it would be approximately brought back to 2012 levels if today's BCE stock valuation was reduced by "today's Buffet indicator overshoot".

TRP's present P/Cash Flow appears to be fairly high compared to some metrics in the past decade. Again, if the stock price was reduced by that 1.7 factor, maybe the valuation becomes more realistic.

I am only able to compare to metrics going back the past 10 years, so this may be part of the problem. Or perhaps I'm analyzing things wrong here and you have a different way at looking at this (?)

Q: I'm considering adding to my relatively small position in Finning International Inc. This week's carnage seems to be bringing the share price down to an appealing level. Could you please tell me what you would consider to be an attractive entry point? Thank You

Q: I have been a canadian equity owner only but am buying a number of US large caps for the first time. With the US dollar being as strong as it is right now, would you hedge these purchases using the NEO exchange. I am in my early 70s

Q: It looks to me like a lot of stocks are trading at very cheap valuations, so I have been wondering about takeover candidates. One of the stocks I hold, Neo Materials, just announced a shareholder rights plan in case of a low ball takeover attempt. You mentioned OTEX a couple of days ago as a possible takeover candidate, but that has been the case for many years now. I know it is impossible to predict accurately, but I am wondering if you could point out some TSX listed companies that you think could be take over targets/candidates because they are now trading at such cheap multiples.

Q: Can you provide a list of 5 fallen angel stocks that you believe may rise from the ashes of this relentless market decline. Betting on phoenix companies that are down significantly so no thought to market, risk, sector.
Thanks

Q: Hi- in a growth long term portfolio, would you own both bam and wsp. Is there any overlap? What percentages are they international?

Q: I regularly read the Q and A section. Several questions mention being down 50% or more on an investment. I too have had similar losses in the past on a couple of stocks. Aren't these losses a result of inadequate risk management? In order to avoid such big losses, can you suggest a selling strategy or point readers to a discussion of selling strategies?

In the past I have employed a stop-loss but isn't that akin to showing the market your hand? In other words, as soon as you enter a stop-loss price doesn't that price then become another data point for algorithms to hunt down?

Any advice/information you can offer regarding selling strategies to minimize losses would be appreciated. No rush to get this answered. Thank you as always for your expertise.