Investment Q&A

Q: If you were to sell any of the above, list in order your top 5 or 6. Or would you keep the portfolio as is for next 3 years.
Roy

Q: Do you know if any of the above companies have exposure directly to Russia, Belarus or Ukraine. Alternatively, would any of the above benefit from sanctions on Russia/Belarus (for example buyers switching to NTR for supplies from Russian suppliers)? Thank you as always.

Q: Can I get your comments on CCL.B quarter. I am wondering if a switch to ATA automated tooling might be a better choice for growth.
Keith

Q: Hi 5i Team - Could you provide two or three top picks in each of the following sectors: Real Estate, Consumer Staples, Financial, Industrial. Any market cap is fine but with a focus on mid cap. Also with a focus on Canadian Equities.
Thanks.

Q: Hi There,

I presently own ATA and it’s done very well. I am looking at ROK. Share price has dropped significantly in the past 3 months. All things considered would it be prudent to add ROK to my portfolio or would that be too much duplication to ATA business? Why has ROK dropped so much and what is your forecast for the company in coming 1-3 years?

Thank you!

Q: Hi group - I am a medium risk investor - Can you please give me your top picks + % weighting in the top sectors - Financial, Industrials, Materials , Energy, Health care , real estate, Tech Thanks

Q: Hi:

I am considering buying one of these stocks. Can you rank and comment on the growth potential over the next 5 years?

Thank you

Q: Hello Peter and staff,
What are the PE ratios for all four companies? Would you consider PE for BCE and Telus to be on the high side? Also, any idea why ATA is not participating in the rally given good numbers, and do you think investors are waiting for next earnings from Nuvei as the stock is stuck where the short sellers pushed it to.. Thanks very much.

Q: This is a follow-up to our question from last week (see: https://www.5iresearch.ca/questions/140708).

Based on your response that nothing in the list gives you much cause for concern, we would understand this to imply none of the 30 stocks would be considered a "sell" today.

Please divide the 30 stocks into a pair of ranked (best to worst) lists, one of "buys" and the other of "holds". As well, for each of the "holds" indicate the principal rationale for caution.

Q: 5i team:
2022 “fresh money” TFSA $6k annual allocation will not account for 1% of my total portfolio allocation. I have 60 holdings most at least 1% each across eleven sectors (max 15% for any one sector) plus a 10% sector allocation for X-Canada (currently have VTI, VIG, VIU and VEE for full 10%).
Currently underweight Industrials (-5.09%) , Healthcare (-3.48%) Cons Cyc (-2.60%) and lesser amounts for Cons Staples, Communications and materials. Overweight (most first) Fins, Tech, Utilities, RE then Energy due mostly to the Brookfield companies.
Across total portfolio current industrial holdings are BAM.A, BBU, CAE, TFII, TRI & WSP; for Healthcare have GUD and WELL; and for Cycs have ATZ, MGA & QSR.
Looking for ideas for either industrials or healthcare or consumer cyc. For TFSA do I add to existing or add a new holding like ATA, SIS or PRN, NBLY or DOO or DOL considering current state of market turmoil?
TFSA currently holds AQN , AHOTF, TFII, TRI, DSG, DIR, EGLX, HR.UN, KXS, PMZ.UN, REAL, S, TIXT, TOI. (ahotf, hr.un, pmz.un, real & s destined for the exit ramp with total loss of much more than the $6K of TFSA fresh money).
For context investment objective is to continue conservatively growing a balanced portfolio investing a growing portion in mid cap growers. My portfolio is all equity so it leans to the higher risk side. I am 69, retired, indexed DB and CPP pensions but no OAS due to claw back. No RRSP but have TFSA and non-reg accounts in $USD and $CDN. Portfolio size is low 7 figures.
What to consider doing?

Q: It looks like a big beat in earnings but stock is down nearly 5%. Was there
anything wrong with the earnings?

Q: About 1 year ago we created an equal-weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases are made with the intent to be long-term holds (10+ years). As well, we intend to increase our investments over the next 2-3 years, and then adjust over time as needed. Currently the amount invested represents ~40% of the eventual total.

Although a goal is to keep the portfolio roughly equal weighted, of the 30 companies, the following 14 were acquired in 3 purchases (full position) and currently have weights in the 2.31% (SHOP) to 5.00% (ATA) range for an average of 3.71%: CSU, MG, GSY, WSP, LNF, ATD, ATA, SLF, BAM.A, BIPC, FTS, DOO, SHOP and TFII. The remainder were acquired in 2 purchases (2/3 position) and currently have weights in the 1.98% (BEPC) to 3.17% (TCN) range for an average of 2.56%. So, overall, the weightings currently range from ~2% to ~5%.

Over the next 6 months we will invest another ~25% of the eventual total. As we make additional purchases, we need to strike a balance between keeping the weights roughly equal while taking advantage of market opportunities. Please provide some broad guidance/wisdom.

Of the 30 companies in the portfolio, which 10 would you have the highest conviction in today? Please rank them.

Are there any of the 30 that you might consider as candidates to be replaced because there are better options, and if so, what replacements would you suggest and why (disregard tax considerations)?

What additional 3 Canadian companies might you consider adding to the portfolio and why?

As always, thanks for the great service!

Q: I hold these 8 equities in one part of my portfolio. I am not sure if it makes a difference, I am up on some and down on others.

The approximate weight and the gain / loss is shown for each. ATZ (3%, +17%); CNR (4%, -7%); CM (4%, +8%); Acuity Ads (0.5%, - 37%); MG (4%; - 11%) RY (6% + 5.5%).

I wish to free up about 2% of the portfolio for a cash requirement. Taxes are not an issue.

Two questions: First, if you were me, which / what would you sell to free up some cash? Second, is there anything here that should be let go because it is time to move on from it? I know AT is too small to make much impact but I am inclined to continue to hold it, for a potential bounce. Many thanks

Q: Hi 5i,
I currently own Cnr 4%, ata 3%, tfii 3%.
For diversity and best 2022-2023 prospects, which does 5i like best: aos or itw or wsp? Which has the highest projected growth for the next two years? Which is the best value at today’s prices? Is there an industrial in Canada or the US that 5i likes better? Perhaps Nvee?
Tia,

Q: Please provide your top 3 US and Canadian industrial stock recommendations. And, what is the best ETF to cover industrials?

Q: I would appreciate your opinion on your best picks US and Canada as a COVID recovery play for midium term in today's market. Thank you for your great service!

Q: I have these companies in my TFSA, which ones would you recommend adding to

Q: Hello. I have the above stocks in my TFSA and I have 6000.00 to add. Can you suggest any other stocks to add to this list or should I just add to the existing list? I have a 5-10 year time frame and I'm retired.

Thanks so much,
Louise

Q: Year 2 of my 19 year old daughters TFSA. Year 1 suggested she get BAM.A and she is very pleased she followed my suggestion....I am thinking year 2 of more of a growth stock. LSPD has been really beaten up, good buy for very longterm hold or is there a better " foundation" stock from your growth portfolio you would suggest?

Q: Hello Peter, I like your article on the National Post about the five areas to invest in for 2022. I have a few questions: for the small cap space, would Aritzia , ATS Automation and Topicus fit the category? In the large cap space, would AMZN be a good stock (instead of AAPL) as it has not done much in 2021? what do you think of the renewable energy space as it did not do well in 2021 (i.e BEP, etc). Lastly is the definition of small caps in relation to market caps less than $1 billion or ? Thanks very much. Happy new year