Investment Q&A

Q: Goodmorning My wife has approximately 50k in cash in her rrsp that she would like to put to work she is looking for 5 investment ideas for a conservative investor be they ETF or individual companies that pay a 3 to 4 % dividend. She is currently well diversified over all sectors
Thks
Marcel

Q: Hello Peter and All,

I look after my daughter’s TFSA and Investment Acct. She is 7% under weight in Tech with holdings of: (OTEX 2.3%), (PUR 1.4%) plus ( QQQ and other ETFs provide 4.3% Tech ), total portfolio, 8% Tech. Money will not be required for about ten years.

To bring her up to 15 % total would you suggest buying KXS plus add to OTEX and PUR, or would you use a different combination such as CLS instead of PUR.
Many thanks.

Q: When does SHOP and KXS report earnings, and what are the expected earnings for the quarter.
Thanks

Q: Hi 5i Team:
What are 5 pure Canadian growth companies that you will recommend for TFSA. Risk is not a factor. No need for dividends. 3 to 5 year horizon. Plan to add future contributions to this list in the next few years. Of course I will be reading your reports to see if there are any sudden changes in these companies and adjust accordingly.

Q: Do the high p/e ratios on these stocks concern you or does their future growth take care of that? Also, are their dividends sustainable over the long term? Morningstar reports a low ROE on BEP and BIP, yet they are ranked as a high quality investment. AQN,BIP-UN and especially BEP-UN also seem to have high debt levels. Are these still good buys? thanks

Q: I'm helping my 65-year-old mother reallocate some funds (mostly diversifying and ditching debilitated oil stocks and mutual funds). Using about 3% of her funds, she would like to make a tech purchase (her first) for a long-term investment (5+ years) aiming at growth for this particular position. Following your recommendations, we are considering (a) Constellation (CSU), (b) Kinaxis (KXS) or (c) a mix of both. These are two great stocks and this is a nice moment to buy tech in general, but which of these three scenarios would be best right now?

Q: I am starting an RESP fund for my new son (initial investment maxed at $5000). I would like to begin with a somewhat aggressive growth-seeking small portfolio, and to then gradually add one or two stocks each year for diversification up to about 8 or 10 stocks in total. For my opening purchase, I am considering three stocks -- Kinaxis (KXS), Constellation (CSU), and Knight Therapeutics (GUD). Two questions: This seems to be a decent time to buy these particular stocks, would you agree? And would you replace any these stocks with any others? (I'm open to anything growthy, but have been considering Shopify (SHOP), Photon Control (PHO), Enghouse (ENGH).) Thanks, and great job.
PS: Should I wait to buy until a few days after the BoC rate decision, or has the market reaction more or less already played out?

Q: per your latest addition to the balanced portfolio, I plan to add CAE to my portfolio. To do this, however, I need to sell one of my other tech stocks. which amongst KXS,CSU,GIB.a,DSG,ENGH,CLS,OTEX would you suggest to sell at this time. All have a 2% weighting.
thanks

Q: Hi Team, One of the reasons I own these stocks is that each of them does a lot of business in the U.S. and I wanted that exposure. However, with the renegotiation of NAFTA I am concerned these companies may face some headwinds maintaining and growing their respective businesses. Trump's "buy american" could certainly force some U.S. companies to start looking for U.S. based partnerships rather than Canadian. What does the staff at 5iR think? Is 5iR recommending any action at this time for these types of Canadian companies? Thanks Team Chris

Q: My tech sector comprises OTEX & KXS.
KXS has done very well this past year whereas OTEX is now back where it was at that time. It seemed to be on a losing trend before it acquired COVS - which only seemed to make it worse. What's your opinion, where do you think it might be heading? Anything positive to say? Your advice very much appreciated.

Q: I currently do not have any tech holdings. I feel like I might be late to the game here. Looking for you to convince me otherwise! I was looking at goog, kxs, orcl or if you have any suggestions as all of these have had big runs lately. thanks.

Q: Is it possible to quantify the impact of the Nissan contract? The news release didn't include any financial details, but one would presume that Nissan's worldwide supply chain is substantial. Nissan's decision may also expose Kinaxis to an even broader international business audience. Nissan also said they "see this as a long term relationship between our two companies." I have a 1/3 position currently, as a much lower price. Also considering the recent pullback, would you step in for another 1/3 or more at this time?

Q: In my technology sector I hold CSU, ABT,ITC, KXS, MDA and OTEX. These stocks share equal weights except for Constellation (CSU) is up more than 300% and is now taking up 30% of my 15.5% weighting in this sector. Although I do not want to sell CSU, should I be looking at rebalancing and replacing perhaps half of my CSU with another tech stock? If so, would you suggest a new one or recommend adding to one or more that I already have. Thank you for your views on this.

Q: I am looking over my portfolio and am overweight tech - like many, I suspect. Kinaxis is one of your favourites and in the balanced portfolio, which is why I own it. Is it not very, very expensive, though? The G&M has it with a forward PE of 85, and a PEG of 3.11. By way of comparison, Facebook is at 30.5 with a PEG of 1.2.

Q: My tech sector consists mainly of these three stocks which I knew was too heavily weighted - but I did not want to jump off the bandwagon.. Today that weighting is about 17% of my portfolio - going down. What percent weighting would you advise now? And would you advise reducing all three across the board by the same percent or treat each differently? Or maybe dump one?

Q: Hi,
I currently dont hold any tech or insurance companies. The rest of my portfolio is fairly diversified. With the recent tech pullback and also rumors of rate hikes where do you see as being a better long term investment? I like to think in terms of at least 3-5 years. All drips available will be used. Currently I have one full position worth of cash available. Am I better do you think to put it all into one or split between some? Do you see somewhere better to put the dollars to work?
Thanks

Q: Do the last several days in the drop of the above stocks represent a buying opportunity or would you wait awhile? With thanks, Bill

Q: I have an "overweight" position in this stock (not overly so, perhaps 8%). Thank you, it has done very well. However, though I appreciate one should not make much of one days price action, I did note quite a volume spike on todays sell off. I also have noted that not just one but a number of insiders have been selling over the last month or so. Certainly, the gains could justify some of that, but for one holding a relatively large position these indicators are troublesome. Given that my gains have been substantial, I am wondering if trimming, somewhat in accordance with the insider selling, may be appropriate.
I do note that, generally, "analysts" have been increasing target prices on this company which doesn't seem to "go to market". Makes me wonder if "something" is in the works?
Anyway, I would certainly appreciate your considered opinion on what is going on with this one and whether a trimming, rather than just letting winners run, may be appropriate here.
Thanks as always.

Q: Do you think a company like Kinaxis would be interested in Celestica in order to grow their supply chain managemenr?

Q: Hello Peter, being now within a few years of retirement, we are managing to put extra money into a non-registered account on top of our diversified RRSPs. The idea is that we will build a portfolio of full positions in a variety of solid companies for long-term income and growth. To date, we have ATD.B, ENB, L, FTS, CGX, T and CXI. I'd next like to add two tech stocks, as we currently have no representation from that sector. Can you please suggest two top picks. (While irrational, CSU would psychologically be a tough one for me to buy, as it came within pennies of my order price under $500 last summer! But if that's one of them, so be it.) I've also considered OTEX. Will appreciate your suggestion.