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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: At one time, Absolute Software was in one of the portfolios. Now it is hitting new highs every day on higher volume. I have held this one for a long time and wonder if it is prudent to add into this strength. I am concerned that if on-line learning is not in the cards for September that the stock will retreat back to the $11-12 range. The CEO is well respected. Your opinion appreciated and would you consider this one a good candidate to put back in perhaps the growth portfolio.
Read Answer Asked by Helen on July 17, 2020
Q: I have no medical training nor have I worked in the field of medical research.
I do, however, have some knowledge of that area and have followed advances for several decades.
What thoroughly stunned me was the discovery of CRISPR-Cas9 in the field of genetic engineering as well as our current ability to design molecules for use as therapeutics.
I have no doubt as to the success that will come in these areas. What stopped me from investing in them was the fact that so many people were working in these fields that choosing the wrong company seemed very possible. For example, who wants to buy the 3rd best cure for a disease threatening one of their own family. The many possible cures and therapies being investigated for Covid are examples of this.
It's rather like living in the early 20th century and becoming convinced that automobiles and airplanes might have a bright future, then going out and buying stock in Packard, Studebaker, Nash, Rambler, Hudson, etc. The list of failures goes on and on.
I finally bit on ABBV and CRISP just as we descended into Covid hell but not at the bottom. I chose ABBV for their expertise in therapeutics and CRSP for gene editing.
Fortunately I'm not asking you to comment on the technologies involved but rather on your impression of the abilities of both companies to manage their businesses. What are their cash reserves like? What's their current burn rate? When might they be next raising capital; that sort of thing.

In my earlier days I bought several positions in some truly impressive inventions. One actually resulted in several world records. Unfortunately they could neither manufacture nor sell the product. In fact some companies couldn't sell life preservers to a drowning man. The end is obvious. They went bankrupt.

Finally, you don't seem to include CRSP in your top picks in this area. I'm curious why. Don't like it, too many others to choose from or its European base?
Read Answer Asked by Larry on July 17, 2020
Q: I have cash to deploy in my corporate non-registered account for 2 names now and 2 more in about 4-5 months. Looking at the above 4 names. I already am well diversified in this account so any 2 is fine. I do hold some KXS & CSU in my RSP account (thank your team for that, well up). I am not worried about the over lap as it would not push me too heavy as far as diversification with any of these two within all my accounts. What would you order of preference for a 5 max look ahead when I would be ready to reduce risk?
Read Answer Asked by Scott on July 17, 2020
Q: My kennel full of rate reset preferreds started barking surprisingly over the last couple of days, both in price and volume. Do you have any insight into this, and is it an opportunity to dump some of these hounds
in the dog days of summer (before tax loss selling gets underway in earnest in a couple of months)?
Read Answer Asked by Howard on July 17, 2020
Q: Hello 5i,
This is not a question, but a request to your membership. I would like to encourage everyone to consider using the Forums to exchange ideas, ask questions, share information and to just generally "connect".
I believe 5i has done us a great service by being willing to host the Forums but it is up to us, the membership, to use it -and use it responsibly - to maximize the benefits to all of us. To paraphrase the current Pandemic mantra "We are all in this together" and the Forums could be a valuable additional tool to help us all navigate these uncertain times together.
So, please - consider helping make the Forums a more active, vibrant resource for all of us to enjoy and benefit from.
Thanks,
Cheers,
Mike
Read Answer Asked by Mike on July 17, 2020
Q: Hi there,
In my US 401K in US Staples i own both HSY and SJM. SJM continues to underperform the Consumer Staples group. There always seems to be a reason for the failure to meet expectations and it just seems poorly run. I want to swap our for another stock - any suggestions for a US replacement. I am close to retirement so looking for a bit of growth and a dividend.

Thanks
Read Answer Asked by kelly on July 17, 2020
Q: We have sold out of USA Tech and have several full positions of USA $ in registered accounts. I no longer wish to devote as much attention to investments.
We know that USA is not your forte but could you recommend a couple of dividend paying "layups". Buy it and forget it ? We acknowledge that nothing is a sure thing.
Thanks for Your help
Read Answer Asked by Cacey on July 17, 2020
Q: I know Chartwell is and will be under scrutiny under the current context. I fell in love with the drip and the monthly high dividends not so much the stock.

What would be your 2-3 suggestion to replace it with? Considering I want a high monthly div that a can drip without investing 100k in!

Thanks
Read Answer Asked by Claude on July 17, 2020
Q: Hi Team
I have a corporate non-registered account I have started 4 months ago with a time frame of 5 years. Not worried about risk / sector (fairly diversified already) even though it is a corporate account (I keep enough cash in the account if needed so would not have to withdrawal). Looking to add 2 of the above stocks now. I will be adding every 4 - 6 months or so moving forward so I could add the others later. Do you have an order of preference.
Read Answer Asked by Scott on July 17, 2020
Q: Hi 5iTeam,
I noticed that when the markets pulled back in early to mid March this year, both bond ETFs: XLB (approx. -28%) and XSB (approx -9%), pulled back as well although there were no movements in interest rates. I would think that these bond ETFs are a good proxy for cash, then what would investors' reason be for selling? Your comments on this would be much appreciated.
Cheers,
Read Answer Asked by Harry on July 17, 2020
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