Investment Q&A

Q: In 2016, I received some Prairie Sky shares as a result of my position in Canadian Natural Resources. I am trying to decide what to do with the PSK shares (sell, buy more or hold). Can you offer an opinion on the future prospects of Prairie Sky? Does it complement well the holdings in the 5i Income Model Portfolio?

Q: I get the buy-and-hold reasoning for holding GUD, but given how many holders bought at higher prices, and given how that can motivate tax-loss sales, is it wiser to wait another six weeks or so before adding to a position?

Q: Like it or not there are market corrections. My question is about understanding investments and how they might react or respond to one, specifically ETFs.

On both Cnd and US business programs some commentators have expressed concerns about how ETFs could (would?) in their opinion be susceptible to far greater corrections than the markets themselves or what they track? The prime reason, they believe they are so broadly held, it could force a massive selling frenzy of their components? There is even some talk of a very large US private fund which uses them. It is considered by some rather secretive and creating suspicions as to their reasons? Sorry I do not recall the name. It would seem their fear, in a bad market, this fund might trigger serious downside consequences all on its own?

A seasoned professional with intimate knowledge and understanding of mutual funds said they are required to hold a certain amount of cash reserves for redemptions. If they become too high, they can actually suspend redemptions? The person identified one fund involved in the real estate sector which actually did during a sever correction. I understand real estate is a far less liquid investment but...?equities

My question, what safety measures exit with ETFs to avoid excess redemption impacts? Are there risk(s) a correction could expose, a potential Achilles’ heel of sorts? Something they have not yet revealed as an inherent structural risk?

I like their immediate diversification especially for foreign investments. Maybe I sound alarmists but I would like to believe I take the time to understand the products I use for investment and what to expect in both good and bad times. Are some types more vulnerable than others?

Any insights would be very much appreciated. Thank you



Mike

Q: Which Brookfield stock has the best prospects for a growing dividend over the next decade? For my long term portfolio, I currently own BAM.A. I am trying to decide whether to buy more BAM.A, or to buy some of the other Brookfields, such as BEP.UN, which you have in the 5i Income Portfolio.

Q: Are things beginning to look better with Stella Jones these days? The stock is acting better lately, thanks

Q: Hi 5i Team - Would you be able to suggest a few companies with good growth prospects over the next one to two years. They can be from any sector even all from the same sector if that fits best. Dividends are not needed, in fact it's probably preferable that this type of company not pay a dividend. Any market cap size is fine and stocks not held in any of your three portfolios are fine too. Thanks.

Q: Marijuana, marijuana, marijuana. I grew up in Saskatchewan and knew very few rich farmers. Is there some reason why farming marijuana is going to be so much more profitable than growing canola?

Q: Hello Peter, Ryan and 5i team,

I recently sold my position in BYD.un and would like to instead deploy the funds to add another one of the FAANG stocks?
The ytd return on BYD.un is just about 10% and would like a growth stock for a 5+year hold. I own half postions in FB, GOOG and would like to know which would you add and have most conviction with for a long term (forever?) hold? I was leaning towards AMZN, BABA or APPL? Or would you suggest a half position in a two of these?

Thank you as always for your valued opinion,
Regards,
Romeo

Q: CES Energy Solution Corp. is offering a new bond for 7 year with a coupon of 7.375%, the proceed of this bond is to replace existing bonds, that supposed to matured in 2020 to extend the maturity on this bond will be 2024? I was looking at the ratio and their total debt/EBITAD have improved now around 3.4 what do you think I would like to buy into this bonds for income?

Q: Is MDF building a base? Is it still B-?

Q: What are your thoughts on the above three companies? Seems like everyone (even novice investors) are jumping on the band wagon bragging how much they made to date which has made me a bit uneasy. I have no exposure in the sector. Take out 3 credits if required.

Q: I've been holding Barrick Gold and Wheaton for awhile now and I'm down 20% and 15% on them. Is it time to cut my losses and dump them, or continue to hold them as a hedge against a possible downturn?

Q: Your thoughts please on XTC...it just seams to be on a downhill slide. Thx.

Q: Does SSL or WPM demonstrate better growth potential at this time in your analysis?
Thank you for your advice.

Q: Jean earlier today listed a number of stocks in his/her portfolio as being in excess of 10%. You do not suggest there's a problem with this, so I'm wondering if it's okay to own larger percentages of individual stocks if one has diversified ETFs. I have been buying ETFs to consolidate holdings as I move farther into retirement to make withdrawals simpler. But I still have a lot of individual stocks that I'm keeping in the 5% range. I think I noticed elsewhere you recommend not holding more that 5% of a portfolio in ETFs( now can't find it, so perhaps I misremember). I suspect I'm just not getting something here. What do you recommend regarding this use of ETFs and individual stocks (and %s) for a person past the accumulation stage?

Q: Brookfield Renewable is close to where it has previously double topped ....do you feel the share price this is getting dangerous now . I have a decent profit and could sell here or because. I don't have a full position and I could stay in and watch it continue to grow, or even add to my exposure here... I really am unsure what to do at this point. Thanks

Q: "Diversified Royalty Corp. Announces $50 Million Bought Deal Offering Of 5.25% Convertible Unsecured Subordinated Debentures......DIV intends to use the net proceeds from the Offering for general corporate purposes including to fund potential future acquisitions and working capital."
Is this good, bad or indifferent? Not sure how to react... Could you provide clarity?

Thank you

Q: Hello Peter, Ryan & Team,

For Energy exposure, I have RRX (down 25%), HWO (down 25%), and TOU (down 45%). As well as ENB, which I consider a utility.

For re-balancing purposes, my energy exposure is pretty thin. I know you don't recommend buying in negative momentum, but for adding to Engergy, I was thinking of topping these three up. Or can you think of any others you would replace these with, as RRX and HWO are in a taxable account.

Thank you for all you do,

Wes

Q: I currently own all 3. Would you be comfortable adding to all 3 at this time? each position would be at 4%.

Thanks Valter

Q: Will you be preparing a report for NFI? What rating would you likely give. Thanks.