Investment Q&A

Q: I have owned CVD for a while and while it has shown decent results, I am in the unfortunate position of being unsure why I bought it! If I understand the product, a series of bonds (duration unknown to me) would rise faster than a similar bond fund without the conversion features if equity markets rose. I, therefore, assume that in declining equity markets, the fund would decrease less than the underlying equities because the bond provides a "floor" to some extent.

When the conversion price is reached does the fund buy the equity and keep it or does it sell it on the market and use the proceeds to buy more bonds?

If my understanding is correct would you not be better off buying pure equities if you expect the markets to rise and a pure bond bond if you think markets are going to decline? So I am left with the question: "What is the value proposition of a convertible bond fund?"

Appreciate your insight.

Paul F.

Q: I have another question on these covered call style funds. If the underlying stock rises and the 'at the money' option is exercised and the stock is sold, do the funds have to rebuy equivalent stock?

Or is part of the risk profile that they may be paying out some of the increase in NAV as monthly dividends and the NAV will then decrease over time (or at least the # of shares will decrease).

Q: considering a buy
i am looking for defensive but with potential for growth
i like the pharmacy/food stores they are rolling out
please advise on this buy and please suggest another 2 options in list of defensive stocks
i am generally diversified and hold financials and tech
many thanks

Q: Can I get a valuation/ outlook on this name

Q: Hi 5i,

Can i have your opinion on CRNT?

I was conaidering a small position in a bag of small caps but i see no news on the 8% drop.

Thanks

Q: Hi 5i,

Advice please - I am down almost 50% with MG; it accounts for 7% in a LIRA account. Do I hold faith it will rebound at some point or cut my losses? Cannot touch LIRA for another 15yrs. Thank you!

Q: For your Growth and Balanced Equity Portfolios, what would the current "Sector" allocations look like and how significant is this factor in selecting your positions?
Thanks, Brian

Q: Hi,

Do you have a view as to how the TSX will respond if and when Trump announces 25% tariffs on Canadian goods?

Will oil and gas sector take a hit, like Suncor, and CNQ?

Thanks

Robert

Q: Can you give suggestions for your three best Canadian and us quality value, largecap stocks ?
Similarly your three best Canadian and US quality growth large cap stocks?
Pls give a compelling entry point and rank best first
Appreciate all your advice

Q: If you were considering defensive choices in the current climate for a retired client relying on an income portfolio of securities for a large percentage of their income, would you consider VVR? If not, what sort of defensive income-producing diversifier would you prefer?

Q: Hello 5i
One of the advantages a small investor may have is access to buying small companies where Institutional Investors would not be able to buy a meaningful position. Easy to say that Source Rock Royalties is a tiny company at $40 MM.

As they have been operating since 2013 (public since March 2022) with a successful dividend + Growth Model and never a negative cashflow quarter, would you consider this one a decent play for Royalty Income. The Dividend yield is high (9%) with low payout ratio (60%) and cash on the books ...... so it appears the business and income stream are sustainable.

With a quick review of their financials and business model, do you see anything that would be of concern for an investor looking to take up a position to enhance Portfolio income?

I did notice the prior two Q&A.
Thanks

Q: I am wondering about the exposure of the following natural resource stocks to tariffs. Would you consider selling any?

Q: Good morning. May we have your assessment of AYA as to why it has tanked in the past 3 months, what your prognosis is for it, and what your buy-in price would be? Grazzia

Q: CSU is in a RRIF, and CLS is in trading A/C. Have $27000.00 room in TSFA. I am considering tsf 2 of 10 shs of CSU and 100 shs CLS to TSFA. Total approx $22972.. Would like your thoughts before I pull the trigger. Thanks
Rick

Q: What is your opinion on this bond ETF? Have owned this in an RSP for a very long time on a DRIP plan which has been extremely disappointing. Would you continue holding? Continue with the DRIP?...or just dump it and move to, say, a laddered GIC scheme. Thanks Ron

Q: Would appreciate your assessment of TRI and INTA. These 2 stocks in the professional services sub-sector appear to be accelerating due to AI. Correct me if I am wrong but do you see increasing TAM attributable to improved service to clients and and reduced costs. Would you have high conviction or less so with this idea? How would you rate these or others in the professional services sub-sector.
More generally, are there other industrial sub-sectors where AI is improving client services and reducing costs. Any other names to suggest.

Q: I would like you to explain or direct me to an explanation of how the mechanics of CAD hedged USD ETF'S work.

Thank you, Hugh

Q: I read your last update (June), and recent questions about this stock, and reviewed the financials. I cannot see any specific reasons for the steady decline. I don't see the reorganization having any material effect, and because of the international diversity I cannot see any Trump stupidity as having major influence. In fact, I would have thought the reduced interest rates would be a positive effect. Obviously, I am missing something that indicates a sell for some, and I am hoping you could shed some light on what that might be. As well, I would appreciate your comments as to future expectations.
Thanks!
Paul

Q: How would you rank BAC vs.C, and then vs a couple of Canadian banks, TD and BMO as examples.

Q: Hello, is this a good entry point for this stock ? It seems to have high multiples using any metric. They seem to have no debt on the books.