Investment Q&A

Q: Hi 5i Team,

I have approx. $100k USD of capital to deploy to a portfolio with a 3 to 5 year hold outlook with a focus on High Growth. Comfortable with higher risk.

I’d like to have meaningful position sizing so want to limit the # of stocks to 4.

The pool I am considering is COIN, SI, ROKU, NVDA, SHOP, AFRM, SQ, CRWD, and ZM.

My inclination so far is to go:
45% - NVDA – This just seemed like a must own to me. Semiconductor exposure in a supply-short environment along with the multitude of other things they support – AI, Gaming, Genomic sequencing etc. Hard to see how they won’t be over a trillion dollar market cap especially if the ARM acquisition is go (Risk factor).

25% - AFRM – BNPL adoption in North America is far behind that of Europe/APAC and I like AFRMs positioning as a consumer first proposition with transparency and AI with strong partnerships with AMZN, AAPL Canada and SHOP.

20% - COIN – Continued adoption of Crypto. Would use this as a proxy instead of going with ETFs/Fund exposure

15% - CRWD (Valuation risk so smallest position, but cybersecurity industry hasn’t matured yet with lots of runway remaining for a stock with strong MOAT)

I decided against SHOP due to how much growth they've already seen and potential impact on consumer spend from an inflationary environment.

Could you comment your thoughts / advice on the above? Any stocks that you would switch out or position sizing you’d recommend to reconsider?

Q: Hi,
Can you please recommend some companies/Etf to provide consumer cyclical and consumer defensive exposure to US?
Thank you

Q: ZIP IPOed recently, and I wonder what your thoughts on it are? I worry that it may not have much of a moat compared to larger job board Indeed, but it seems to be growing very fast, and may be a great idea for the post-pandemic recovery, especially since so many people are changing jobs right now. What are the strengths/weaknesses and risks that you see?

Q: Hello Peter,

Have you been able to assess the probability of the US and Canada raising capital gains inclusion rate to 75%? If so, what is the impact to dividend and growth stocks?

If this does look imminent what would be the strategy to address a potential 10%-15% decline for Non-registered, RRSP, and TFSA accounts? We are almost retired and do not have 10-15 years of investment time for the effect of this change to balance out.


Cheers,
Jerry and Debbie

Q: your thought on this company, nxo, its up almost 200% in the last couple of weeks, also ntar, with the lockdown just about lifted, how do u c this one going foward,

Q: Hello 5i,
I am fractionally underweight Communications (BCE, T) and fractionally overweight Consumer Cyclical (AW.UN, LNF, MGA). I am also significantly overweight Canada, underweight United States.
My thought was to sell AW.UN and use the proceeds to purchase VZ in my RRSP. The yields are very close which is a major consideration. Obviously, no tax considerations.
Would you see any concerns with such a move?
Many thanks as always!!
Cheers,
MIke

Q: I think there may be an opportunity in china and would like to purchase CQQQ as I could use some more international exposure . In my US RRSP I would need to sell either ROKU or MITK. Which stock do you think has more upside between these two?
Dave

Q: Hi,
Is there a decent "healthcare" ETF that you can recommend that trades in Canada - but which can hold some or all of Canadian, US, or global healthcare stocks? I'm finding it difficult to hit my healthcare weighting.

Thanks
Robert

Q: In a recent answer you were ok with BAM.A up to 10% of portfolio. Does that mean 10% of total stock holdings or 10% of all investable assets(including bonds , GIC’s). Are there any other Canadian stocks which you have similar conviction? Thx

Q: In my non-registered account I have tried to build a diversified portfolio of "set-and-forget" dividend-paying stocks. I do not need the dividends currently, all are being DRIPped.
Recognizing that I'd be giving up some dividend return, what are your thoughts on replacing BEP in the portfolio with BAM?
I already own AQN in the renewables space, and ACO.X & FTS in the utilities space.
Thanks you for your insight.

Q: I would like to get your thoughts on TOST first day of trading and if all the interest bodes well for LSPD. What exactly does TOST have to offer that LSPD can’t?
Thanks

Q: I admit to a "home country" bias, but try to temper that somewhat by investing in Canadian companies that derive significant portions of their income from outside Canada (e.g. I own AQN, ACO and others).
In this context, which do you see as a better fit as a consumer staple holding -- Aritzia or Gildan?
Or is it even, or also, a consumer staple or consumer discretionary question -- everyone needs basic clothing (Gildan) but fashion (Aritzia) is more discretionary?

Q: For Telus International, why would current shareholders sell their 12M shares (in this case decent percentage of outstanding) and could this imply to the market lack of confidence? Also, in this instances, what price would they be sold at? Do you still see ATS Automation as a buy and why is Nuvei taking small hits everyday? Could this be that it went up quite fast after their earnings.. Thanks very much.

Q: Hi Guys
I think I know the answer to this, but here goes, I own enb, ppl and ala, I have owned ala for a few years and recently have bought enb and ppl, I sold my ppl at a lose. I got lucky with ala as I averaged down when the stock took a beating, I am up on the stock, I sold some and bought enb. I was hoping that the ala would recover to its old highs and increase the dividend, since they cut it by over 50%, but that does not look like in the cards, I am thinking of selling the rest of it and buying more enb, what would you do?, I like the yield and enb and the fact they seem to keep raising their dividend.
Thanks and keep safe
Auftar

Q: In June you seemed fairly optimistic about FILO in a response to a member's question.

How do you feel about it today?

Thanks, John

Q: How best to play the labor shortage market present in Cad /USA. Head hunters may be a preferred option - your thoughts please

Q: Greetings, I have about 12-15% of my portfolio in cash. I am hoping to utilize it on opportunities during a correction or downturn. Would it make sense to invest in a conservative ETF until such time? Any low risk recommendations , instead of just cash, HSA and GICs?

Q: It looks like the gap has really narrowed down.
Better to sell now or wait for penn shares/cash?
Any benefit to waiting a little longer?

Q: Please help me understand why Versabank has popped on the pricing of thier US public offering at $10US (12.80CAD). I would have thought it would trade close to the 12.80 price today but it has been trading at 13.50-15.00. Thanks Rob

Q: Peter and co., a year ago you expressed some concern about Flagship Communities REIT, a US$ REIT that trades on the TSX, because it was a new IPO. May I have your current assessment of the company and stock valuation?
With appreciation,
Ed