Investment Q&A

Q: Peter and Ryan.
The recent gyrations of the market have left me somewhat shell-shocked because of the severe punishment some companies take for slightly missing quarterly reports. I don't think I'm alone. I've decided to try to identify a number of Canadian companies that are managed so well and have such excellent prospects for the future that they will enable me to buy and hold them through thick and thin, for a long time (10 years).
I'm seeking your guidance to enable me to disregard the extreme volatility and hold these "Canadian Superstars" for many years to come. I realize I'm presenting you with a difficult task but hope that your experience and professionalism, which I've come to respect, will enable you to identify some 'long term investments'.
So that being said, could you suggest a number of Canadian companies from a variety of sectors that I could buy and use as my core holdings. As time passes, I will add many of the growth companies you support to round out my portfolio.
Again, I thank you for your guidance.

Q: I own ALA (Alta gas )CU (can utility ) VET (Vermillion ) all with a loss.I am planning to sell for tax loss.When is the best time to sell so I do not loose the divider for month of DEC, before end of the year.Thank you

Q: What is your outlook for CU in terms of dividend increase and modest capital gains for the next five years. As a senior, my expectation is a7% total return on average. What other stocks would you prefer to meet or exceed my desired return?

Q: Thanks for the great service as always.

I'm looking to replace a couple of mutual funds in the family RESP. We have two kids ages 6 and 9. The current funds (~$65k) are split between RBC Target Education 2025 (about 2/3) and RBC Target Education 2030 (about 1/3).
To save on those high MERs, I was thinking of replacing those two funds with 40% XBB, 30% XIC, and 30% XUS. Contributions over the next ~10 years will go straight towards XBB. The goal is to keep it diversified and simple.
Does this change make sense?

Q: FLOT price unusually / quickly drafted down this past week ?
Any insight would be appreciated.

Q: Looking at fundamentals and management which company do you think has the most recovery and safety. I own them both and can only add to one. Thank you as always.

Q: In most of your reports on the listed stock say the stability is low. If low why the high rating and how is the stability factor determined.

Q: Peter; I believe I have the solution to the pipeline situation. Allow Bombarder to bid on building all of those in Canada. With the Quebec political power they could be approved in a week. And likely fully funded by the Federal government !
Rod

Q: Lots of questions to 5i on prefs lately. Some possible are explanations are in a recent article by John Heinzl: "Why preferred shares plunged."
https://www.theglobeandmail.com/investing/education/article-why-prefs-plunged-and-the-acbs-of-the-loblaw-deal/
You can add indiscriminate dumping of issues by CPD,ZPR, and HPR on high volume days as they struggle to keep up with net redemptions. The bid/ask spread on these ETFs is far less than most individual issues, so investors look to them for liquidity.

Q: Hello 5i team,
Since its inception, your balanced equity portfolio has generated something like 16% compound return pa; it has beaten the other "advisors" hands down and I enjoyed the ride. Congratulations!
Of the 6 major banks, BNS is the worst performer with a 5-year return of 7% compared to TD 47%, RY 35%, BMO 33%, NA 30% and CIBC 24%; and yet BNS is perennially in your BE portfolio. Why?
Thanks,
Antoine

Q: With bitcoin plunging I was thinking about a short in this space. Would you mind giving me your thoughts on such a trade and some possible names? Thank you I’m advance.

Q: If there is a capital gain , for example, of $5,000 on the sale of one stock does there have to be a matching capital loss of $5,000 on the sale of another stock in order to avoid payment of tax ? Thanks, Joe

Q: I sold SIS at 19 for a gain
I also sold PHO at 1.18 for a loss
The gain offset the loss on the above stocks.
I realize that I cannot buy PHO back within 30 days or CRA will deny the loss. But I can buy SIS back within 30 days, Right?
Thanks

Q: Do you believe that this is the bottom and good time to bring new money or you would rather wait till there is some better sign?

Q: Thanks to your stellar advice my portfolio is stacked with market leaders. Consequently I felt like a hero during the summers peak. Not so much these days. I felt a little better after reading that market leaders tend to plunge 1.5 to 2.5 times the market average during a downturn. Thought I'd share that with you.
Question: will those that lead the downturn e.g. tech, lead the upturn?
Thanks
Peter.

Q: I own the 5.10 percent minimum rate reset preferred shares (Bpo.pr.e). Are these dividends available for the Canada dividend tax credit or if not how are they taxed? Thanks,Brian

Q: Odlum Brown has just recommended to sell CME and replace it with BLK. Seems like an odd time to sell CME as my understanding is that the recent increased volatility should be good for it, which is likely why it is actually up over the recent period!!

BLK also looks good, especially after its recent pull back.

I currently have 2% of my portfolio in CME but do not have BLK.

Would 5i support holding CME and initiating in BLK or does it seem reasonable to exit CME on its recent strength and pick up some BLK? I have 15% of my portfolio in financials at the moment.

C.

Q: Hi, I fortunately hot out if Cineplex a couole of years ago when the shares were much higher because almost everyone i talked to were not going to the theatre because of Netflix etc. and the very high prices at the concession stand. Do you think Cineplex might be a decent value play now, or just dead wood, thanks?

Q: I am retired and own GMP Capital preferred series B in a non-registered account for income. How safe do you think the dividend is? I was encouraged when they recently re-instated the dividend on the common shares, suggesting management confidence in ongoing profitability, yet the pref B price continues to trend lower. Why?

Q: STC has held up very well in this tech massacre. When I sold out of RHT I put that money into this company. It has just announced its latest quarter. Opinions please?