Investment Q&A

Q: CIBC has issued a downgrade on PLI reducing their target price from $4.40 to $2.15. I don not usually pay any attention to target prices but this seems to be a significant cut. They also mention cash burn rate and that the company will likely need additional financing.
Would appreciate your views on this. Thanks John

Q: Hi Peter and Group. I have just taken some profits on WEF - I needed to lessen my exposure anyway. What is your top 3 stocks I should reinvest in? (regardless of sector) - I am a moderate risk investor. Thanks for the service

Q: Hi Team, I would appreciate your thoughts on MGX Minerals. It appears this Canadian company has patented a filtration system and recently successfully tested it for the removal of Li from oil and gas waste water. In addition purified water is a by product. I have been following the Li story and own shares in ORL and ALB. However, it seems this process is cheaper, faster and more efficient than the current solar and hard rock mining methods and we have lots of O&G. MGX can also apply their technology to recover magnesium and boron. Quite frankly the technology that MGX has tested seems to me like a HUGE discovery and breakthrough. Thanks Team Chris

Q: I am looking for investments which will respond positively to rising interest rates. I suspect CPD has anticipated a rise and I am told E*Trade will substantially benefit from rising rates - why? what are E*Trade prospects and for that sector in the current environment? Can you recommend an ETF for the US regional banks and do you think they will outperform? Thanks for your consideration

Q: Hi 5i Team:
Would like your analysis on a small company, Dynacert. It did well on the TSXV last year and was thought to be promoted to the TSX by now! Just curious!

Thanks in advance..Stan.

Q: Which 2 of these silver miners do you perfer? Would it be better just to buy CEF.A or SVR and forget about the miners?

Q: Would like to get your opinion of this company for a long term hold. thank you.

Q: Hi there,

I have owned this stock for some time and recently it has been correcting even though they posted decent results. Anything that you know of that is driving this correction in the stock price.

Q: Hello. My 31 year-old son has been diligently saving for his future retirement, and has a combined portfolio of $80,000 (TFSA & RRSP). The money is mostly divided between Canada (45%) and USA (44%), with a small bit in the International market (11%). Under your advice last year, he sold his Canadian ETFs and bought some individual stocks. The result is amazingly better than the index, so THANK YOU!

Now, I'm wondering about his US portfolio. In the US part of the portfolio, he has several ETFs: VFV, VGG, ZLU, XSP - 42%, ZQQ- 18%, Health - XLV - 12%, and a remaining $10084 CAD cash (28%) that can be dedicated to US equities. What should he do with the money?

Alternatives: 1) increase his US ETFs. 2) buy individual stocks. 3) wait until the dip...
What should be the strategy for this portfolio? I'm interested in buying GOOG for him for a long term hold, but the price is too high for such a small portfolio. Any thoughts or suggestions? Thank you!

Q: July 6 ?'s re the Tahoe mine closure suggested a 'more to the story' aspect. This link is interesting:
https://srsroccoreport.com/worlds-2nd-largest-silver-mine-shut-down-implications-for-company-market/

Q: Hello 5i team,
When the US Fed or the BOC talk about raising rates, are they talking about the short term or longer term rates. Do they consider the effect of such a move on the shape of the yield curve?
Thanks,
Antoine

Q: I am interested in PUR but the stock seems incredibly expensive on a P/E
basis for a company which has disappointed with flat earnings for a while.
Even their dividend is not covered by earnings. Can you explain why you like it so much?
Thanks

Q: Good Afternoon: I am thinking of increasing my exposure to the materials sector (principally North America but am open to international) and would like to do so through an etf. I already have an approx. 7% exposure to energy (mostly Cdn.) and less than 1% each to gold and materials. Would you please recommend an etf that you believe to be a good option for me here. Thanks.

Q: Some of the retail reits seem to be hurt by the Amazon expansion,which reits do you seem benfiting?

Q: Hi 5I just reviewing our positions and two laggards of late are fcr. and exe. Not concerned about holding them but wondering about replacing them for a better dividend or potential growth. Your thought would be appreciated.

Q: Any idea why the recent price weakness in ULTA and would you advise initiating a position or waiting.
Thanks.

Q: I have a small fund for grandchilds .My allocation is 30% Emerging markets ;
30%international developped and 40% CANADA.
For the Canadian portion would you have specific company that are proxy
for the general economy.

Q: What odds (high, medium, low) do you put on Riocan's strategy of building more residential on their existing properties having a 'worth while' impact on growth or dividend increases over the next 2 to 3 years?

The Financial Post reported Jan 2017 "The Toronto-based company has a portfolio of about 300 malls across the country, and is seeking to redevelop stores and add housing to at least 50 of them." Link to story: https://goo.gl/HZQQxG

The dividend increases have been small and infrequent over the last 9 years: Jan 2013 up 2.17% and Oct 2008 up 2.22%. Earlier dividend increases used to be roughly annual.

Note that I don't need the income from this stock, so it may be time to move on.

Thanks!

Q: Do you have an opinion on Yamana Gold? This stock used to be covered by a bunch of analysts, including on BNN, but I hardly hear anything about the company anymore. I own some shares, so I'm wondering it it's still worth holding.

Q: The recent cashing in of my pension has left my account with a lot of cash that I have been hesitant to deploy in the current market environment. Rather than outright purchasing some of the names on my watch list, I am considering selling calls on the stocks I would like to hold. This way I can collect a premium which is a bit of compensation if the stock goes up and I miss out, and if it goes down to the exercise price I end up owning a stock I wanted anyway at a lower price and with the option premium. Does this strategy make sense to you? If yes what would be your guideline for expiry dates and strike prices and can you suggest any good candidates for this strategy from the BE and growth portfolio?