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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have learned a lot and benefited greatly from 5i advice, and take particular benefit from your diversified portfolio approach. Would you say it is fair to identify any market analyst, including the 5i group, as having a particular specialization being an area of strength and certain market segments being areas of weakness or minimal depth? For example, analysts who are good at identifying software companies but less aware of details required to be successful in healthcare field. If you agree, which areas would you claim are 5i's areas of strength and which are the segments of less depth of knowledge.
In view of constructing a diversified portfolio, I am looking to draw information from a variety of sources. Your comments would help guide the relative importance to assign to difference sources.
Clearly track record is a primary guide to use, but I would also take your self-assessment as very valuable. I don't mean to be hard on you or anyone for identifying strengths vs weaknesses.
Thank you kindly,
Gary

Read Answer Asked by Gary on September 21, 2016
Q: On September 9 you said that DRG.UN's payout ratio was 55%. Previously on Feb16 you said it was close to 100% and yesterday on September 20 you said it's effectively 100%. I'm confused ? What changed between September 9 and September 20 ? Looking at Morningstar I see a payout ratio of 58.7%. What is the correct payout ratio ? Also if Morningstar's figure is correct or in the vicinity of correct and the PE is 7.3 this seems to me like a company with an ample cushion for the dividend. But I realize nothing is secure when looking at a dividend in the region of 9% so what would be your concerns regarding an investment in DRG.UN ?
Read Answer Asked by Garth on September 21, 2016
Q: Hi team, I am looking to start a position in SYZ, I have pretty well every position in the growth portfolio. I'm thinking 3% full position in one purchase . Is it a good idea?
I am thinking about the same with ESL, and have noticed the share price is lower now than a year ago. Is a full position same as above be acceptable?
Thank you as always for the service.
Read Answer Asked by Jacques on September 21, 2016
Q: In your answer to my question previously about the two companies, you state the following: "This switch would, in our view, be effectively a trade off between income and potential economic leverage. With NFI owned already, we think it could still be helpful."

I am not sure what you mean when you say it could still be helpful. More helpful to retain TFI or more helpful to make the switch?

Thanks again for your advice.

Paul F.
Read Answer Asked by Paul on September 21, 2016
Q: 5I Team,

Do you have any comments/analysis on Electronic Arts Inc.?

Thanks
Read Answer Asked by Scott on September 21, 2016
Q: Hello Peter,

I've held PHM (Pulte group) for two years as a play on US housing and as a US consumer discretionary holding. Given RCLs dividend increase (announced today), would it be a better asset for growth and income? (also US discretionary - but I think is classified as industrial.)

PS when I search for info about Royal Caribbean (RCL) I am still getting information about Ridley (a company I know nothing about).
Many thanks!
Read Answer Asked by Kat on September 21, 2016
Q: Hi Gang,
I'm looking to add 2 more stocks to complement my TFSA with cash availble.Current holdings are: ALA+4%;BEP.UN+5.5%;BHX.B+2%;ET-2%;FTG+15%;HCG-28%;MTR.UN+7.55;PHM-38%;PUR=1%;TNC-15%.
Would you dump PHM &HCG and take the loss and redeploy or hold for a eventual turn around which my be years?
Read Answer Asked by Henry on September 21, 2016
Q: I invested in a 'Global Small Cap' fund about 18 years ago. Incredibly, my return AFTER 18 YEARS is NEGATIVE 16%! (I guess this is lesson in the effects of both high mutual fund MERs and picking a lousy fund company!) Can you please suggest an ETF that would be good for the 'global small cap' space. Or another 'small cap' ETF or strategy, if you don't think a global small cap ETF is the way to go. Thank you!!
Read Answer Asked by James on September 21, 2016
Q: I have rate reset preferred shares (bought at $25 / share) which are presently 25% in value underwater because of the Banks of Canada’s unexpected prime interest rate decrease. At the time of purchase their interest rate was 4 to 4.5% & they will be subject to a rate increase in 2019 & 2020. I your opinion what is the chance of their value returning to near $25 in the next 3 years? I am wondering if I should sell the preferred now or hope that their value will appreciate sometime before their rate reset date . Thanks … Cal
Read Answer Asked by cal on September 21, 2016
Q: I was listening to Charles Nenner (Research) on BNN, who you are probably familiar with, although it was a first time for me. Unfortunately while he was talking tops and bottoms I am not really sure I understood his future predictions. It did not help that the BNN reporter was really unable to bring out the issues he was talking about. It seems to me that he was saying TSX,S&P etc would undergo a down cycle in the coming quarter but when that was over we could expect a rise going thru to the end of of 2017. Are you familiar Charles Nenner cyclical philosophy and what can you tell me about it and do you give it credibility. Thank you.
Read Answer Asked by Maureen on September 21, 2016
Q: Hi 5i team,

Can you provide comment on ssl and if you would condone a 5% investment. Also, with gold typically being a hedge to market/economic capitulation, can you comment on the 5% weight the 5i team typically prescribes please. If the overall portfolio dropped 20%, the 5% gold holding would have to increase nearly 4x to effectively hedge the loss. In this volatile market, would a heavier weighting would be a prudent defensive position?
Read Answer Asked by Erichsen on September 21, 2016
Q: Your comment on PHM splitting into two companies prompts a few questions:
Do you think Hoyt and Crawford had a difficult relationship so Hoyt decided to take his company out of PHM and do his own thing with the company he sold to PHM? He owns 20M shares @$1.46. Crawford now has his company that he sold to PHM for which he took 33M shares @ .33. Do you think Hoyt was squeezed out?
Dalsin, as Chairman, was toxic and the news release says he is "outgoing". Glad he's out. Is this a major plus for both companies?
Finally, PHM presently has 375M shares? Does each company retain half that number?
As a shareholder who loved the business plan "pre-chaos" I am excited about new names ridding us of PHM'S heavy baggage - and Dalsin! I say go for it and may both men win!
Read Answer Asked by Steven on September 21, 2016
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