Investment Q&A

Q: hey guys hope all is well i,m currently down 10 % barclays came out with a sell rating i had originally bought this with a 2 to 3 year hold i,m wondering how bad this could get considering chip shortage if you could please let me know what you think maybe get out now and get back in when things are better Thanks as always

Q: Hi 5i,
Regarding Robert’s inquiry on journaling ENB or MG and the BMO Investorline answer, I journal stocks all the time when I want to increase my U.S. exposure. This is an option in lieu of Norbert’s gambit. With TD, the stocks are moved to the U.S. side. I sell them and have more U.S. currency for new purchases. There is no point in holding the stocks on the CDN side in U.S. dollars as when one sells them, you are hit with FX conversion charges, and end up with CDN cash not U.S. cash. Perhaps there was just some confusion by the Investorline service rep.
Dave

Q: Hi
I use BMOInvestorline as my brokerage account. I have a CDN and a US dollar side.

I'm overweight Canada and wanted to increase my US holdings. I thought that one easy way to do that was to journal my Enbridge and Magna positions from the CDN to the US side of my account.

I think I misunderstood what this meant. I had thought that it meant that my existing shares in ENB and MG on the TSE would be exchanged for ENB and MG shares traded on the NYSE. But the fellow at BMOInvestorline said that it's just changing the currency and the shares will continue to trade on the TSE.

Is there a way to take an existing position on the TSE and exchange it for the same shares being traded on the NYSE?

I'm not sure I really diversified my holdings. I just changed the currency.

Thanks,
Robert

Q: Good Morning Peter & Team,

Morgan Stanley called MG an auto supplier standout. MG reports first week November. Are you able to give us an idea what to expect? Positive or Negative???? ... considering the supply chain concerns (now [hopefully] waning) and of course the ongoing chip shortage.

Thanks for all you do

gm

Q: Hi Peter, Ryan, and 5i Team,

My wife and I need to reduce holdings in some stocks in our RRIFs to raise enough cash for the mandatory RRIF payments, which in our case is in late December.

Portfolio Analytics allows various ways to rank stocks, so I looked at the column "Total Portfolio Equity Weight" and ranked the stocks accordingly. For example, in my RRIF, my highest weight is with MG, and my wife's highest weight is with GSY. Not surprisingly, Portfolio Analytics also indicates that the Consumer Cyclical sector (MG), and the Financial Services sector (GSY) are overweight in our combined family portfolio (RRIFs, TFSAs, and non-registered accounts).

Is this a good way to determine the stocks that could be reduced to raise the required cash while at the same time putting sector weightings more in line with the recommendations of Portfolio Analytics?

I notice that many members ask questions about their holdings in various stocks, but 5i generally answers that weightings are personal.

Perhaps there's an alternative "rule of thumb" to use when going through this yearly process, and your valuable advice would, as always, be greatly valued.

Q: Hi 5i,
Would you consider ATA a good replacement for MG/LNR if one is looking for growth or as an addition to them?

Q: hello 5i:
not many questions on BWA. Could you comment on growth and valuation? Is it a direct competitor with MG? Which of the two do you favour, and why?
thanks
Paul L

Q: Hi Team,
I am holding the following stocks at a loss. BABA (-52%), MED (-30%), TT(-4%),EGLX (-33%), MG (-8%), SWKS (-20%), U (-1%), PINS (-33%).

My question is, should I continue to hold the line with all of these? Or are there any that stand out to you as being better off to sell and swap out with a different holding of which you suggest? Or any of these I should be selling, and adding to another one of these? I thought perhaps after yesterdays sell off there might be some moves I should be making. (Although the market is already recovering nicely today on alot of these names). Suggestions here would be appreciated. Thanks!
Shane.

Q: Hello. Thoughts on these three in terms of valuation, growth and potential stock price appreciation? Are any more diversified than the others? Would you buy and how would you rank? Thanks!

Q: What is your preferred stock in the consumer discretionary sector that would be appropropriate for a dividend portfolio?

Q: Am looking at Magna for my TFSA with a 2 year rebound focus. The chip shortage seems to be depressing the stock ; would a 2 year period to fix the shortage seem reasonable ? It looks like a battle is looming to acquire Veoneer and the stock has been hitting lower highs over the last 6 months. Would you wait and see how the takeover ends, see some turnaround in the chip market ? In essence, buy now or wait until some clarity on these issues ? Thanks . Derek

Q: Please suggest a few stocks (CAN, US) that will likely see a rebound in share price when the computer chip shortage is rectified. Either for a trade or 5-year hold.

Q: Hi team!

I currently hold MG, NPI, QST, REAL in my TFSA and am down in all. Which would be your favorite to add another half position to at the moment?

Or would this be a better opportunity for me to take that money and purchase NVEI at this current lower price point?

Thanks for all you do!

Q: I am down on both companies, probably due to shortages of parts.
Do you agree selling and buying your highest recommended tech growth stocks or any stocks you suggest where short term gains are likely?
Once problems receiving parts appears to be resolved, sell the stocks and buy LNR and MG again.
While it is market timing it appears to be a more predictable type of market timing.
Thanks
Klaus

Q: Hi Team,
I read a news release sept.20 stating magna will acquire veoneer. I just wanted to confirm this is now a done deal. And do you see this deal as a long term positive or am I the only one judging by investor sentiment? Last I had heard Qualcomm had a higher bid?? Can you confirm ; and as well is it worth holding magna at these levels or should I be taking a tax loss on it (down 8% on it )? Are there any catalysts that could help the stock in the next few months or do you expect further down side? As of today it’s my only play on the EV sector. I had thought when I bought it to be a safe play on the sector and expected strong auto demand once the chip shortage went away. Thanks for your input !

Shane

Q: It appears that Mg is no longer one of your top favourites.It has a great run to reach $126 ATH in early June,2021,but since has declined to current $96.86.Is this a good entry point? Or U prefer one of U current favourites? Txs for u usual great services& views As a aside,I cannot find Acq in the Summary of accounts covered.It was on u previous list some time ago

Q: Any reason for Magna's sharp drop yesterday (Sept. 16)?

Q: I'm down 13.5% on MG in a non-registered account. Hold the course...take a tax loss now and re-purchase in 30 days..or take the hit and move on?

Thank you.

Q: Suggestions on how to invest to benefit from Biden’s proposed increased EV incentives to buy US manufactured electric vehicles? This potentially could speed up the transition (once the chip shortage is rectified).

Q: In a previous answer to the question "10 companies to hold for 20 years" your team selected BYD as one of 10 long term holds.

I'm curious, why you would choose BYD over MG?

Self-driving vehicles will soon be prolific and likely all electric powered, I can only imagine a dramatic decline in accidents, servicing and repairs and way fewer moving parts (internal combustion engines) to replace.

Seems like BYD is on the wrong side of innovation.