Investment Q&A

Q: On the Global evening news in Vancouver today, it was mentioned that Amazon is going into the toy manufacturing business. Have you heard anything regarding this topic? This can't be good for Spin Master. Could this be why Spin master stock is struggling?

Q: My weightings in each of the listed companies is less than 2.5%. I wish to eliminate some and build up others to the 2.5% level. What are the strongest candidates to keep and what are the weakest candidates to get rid of. As always, I appreciate your responses. RAM

Q: Good afternoon 5i,
As usual, thank you for your level-headed advice, especially during this time in the market. It is time to decide on a candidate for tfsa. We will be taking stocks out of our rif in kind to margin and then transferred into tfsa in Jan. I am debating which would be the best strategy regarding two stocks that I am considering, and wondering the best criteria to decide. I would really appreciate your take on the situation.

the two stocks are Toy and Goog. Neither of them has a dividend to worry about, so no withholding tax for the US stock, and no lost dividend tax advantage for the Canadian.

I have about a 40 percent profit in Google and Toy I just bought recently and have about a 5 percent profit (so far). I like the idea of growing them in the rif because of the tax advantage and ten putting them in the tfsa.
I am not sure but I imagine the decision comes down to growth. Which one will grow the fastest. Relative safety could also play a role, but the stocks have already been bought. Wondering what your suggestion would be on this?
thanks

Q: With the recent market correction, I have several stocks that are down quite significantly and others that stayed flat or went up a little. This involves that the weightings changed quite a bit for some stocks. I know 5i isn't a big fan of averaging down, but in such context what would be your advice? I have the followings (%loss, weight) :
SIS (-19%, 4%)
PHO(-41%, 1.7%)
KXS(-10%, 3.3%)
NFI(-32%, 2.6%)
PBH(-28%, 3.4%)
TOY(-23%, 2.5%)
MX(-22%, 3.1%)
I currently have 13% cash and would consider reducing it to 7-8%. My sectors are well diversified. Which of the above would be your favorites today for a position increase?

Thank you!

Q: Do you think a tax-loss sell of TOY is risky at the moment? Down about 20%. Would there be any reasonable proxy?

Q: SIS and Toy are continuously going down is there any other reason than tax sell,Are they good buys today?. Or something wrong with them?.

Q: I am finally planing to sell the stocks above. and replace them with a 5% of Telus, Qualcom Great Canadian gaming and Brookfield Asset Man. for a 2-3 year plan.
Would like your comments ?
margita

Q: Could you give me four or five market leaders that have fallen off the cliff in this recent market downturn, preferably TSX stocks, that have the ability to bounce back fairly quickly, thanks?

Q: Toy is looking like another TSGI. The stock has been on a steady downward slope since July, now down around 30% give or take. On the basis of projections for 2019 the shares are trading at about 21 times projected earnings. Sales are expected to increase by about 7% in 2019, with earnings growing at around 10%. What is a reasonable multiple that the shares should be trading at? Unless there is something on the horizon that will increase growth, a 21 times earnings multiple seems too high for the expected sales and earnings growth. Something closer to 10 times would seem more appropriate. And if so, there is a lot more hurt to come by continuing to hold the shares. Is there anything that I am missing? Why do you think that the current price is justified? Why should shareholders continue to own the shares? And why this continued weakness heading into the Christmas season?

Q: Hi 5i,
I am considering small average down purchases of the listed companies but unfortunately cash is limited so can't choose all of them! Could you rate/order them for rebound potential ? Currently MX & TOY are approx 3% each, FSZ 2%,and TSGI/SLF/SIS have been driven lower to approx 1% each.

Thanks
Mike

Q: Recently President Xi gave a speech indicating the intention to open up the Chinese economy, including " lowering tariffs for autos and other products and enforcing the legal intellectual property of foreign firms".These are things the Trump administration is seeking. Also in a recent dinner talk David MacNaughton indicated pressure from American farmers to reach a resolution.

Have you any thoughts on the possibility of the trade dispute being resolved and which of the 5i stocks would respond most positively?
Mike

Q: Good day,
Thanks for all of your insight lately during this market volitility. Im looking at putting some new money to work in a TFSA, with no regard to sectors or diversification, what two or three companies would you be a buyer of today? Thanks

Q: Hello, do you still consider TOY a good stock for future growth? With revenue growth slowing last quarter to 12.6 % ( vs 37.4 % Aug 2017) and further declining to 2.3% this quarter (vs 27.6 % Nov 2017) and outlook of mid-single digit Gross Product Sales growth for full year 2018.
Does that not seem to be an extremely low revenue growth outlook for a stock like this? I understand the Toys "R" Us issues are a big driver of this low revenue growth but do you have confidence they can return to 20 % plus growth ? I know I am focusing on revenue growth but it seems so low... maybe they have a more positive view for 2019, did you gain any further insights from the conference call?

Q: I am totalling confused I have these stocks and am underwater huge I bought basing my decisions on your comments of saying these are all good growth stocks and buys what do Now buy sell hold😔Thanks

Q: Tough to perform better than market when stocks get crushed like this. Are these turns or over-reaction?

Q: What is your opinion on spimasters recent report. Do you see it as a buy?

Q: Please comment on TOY results. Thanks

Q: For a two to five year hold roughly, which of these two companies have better upsude potential, disregarding risk, thanks?

Q: I know 5i doesn't time markets but w the Feds raising rates, China tariff wars, business and world slowdown, US elections - when would 5i recommend to invest & what 3 US stocks and 3 Canadian do u like bests?

Q: Can you give me the lowdown on Toy I am under water and need your thoughts also when do they report. Thanks