Investment Q&A

Q: What do you make of the latest report? Are they on the right track? I am underwater on my (modest) holdings. I sold half for a capital loss in Dec and so I feel content to hold the balance for the rest of the year, in which case I would possibly take the balance of the loss I have. The remaining impact on my overall portfolio is minimal. The real question is do I increase my holdings by about 30% to average down in anticipation of a positive return. It would bring my overall weighting to about 2.5%.
Thanks

Q: Hi Peter, Ryan, and Team,

Darren Sissons, in a recent BNN "Top Picks" segment wrote an interesting few paragraphs in which he attempted to debunk some common 'opinions': "Telcos, pipelines, consumer staples and consumer discretionary are now inferior investments. (NOT TRUE, in his opinion) For fresh capital, the yields in these sectors are now actually becoming increasingly attractive. The broader issue is these segments have been over-owned since the global financial crisis and the recent underperformance is skewing their longer-term performance. For fresh capital, these segments offer an attractive risk-adjusted total return looking forward, in addition to protection against market corrections.

If you agree with his thesis, what stocks (in particular, from ones that you cover) in telcos, pipelines, consumer staples, and consumer discretionary would be most attractive at this time?

Thanks for your valued insight.

Q: It seems XIT "Don't get no respect" from analysts, yet it has performed well over the past few years and smooths out the volatility in the sector. Oddly, XIT seems to do just as well as ZQQ. Where does 5i stand on this ETF?

Q: I currently have about 140.00 in D.B. through the pension plan for employees where i work. I will be retiring this year and would appreciate your advice and time.
The employer gave me two options to consider.
Option 1: lifetime pension.
I'll receive about 680 dollars per month, this lifetime pension is a lifetime annuity.
Option 2: Lump sum transfer.
This commuted value is eligible for transfer in lock-in and tax differed basis.
I'm a subscriber of 5i research and CMS (95183)
Thank you.

Q: So many questions related to income and share prices as interest rates increase: here’s one more.
Could one justify selectively adding to the ENB-BCE- KWH- FTS - TRP -T types of stocks as share prices drop... and we therefore see higher dividend rates?

The strategy is to own these companies almost forever (unless something unforeseen or disastrous happened) and enjoy the dividends.

From my vantage point this seems to make more sense than buying bonds or low rate gic’s for income.

Your thoughts please with this dilemma. We of course have already seen the share prices drop and are wondering what to do with cash on the sidelines currently.

Q: Can you help with secor allocation for 2018. Realise that the allocation will vary depending on factors such as risk tolerance, age etc. Just seeking your thoughts on reasonable ranges for allocation with a view to tweaking our investments. Thank you as always for your much appreciated assistance.

Q: Hi 5i:
I'm currently trying to reduce the number of stocks I hold in my RIF account to around 20 - 25. In the materials sector I currently hold SJ, CCL.B, AEM, and MX. To reduce this to 2 (maybe 3) stocks, which would you drop? I want my portfolio to be as resistant as possible to market shocks such as NAFTA and general downturns, so feel free to suggest alternative names. Thanks again. Roland

Q: Can you comment on the recent rise to all time highs for Herbalife, and on the outlook for this stock. Thank you.

Q: Would you buy Paychex at todays price?

Q: Hi 5i
I intended on holding (PUR and AVO) for the long term but cannot due to their being taken over by XYL and MSI. These acquisitions will mean a cash infusion and I'm wondering whether a purchase of the acquiring companies is sensible. What is your opinion of these US companies (it is understood that they are not your focus but I respect and appreciate your opinion)

Thanks

Q: What is your feelings about using an inverse ETF such as the above to protect a portfolio against North American interest rate increase over the next year?

Q: Hello Folks:
What are your views on Goodyear Tire
Thanks gain

Q: The news talks about sub prim loans for auto, consumer debth, and car sharing. In your opinion is time up for these 2 cyicular stocks?

Q: Hi, I am bit confused about my Canadian oil and gas sector performance in last month or so. crude oil prices are now at $65, but Canadian companies in this sector keep getting lower and lower. I currently have positions in ZEO, BIR, HWO, PEY, & RRX.
Has spread for Canadian oil deteriorated compared to normal levels?

Q: I have Sherritt bonds 8% coupon in my TFSA expiring Nov. 2018. I got a proposal from the company to buy them back. Here is the proposal:

Option 1: Auction tender - The company is offering to purchase their debentures of SHERRITT INTERNATIONAL CORPORATION at a purchase price not greater than CAD $950.00 nor less than CAD $752.00 in cash increments of CAD $1.00, for a maximum of CAD $75,000,000 in value of its shares. All shareholders tendering at or below the purchase price will receive the same amount. If more than CAD $75,000,000 were to be paid, shares will be paid on a pro rata basis. Subject to proration. Tax consequences: Disposition

Option 2: Purchase price tender - The company is offering to purchase its 8.00% Senior Unsecured Debentures due 2021 of SHERRITT INTERNATIONAL CORPORATION. The purchase price for its 8.00% Senior Unsecured Debentures due 2021 of SHERRITT INTERNATIONAL CORPORATION will be the lowest price which will enable the company to purchase common shares for a maximum of CAD $75,000,000 in value of its shares. If more than CAD $75,000,000 were to be paid, shares will be paid on a pro rata basis. Subject to proration. Tax consequences: Disposition.

Option 3: Do Not Participate. (Default Option)

What would you advise?

Q: I know that China is not your area but what do you think of ...

Baba, after its recent earnings report, which seems good, yet is being punished? I'm up 25% and wonder if I should sell?

And Tencent vs Baba for the next couple years.

Q: Hello Folks
What are your feelings re: holding on to both Kraft Heinz and Starbucks, which are both struggling with their own issues. Would you consider McDonalds a decent bet/ replacement at present as it has been taking positive steps, but is expensive. Do you have other suggestions in this sector?
Thanks for your good work
brian

Q: Hi Team, I realize that dividends are an important part of any portfolio and I know that 5I regards "Drips" very highly and I agree. Since I have no recollection of the investment world with high interest rate, how is "Dripping" affected in a rising rate market in the long run? Especially the utilities and the Bond Proxies.In the past how have names like TRP, FTS, EME performed. The higher yielding names in my portfolio in the utilities space are T and AQN. Should I keep dripping them? I am not worried about the other sectors stocks with dividends just the utilities.Thank-you in advance! Sam

Q: Other than the year 2009, the chart on this company appears to grind up to the right. Would consider this stock to be a good candidate for long term income? It does appear to have a low trade volume, so would that indicate difficulty in selling the stock if you wanted to get out?

Q: Hi team,
Would it be considered to risky to dollar cost this stock or is the stock oversold and can be considered a value play looking about two years ahead?
Many thanks,
Jean