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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: In Jan 2015 I had 7.55% of my portfolio invested in Energy companies. BP (ADR), SU, CVE, Encana, and Total SA (ADR).

I watched these companies fall to all time lows earlier this year and now recently they are going back up again along with price of oil.

I plan on selling one or two positions in Energy and reallocate the funds into other sectors.

How would you rate the companies I have listed above and which would recommend selling.

Regards

Read Answer Asked by Stephane on July 07, 2016
Q: I've own WSP since 2014, though still sitting on a 10% gain, I'm frustrated by the poor results of the last year or so. If I choose to reduce this holding, I would like to pick up something in the renewable energy sector. The two candidates I have in mind are BLX and INE. Which one of these two, in your view, has the higher growth upside and the potential for sustainable increase in dividends? Or staying with WSP would be a better option than switching to either of these two?

Thanks.

Read Answer Asked by Victor on July 07, 2016
Q: RE below your answer still does NOT appear (even in your reprint and attempt to remedy this:

July 07, 2016 - Asked by M S

Q: Your answer to Oliver ( July 6) seems not to have printed. He was asking about his allocation to the 12? sectors.

5i Research Answer:
This is strange, so our IT team is checking what happened here. Here is the question and answer:

July 06, 2016 - Asked by olivier

Q: Hi,

I have a diversified portfolio consisting with the majority of my money being in etfs: XIU, XEI, VTI and VXUS

I use a spreadsheet to calculate my sector allocation.

At this present moment in the macroeconomic cycle, should I be equally weighted across the 12 sectors ?

If not, in which sectors should I be under and over weighted respectively ?
Read Answer Asked by Scot on July 07, 2016
Q: I realize these two companies are very different, but both have had a nice share price reduction recently (well, nice if you're a potential buyer!). Straight-up question: Which would you choose for a better TOTAL return over a 5 - 10 year time frame?
And do you see a material difference in net risk between the two over such a time frame? Thanks!
Read Answer Asked by James on July 07, 2016
Q: I have transitioned a substantial part of my own RRSP from mutual funds to individual stocks & other investments, with the help of 5i (thanks! Done quite well), over the past 3 years.

My wife is still reluctant to do the same, so we are transitioning her RRSP from mutual funds to ETF's, with only one purchased so far. The specific ETF our advisor put us in was BMO ZDV. At the time, I specifically wanted an ETF with lower exposure to the energy sector.

Unfortunately, we bought in at the August 2014 peak, and are underwater by 20%, even after distributions. Moreover, the distributions have been steadily dropping since we bought in.

Is it time to bail out of this ETF, and if so, what would you replace it with?

Thanks.
Read Answer Asked by Lotar on July 07, 2016
Q: Hello Peter,
I own sj, csu, esl, and gib.a. All of them are down more than 10%-15%. My weightings range from 2 to 4 percent. Is it best to just keep the weightings as they are for long term or reduce them. Much appreciated.Umed
Read Answer Asked by umedali on July 07, 2016
Q: I have recently received a notice that AX.DB.F is to be redeemed. One option is cash ($1000 per unit)and a second option is a share conversion. In the latter case, Artis is offering 64.5 common shares per $1000 unit. This is equivalent to a conversion price of $15.50 which is nearly two dollars above the present cost of an AX.UN share. Such a large gap doesn't seem right. Can you clarify? I believe this is a full redemption and I must choose one or the other of the options.
Read Answer Asked by richard on July 07, 2016
Q: I'm considering buying this stock on valuation basis and growth potential. In your answer to a question regarding this company, you also mentioned its 7x pe as cheap. But a principle of buying cyclical stock is when its pe is high compare to historical level because it maybe in trough earnings period. So how should we handle this conflict perspectives?

Many thanks!
Read Answer Asked by Dong Sheng on July 07, 2016
Q: I'm trying to understand SYZ. It's a fabulous company but little known. There is strong insider buying and the company is aggressively buying back shares. The share price has moved steadily from $6.60 to the $10.50 range. It isn't widely followed by the market. 5i has been the big supporter to date. My concern with the stock is that the upward movement in the share price appears to be directly due to the company buying back shares. If the company stops buying, what happens next? I guess the question is how does a small company get broader recognition and a wider following to push the price higher on pure market conditions? When the company isn't buying shares, the trading volume is usually very low.

thank you
Read Answer Asked on July 07, 2016
Q: I noticed that you sold igm in your model portfolio and made a comment about being glad not to be in the mutual fund business, as this month they are required to disclose all their fees. I notice that igm hasn't been doing well lately. I am kicking myself because i did not get out when you did. I know you don't have a crystal ball, but i was wondering what your feeling is about igm? Best to bail out now, as it may continue downwards or hang on for possible upside before selling. If i had sold when you did i would be fine. Now, i am a little down. C'est la vie, eh?
Thanks
Read Answer Asked by joseph on July 07, 2016
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