Investment Q&A

Q: Greetings, guys.

I have Winpak and Loblaws. I like both names because Loblaws is trading at a roughly 15 p/e and Winpak has no debt and a large cash position. However, eps growth in 2018 is fairly muted in both names.

All things being equal, I was wondering, would you sell Loblaw for WSP Global and Winpak for Cae? I have a small loss on Loblaw in a tax free account and I have a 10% gain on Winpak in a taxable account.

Do you think these changes improve the growth profile of my portfolio, without increasing the volatility? I appreciate your thoughts.

Q: Hi 5i Team:
I've held L for the better part of 3 years now. It seems range bound between $60 - $70. Sometimes going over $70 and then having a pullback. With Amazon entering/disrupting the grocery business. I would like your opinion if you think switching Loblaw's for Premium Brands would be appropriate. Same sector, same dividend and PBH probably better growth and dividend prospects.

Q: Given CAE's financials in recent quarters, and given EBITA predictions to year end, and given its good growth potential from its SE Asia acquisition, what do you see for this stock in the next year or two?

Q: According to the press release of 24 August as of today DIV is exempt from the reporting requirements under section 501 of the TSX company manual. This section requires companies to report all proposed material changes of the company's business or affairs promptly to the TSX. If I am reading this right isn't this unusual?

Q: I am slowly building the BE portfolio in my RRSP as funds become available. For instant diversification, would it make sense to own 20-30% ZDV for access to bigger names like BNS, ENB, MG, T, MX, CGX and SLF? Basically Financials, Energy and Utilities would be covered. I could then concentrate on adding the smaller names like SIS, PBH, GUD, ENGH, TOY for the remainder of the portfolio? Would it defeat the essence of the BE portfolio? Any other ETF would be better? Thanks!

Q: If I would try to copy your INCOME PORTFOLIO today, which stocks etc. would you leave out?
Thanks for your reply,
Baldur

Q: John Mauldin wrote a piece this weekend on how to avoid large draw downs in equity investments. He advises to buy and stay invested when a security is above its 200 simple MDA and sell when the security falls below its 200 MDA. I may get whip sawed sometimes, but I will avoid the large draw downs. I am 70 and I don't like losing capital. 50% of my RRIF is a dividend portfolio set up to cover my required minimum withdrawals for the first 5 years. If you agree with the opening strategy would you also agree it could possibly not apply to the RRIF. I am very interested in what you think about this strategy.

Q: Greetings 5i,

I currently hold positions (slightly more than a half position each) in both TD and BNS (TD for their American exposure and BNS for their international exposure). In your opinion, is it necessary to own two Canadian banks? Do they complement each other well, or is there too much redundancy? If the latter, would you recommend one over the other?

I have a long term horizon (I am 35), am fairly conservative, and prefer long-term holds. In the Canadian financial sector, I also hold SLF and BAM.A.

Thank you.

Q: Dear 5i
I look at the chart of the TSX and see that its been trending downward over the last 6 months or so while the S&P and DOW have been trending upwards over the same time period . My thought is that it might be a good time to invest in the TSX now as that downward trend is most likely to start to reverse upward and not invest in the DOW or S&P as that trend is likely to reverse downward . On the other hand 5i generally advocates investing into strength meaning investing the opposite to what i`m suggesting . The other thought of course is to invest equally amongst them all so diversified across the board . I know predicting the market is impossible but i still like to invest to some degree on probabilities .
Appreciate your thoughts .
Thanks
Bill C.

Q: What Cdn oil company would you purchase strictly for growth that would benefit the most if and when oil turns around? Thanks

Q: Can you comment on the Aimia and Diversified deal?

Thanks

Q: to invest in Emerging mkts, what is difference between VEE and VWO and which would you prefer? Or could you name 2 or 3 EM stocks that you prefer instead. thx. Helen

Q: Can I have your opinion and comparisons on these 3 international ETF for a long term core holding, to compliment VIG in an RRSP, which is best and why. No international exposure at the moment. I understand that XEF and ZEA both track the same index however I'm not sure why XEF would hold its own ETF for a 7% holding.

Q: Hello Team, what impact would an ~1 trillion US$ infrastructure program have on ITP, assuming the new President gets a big infrastructure plan passed by Congress?

Q: I've recently read that FAANG stocks should be avoided because they make up a large portion of the Dow Jones Industrial Index and the S&P 500 Index, meaning every ETF owns them. What you usually end up
with is a reversion to the mean. The more shares that must be bought with each investor purchase of an index fund, the more the performance tends to follow an “average” return. I would appreciate your thoughts on this statement, thank you.

Q: Re: Aug.25/17 comment from Bob on SIS big volume. This is where Technical Analysis/Stock Charts may play a role looking forward & backward combining the fundamentals. The stock has corrected roughly 30% from a high of 17.55 to its current low of 12.04. Simple charting platforms such as Moving Averages-Bollinger Bands-Relative Strength Index-MACD might of helped to find a bottom & choose an entry point.Could you tell us the size of the block trade & the price.
This could tell you where institutions are prepared to take a stand. The stock looks somewhat clean now & may return to its upward momentum. Regards: Ken

Q: I want to re-balance my portfolio across sectors but I found that a few holdings can fit more than one sector for all practical purposes.

CCL.B is classified as materials, but can we also consider it as consumer goods given its labeling and container products directly serve the retail market? If so would that be c. cyclical or non-cyclical?

MG is classified as c. cyclical, but can we also consider it as industrial?

I have a hard time with FSV which is classified as financial, but to me consumer non-cyclical (recurrent residential residential/condo maintenance fees, property services) is a better fit.

Finally, how about MDA? Can it be considered either technology or telecommunications?

Thank you for validating the above, it will be useful to explore my options.

Q: SCL or BAD - Which is a better buy ? Thank you

Q: Hi Peter and Team,
I am holding two gold stocks, AEM and KL, and thinking to buy one silver stock.

In the past you did like FVI Funtuna Silver, do you still like it, or would you prefer WPM
Wheaton Precious Metal Group instead?

Thanks for your advice.

Q: Mr. Hodson, this is still about GUD. Considering your recent report, the rating of A- granted, its recent value of $8.31, I hope it goes well, which is not the case currently. Do you still have confidence in it ?