Investment Q&A

Q: Please let me know if the following thesis is correct.
1. Interest Rate increases affect Utilities ( and they are likely to rise in the US )
2. Share prices of Cdn Utilities will likely be hit as US interest rates increase especially Enbridge and TRP which rely on massive loans for operations and expansion .
3. With this prospect , Enbridge sits in the model balanced portfolio because you feel it is one of the top utility companies, yet it ( and other pipelines ) will likely be taking a hit when these events occur .
4. I have a full position in this . Should I be be selling or keeping it through December .

Thanks

Q: Hello 5i
Thought I would ask Investor portfolio management and psychology/behaviour question.

As I watch my profits in companies like Emera drain away 2% per day ( down $5/share since August), I wonder what the statement to investors should be when the question comes up, why did we not get out seeing clearly this stock is in a down trend and with rates moving up, is going to be out of favour and see price declines?

Waiting for an annual dividend of $2 when in four months $5 of capital disappears, just does not make good math sense or a profitable stance.

In September this was a good investment. What are your thoughts on this today with debt high, rates moving and short sellers pointing at companies like this?

Should we not have been selling at $50 instead of holding at $45.....and watch the price tick lower?

As you can imagine, it is tough watching long term paper profits in REITs, Telcos and utilities drain away.

Would you please offer your thoughts on the emotions that arise in this situation and with the stated company and sectors?

Thanks
Dave

Q: what are you top five growth stocks. please rank them on risk reward level. thank you.

Q: When looking at BIP.UN an infrastructure stock, can you compare this stock to other infrastructure stocks like a stantec or wsp global. My feeling is that stocks like stantec are more directly involved in the infrastructure industry and will be more directly affected by the Canadian and USA infrastructure spending that are planned in the near future. Your feeling would be appreciated. Tnx.

Q: Any insight into the big sell off in Enercare shares. The results looked good and so did the outlook. The selloff is happening two days after results were declared so probably not based on the results.

Good to add at these levels ?

Q: Hi 5i,

L-o-v-e your service.

Question. I somehow ended up with 2 pipeline holdings in my TSFA. I still wish to stay in the sector. They are PPL and IIP and looking a a PERF chart, have very similar growth performance.

If I wanted to consolidate to one, which would you prefer (looking for long term growth + dividend).

Thanks !

Q: I have a small position in Emera. No other exposure to utilities. Just went over their Q3 earnings release. Negative current ratio, $14 billion dollars in debt, rising 10 yr bond yield, some free cash flow, but not sufficient to pay down the debt rapidly and net debt to total capitalization of close to 70%. Aside from the yield, I don't see many positives. Should I sell and move the funds into a more cyclical name?

Thanks,
Jason

Q: What are the impacts of higher or lower rubber prices in relation to Airboss? Thank you.

Q: I have held Disney for nearly two years and am down slightly. I am wondering if it is time to move on. Do you see it getting back to its highs of $120 any time soon?
I am looking at the sector rotations and thinking this could be a source of cash especially if you come out with your list of stocks to watch out. The market has been hardly cautious.

Q: Hi 5i Team,

My question is regarding the Balanced Equity and Income Portfolio. In light of the recent US election outcome, are you planning on making any significant changes to these portfolios in the near future? Would the election results cause any shift in company weightings to take advantage of sector strengths?

Thank you.
Francesco

Q: Hi. Savaria getting crushed today. Explanation?

Q: Is it a good/bad time to buy and hold this etf for the long term?

Q: Hi 5i,

Although not in your coverage I have watched NVDA frequently over the past year and not moved on it thinking there was a little too much hype, too early. The latest results are telling me the hype was actually underestimated by many. You always seem to be fairly positive on the future of VR, AI, and self-driving cars. Just wondering if you believe these latest results are a sign of good things and some sustainability in the future of their business?

Thanks,

Joe

Q: 5i,
From all of us who purchased Nvdia on your enthusiasm THANK YOU!
Now from a portfolio management perspective, with the stock up 114% year to date, and perhaps popping in the 20% range today, should investors take some off the table (as 5i did with some of its winners in the summer) perhaps to purchase more in the future. IT stocks are otherwise getting trimmed in market and the NASDAQ facing pressure. It looks as though the growth prospects for NVDA are good, but seem tied to TESLA. Stocks like Tesla may face pressure with a Trump presidency.

When last asked about weighting, 5i suggested 15% for Info. Tech (Sept 26), with the usual "weighting is a personal/situational decision". For the average 5i (model portfolio style investor) what would you suggest today for an info. tech weighting based on this evolving US investing environment?

thanks for the great service, kathleen

Q: Re: Jason question
I would very highly recommand the site "Masters in busines" from Bloomberg and scrolll down to the interview of Aswath Damodaran by Barry Ritholtz, on Valuation, data and investing. I consider this interview the most unbiaised and educating I never had the chance to hear on the difficulties of valuing companies.
IN HOPE THIS IS USEFUL
Claude

Q: Hi Peter,

Is there any information why PLI increase so dramatically in the last 2 days?

Q: Good morning, I need to increase my healthcare to 5%. Only holding now is GUD which is 1.7%. Considering going back into PLI and another name or what do you suggest? Have spare $US if that would be better.
Thanks for the continuing helpful advice..

Ted

Q: Bird is down 15% today. Can you identify any reasons for this?
Thank you,
Peter

Q: Hi, any comments on the secondary offering of 1,750,000 shares @ $11.34 buy Bourassa family. announced, today after market close. Discount to market price of 5%. They just excercised 500,000 warrants @ $4.25. The release said that they will continue to own 36.1% of Savaria's outstanding shares, which is reassuring but the largest shareholders/founders offloading shares may not be perceived by market favourably ? Thanks

Q: Why is the consensus for Q3 much lower than the last few Q's?

thanks