Investment Q&A

Q: Hi Peter & 5i Team,

I'm looking at the 3 month, 6 month and year-to-date charts of BIP.UN and BEP.UN compared to their peers (EMA and FTS). What would you attribute the reasons for their underperfmance? The 3 year chart for both of these Brookfield entities isn't exactly stellar as well.

As always, your comments and insights are highly valued.

Q: Hi, I have my own spreadsheet to split my portfolio by sectors. Where would you put Preferred shares? In the same sector as the issuer or in a special category? Cash/GIC, Mutual Funds and broad-sector ETFs have their own ‘columns’. Thanks again.

Q: Please help me out. One of the metrics I find very important is ROE or return on equity. When I look this up look this up on 5i’s site under profile I get an ROE of 128% however when I look at the April 25/24 report it shows 2%? The current Morningstar Quant Report shows 3.99%. So 1st. question is does 5i consider ROE to be an important metric?
Secondly how can I get an accurate measurement?
Thanks

Q: For past several weeks, International markets have been outperforming US markets. Europe, Emerging markets and Japan seem to be the standouts. Financials, particularly have done very well. MSCI Europe Financial Index is up 25% compared to -2.5% for XLF. Do you believe that this trend is not going away soon and it would make sense to diversify a portfolio with addition of European Equities ?

If so, would be your preferred route ?

What is your view on Banco Santander and ICICI Bank and whether these will be good options and serve as good proxies for these economies and markets ?

Thank You

Q: I'm considering shareholder yield as a factor for investing. Can I have your opinion of such a strategy and is there a favourable/preferred % when looking at companies? Finally, would you have 5 US and 5 TSX companies that you would choose when considering this approach? Dock me as many questions as you like and thanks!

Q: Good morning all,

Could you please provide your top 3 recommendations (in order - best to not so best) on gold; be it a major company or ETF.

Could you also provide top 3 junior gold plays you would recommend for capturing gold momentum, with potential to be absorbed by a major player in the space.

Thanks very much.

Dave

Q: After a "crack", and during a potentially persistent bear market, could you suggest some US and Canadian dividend ETFs ( whether standard, enhanced,or even cover call etfs if indicated ),that could maintain more stable revenues during uncertain economic periods ?

Q: For my retirement, I have income coming from several streams. Rental income from property, employment income from an eight-week/year position (that I enjoy immensely), and a small RRSP account that I plan to use to earn 8% per year average and take principal and interest for monthly payments, using it up completely over 9 years, pushing off OAS and CPP until I’m 70 years old, when these benefits have maxed in value and can replace the depleted RRSP funds. Recently, I have been researching high income, 25% leveraged ETFs (I asked a question about them a few days ago, but this question takes the concept a step further), and I had the thought that it might be possible to buy a few ETFs for the RRSP, replacing all equities, and earn an average yield of 13%, which would cover the monthly payments while not depleting capital. I realized the capital may be reduced at the end of the 9 years, but likely not gone as in the original scenario, so any leftover funds would be a bonus. This would also free up time from managing my portfolio the way I do now, giving me more time to enjoy my retirement. Do you see any big holes in my theory? I wondered, for example how variable the dividends can be year over year. If this seems like a solid plan, could you suggest a portfolio of ETF’s (would 5-6 suffice?) that would serve this concept? (Note-I do have other investments, but they are not part of my monthly income streams, more a rainy-day fund.) Thanks!

Q: I just learned that Rogers had a 2% discount (now cut) on DRIP shares.

Do you know of other companies that offer the same, or somewhere I can find a list of Canadian securities that provide a similar discount?

Thanks,

Q: Can you comment on class action announced yesterday against TFII. Serious? Implications?

Q: Moley Fool just posted the following comments on FLGT. I was wondering if you could comment on it and explain why you think it is or is not a good investment.

"Fulgent pivoted and became a provider of COVID tests, thus allowing it to load the balance sheet with cash. And while the COVID testing business has evaporated, that cash-heavy balance sheet remains.

There are two numbers that underlie Fulgent’s appearance in this BBN collection:

Current net cash/share = $27.70
Current stock price = $15.50
Yes, Fools, Fulgent currently sports an enterprise value of $(352) million or $(11.43) per share, and that is indicative of a company that is either (and potentially both) a fraud or burning through that cash pile at a rapid rate. We see no indication that Fulgent is a fraud, and we certainly don’t see any indication that the cash pile is in rapid decline. Heck, it’s barely in decline at all, with free cash flow of just $(19.2) million in 2024.

We’re running long here, and for more detail, I’ll point you to the recent forum post on the quarter and year that was. And to be clear, this is no Danaher. Fulgent definitely leans towards the speculative side of the industry. But my goodness, the business almost certainly isn’t worthless. Let alone the negative value the market has currently ascribed.

The glory days of the pandemic for this company aren’t likely to return any time soon, but even if it trades to its cash value, you’re looking at a pretty decent return from today’s price."

Many thanks

Scott

Q: Which silver miners have the best leverage to silver and please note your favorites.

Q: What is your opinion on TRZ360 Trez Capital Yield Trust US (Cad).
What do they do, risk level, performance, track record. Pros and Cons.
Thank you for your great service.

Q: hi 5i. sorry for the number of equities in this. you seem to like all (most?) of these companies. I have none of these in my portfolio, but have been trying to get in at lower prices. can you please rank as buy, sell, or hold. can you flag any that you have more concern with re the uncertain investing markets right now ie any to totally avoid? could you give a price point at which you would be buyers of the equities.
cheers and thanks, Chris

Q: If TRI overvalued at this point? What would be a good entry point?

Q: Hi 5I
I have no exposure to gold or metals, and thinking of purchasing some wpm. Would you consider still buying after its recent climb.
Thanks for all your great work and advice

Q: Greetings…I’ve taken a 10% haircut on this ETF held for healthcare exposure. I could book the loss, but if I replace with another healthcare ETF inside of 30 days in your experience does the CRA have a problem with that? Also, some of the other ETF’s on the TSX look like they have fared even worse. Any ideas? (Trying to avoid holding one or two US companies individually)

Q: Peter and His Wonder Team
I have been following this company for years and am wondering if this might be a good time to buy. I trust they will survive the HBC bankruptcy. In other words is this a reasonable contrarian play...your thoughts please. Thanks!

Q: Hi Peter and 5i Team,

It now seems certain that BCE will be forced to cut its dividend. Based on your experience, what is your "crystal-ball" prediction on the effect such a dividend cut would have on the share price?

Incidentally, as BCE shareholders in a RRIF, we recently voted against the CEO and every single board member. I suspect that the upcoming AGM will be a rather robust event, putting it mildly. For us, and so many other small retail investors, we had faith in this "dividend aristocrat" and "safe widows and orphans" stock. Thank goodness 5i always stresses diversification, but the almost 50% decline in SP for our BCE holding is hard to take.

Thanks in advance for answering this question, and for reading my "rant".

Q: I am 25 years old and have my TFSA and FHSA maxed out. I will likely buy a house in 1-3 years. Should I start contributing (and investing) any additional money in my RRSP or in a cash investment account? Which ETF should I invest in? Thanks!