Investment Q&A

Q: Hi Peter & 5i team,
We sold Descartes for a profit when the covid 19 story broke. We are thinking of repurchasing . The global supply chain has suffered greatly during the pandemic, but we read that there has been a rebound of freight volumes in China. The CEO admits there are uncertainties and perhaps change ahead for supply chains. What are your thoughts. Is it a good time to get in or perhaps waiting a bit more is prudent.
Thanks for your opinion

Q: Assuming this pandemic continues into June or July, where do see the AC's stock price (ball park of course) by the end of the summer?
Will this knock out some of the competition and allow AC to "come back" stronger?
Thoughts on FCR.UN?

Q: Would appreciate your current thoughts on this company. Recently said their dividend is safe. Thanks

Q: Thoughts on how the emergence of electric vehicles, self driving and otherwise, will impact PKI and BYD. What providers of electric power in Toronto and Vancouver area will likely benefit from increased electricity demand? Thanks

Q: Hi, first I wanted to thank you for this amazing service, I am so glad I discovered 5i!
I recently sold my business and have 10+ years before retirement. I now want to deploy this cash to build my retirement portfolio, I don't need any income from this portfolio for 10 years.
I carefully reviewed your Balanced and Income portfolios. With much improved valuations for many stocks in these portfolios, what are your suggestions for 10 best (in terms of possible appreciation) individual stocks or ETFs for a non-registered portfolio. Either from your sample portfolios or not, US or CDN.
Thanks again!

Q: Similar to the question that the gentleman Guy asked from April 8th, is it the same for an RRSP to transfer in kind to a TFSA? Is it allowed?

Q: I am thinking of replacing PSI with TransAlta Renewables in my RRSP for dividend stability , moderate growth, and less risk. Your opinion is appreciated. Joe

Q: One of today's questions was about the impending rise of inflation after all this government printing of money and historical government debt. I like to look at history to see similar situations and the outcomes. We only need to look as far a Trudeau Senior to see the last time historical levels of debt were reached. As history shows its usually the next term(s) that has to deal with the repercussions of the spenders reign. So in 1981 under Clark (and then P.Trudeau again after that) inflation went over 10% and prime rate was increased to an all time record of 22.75% to try to bring down inflation. I'm sure everyone remembers either their parents or themselves having mortgages on their homes with rates in the high teens to mid 20% range. So my question is what will be different this time around? After Covid is over we will be sitting with the biggest deficit in Canada's history by miles, massive unemployment so a very slow recovery is likely (more stimulus likely needed). Were there any lessons learned around increasing interest rates to record levels to correct massive inflation or is that the likely path government will take again when this inevitably happens in the next few years? Thx

Q: Hello, my shares of UTX have just been converted into shares of CARR (14%), OTIS (22%) and RTX (64%) respectively. I do not want to have too many stocks in my portfolio, do you think it is ok to keep just one of these three companies? If yes, which one would you keep? Why? Thanks, Gervais

Q: ECN.PR.A will reset Dec. 31/21 at 5.44% over the yield on 5 yr Goverment of Canada bonds , but not less than 6.5%.
On a total return I’m down 14.7% given the current price of $14.40. The current yield is 11.25%. It makes up 7% of my portfolio.
I’m considering averaging down to 10% of my portfolio.
My thinking is that with the very low interest rates it will make more sense for the preferred to be redeemed, since they will be able to raise funds at a lower rate in the market. My second thought is that looking forward to 2021 interest rates could be on the rise. Third the preferred is trading a huge discount .
Is there any overriding reason not to do this I.e. value of underlying shares ECN Common???

Q: Any news to account to why Tecsys was halted today ?

Q: Hi 5i Team:

It is me again regarding the same problem that I did not receive your update or alerts in email that I used to receive. Because you usually your answer comes a day or two, now I have to login to view your answer.

There is a problem in this communication. Can you just send me an email to test it out?

Thank you.

L

Q: Would you switch BA to RTX (or another US company in the same sector) in light of what has happened to BA in the last while (MAX issues, dividend suspension, gov't bailout, etc), or just hang tough for now?

Q: While reviewing my exposure to gold, I was interested in knowing whether you would recommend holding one of the above or a combination?

Q: This is a kind of crystal ball question. I have had trouble getting through to BMO yesterday and today. When I finally got through, the agent told me that one of the reasons for the slowness is that everyone is trying to rig their accounts for option selling. I wonder if this is a signal that the end of options season is getting close. I have made quite a bit of money on options myself in the last couple of months and would like to keep it up. But, I have a nagging worry that although I might make some money on options, if an upturn comes , I may miss out on getting some good companies for the long term. I read an adviser recently, for instance, who predicted that we may not have as long to buy as we think. Things could be turning up in just a few weeks. From your experience, can you give any advice on how to look at this situation and best handle it? What signs to look for when things begin to turn, and how much time will there be to leave one strategy behind and jump on the other. I realise this is a bit like crystal ball gazing. Bu,t, you have more experience that I do in the markets and probably can foresee the future better than I can.
thanks

Q: Hello 5i team. Is this company a buy? Stock just plummeted from an all time high to an all time low in the space of a month. Yes, I know the sector is suffering big time, but Warren Buffet's words keep ringing in my head: “Be fearful when others are greedy and greedy when others are fearful." I just don't see this longstanding energy stalwart fading away, much less fossil fuels (eco crazies be damned). Your views would be greatly appreciated. Thanks as always for your knowledge and analysis. - Asher

Q: Hi there,
I have owned Sun life and Great west Life for years and have done very well on them. I am overweight financials. Your opinion please on selling Greatwest and buying Air Canada

Q: which gold stocks you will recommend?
Which is best APARTMENT REIT?
2 QUESTIONS.

Q: Peter, which Cdn or US Oil companies have their current and future production consistently hedged at higher prices ? Is there somewhere to see this ? Based on this would you recommend a 1/2 position in any ? Thanks.

Q: Not a Question, just some feedback on the strategy of tax loss selling.
I crystallized some losses 24 Mar to the tune of 33k (gasp)!
Due to these wild markets, those four stocks are now collectively up almost 10k at todays close (another gasp…did I blink?)!
However, the ETF that I purchased 24 Mar with the proceeds from the sale of those stocks, and will hold for (at least) 30 days, is also up more than 5k. Even though things have moved more quickly than we would have thought possible, I am happy with the way things have turned out so far:
After 30 days, I will have a tax loss of 33k that can be carried forward indefinitely which brings a good deal of flexibility to my planning (how many of us have resisted selling a stock in the past because we don't want to pay the capital gains tax?). I will also hold a credible ETF that pays a monthly dividend that I may chose to sell and repurchase the original stocks, or not.
Before repurchasing, I will probably ask 5i if it is a good time to get back into those four companies.
Thanks again for all of your good work
Publish if you wish