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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: This is something I would rather discuss rather than post, but thats not doable.

So here goes. I've been a subscriber almost since your beginnings and more or less understand how you operate and the type of investments you would reccommend in your portfolios.

There is something that really puzzles me, especially given your experience, and know how.

Take SHOP as an example. About 5 months ago it hit a high of $2230. Today it is $595.

In between the highs and the low you have waxed eloquently about the market conditions and risks involved in the Q&A section, almost on a daily basis. You've talked about increasing rates, the aggressive fed, how high value stocks react very poorly to these conditions etc etc.

In the balanced portfolio it was purchased at approx $1200 and so it has gone from a 100% gainer to a 50% loser.

To me that is a very very large opportunity loss.

My question to you guys is this.

Given client sentiment and emotional well being (given people hate to lose more than they enjoy winning) why does 5i not adopt a strategy to prevent this from happening.

For instance, a widely adopted strategy that once a position doubles half is sold to ensure that there are no losses on the position. That would make a lot of people very happy.

OR, I know you resist this, but using LIVE trailing stop loss orders. Imagine if 5i adopted a trailing stop loss order, where there is no emotional involvement, just a limit to how much you allow the stock to retreat before selling it. Imagine if there had been a 20% TSL on SHOP. And you know what, if we are stopped out then 5i can reccomend in one of its monthly updates a repurchase if they deem it ok. How much can you miss out if you are out of a position a month or less?

Most would certainly say darn, we missed a few points, rather than saying darn, what am I going to do now?

I do subscribe to other services that have perfected these techniques and they can work very favorably , especially in horrific markets like we are experiencing now. For most subscribers it can certainly give Peace of Mind.

Food for thought

Sheldon
Read Answer Asked by Sheldon on April 25, 2022
Q: In this article, the author favours the BEP Preferreds instead of the common shares. Would you agree?.....

https://seekingalpha.com/article/4503184-brookfield-renewable-sell-common-buy-preferred-shares?mailingid=27474894&messageid=dividend_ideas&serial=27474894.25362&utm_campaign=Dividend%2BIdeas%2BLaunch%2B2022-04-24&utm_content=dividend_ideas_control&utm_medium=email&utm_source=seeking_alpha&utm_term=Dividend%2B%26%2BIncome%2BSmart%2BList

Read Answer Asked by James on April 25, 2022
Q: When I reviewed my T3s I found one that CRA had but which I had not received through my discount broker. According to the CRA copy of the T3 I received a capital gain on a fund (Ninepoint Energy). I had not sold any. When I searched 'Activities' for this fund on my broker's website I found the matching amount but it was listed as dividends. Does that just mean that it was a distribution of capital gains ($x/unit held) in the form of a dividend, but not an eligible div?

If this hadn't appeared on the CRA site I would not have known to claim it - I didn't received this form with the any others which the broker did send to me. (Common?)

Thanks,
Read Answer Asked by Peter on April 25, 2022
Q: An information circular I am reading says that shareholders will be asked to approve the creation of two new classes of shares, both Preferreds and that these shares will not be listed on the TSX (but will be subject to approval of the TSX).

How common is this, and how do they trade (how is value determined)?
Read Answer Asked by Peter on April 25, 2022
Q: In Peter Hodson's recent article "Five ways inflation impacts investments and what can be done" he says 'And some sectors, like materials and energy can significantly benefit from inflation'. My question is: does he think all the energy sector stocks will continue to do well in the environment we find ourselves in?
Read Answer Asked by Jennifer on April 25, 2022
Q: Which of goog or googl would you recommend purchasing for a cash account? Also jpm or bac. Also would you consider Microsoft as a reasonably priced stock for purchase now as well.
Ed in Montreal
Read Answer Asked by ed on April 25, 2022
Q: When the price of oil tanked, a few fund managers pounded the table. Now that tech is sputtering significantly, do you see multiples of today's prices in the next 18 months?
Specifically, Nvidia, Lightspeed, Topics, Shopify, Google, Facebook, Apple, Amazon, etc.
Is now the time or once the gut-wrenching war subsides or would you stay away?
Thanks.
Read Answer Asked by Steven on April 25, 2022
Q: Hello 5i,
I am a value invester with a mix of equities and ETF's. I have done well with VGT and am up $8,000. As I look for dividends I am looking to sell VGT and buy ZWT. Also exchanging XHYy for ZWH, XTR for ZWC and VE for ZWE. Some are underwater but not by much. $75,000 is involved altogether with these exchanges. Do these changes make sense or should I just leave things as they are. The difference in dividends is nice to have (an extra $300 or more a month) but not really needed.
Stanley
Read Answer Asked by STANLEY on April 25, 2022
Q: Can you please list the earnings announcement dates on these stocks and if it before or after hours..


Many thanks


Sheldon
Read Answer Asked by Sheldon on April 25, 2022
Q: Hi Folks,
I am in the process of tweaking my portfolios in case we have a recession or we go into a bear market. I am thinking of selling CTC.A MCD and WSP and buying COST, DOL, L and adding to ATD. Your opinion is greatly appreciated.
Thanks
Read Answer Asked by JOHN on April 25, 2022
Q: Hi Team

I have a question regarding 2 companies, thnk is trading at multi tear lows, it started as a qt and I am sceptic of these types, imho, insiders get a ton of cheap shares when they bring it to market. The other one is byl, they are both part of the e-commerce of things and there has been a lot of hype in these companies in the last couple of years, kinda like the latest greatest.......both have been picks on bnn a couple of times by one of their guests, every time he picks then the stocks jump on high volume and then settle down a few days latter. What do you think of these 2, worth a crap shoot.
Thanks for your research
Auftar
Read Answer Asked by auftar on April 23, 2022
Q: Could I get your favourite enhanced income etfs for a registered and non registered account
Read Answer Asked by Terry on April 23, 2022
Q: Dear 5i,
I just renewed my annual membership. I have been a happy member since you launched your service. I just wanted to email my gratitude for providing timely and unbiased objective information. I am a basic subscriber but I like the other options you provide and the continual improvements. Thanks and stay well!
Read Answer Asked by Ian on April 23, 2022
Q: I have been following KUT for some time and am wondering if now is the time to pull the trigger and buy some for my small cap portfolio. Yesterday's results appear very good to me - EBIDTA up 55% and Revenues up 42% YOY (52% constant currency).....how do these results compare to expectations and any reason you can see for the weakness (albeit on very small volume) after the Q announcement?

Could you also comment on TCL.A's continued weakness and if it is worth holding in my income portfolio. The dividend is nice and I don't mind holding if its safe and there is a reasonable expectation that the stock will be higher in 3-5 years.

Thanks for the support and all the great insights over the years

Scott
Read Answer Asked by Scott on April 22, 2022
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