Investment Q&A

Q: I had bought BPY for a number of reasons including the eventual return of mall traffic, the fact that it had room to run to get near to its pre-covid price, the dividend and then of course, having Brookfield management behind it. The closest replications I can find are Simon Property Group and SRU in the U.S. and Canada respectively. Can you speak about their payout ratio and management quality, and especially their main risks in the medium term. Thank-you.

Q: Your thoughts please about putting new money into JNJ. Also, a couple of preferred alternative suggestions if it isn’t your first choice.

Q: Hi, Happy New Year,
Could recommend your best Tech ETF

Q: I have full positions on those above. I want to add one more tech company. I am trying to buy only one within the sector and at the same time diversify their business. For 3/5 years I am thinking crowd, pltr or possibly pins. What are your thoughts and a short opinion? Thank you for all the excellent service.

Q: I am starting to rebalance my portfolio. Are you happy with the BE portfolio as it is? If not, what changes would you consider.

Also, who is Topicus?

Q: DWR and IP: Could I get your opinion on both of these small cap stocks? Thanks!

Q: Looking to add semi-conductors into my portfolio, as there is a shortage of product and high demand in the Automotive and Electronics industries. Interested in your perspective on Analog Devices, NXP Semi-Conductors, STMicrelectronics and Micron Technologies, as they have all had a great run, but still have high Buy ratings. If you think these have had a great run, and has some risk, what alternatives would you recommend. Thanks

Q: I have been looking for exposure in the hydrogen business and have a few questions. I own XBC based on your coverage and have done well so thank you. My first question is whether it makes sense to just pile into the US names like PLUG or FCEL as they are much more explosive given the audience or to look for quality names doing similar things in Canada. If you could also state your thoughts on why one market is better despite similar tech.

The second part of my question is that I notice DYA comes up alongside Ballard Power and Xebec in your answers related to hydrogen. The chart on DYA is almost an exact reverse of BLDP and XBC which holders of those stocks will know is a bad thing. What is DYA not doing yet (or has done wrong) that has caused it to go down vs. up? What needs to happen for it to catch investor attention? Is there a product or service yet to launch? Is there a technology not yet widely adopted? Lastly, does 5i see strong potential here for DYA to do "that thing" that will be a catalyst for the stock price or are you merely mentioning it as one in a sector.

Q: I currently hold both ZHY and XLB for exposure to bonds. I am looking to consolidate into one. Can you suggest which is better for a long term bond position?

Q: 3 grand children and 2 family RESP's. Ages 17 &12 in one RESP and 14 in the other. At present both RESP's invested in VBAL and I am concerned about the higher bond duration vs XSB. Therefore to keep this as simple as possible I am thinking of selling VBAL and putting the entire RESP's into XSB. I would then average into Veqt by reducing the XSB positions. I am still making annual contributions and am ok with the 2% XSB yield. Please give me your comments. Thanks guys.

Q: Hi,

Question from Penny on January 4th about the buyout. You said we need to advice our broker that we want to tender to the offer. This is also my first time holding a company that has been bought out.

Just to make it clear, when doing this the shares will be tendered at 15.22$ (purchase price from Goldman) or at market price of the day?

thank you

Q: Hi,
I am currently significantly underweighted in consumer cyclical sector. Can you suggest 2-3 names in U.S.? FTE names in U.S. and International would be great appreciated too. thanks.

Martin

Q: Annual mandatory RIF payouts will result in a negative RIF account balances which will incur high interest charges by the broker. Is this not a general
problem and how are interest charges avoided?

Q: The put I sold for REAL will expire below the strike price. Was wondering, when I'm assigned shares at $25 per unit, can I claim a tax loss if I transfer them to my TFSA in kind at the current price.

Q: Hi 5i team.
Re ZTL, this long term US Treasury Bonds ETF has been declining since May. With the blue sweep in the US, additional benefit spending to come, possible rate increase and inflation in a year or two, would you recommend to sell this ETF now? What needs to happen to see this ETF reverse the fall? Given the current world economic situation, what other bond etfs would be safer bet? (amount of interest income is not important) Thanks.

Q: I am looking to get some US exposure in my portfolio via an ETF. Both of these ETF’s have similar holdings. Can you please comment on which one you prefer and why.

Thank-you.

Q: Would you recommend a position in this company? If so, at what weighting? Would you consider this company a mini CSU?

Q: I want to increase my holding in Photon Control considerably. It has an amazing balance sheet and it seems cheap given technology valuations. However, can you help me understand Photon's market and customer base? For example, i read that Apple has begun creating their own semiconductors for optimal hardware/software synergy. Will Photon's clients eventually do this, too?

Best,
Jacob.

Q: Hello 5i Team

1 – Who decides on what Sector/Industry/Sub-Industry is assigned to a company?

Two companies for which the Sector/Industry/Sub-Industry changed were Altagas (ALA) which changed from Energy/Oil&Gas/Midstream to Utilities/Utilities-Regulated/Utilities-Natural Gas and Mullen Group (MTL) which changed from Energy/Oil&Gas/Oil&Gas Services to Industrial/Transportation/Trucking

2 – I have noticed different providers (TMX and RBC Direct Investing) appear to provide different Sector/Industry/Sub-Industry for the same company – is there not a standard that all data providers are to follow?

3 – TMX used to provide the “Sub-Industry” for companies, but with their revamp of their stock screener, they are no longer providing it. Does your data service provide this information and can it be added to your company information page?

Thank you for the great service you provide.

Q: Hi there,
I see I have quite a backlog of question credits so, I thought I should put some of that to work. I have a general question about rate reset bonds. I have been thinking about reset bonds in etf form if there is such a thing. This would be for using new money to start a small quarter of a position over the coming year. I am closing in on retirement within the next few years and would be interested in hearing your thoughts when compared to preferred shares or laddered bonds. Maybe resets are similar to taking a laddered bond etf - but I am not sure of the merits given the paltry income for bonds. My concern is this market cannot keep up this parabolic growth much longer and the market appears to be pretty frothy right now. As a survivor of the tech wreck, I am worried about what I see as a significant correction (up to 20%) within the next 24 months or so. I am not afraid of risk but I do want to explore a variety of hedging options out there without exiting some of my growth stock positions. Cake and eat it too I expect. I still have about 6 or 7 years in the market. Thanks as always for your thoughts.