Investment Q&A

Q: Hello 5i Team,

I have held Sentry Select’s Fund NCE 1032 since 2008 and it is up considerably. On the other side I hold several energy stocks which are not doing well, among them Surge Energy. I have taken some losses in Surge but should have taken the entire loss months ago. I just put too much faith in Surge management. Lesson learned.

I understand that I can exit Sentry in 2015 without any redemption fee.

Would it be wise to sell Sentry and offset that capital gain with losses from Surge and other stocks? That would provide cash to invest in other stocks.

Thanks.....

Q: Looking to get some exposure to the US banking sector, one one hand everybody says that bac is a buy trading at less than book value. I also know that Benj Gallander has recommended func many times and he is very good at picking these small cap companies as long as your looking long term. What are your thoughts?

Q: Hi, Could you please provide your opinion on this stock? Thanks

Q: Hi Peter,

Can you offer 5 tips for portfolio construction in order to perform well in a rising interest rate environment?

Thanks.

Q: Am looking to take a position in the healthcare sector for my RRSP. Long term hold and a good safe yield is important. Your opinion on the following is appreciated.

ZUH
XHC
HHL.UN
GHC.UN

Is there another stock or investment vehicle you would prefer?

On another note, as a subscriber since Dec., I expected to benefit most from your opinions on individual stocks, but would say that it is your overall investment advice that I appreciate the most.
Thanks

Q: Hello Peter What your take on this deal I for one find it hard to understand The only thing I feel certain the stock is going to drop tomorrow ,
Stan

Q: Hi Folks:
DCF seems to be consolidating for a while. Would this be a good time to get in or is there more downside coming?

Q: Which company would you choose for a 3 to 5 year time horizon between sylogist and avigilon, disregarding sylogist's dividend, thanks

Q: I read this (i've excerpted) over the weekend. I expect you're familiar with the thesis, but I'm wondering what your take is on this for someone with little interest in researching and monitoring individual stocks, asset allocations, etc.
The One-Minute Portfolio consists of two exchange-traded funds (ETFs): the iShares S&P/TSX 60 Index Fund (XIU) and iShares Canadian Bond Index Fund (XBB). There is no requirement for hours of research to pick stocks or time markets. Only an annual rebalancing is needed….

Over the dozen years from 2003 to 2014, the One-Minute Portfolio’s average annual compound rate of return was 8.9 per cent on a total return basis. …

In the most basic form of the One-Minute Portfolio, an investor rebalances back to a fixed asset allocation, a common one being 60 per cent stocks and 40 per cent bonds. A slightly more advanced version, used in the published updates, allows the target asset allocation to vary according to the state of the stock market – as prescribed in Benjamin Graham’s investment book, The Intelligent Investor.

In general terms, the rule is: if stocks are getting frothy, their portfolio weight is cut. Conversely, if stocks are in a deep funk, their weight is raised.

from My OwnAdvisor

Q: I like the idea of international exposure but my preference is to hold Canadian listed companies. Can I get a list (maybe 5 to 10?) of 5i covered companies that have the best international or US exposure?

Thanks in advance!

Q: Can you comment on their latest earnings. thanks

Q: Hi, Im a medium risk. long term hold investor. Can you pick two names of the four provided, for the best balance of risk/growth for the next five years.

Q: Looking to make investments in these stocks for my grandchildren education. Funds will be required in 15 to 20 years. About 12K to start adding cash monthly. As time go by with additional funds increasing the investments to 10 stocks. Your thoughts on the stock selection ? If not agreement, any other recommendations,? Thanks for you great service.

Q: your comments on this utility holding and a better recommendation..thanks

Q: Do you have a favorite beaten up high risk stock? I'm looking to flip a loser for another loser (tax loss selling). Thank you!

Q: Hello, could we have your thoughts on the current valuation and prospects for Savaria. It is approaching 6 per cent of my portfolio which is pretty high for a company of this size I think. Thanks.

Q: Seriously thinking about taking a position in CSE. My goals are primarily income with potential for modest capital gains. Interested in your thoughts.

Q: Can you comment on Goldman Sachs downgrade of the stock today, and recent insider selling? Would this change your generally positive view of the company?


"We view Nvidia as a high-quality company with best-in-class technology and strong management. However, we believe the market has become complacent about the risk of Intel licensing revenue going away (with few sell-side analysts highlighting licensing in analyst day takeaways)," said Covello.

"Our SanDisk, Qualcomm and pharma case studies suggest stocks see 15%-60% multiple compression going into binary events where licensing/patents are in jeopardy. We believe the near-term catalyst to refocus investor attention on longer-term normalized EPS will be weakness in PC fundamentals (which Nvidia noted it is not seeing at its analyst day). We highlight that business tied to the broader PC ecosystem is 55% of EBIT today, with PC OEMs particularly at risk (15%-20% of EBIT ex. licensing)," continued the analyst.

"We could become more positive if Nvidia were to drive enough scale in new segments to offset the $264 mn in annual licensing profit, though we believe that auto & datacenter are becoming more competitive (and drive <10% of EBIT today)," he added.

Q: I'm most pleased with the mysterious research you guys are doing over there in Area 5i. You must have aliens from the future advising you.

You mentioned recently that the 5i membership is untested in a bear market. I wonder if a little preventive advice can be given while we're in an atmosphere of relative optimism.

You already have a few blog posts on sell-offs, corrections, and reasons to be bearish. But a post addressing an actual bear market lasting a few months or longer might help prepare people and retain subscribers.

Hopefully there's no hurry for such a blog post! The aliens you guys are hiding will let you know.

Q: Can you explain a little bit of the impact to the latest news from Boston Pizza? They are raising equity through a bought-deal.