Investment Q&A

Q: Hello,
The equity portion of our portfolio is 25% S&P ETF and 75% blue-chip Cdn dividend-paying stocks. We've used DRIP for a number of years, our reasoning being no fees to convert dividends into shares and to stay invested. Do you concur? My concern is both the book and market values include those shares purchased through DRIP...so it's not possible to distinguish between dividends and share prices. That would be very helpful to know. With such clarity, I'm supposing we would have ignored the advice to hold on in a couple of our holdings, eg CIX who's share price (exc dividends) relative to what we paid several years ago must be dismal. Your thoughts on that? Maybe you know how we can get such clarity, ie without stopping DRIP? Thanks.

Q: Is there a recent report on AltoGas ALA-t?

Q: As a result of the recent decline in the North American equity markets I would appreciate you advise the current % weighting of the various sectors of the TSE, S &P 500 and Your recommended % weighting of those sectors.
In regards to your recommended weighting of the energy sector what portion would you suggest should be in the energy producers and what portion in the energy infrastructure companies i.e Enb, Key, PPL
Thank you

Q: Hi I'm lost as to what happens here with my Redhat shares. Buy out at $190 but stock is at $170. What are my options? Will it go to 190?

Q: I am looking for the proper vehicle for the bond portion of my portfolio.
Would like to have 3% yield in short term ETF. Does rising rates mean existing bonds in an ETF will decline(and hence a lower ETF price)?
Can you suggest any appropriate bond ETF’s?
Derek

Q: PAT announced today a firm offering by CGC & others to purchase a large block of common shares along with warrants, etc. I currently own 20,000 shares of PAT which of course dropped nearly 14% this morning. However, I am still positive as I purchased at a much lower price. Would appreciate your expertise as to what position and or options I may have with respect to this transaction & in particular the Warrants. Thank you.

Q: What is your pick presently for the best managed company for the best price? Or put another way...Is there a well managed company on sale right now? I do not care if you base your choice on future growth or present valuation or something else but I would not mind a brief reason for the choice. I would like to add to my TFSA holding with new money but I would like to hold this pick for a while. Thank you for all your help. J

Q: As a big time fan of the site (just renewed my subscription) I have a convoluted question to ask.

Based on the advice that is promulgated from 5i, I have purchased the stocks from the balanced portfolio, amongst a few others from the growth folio. With regard to the stocks that I have listed, I took 5i’s advice and purchased piecemeal and as a result my average cost is lower than 5i initial purchase price. No complaint there. The question however that becomes inevitable, is, should there be a recommendation to sell, such as say, CLS, based on a $19 buy in recommendation at 5i as opposed to my 16 Ave cost, wilI the logic still hold? The same applies to the other stocks that I hold.

As a follow up, I note that the monthly portfolio data provides the current price and inception price. Can you explain why you do not adjust the cost price to reflect additional purchases after the initial purchase price, such as wef or wcp?

Thanks in advance, I recommend that anyone who subscribes to the service to renew! It’s a no brainer. And that’s after the October haircut!

Q: Can I have your opinion on this company

Q: If you needed to use your cash (i.e. $100K) in 3 years (October 2021), ignoring any other investments held in TFSA and RRSP, where would you invest this money that is currently held in a taxable account? The obvious answer would seem to be GICs, but would MFT or anything else fit the bill in trying to maximize return? Thanks.

Q: Peter and team:
Regardless of sector and weighting, what would be the top 5 companies from your balanced portfolio that you would add to with any spare cash available at this stage of the recent "pull back"?

Thanks

Phil

Q: Hi could you please explain why you think healthcare may be a good place to hide if markets stay week? And does this include biotech without revenue or are you referring top the larger drug companies with stable revenue?

Q: Any comments on this US company, they make windows. Love the name, have a very small holding and considering adding to it with the recent drop.

Q: Given a fixed income portfolio consisting of CBO (28%), VAB (28%), XIG (28%) & XHY (16%) do you think it is necessary / prudent to swap CBO for a floating rate product like HFR?

Q: Hi, based on current pricing do you know the current dividend yield of ACI or what it is expected to be and also has the company given any indication of expected payout ratio. Thanks.

Q: I am looking for a suggestion for my son's RESP for a reliable 3-4% rate of return as we are starting to withdraw funds.
Thanks very much for all your excellent advice!

Q: Hi Peter,
I observe that in your model porfolio you donot average down on a stock (may be i missed it). But if we have confidence in a stock and if the market is mispricing it should we not be adding more to get a better average (Buffett is and willing to buy more AAPL as it goes down). Lets say some one bought XYZ and it is down 50%, just in order to make it even the stock has to go 75% ( which requires a lot of patience). May be it is a personal decision whether to average down or not. However my opinion is that if 5i decides to average down we will get better guidance (and courage). I personally buy in portions (1/4) and try to keep my loss below 20%.
I have TSGI (-15%), TOY (-10%), NFI (-8%), DOL (-18%).
Thanks.

Q: Peter and His Wonder Team
I have owned this stock for a long time and of course am seriously in the red. I realize they had to close a mine because of flooding and production is down this quarter. Do they have any chance of a recovery or are they going to zero. It is so low now I am thinking I don't have much to lose by hanging on...in other words it is too late to sell. Your thoughts please! Thank you!

Q: It appears to me that major components of our economy are slowing. Specifically, vehicle sales, home starts and home sales all seem to have stalled or are stalling. Considering the outsized contributions these make to our economy, when coupled with a US - China trade war and increasing interest rates, why would one not sit on the sidelines during this market correction and/or go more into cash?

For example, people often complain about the effect of the price of oil on the economy, but the reality is that fuel and electrical production are ~ 10% of Canada's GDP whereas real estate, construction and related financials make up ~20% and automotive exports are the # 1 or 2 export from Canada.

I can't help but think that things are going to get worse before they get better...

Cam.

Q: Good morning 5i Team.

I'm primarily an income investor and I'm building positions in these three names. My target is BEP.UN (5%) AQN (3%) and RNW (2%) for a total of 10%. Do you think 10% is too high for the group? Is it necessary to diversify into all three? If not, which would you pass on?

Thanks
Peter