Investment Q&A

Q: Please comment on GPV latest results and also why was there such a lengthy cease trade order?
Thanks
Rob

Q: In an answer to Bruce on Horizons enhanced ETF's your reply was " We are not fans of leveraged ETF's " ...... As these are nothing like the multiple times leverage products that are generally for day traders I wonder why ? According to their website their leverage is achieved through " borrowing " . As the market ultimately goes up in the long run I don't understand this.

Please explain it to me using the following fictional example ..... The year is 2008 and an ETF like this exists. It is purchased and suffers the crash of the banking system the following year in 2009.... It continues to be held and years later it suffers the covid crash ..... The year is now 2023 and the market is higher than the highs of 2008 and the recovery after the Covid crash...... Am I wrong in assuming the ETF price of one of these enhanced ETF's will be 1.25X the current value of the market and be considerably ahead of whatever my purchase price was in 2008 ? Please explain what is wrong with my reasoning ? ......{ I know there is something wrong with it. I just don't know what it is } ......

Q: Hello 5i team,
I have held the US stock of Brookfield Renewable Corp for a bit over 2 years. For that same time, BEPC has been on a steady but very slow decline (-23%).

Back when it was a REIT (BEP.UN.TO) I did very well.

In your opinion what are the prospects of this slow decline turning around? I wanted to add more because I still believe in the quality of the company (part of my utilities sector). Plus they have steadily increased their dividend ~5% every year since it's inception (July 2020).

Thank You,
Andrew

Q: I would like to dip my toe into the AI waters using an ETF several of which you have mentioned. Unfortunately they are all on the NYSE.Am I wrong, as a Canadian, in avoiding the NYSE for fear of endless red tape and possible US taxes? I assume that there are no AI ETFs on the TSX or you would have mentioned them, I may have missed them.Thanks in advance and for all your great work.Rick

Q: good morning,

I'm overweight communications services, own BCE,T,DIS and GOOG. Telecoms are for dividends disney for a recovery if and when Iger sells TV and streaming business. Not selling GOOG which is more hybrid .If I where to trim telecoms where can i find a similar dividend stream.
Also is there any way to split google in portfolio analytics between technology and comm services. What are the percentages?

Thanks (gratefully)

Plenty of credits left

Q: I sense some ambivalence in your regard for NTR. I have an existing position in NTR, well above break even and am thinking this might be a good time to bulk up. Wait or buy? thanks

Q: What are your top 3 growth orientated small caps that trade on the Canadian market today?

Thank you.

Q: Tencent Holdings Ltd OTCM: TCEHY

Should I buy this company for the game industry or would you recommend something else?

Thank you.

Q: Stock was down almost 10% after earning release. Could you please comment on earning and its future for the next 2-3 years. Thanks

Q: have you changed your views on IVX

Q: Good morning,

A follow-up question to Angus’ question from yesterday about the P/E and PEG of these three companies…

As I understand the PEG ratio, a PEG under 1 suggests the stock is undervalued for its expected level of growth and over 1 suggests overvalued. So would you interpret these three PEG ratios that WSP is currently overvalued? If you were adding to these three, all other things being equal, would you be least likely to add to WSP, adding to the other two first as they have a a better current value?

Thank you for your insights in these early learning days of my investing journey…

Doris

Q: I hold EQB in my income portion of the total portfolio. Where as 5iR allocates EQB to the Growth Portfolio which I don't have as a portion of my total portfolio. After reading the recent flash report of EQB, I'm inclined to now hold it in my Balance portion of the total portfolio. What do say you about this EQB transfer in my portfolio portions??? Also, I hold TRI that is now in the income portfolio. What do you say about transferring it to the Balance portion of the overall portfolio??? Thanks for the guidance......as I like to hold 20% in Income, 40% in Balance that is all Cdn and 40% in US stocks with more of a stronger tilt to growth that includes technology and healthcare........Tom 

Q: Do you know of any free resources where I can easily check a companies outstanding share count over time?

Thank you!

Q: Q: Thinking about a covered call strategy for a swap from proceeds from cig447 which is currently 21% of portfolio for monthly retirement income.I am considering 25% to ZWP,25% to ZWU, 25% to ZWB, 12.5% to GLCC, and 12.5% to FRU. Decent swap, hold, or other for a 7% monthly payment with less return of capital? Thanks Larry

Q: Would you be able to tell me the adjusted cost base of the shares when the dividend from Constellation Software was declared?

Thanks for your great service!!

Q: If I understand what I have been reading in your comments is that small caps in general are down but have good potential if the economy gets back on track. What would be your favourite Canadian traded ETF to capture a small-cap rebound in Canada and your favourite that trades in the US?

Q: hello 5i:
in a recent reply to a question on ATS, you said earnings for March 2023 were $1.62. But, here's a copy and paste from the corporate website:
Adjusted basic earnings per share1 increased 3.0% year over year to $2.37.
Can you clear up the discrepancy please?
And, with estimates of '24 being 2.68 to 2.69, this would give a much slower growth rate than you're projecting (13.5% yoy)
thanks
Paul L

Q: Thoughts on FITB quarter. Do you like this stock for income and growth for a 3 year hold? Is it a possible takeover candidate for the bigger banks?
Thanks

Q: Hi 5i,

I see in a recent Canadian Press article that Canada will need to build more green electricity generation and transmission to support the future net-zero emissions economy.

Are there any companies in 1). generation (nothing nuclear please) or 2). transmission related to this that would be good investments?

We already own most of the green utilities such as BEP, AQN, INE, BLX, NPI, NEE as well as other non-utilities such as HPS-A, PWR, ENPH.

Also, with regards to others countries also moving towards electrification, are there other companies outside of Canada that you would recommend?

Thank you 5i!

Q: I manage part of my portfolio and RBC DS manages the other part, but they need to clear any buys/sells through me. Yesterday they called to suggest I move to a fully managed portfolio, suggesting it could do better when they don't have to call me for each trade, and possibly lose valuable time. They said it would mean disposing of what I now own to bring it into alignment with their managed portfolio, which holds the same positions for all of their managed portfolios, and in this way they can buy/sell with one push of a button. They said the cost would be the same 1,75% that I pay now. Making such a move would have a big tax consequence for me as I've been with them since 1999, and there are some fairly large gains. I realize that I could make the move over two calendar years, but that aside, I have to wonder what I'd be paying for, it seems like the personal service would no longer be there, and they would collect the 1.75% from everyone for making one decision for everyone in the managed portfolio. And, would this be a managed portfolio over the larger RBC DS, (watering down the service further) or just their office. Because you have managed portfolios in the past, please let me know the pros and cons of making such a move. Thanks!