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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: Hello 5i, if you had to choose 10 companies out of the USA or Canada for a 5 year hold what would you choose?

There is no need for additional comments, the money isn’t needed in 5 years that’s just a timeframe that should hopefully allow for success vs the virus and recovery economically and adapting to the changed world ( going cashless, online shopping, deliveries, remote work etc) Risk is not an issue and neither is sector diversification. thank you !
Read Answer Asked by Michael on March 27, 2020
Q: Hello 5i,
Could I have your thoughts on the above three companies in terms of outlook and dividend sustainability. Possibly rank them?
Thank you
Dave
Read Answer Asked by Dave on March 27, 2020
Q: Hi guys,

Thanks for your valuable advice.

I am trying to process the wild swings going on and the lagging advice coming out through business news channels. With the new upswing in the markets, everyone is now proposing what we should have bought (and could still do). This is frustrating as it was good advice a week ago, and things will surely change again.

While we all understand that there is no crystal ball, what do you feel are likely scenarios for markets as investors process central bank and legislator market stimulants?
It appears that investment strategy is now heavily influenced by what has dropped, in combination with highly likely to be supported by government as critical assets.
If you could suggest any further insight in future direction or departures from recent strategy, and whether you feel that the government interventions are likely to hold us at a V shaped market curve, that would be helpful.

Thanks,

Peter
Read Answer Asked by Peter on March 27, 2020
Q: This is not a question.. just a positive note if I may. A friend of mine...a pharmacist who also practices preventative medicine and advice...feels strongly that the coronavirus will mostly have run its course by May. We must improve our immune systems as much as possible..stay home ..stay positive.....sleep..lots of water...and healthy foods..and fresh air of course. China has already started to re surface as we all know. Hopefully this lifts some spirits just a bit. Post if you wish.
Read Answer Asked by El-ann on March 27, 2020
Q: hi Peter
what do you think about this company, SPOT, is it a sell, hold, why
if sell what company to replace it, thank you.
Read Answer Asked by selina on March 27, 2020
Q: I believe it in the last year or so has not been one of your favourites, however I have held GIB.A for a long time and it has been a stalwart; I (unfortunately) added a significant amount last year. In the last few weeks it has decreased a lot, more than many other tech names. I am still not sure why; any comment about that? I was attracted to the idea of harvesting a tax loss and migrating to another position (eg KXS) but since the drop in GIB.A has been much larger, does it have more potential upside than KXS which is not down as much? Thanks.
Read Answer Asked by Leonard on March 27, 2020
Q: I am hearing on news that few of Senior homes dosent have all the expertise how to deal with VIRUS . Can you please advise if SIS will benefit if baby boomers decides to stay at home instead of senior housing.
Do you think in future seniors will decide to stay at home instead of senior housing

Thanks for the great service
Read Answer Asked by Hector on March 27, 2020
Q: Hi 5I,

In your blog on markets specifically the S&P 500 you state: "If we go back to 1990, the average trailing P/E ratio for the S&P 500 is 19.9. Currently, the P/E ratio is 19.3. Over the last five years, the P/E ratio has averaged 21.5. Looking at forward P/E ratios, the S&P 500 has averaged 15.8 and is currently sitting at 17.6."

My question is what do see for earnings based on current market conditions ? If in the last recession in 2008-9 we saw earnings drop by 50% then how much more can this index drop? The low for the S&P 500 was approx 780 back then, and if makers the same assumptions then we could get to around 1500 to 1800.

Thanks,
Chris M.
Read Answer Asked by Christopher on March 27, 2020
Q: Ray.a did not participate in the last 3 great up days.Today closed@ $3.25 down 0.24 on big vol.of 440k(av.133k) with a 1yr low of $3.18. On Mar 23 increased NCIB to max 4.9m shares from 2.9m As at Mar 20,bought back 2.9m shs at av.price of $6.01. Between Mar 12 to 19 CEO bought 200k shs at av.$4.33 & Chair bought 251.7k @ av.$4.49(total shs held- 2.91m).At last Q div was increased by 7%,now the yield is 9.23% in part due to drop in price. Why the price keep dropping? Is it because of its business?. My p/p $9.10,now 1% position.Is it time to move on to some better stocks(if so,please give 2 names} or stay put. Please comment.Txs for u usual great services & advices.
Read Answer Asked by Peter on March 27, 2020
Q: Just a comment about your answer to Stephan's March 26 question regarding Genworth (MIC). You mention that Genworth's payout ratio was over 95% in 2019, but that was just because of all the special dividends they paid out. The company paid 5 (yes, 5) specials totalling almost $9.00/share between Jan 1, 2019 and Feb 29, 2020. The regular dividend is only 54 cents a quarter, or $2.16 annually, compared to 2019 net earnings of $4.92/share, so the regular dividend is very well covered, and I doubt you will be seeing any more specials for a while. Of course, the net income this year will likely be lower.
Read Answer Asked by Dan on March 27, 2020
Q: I hold a couple of Ford Credit Canada bonds with one issue maturing in 12 months and the second issue in 36 months. With today's downgrade I've taken a hit on the market value of the bonds, particularly the longer maturity. Is there a risk of default by Ford Credit on these bonds?
Read Answer Asked by Brian on March 26, 2020
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