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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: "Asked by Jerry on March 25, 2021
5I RESEARCH ANSWER:
It is hard for us to comment on the specific strategy, as it does sound a bit like market timing if we understand it correctly (go to cash, CMR, then switch to financials/income, FIE). CMR is far less risky than FIE as CMR invests in money-market instruments. In turn, the yield is 0.24%. FIE has more equities, and in turn more risk, but also yields 6%. Due to the different risk profiles, it is hard to compare. If stability of the capital is less of a concern, and the income stream is more of a focus, we would be fine with FIE. But if stability of capital is the focus, CMR likely is the better choice. "

I just wanted to add a little comment to Jerry's question earlier on CMR. I used to hold CMR, but it hasn't paid a cash distribution since September 2020. So, aren't you taking the risk of holding without any benefit? (No return, no CDIC insurance, market risk. I sold my units because of this.)


Read Answer Asked by Wayne on March 26, 2021
Q: I kept waiting for the semi-conductor stocks to get cheaper and missed the big run. Has the sector not been cyclical historically? Do you think the sector is cooling off or entering a downturn, or is it time to step in? Qualcomm or Nvidia?
Read Answer Asked by Mike on March 26, 2021
Q: With the choice of adding to CAE(currently about 2% of equity portfolio) or purchasing a new position in AC which would you recommend and why? I recognize CAE may be less volatile in this market. Thank you .
Read Answer Asked by Elizabeth on March 26, 2021
Q: Peter et al:
I would appreciate your latest thoughts on teck.b:ca. Is it the b that I should be buying. Many times in your responses, in order to cement your answer you comment that share xyz was a larger dollar amount 10 years hence. Teck.b was $51.00 in Jan 2011. Today $ 22.00. Your detailed comments please.
Thanks,
BEN.
Read Answer Asked by BEN on March 26, 2021
Q: Hi ,
With wild swings up and down with high growth tech stocks, its my opinion that nothing has changed other than their markets caps and the price. In some cases they have even become cheaper then they were, EV/sales etc. I decided to hold on to my high growth stocks as the "underlying business" fundamentals have not changed. In some cases, they have even got better.
My portfolio is down roughly 40%, which i would consider quite normal during a pullback of this sorts.
Would you agree with my thinking ?
Thanks,
Read Answer Asked by ilie on March 26, 2021
Q: I know you have mentioned that you think BRP (DOO) is a good growth stock that you like. In looking at the results they just released today, I see an normalized earnings number for the quarter of $1.82, a 62.5% increase over last year. The guidance for 2021 shows an estimated normalized earnings of $7.62 (mid point of the range), which would be a 41% increase over the 2020 number. At roughly $102, the stock is trading at a p/e of only about 13.4 times this year's estimated earnings. That looks very cheap to me for a company with that high an earnings growth rate. Just wondering what your thoughts are on the quarter, and if you agree that the stock looks very cheap comparing the p/e to the growth rate. Trading at a similar p/e to GSY, with a comparable growth rate.
Read Answer Asked by Dan on March 26, 2021
Q: To whom it may concern.
I mostly hold stocks. My rules are as follows:
Rule 1) buy the best of the best stocks - never compromise.
Rule 2) always think of holding stocks forever.
Rule 3) if stocks trend down - turn off iPad - STOP looking hour to hour day to day. Do anything else that puts you in a positive mood.
Rule 4) stuff happens - don’t panic because it’s just noise. See rule 6 below.
Rule 5) always think of rule 1.
Rule 6) has my original thesis changed because I spent many hours / days of researching and following the stock. If it didn’t change shut off the computer.
Clayton
Read Answer Asked by Clayton on March 25, 2021
Q: As a follow-up to my question, for point #1, I just meant from more than one ETF company. It is my thought that spreading the risk of owning an ETF to more than one provider is prudent in these uncertain times. For example: One etf from ishares, one vanguard.
Read Answer Asked by Robbie on March 25, 2021
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