Investment Q&A

Q: Eric Nutall at Ninepoint keeps on saying he is buying heavy into energy space companies that are trading around 2.5 EV to Cashflow. Just wondering what some of the better names he’d be buying into may be. Any idea or suggestions?

Q: PLC and KXS - two stocks that you promote have fallen quite rapidly over the last while. This rally we have had over the last few days - they have not participated in. I am thinking of replacing them with stocks which have more upside potential - PIF is one of them with a 7% dividend. What are your thoughts on that? On another note - I was logging into one of the model portfolios and it asked me for a user ID and password which I have not come across before and I wasn't able to get in -- even though I put a user ID and password in, it didn't seem to allow me to go in. Thank you Dennis

Q: If you are focusing on yield (which I need to more, not getting any younger), approximately how much of an upward target would you have to adjust for a non Canadian yield player?

So to simplify, if I was targeting 4% yield canadian stocks what would I need to target yield on a non Canada equity roughly?

Thanks
Mark

Q: RE AXU

I have a small weighting in this Canadian silver stock and wonder what your opinion is on this stock for the next year.
Is it a buy/hold or sell?

Thanks

Q: I have been told there was/is a short report on SIS. My info comes from a very credible source. It might be dated but have you heard of it?

Q: Where would you put the money portion of your US and Canadian portfolio now?Thanks

Q: Am thinking of selling JNJ due to ongoing legal issues and replacing with either CVS or RTN. I have other health care exposure with ABT and BMY but nothing in defence sector. Thoughts?

Q: Good morning 5i,
I am tempted by cpd, as its price is pretty low and its dividend pretty high. As of yet, I don"t own any preferred shares and wondering whether they are really necessary for diversification. I notice, for instance, that you recommend a certain portion in my portfolio analytics. My dilemma, though, is that we are fairly close to the clawback point and I am a little afraid that more dividends would be detrimental. In fact, I have been putting non dividend US stocks in our non registered accounts for that reason. But, if I really needed the diversification ( and this might be a good time to buy preferred shares) I could probably re arrange things. So, the question is how necessary are they in an already well diversified portfolio
thanks

Q: Hi Peter and Team:
I hold 7% of my overall total portfolio in individual Preferred shares. 82% of that 7% is minimum rate resets. I am looking to make that 100% to ensure that I know the minimum dividend rate going forward upon reset. You have recommended PPL.PF.A in another question recently.
Couple questions:
1. Do you see anything wrong with this strategy overall?
2. Minimum rate resets tend to be in the oil and gas storage or utility. PPL, TRP, CPX, CU. My largest holding is PPL. They are rated P2 to P3L (if this means anything by the rating agencies). This means that I am basically ignoring the financial sector with regards to Preferred shares. Do you see any undue risk associated with the above mentioned companies and being weighted towards one industry classification within the context of preferred shares?
Thank you for your continued advice and knowledge.

Q: Hi team,
Your thoughts pls. on: AnywhereCommerce Files Patent Infringement Lawsuit Against Square

The lawsuit, filed in the California federal court (case number 3:19-cv-04311) on July 26, 2019, asserts the unauthorized use of patented technologies, which is prohibited by law, and is intended to protect AnywhereCommerce's significant investment in its innovative mPOS technology which is regarded and recognized as the de facto patent family relating to a variety of payment card reading apparatuses tethered to a smartphone or tablet.

The complaint asserts that Square has knowingly infringed these patents for years despite previously acknowledging the priority of these patents in various filings before the United States Patent Office and continues to willfully infringe these patents today. Among the patents at issue is U.S. Patent No. 8,281,998, issued on October 9, 2012, which is ironically cited as prior art in a patent later issued to Square founder Jack Dorsey.

Per Oliver Griffin, lead counsel for Kutak Rock representing AnywhereCommerce, "Square simply took that same technology for itself, becoming one of the largest and most famous companies in the world by falsely holding itself out as the originator of technology allowing the use of smartphones and tablets to accept credit card payments."

AnywhereCommerce approached Square in January in the hope that Square, "given all of its market share and business success, it might find it appropriate to compensate AnywhereCommerce for the use of AnywhereCommerce's technology on which Square's business was largely built."

Knowing about this lawsuit, do you think prudent to add to a position?
Thx!

Q: Greetings 5i

I continue to focus in on dividend producers that offer security as I enter retirement. At the present time in my TFSA I already have a 20% weighting in VBAL and 5% in XRE. I have another 5% to allocate which will be coming from my sale of BAD as I slowly transition to more security. Which do you suggest as the best alternative? Any other suggestions?

I know VBAL and XRE are very different in context and dividend payout so I need your insight. What I do know is that I’m having a great long ride with Shopify. For that I’m happy not to receive a dividend. Thanks 5i!

Peter

Q: What do you think of HOM.UN? how does it compare to interrent, minto and nvu, in terms of POR, debt ratio and projected growth?

Q: Hi , which one has a better reward/risk outcome ?which one would you pick today? thanks.

Q: I've been shopping at Costco for 20 years but never bought the stock, stupid me. Watching the news and seeing they have opened a store in China and the huge demand there. It appears Costco may have a long runway for growth in China and Internationally. With the run up in price lately, would you start a position now?

Q: With the huge drop in the last few months, do you think this is a better buy now for long term aggressive position?

Q: Hi- could I have your thoughts on results and if you would recommend
a full or half position on this pullback

Q: Peter could you give me your opion on this stock
Thanks Pat

Q: Hi - could I get your thoughts on ENPH?

Q: This year I have been watching Jim Cramer on CNBC/Mad Money and doing very well with his recommendations. Can you give m your thoughts on these 2 as well as ENPH?

Thanks as always for your Fantastic Service! Austin

Q: Never heard of EIT.UN until I saw question here the other day so I had a look at it. As well as looking at previous 5I questions and answers. What 5I doesn't like appears to be the fees and 20% weigthing in energy. Looking at it this is what I see.

1} Over the past five years trading between ten and thirteen dollars. Currently trading at the lower end. I assume because of oil and gas stocks being hammered. Though there is always the possiblity of going lower I have to think that sector is near bottom.... I have no representation in oil and gas so whatever percentage of " energy " they have in oil and gas as 20% of a 4% position in EIT.UN doesn't seem unreasonable.

2} If I were to insert EIT.UN in 5I's income portfolio I would in comparison classify it as lower risk, lower volatility, and higher yield than many in there. So assessing it from a risk point of view doesn't seem any more than other securities in there.

As a covered call ETF I realize up or down swings may be capped. But what I see is the bottom end of the trading range nearby { maybe nine bucks if things go for a tumble setting aside a 2008 2009 scenario where it was somewhere around 7 dollars } and the upside if lucky maybe twelve or thirteen dollars. That seems low risk for an 11.5% yield.....

Please comment on my reasoning ? I trust 5I's opinion way more than mine....Also what are the fees ? On their site they list three numbers ranging from 1% to 2.8%.... And would a 4% weighting be appropriate in a moderately conservative portfolio that is comfortable keeping the odd high yielder in there ?.......Thanks for your great work and advice.