Investment Q&A

Q: Hi!
My question is around what to do with high growth, unprofitable technology companies that were once huge winners. If one has a small portion allocated to these companies, does it make sense to hold and one day things could turn and these stocks can gain again. There is so much talk to switch to value/cyclical/materials and that trade can last for a very long time. My guess is you favour diversification which I have, but of course wonder if these unprofitable tech names can go down another 50 percent and will they ever recover?? Which of the high growth unprofitable tech names would you be adding to or would you only add to profitable tech like Meta, Amazon, Google, etc...
Thank you!

Q: Given the increasing implied VOL in options, what are your favourite names in CAD and USD for covered call strategies?

Looking for stocks that you already like that have reasonably liquid options (I know harder in CAD) and you think have excellent bounce back potential and wouldn't mind owning for 2-3 years. Thanks

Q: Please list in order (first to last) your top five US cyclical stocks. If APPL isn't one of them, please explain why not. Thank you.

Q: please provide the current P/E ratios for these stocks please show the historic p/e high and historic low. please also show the current price to sales ratio of each company and the historic p/sales high and low also are the current p/e ratios based on trailing earnings or rather forecast future earnings thanks Richard

Q: What are there pros and cons of buying CDR’s on the NEO exchange ? Is it better to buy on the US exchange and accept the initial fees to move money to a US account ?

Q: Is there any downside to buying shares in single digit amounts when the share price is high? Example: Amazon at over $3000 per share.

Q: Hi 5i Team,

I would like to ask about the GOOG fractional shares traded on the NEO exchange.

Do you views these shares any differently than their underlying share?

How they would be treated in light of the upcoming split of the common shares?

Are these types of fractional shares subject to withholding taxes if held inside a TFSA?

Thanks for the great service!

Colin

Q: I’m trying to understand the core business proposition of Amazon as comments on earnings were how great its last quarter was. Their online retailing is very competitive and a valuable service. But not very lucrative.
The AWS part of their business is very profitable but it would seem that it’s an oligopoly at best and subject to possible margin reduction.
Do you have any thoughts on why it’s growth and margins going forward look so attractive?

Q: How would you rank these for adding to my TFSA today? They have all been beaten up, but are good stocks. Thanks as always!

Q: Hi Folks,

I am looking to add to my TFSA - AMZN and ATZ are the two stocks I am looking to buy. Is AMZN a company that you would put in your TFSA or would ATZ be a better choice?
Thanks

Q: Has Amazon’s online retail segment ever made a profit? Will it ever given its never-stopping investment into the future? If no prospect of profit, what’s the point of keeping on investing into the segment? Do you like its retail model - owning and selling goods? Isn’t Alibaba’s model better by only providing online retail space? Thanks. Liping

Q: Hello Peter,
Why is suncor not participating to the same degree as others in the sector with surging oil prices? Would i be better off moving to another name and if so, which is a better buy? Also, what do you think of Amazon's results? The stock has not done much if looking at one year timeframe.. Given the potential rise in rates, is it better not to take full position in Amazon? Thanks.

Q: Is there an etf that has google facebook apple and microsoft that trades on tsx in canadian funds.
T Steve

Q: For the 6 big techs listed above, could you please list in order of best to "least best", for a buy and forget 10-year hold. Can you also list the 6 from least risky to highest risk. If you were going concentrate on only 4, what would they be at this time?
Thanks!!

Q: Hello Peter,
On yahoo, i get a pe of 32 for shopify. Does this make sense ? What are the metrics one should use to evaluate good value for shopify? Given that there is competition for shopify, do you think the company deserve a full weighting of 5 percent? I am just concerned about what happened with black berry (RIM in early days) when apple and samsung came along.. can this happen to shopify as well as there is competition building.. Much appreciated

Q: I hold a share of Amazon stock and was wondering if it is time to sell or continue to hold.
It seems to have lost its momentum and the support it once had, seems to be getting lower.

Q: Hi, we are trying reduce our Technology exposure in US stocks. These are the companies held in our portfolio, in this sector, with weighting in descending order as follows: AAPL,MSFT,AMZN,MA,V,GOOG,PYPL,NVDA and ISRG.

How would you rank them, Today, based on the current valuation, growth prospects and risk ?

Also, should MA,V and PYPL be considered different than others ?

Thank You

Q: I have CCP corporation and would appreciate your recommendations for buy and forget stocks (moderate risk; 10-year hold). With such high dividend taxes in the CCPC, I would prefer stocks that pay a lower dividend or no dividend. Could you please recommend the 10 CAN and 5 US stock you would buy today, if you were starting this account?
Thanks for the great advise!!
Grant

Q: Re your response to John, January 17th, you answered "it's hard to beat a single great company that compounds year after year".
Could you please recommend 5 Canadian and 5 US companies that fit into said catagory that have declined recently due to the tech sell off, and represent a good buy/nibble point,
Please include a mix of larger e.g CSU and Google, along with more recent up and comers e.g. Shop and Roku, which seem to be among your most obvious favourites.
Thanks Peter.

Q: I get that there is money moving out of growth (tech) and into other areas of the market. However, all the mentioned names here have CAGR of > 25% amongst other great fundamentals (free cash flow, equity,...). So long as fundamentals don't change, I can't see any reason to sell - only to add to these names on this opportunity. So long as business grows (and >25% is huge!) all these should be winners in the long term, no?

I've experienced significant whiplash with most of these stocks but am optimistic that with a longer timeline I should be okay.

I'm hoping for two things in your response:
1. Giving me comfort that my thinking is correct and if I hold on I should be okay, and;
2. Of the list, the one stock you would add to today.

Thx for the comfort,

Cam.