Investment Q&A

Q: 5i Team,

I notice that you have IWO tagged as a financial stock in the growth portfolio, however, when I check the sector break down for it (here: https://www.ishares.com/us/products/239709/ishares-russell-2000-growth-etf), financials are only stated as 6%. The 4 major sectors (Info tech, Health Care, Industrials & Consumer Discretionary) make up 80% of the ETF.

Any specific reason for that classification in the growth portfolio? Should I be tagging IWO as a financial in my portfolio? Thanks.

Q: the Company seems cheap especially when you consider it holds approx. $600M of marketable securities (approx. 1/2 being BMO shares). When i factor this out of the market cap (value) of the company and then just look at the fund management business, this is valued at a very low value and does not seem to be given credit in the market cap. Am i missing something or is the business just not doing very well.

thanks Ken

Q: Taking a pessimistic view, if Nafta talks fail, and Trump abandons the agreement, then which Canadian based companies are likely to be hit hardest? i.e. can you provide a short list of companies that get very significant export revenue from the U.S. ?
Thanks,
Philip

Q: I note from the financial section of Financial Post that most of the 52 week highs are being posted by preferreds. I thought they were supposed to decline in periods of rising interest rates. Can you explasin why this trend?
Thanks

Q: In your model portfolios you hold 20-25 stocks. I am selling a home and expect to have about $750K to add to my existing $500K. I have always had a preference for keeping my holdings in a particular company smaller and thus having more diversity than that. In my new plan I would hold about 40 to 45 stocks. I am retired and a fairly conservative investor and focus on income but would add some growth in the new plan. Am I trying to diversify too much?

Q: TSGI's earnings are to be announced in about a month - I believe the estimate is .47 vs .42 same time last year. Any sense of what to expect ?
I will be trimming my TSGI position at some point and was considering putting those funds into GC. Do you feel a 10% total allocation between these 2 gambling stocks (roughly 5%/5%) is too much in an otherwise diversifed portfolio ? Thanks, as always.

Q: Peter,
RESP first needed in 3 years with ~equal amounts of BNS, GUD, OTEX, PHO & T;
with cash for 2 more positions. What would you add or change at this time ? Thank you.

Q: Hi, since the end of Sept. TD.PF.B price has risen by 5% & RY.PR.H by 7%. When purchased TD.PF.B interest rate was 3.8% & RY.PR.H was 3.9%. Their 5 year interest re-calculation date is 2019. During that same period ENB.PF.E price has risen by only 2.5%. At purchase ENB.PF.E interest rate was 4.4% & it’s 5 year interest re-calculation date is 2020. The present dividend yield of ENB.PF.E is 1% greater than the two bank preferred shares. My question is, do you have insight as to why the bank preferred shares have performed much better than the Enbridge preferred shares since the end of Sept. Thanks … Cal

Q: Is there a relatively simple and liquid way to invest in crypto currencies and not pay a big premium like GBTC. What is your outlook on this asset class. Looks like it is here to stay and going high. Which would you recommend. Thank you.

Q: I would like your opinion on possibility of NAFTA termination.
What would be impact on Canadian stocks?
What sectors and companies would be most impacted?
Could it trigger recession?

Thanks,
Milan

Q: I'm guessing 5i has a substantial number of clients now and I am wondering if that is a factor in issuing a sell recommendation on a stock when a major event happens? For example, would Peter have " done nothing " as a portfolio manager when SHOP was attacked as was instructed to 5i member's? In no way is the a question on integrity or a lack of respect, I'm a 5i member for life!

Q: I have some cash to deploy in my TFSA. I am looking for two or three growth companies with medium risk. What would you suggest?
Thanks so much for your very wise and thoughtful advice. You provide a wonderful service for which I am very grateful.

Q: On Oct 13 a question referred to a 'forever stock' with CNR being one pick, what are some of the others?

Q: Seems to me management has not done a very good job in providing shareholders with any comfort during the short attack. The only mention from media I've witnessed has been a name calling tweet and "wait till later" for explanation, have I missed anything? Even with the decline I'm still a very happy shareholder, buying more on the way up, letting run to a 9% position and thankfully selling down to a less than full position. Much credit goes to 5i for teaching me these skills, thank you!

Q: Boardwalk REIT constitutes about 13% of my TFSA and I am essentially breakeven on the stock having bought some at low prices in 2009 and more at a very high price in 2015. Your comments that it is a hold for dividends troubles me since although currently an excellent dividend I want either higher dividends or capital gains in the long term i.e. in 10 years or so. Do you see it continuing to tread water for 10 years or do you see a rebound in stock price or even higher dividends before then? Can you also provide a bit of an explanation for your answer. Much appreciated.

Q: Product: TD Split share Preferred (xtd.pr.a)

Hello 5i
Thanks for the excellent investment coverage.

I have been utilizing this structured pref share as part of stable income portion of Portfolio for many years. Receiving over 5% dividend yield with a stable stock price has been helpful.

With interest rates potentially movin up over the next few years, this fixed rate product will begin to look less attractive.

If by Dec 2019 (termination date) an investor would like to terminate the holding and receive cash for shares, do you see this transaction being as simple as checking a box and waiting for cash to arrive from Quadravest? Near term Price has been $10.06 but may possibly drop below the $10.00/ share if investors want higher yield.

Do you see any risks associated with being paid out the full $10.00/ Pref share ...... on or about Dec 2019?
Any comment on what this transaction would look like?

Thanks
Dave

Q: I have 17 YELLOW PAGES LIMITED WTS (Y.WT-C) in my portfolio.
I am wondering what they are and if I should keep them.
Thank you.
Serge

Q: The last question about TCS was in July. Since then the stock has been on a tear. I am thinking about swapping out GUD and DR for TCS - I know TCS is considered tech - but I am looking at it as a quasi healthcare pick. Thanks for your current views.

Q: You haven't been positive about this company but it has been quite some time since a question was asked and the stock has been on a tear in a hot space. Acknowledging its volatility, which is reflected in its valuation, can you give me any reasons to stay away?

Q: Hi 5i

Looking for some sustainable growth companies that may offer compounding return.

I have been looking at First Service Corp currently priced at 88.85Can.

What are your thoughts about FSV continuing to put up high growth numbers after doing it for two decades? I see by their investor information they have 5% market share; leaving significant share for growth.

Do the estimates you have indicate significant growth trajectory will continue?

Thanks
Dave