Investment Q&A

Q: Best of the Season to All at 5i
Is 5i planning to do report on Shopify? If so, I was wondering if you could address the following: Shopify now has a market cap in excess of $5B. It has negative earnings, and is not expected to make a profit in 2017. Its estimated revenues in 2017, according to Morningstar are approx $0.55B
To put this in perspective, Linamar has a market cap of $3.8B. It made $350M of free cash flow in 2015 and will increase that in 2016. This is AFTER some $375M of capital investment is subtracted from earnings. I realize they are in entirely different industries, but if I could magically own one company or the other outright today, I would choose LNR in a heartbeat.
The market is always right I suppose, and you have a 100% gain on SHOP in your growth portfolio. But at what point does the reality of fundamentals come into play?
I recall years ago when Ballard Power had a higher market cap than Loblaws. That happened.
P.S. Yes, I do have a case of sour grapes because I did not heed your advice and buy SHOP when you recommended it!
Cheers
John

Q: Hello! I have received a decent sized amount of gifted funds (decent sized relative to my existing portfolio). I plan to spread it across my holdings which are almost entirely made up of the BE Portfolio. I know that usually January can be volatile. Would you 1) hold onto the gifted amount in cash for now and deploy later when the markets calm (February for example), 2) deploy now, knowing January can be volatile? Or if there is a better method you would recommend? Thanks!!

Q: I was given these recently as possible gold stock investments, I would only be investing a small amount into one or more of them and was wondering what you might be able to tell me about them. Also what are your views on what gold may do over the next year or two.

Q: I am looking to make an investment in a company that produces rare earth metals. What would you consider the best TSX listed companies in this sector. Do you think any potential trade conflict between Trump and China could have an effect on the rare earth metals market. Thanks

Q: Hi team, I've owned 1000 shares of PDN from 2007, my break even cost is 1.95 if I buy 4000 more today it would drop to .44 cents. I would do this only with the hope of a takeover, firstly, would this be possible considering its debt. I know you are not big fans of this, but what are your thoughts it's .04% of my portfolio. Thanks, and all the best for the New Year, Nick

Q: Good day Peter, Ryan, and team,

Would you consider CWX a good investment at the current price level for a 1-3 year or longer term hold? Also, how safe is the dividend, which is pretty high at the moment?

Season's Greetings

Q: VALE....this company is not coming up in the drop down.

Thoughts on this miner for 5+ year hold? What is current FCF, FPE and book value? What is the expected FCF and earnings growth? I currently have 2% materials weighting in my portfolio.

Q: Please comment on Gatekeepers 2016 results, thier prospects for 2017 and your overall view of the company, sector and management team.
Happy New Year to all!!

Q: Mr. Hodson, what about this new CSU business in Japan ?

Q: When I hear money managers,people calling into business shows........ and they use the phrase " time to take profit" would that mean to sell part or all of the position?

For example I have a diversified portfolio to produce income. About 7% in BMO with its recent run up and appears to be peaking, so if BMO continues to drift down would one sell it all and wait for the down trend to stop then buy back the same amount of shares at this lower price? Or sell enough to reduce weighting to 4-5 %?

Thanks in advance and for the great service.

Q: Since income trusts are taxed as income (highest tax rate), would it be a good strategy to hold them in a TFSA? and is there an ETF for income trusts?

Q: They recently sold their Canadian holdings for around 1 billion. It's come down from 52-week and all time highs due to some anticipating that the Mexico assets would be taxed upon import into the US.

Is this company a good hold for the moment?

Q: OF THE 2 HEALTH STOCK WHICH ONE DO YOU PREFER AND WHY ?THANKS.EBRAHIM

Q: Greetings 5i,

Your thoughts on Superior Plus Corp.

Thank You and all the best in the New Year!

Q: TOY continues to get hammered. Do you not think all the negatives over problems related to their big hit for Christmas will do lasting damage? Isn't their reputation on the line? Will retail stores still be eager to stock their products after all the trouble they have seen with their quality control?

Q: What is your opinion on Cannabis in Canada these are a few of them.

Q: Hello 5i:
Banks make up 23.5% of my portfolios - TD 18.5% and BAC 5.0%. I have substantial gains as purchases were made during financial crisis. Should I lighten up? If so should I reduce my TD holdings to half or any other suggestions?
Thanks for your great advice throughout the years
Tom

Q: I have been researching a small cap start up, Greenspace Brands Inc, following a recommendation on BNN, it looks promising. I estimate that sales have to grow by 50% to generate positive cash flow and double that to become profitable. How realistic is this? Your thoughts?

Q: I have an allocation of about $66k for non Canada/USA equity Etfs. For maximum diversification (by country) Should I be looking at a few different ETF's in different regions (BRIC/Asia/Japan/AU) - or should I be buying one or two World (ex USA/Canada) ETF's - If so what what are your top 2 or 3. - Also is there a very broad international bod ETF as well?

Q: I have the above investments in my TFSA, TOY and MX being new. This account has been flat all year, so I am trying to make some changes. FB and AQN the worst, so I am looking to exchange those.
Now, looking at FB it is a strong buy/ buy. Are you expecting any growth this year, or should I sell. I have been looking at something with high yield like STB and PWF. Are they safe enough. I am going to use some of this money in one year.
Thanks for your opinion
Margita