Investment Q&A

Q: You have often mentioned that you like to hold some gold in a portfolio as "insurance" but I am wondering how this strategy differs from that of holding a well-constructed portfolio. To me, insurance is something that pays out cash when things go bad. I understand that gold can be that asset that increases in value when things go really "bad" but is the suggestion that you would then sell the gold at that point? If you don't sell then, isn't the value of gold likely go down once things recover and other than a portfolio that stays even on paper, at the end of the cycle you really haven't created any new wealth. My concern with gold and gold mining companies is that these assets don't seem to create long-term wealth and would, therefore, be more appropriate for a person with a trading strategy than an investing strategy.

Thank you and appreciate your insight.

Paul F.

Q: From Oct. 3 : Q: A headline article in Globe and mail " Why it feels like another financial crisis ----" gives a current p/e for the tsx of 23.6 Your macroeconomic report has it at 17. Is this a difference between trailing and forward earnings or am I missing something?/
5i Research Answer:
There is a difference between current and forward earnings multiples. For example, based on data from Thomson Reuters, the current P/E for the TSX is 17.2x and the forward P/E shows 16.7x. Some publishings do not distinguish between forward and current when reporting P/E so one may see differences from time to time. However, the P/E quoted by the Globe looks to be high regardless of the timing perspective. Different services also seem to use different sources of estimates; we do see 23X on some other services, but simply defaulted to Thomson here.

It seems to me that the difference between 17 and 23 is a significant distinction and would indicate the TSX is in overbought territory if the latter is true. A subsequent article in ROB on Oct 4 produced a chart (source Bloomberg) showing the PE ratio for the TSX "Composite" at 23.5 and the highest in 14 years with the widest gap with the US since 2009. Is it possible 5i Research data from Thomson Reuters is utilizing the smaller sample from the TSX "60" or another index to arrive at 17X?
How to know what the true number is for sure?

Q: I just read a globe and mail article on line about changes in short positions between the 15th and 30th of September. This article shows a short of 100,000,023 which is over 10% of the o/s shares. One, how is this possible and two, how do I find out whether any of my shares are being loaned out for this purpose?

Q: Good Morning 5i
Please provide your comments on the significance of today's company update. Does it represent any news that would increase the value of the company? Or simply reassuring confirmation of previous information. Drilling results are not being reported now until later in November, including info on additional Doris site results. Appreciate your comments on effect today's release (and lack of drilling results) may have on SP.
Thank you.
Randy

Q: If you were unfortunate to have a full ( and under-water ) position in Alcoa , would you dump it now or wait for the split ... The prospective new company , Arconic could be OK, especially if it will be similar to Precision Cast Parts - but most analysts don't see any recovery in Alcoa if global supplies continue increasing .
I don't know the best strategy .
Thanks
Tom

Thanks
Tom

Q: Your opinion on Nevsun Resources (NSU.TO)
is appreciated.
How about their dividend history?
Thank you very much.

Q: This micro cap has attracted attention from CSCO and has recently attracted $500M in new business and renewals. It appears poised for incredible growth.
If so, can it manage that growth; will its balance sheet take a dangerous hit to achieve it etc.?

Q: I am looking to add some Brookfield Business Partners shares for a long term hold in my rsp (5 years). Where would you rate this company on a risk reward scale for this type of investment.

Thanks for your great work.

Q: What are your thoughts on ATVI -- Activision Blizzard -- in terms of growth prospects and soundness of balance sheet. If it meets your approval, is this worth a full position in a portfolio -- which for me is 4%. ( I couldn't find any other mention in your archives, even though I was certain you had addressed this company's prospects at one time.) Thank you for you help. (Notwithstanding that this is NOT your area of focus, I always value your opinion.)

Q: This company is starting to have some volume. What is your opinion of it?

Best,
Linda

Q: I own a stock and i want to buy and sell in an attempt to average down my cost and eventually to get even. I would always use the new money invested to trade in and out. This is in a non- registered account. Can i do this without waiting the 30 day period.

Thank You

Vince

Q: Could you please comment on PRW, including debt load and insider holdings?

Thanks, Alan

Q: Peter and His Wonder Team
I know this is an american company but I thought you might have a general perspective.I see it is hitting a new high today...why do you think? Would you consider it a buy, sell or hold at this price?
Thanks for bending the rules and commenting on a USA stock.
Dr.Ernest Rivait

Q: Hello 5i team, Could you explain what is gold streaming and how revenue is generated and taxed? What is the difference between streaming and royalties? Would you recommend investing in streaming companies such as franco nevada as an alternative to have gold in your portfolio or in conjunction with? Would this be considered in the income portion of a portfolio? If you know of a good source that explains it please post. Thanks in advance

Q: Hi 5i team:

What is your opinion about dream office, I am really underwater on this one and seriously thinking to take a capital loss and move on. is there any hope for recovery ?

Slate office : what is you opinion on their management team, is now a good entry point ?

regards
Alex

Q: i asked 5i a few days ago about preferred shares vs reits. 5i response was that reits are favoured due to the fact they can grow their business/distributions over time but both sectors will be impacted by interest rate hikes. i know in the past you have recommended etf for diversification but i've looked at the reit etf's XRE, ZRE, VRE and I have concerns, rightly or wrongly, with either the weightings (Riocan, HR as % of holdings) or certain reits (DREAM) in each etf. what do you think of just holding REF and CAR as my reit holdings instead of an elf, especially given the pullback in those names over the last month or so? would these 2 provide enough diversification in the reit space? these would part of a portfolio with a fair bit of exposure to utilities, pipelines, banks. thank you

Q: I keep reading about this, but NO ONE can tell me exactly HOW to ENROLl in these DRIP Programs. I even dropped into the office of Agnico eagle around the corner, and they did not know.....telling me to see by broker. I also wrote to someone I respect very much at ROB, but to no avail. Can you please tell me how?

Thanks as always!

Q: Hi,
You seem to favour FTS over EMA in your answers to member questions - I am wondering why. The P/E for EMA is lower (14 vs 20) and the dividend is higher (4.6 vs 3.9%). Would you please explain your preference? Have you any plans to do reports on these stocks?
Thanks!

Q: I have watched as KBL has continued to drop. Although I like the diversity KBL provides to my portfolio, I am considering selling in order to preserve my capital gain. A ale would trigger capital gains, so I would prefer not to sell. I would appreciate your opinion on KBL and the tendency for the price to continue to fall. Also, what precipitated the significant dropping the first weeks of March this year, that drop appears to have been the catalyst for the continuing poor performance. Note I tried to go back to March to read 5i comments at that time but I could only go back as far as April, even when I enter K-Bro. as a symbol.

Q: With 90% loss in a 1% position should I not hope for a miracle rather than taking a loss?