Investment Q&A

Q: A question regarding interest rates and the effect it has on income stocks such as those in the Income Port.

Much is currently being hypothesized about interest rates going forward. Not about higher or lower, but the amount of cuts and how long it will take to get to a neutral rate.

That being said, if rates were to drop by 2% over the next year, and all else being equal, maening no black swan events or a deep recession, to name a couple, what correlation would you assign to stocks which have been beaten up during the 4.75% increase to the BOC rate? A 2% cut in rates is a 40% reduction, in the rate.

I assume that with falling interest rates, money would flow back from savings accounts, GIC's and the like. Stocks like BCE, T, ENB and the banks and utilities or any that are currently yielding >4% should see some attention, no?

Thoughts?

Thanks,

Kelly

Q: Are there niche radio station companies out there worth pursuing? CJR.b:CA is an apparent "turkey" in Canada but does SGA:US merit some further research? Are there others?

Q: There are some rumours ABX will step in with a bid to takeover FM. I understand ABX has experience taking over mining companies shut down by 3rd World Governments. Then smoothing things over with the government leading to a re-start. FM certainly seems to be a candidate with their big debt. Not sure if the rumour is going to come true so I would take a pass for now. “Buy on Rumour, Sell on News” seems in this instance to be bad advice. However governments need some money coming in and their people need income too.

Q: Good morning 5i team. I am interested in your opinion of KRP being held in a US rrsp. In reading your last response the withholding tax seemed to override your recommendation. Second question is under the present market conditions with 1 year to a lif conversion I have been bolstering interest yielding investment with a potential for capital gain. Could you recommend 3 Cdn and 3 US stocks or etf's with high dividends that have good earnings outlooks, valuation and perhaps some growth.

Q: I’ve held VEEV and OKTA for a few years in a registered account but they have become a relatively small holdings. Are either of these worth adding to in order to increase their portfolio weighting, letting them ride for a while longer or perhaps selling one or both and consolidating the proceeds into something else. I’m a buy and hold type so don’t mind holding either of them but wondering about the opportunity cost of doing so.

Q: I have contribution room of $17000, for 2024 due to a cash withdrawal of $10,000 in late 2023. I would like to move the largest portion of this years contribution from my RRIF withdrawal for 2024 with stocks that have performed well over the past, these include, ,topicus, goeasy, first service, wsp, BNS, Td, TFI Int., Almentation couch Tard and Shopify.
At the moment I am looking for an outside opinion from 5i, on the best most profitable to fill my 2024 contribution.
Looking forward to your response.
Rick

Q: When I asked about PDI back in July 2023, you stated you would be fine holding it for 3-9 months. I am still down about 20% on it. It is currently at/near the same price it was last July. I'm liking the high monthly dividend payment but am concerned how long it can last. Do you think the high dividend is sustainable (and if not how much would you expect it to be cut?). As well, looking into 2024 with interest rates likely dropping marginally, a soft/no landing scenario, and all other things considered for 2024, do you think this one can approach $22-$23 in 2024? Any other nuggets of wisdom regarding PDI are welcome .....

Q: Hi 5i.

Fiera is up 25% over the past month, but I haven't seen any news that would account for this. Are you aware of any developments there?

Q: Peter; Not a question but a big thank you - you were consistent in your recommendation on CROX. I was one of the faithful- again- and was rewarded nicely this am! Thanks - again!
Rod

Q: Hi, I own a bit of Lumine at a fantastic average cost. It obviously has had a run and is settling down in 2024. I have some extra cash now because of a fresh TFSA year. Would you be a buyer of LMN right now on the pullback? This would make my ACB jump quite a bit, so curious. Would you wait a bit to let is drop a few bucks more? Thanks for your great work.

Q: I received shares of lumine but i have been rather lax regarding them, since i already had a lot of csu and toi. But, tou mentionning it the past few days has piqued my interest. So, i have a couple of questions. My account indicates that I have about a million and a half percent profit! That can’t be right. Is there something that i don’t know happening here?
Thanks for yourexcellent business, as usual

Q: Peter; Re Lin’s question on his sons FHSA at TD- my granddaughter also has her FHSA at TD - I advised her to buy an ETF instead of the TD MF - but TD wont allow it- or individual stocks, Very restrictive - and ANTI TRADE ! Haha.
Rod

Q: You recently provided me with your top two picks in the industrial REIT space- thank you. Could you please do the same for the CDN office REIT space. Again looking for a focus on share price appreciation over dividend yield. Thank you.

Q: Understand that crypto is outside of your coverage universe, I am curious to hear your thoughts on Bitcoin as an investment.

How viable is it?
Do you see it appreciating in value over the next 5 years, and if so, would you expect above market returns?

Lastly, for an agressive investor (with the clear and unequivocal understanding that huge losses can be Incurred), what would seem like a reasonable portfolio allocation, in terms of percentage, to BTC? I was thinking 10%.

Thank you.

Q: With the potential Bit Coin Spot ETF ruling on January 10th from the SEC being a positive one for BlackRock, Vanguard, Fidelity, Ark and other Investment Companies, does it make sense (and dollars) to take a nibble on HIVE or MARA (knowing there would be a 30% currency hit in the case of Mara)? I realize things will be very volatile so just a small position to start. Thanks, Lesley

Q: Hello!

Can you compare valuations of CSU, TOI and LMN?

Im holding on TOI since the end of 2021, hoping for some recovery.

Thanks!

Q: I am considering making an investment in this ETF. I understand that it basically follows the returns of the S & P 500 and is equally weighted. Any information you may have on this ETF would be appreciated. Do you consider it a good investment. I look forward to your timely comments. Thank You.

Q: What is your opinion of Faraco?
Thanks

Q: Does the increase in catastrophic weather not impact the P&C companies? Maybe they will just increase premiums to offset the new normal?

Q: I have owned Theratechnologies since 2018 and watched this stock fall since I purchased it. The stock has been rising the last few weeks and was up 23% on Friday. I couldn't find any exciting press releases that would explain the increase. Do you know of any reason for the recent increase?

The 5 analysts listed on Qtrade have a price target of anywhere from $5.50-$12.04. How much faith can we put in the price targets of analysts?

I was quite excited that it was up to $3.03 but just noticed there was a 4 for 1 stock split in August 2023 so my 700 shares are now only 175 shares. So rather than being down 60% I am actually down 90%. Yikes, I better not tell my wife about this trade!

My holdings in TH are only worth $530 now. Should I sell this loser now or is it worth waiting until the annual report (November year end) comes out?