Investment Q&A

Q: I see this as the first time you mentioned this company. An actual US small cap! Could you give some colour to what you see in it?

TIA

Q: Hi,
Question 1: When do you plan to add the new positions in the growth portfolio? If you can't share that information, would you be able to share the short list of what you are considering?

Question 2: If you were able to add US positions what would they be?

Thanks again for your wonderful service and happy holidays.

Q: Any thoughts on Vistra Corp. Company on a valuation basis is cheap, the metrics from a p/e, cash flow , growth point of look good. Part of their revenues are from coal plants and that has held back the share price, they are however transitioning out of them with a future focus on renewable energy. BAM is one their largest shareholders and should aid the transformation to more renewable energy (primarly solar ). Thank you for the great work

Q: Hello,
I currently hold CNR and Waste Connections in my Industrials. CNR is in need of a trim. Suggestions about where to place the funds? I have looked at Finning, ATS, TRII, WSP, Xebec but only want, at most, a couple of others.

Thanks for you ongoing commitment to all of us.
V.

Q: Hello,
My Consumer Defensive currently consists of the above stocks. I am thinking of selling my ATD and buying some NWC plus something else. Any other possibilities that I should consider?

Thanks,
V

Q: I’m wondering if you could share your top three cyber security stocks. Thanks

Q: Hello Team 5i,
I own the companies listed above within a TFSA
REAL is smallest holding at 11% of this account = approx 12k
I will add 6k to TFSA in Jan 21

I am considering four options
Keep REAL and BUY more REAL with 6k
Keep REAL and BUY more XBC, STC, ATA and/or WELL with 6k
SELL REAL and BUY NVEI with 18k
SELL REAL and BUY more XBC, STC, ATA and/or WELL with 18k

-sector allocation not a consideration
-transaction costs not a concern
-concentration (# of securities) within TFSA not a consideration

Your thoughts please?

All the best to all the people at 5i who provide such a wonderful service.
Steve P

Q: I own all these in my utilites allocation (AQN 3.5%, BEPC 2.4%, FTS 2.5%, NPI 1.6%). I'm looking to pull some capital out of these to redirect towards industrials and consumer cyclicals for the upcoming year. Could you perhaps rank them on valuation, and/or suggest which way you might go, i.e. shave a little off each, equal weight them, drop one or more, etc. Thank-you as always.

Q: Hi Peter et al:
I had some EMC shares, and when dell tyook them over I received 7 Dell shares. I want to increase this to an even 100- 300 depending on your advice. I researched Dell a little and read a comparison with Apple. Ranks 3rd in the pc market behind HP and Lenovo. Has 45 bil debt, but might spin off Vmware ( 81% x 60 bil=50 bil for Dell. Investors would then get the rest of the company for nothing.Currfent debt/Equity 110%. Apple 6%. Apple cash 190 bil. At current valuations Dell looks more attractive. Apple p/s 7.5x Dell .6x. It has a peg ratio under 1. Apple 2.4. Please advise. Maybe I should just sell the 7 shares and forget it. I don't like small odd numbers. Thank you, as always.
BEN.

Q: Your thoughts on selling XLF to buy JPM & BAC and selling PFE & GILD to buy ARKG.

Thank you!

Q: Hi, I am considering adding BTO, am currently light on basic materials and it also pays a dividend! Would you be a buyer, or suggest better alternatives? Any other basic materials companies that are geographically diverse? Thanks

Q: I am trying to clean up our RIF, TFSA, and cash accounts. I believe that 5i has suggested that capital gain stocks are best in the TFSA. A RIF should not have dividend stocks, they should be in the non registered account.
I want to move in kind BCE from a TFSA account to our non registered account in December. In January I want to move BCE, CN, and RY out of a RIF. This would be the 2021 withdrawal from the RIF. These would be moved in kind from the RIF into the non-registered account. CN would be moved same day to theTFSA in January as a part of the contribution for 2021.

I thought I had sent the same question on Sunday night but I have not had a response yet so I’m assuming that it was lost somewhere. Hopefully I have not confused you and I have given you the picture. My question primarily is your thoughts on the general idea of what I have proposed. The CN stock is being put in to the TFSA because it will be more of a growth stock and the dividend is smaller.

Also where would you suggest a US stock be held? We have one or two growth stocks like SQ, no dividend, that we would like to put into the TFSA. Is that appropriate?

Thanks again for all that 5i does. Much appreciated.
John

Q: DCTH and MLND What are your thoughts on these company’s
Thanks for the help

Q: Hi Peter and team:
My question is about Drips and more importantly discounts on drips. I have had IPL for a number of years, and at one time they offered a discount. I truly believed, and was told that I was getting the discount on reinvestment. My shares are held in my RBC Direct investing account. I now read that this is an Rbc synthetic drip, and the only way to ever get the discount is to hold the shares in your own name. In a RRIF this would be impossible. Please fill me in on my lack of knowledge. Thanks, BEN.

Q: Hello 5i team,
In a recent answer to a question from Tom about conpanies as a possible target to be acquired, you included CXI. I would like to know what characteristics of CXI makes it a potential candidate besides low valuation and cash on the balance sheet? I know the president of CXI has gone through this process before: has he ever mentioned specifically this endgame before for CXI? I would think that selling at this price + premium would be like a failure in the actual venture. And by what type of acquirers? A bank?
Thank you for your collaboration, Eric

Q: My wife insisted I send this to thank you for her kitchen reno. (Lol)

Seriously, though, than you for your hard work and wonderful advice.

Have a merry Christmas and a safe holiday.

Mike

Q: Retired dividend-income investor. For the equity portion of a typical income focused portfolio, can you give me your suggested asset allocation for the 11 sectors. Thanks in advance...Steve

Q: Is ROKU a buy today OR is it too late to get in? I am looking for 1-2 years hold

Q: I read your answers about Topicus shares from the CSU spinout. I have 50 CSU shares, so at a rate of 1.859817814 I would get 92.99 Topicus shares. You can't get any closer to a whole number than that. From what you said the number of spinoff shares is rounded DOWN. So even with 0.99 of a share they won't give me a whole share of Topicus? So I would end up with 92 Topicus shares plus some cash?

By the way, how/why did they come up with such a fraction? Why couldn't they just make it simple: you get 2 Topicus shares for every 1 CSU share (and then work backwards to make the math work)?

Paul

Q: I forget to ask another question about CSU shares. My CSU shares are on the US side of my non-registered account (so that I collect the dividend in US dollars). With the spinout of the Topicus shares are there any ramifications of having the CSU shares on the US side of my account? Will the "dividend" be calculated in US dollars or CA dollars (given that they pay their regular quarterly dividend in US$)? Should I journal the shares back to the Canadian side of the account? If yes, is it too late to journal them back to the Canadian side of the account given that the ex-dividend date is Dec 23rd, and my broker wouldn't complete the journalling transaction until Dec 24th or after Christmas?

Paul