Investment Q&A

Q: Growth Portfolio: As of Sept. 30, 6 stocks plus cash accounted for greater than 51% of the value in the portfolio. Excluding cash those same six stocks accounted for about 47% of the investments. There are 8 positions of less than 2%.

Is this a just case of a limited universe from which to pick or a reflection on the top positions having the greatest potential and the small positions are, for lack of a better word, fill?

Q: Good morning!

I hold a 1/2 position in Magna. I do believe in this stock longterm. With the shortages and things appearing to be priced in. Is it time to top up to a full position?

On a separate question what are your highest conviction growth pics in TECH for the 4Q.
Preferably US but can spribkle some Canadian names as well.

Thank you for the amazing input and service. It's been immeasurable.

Q: Hi Peter and staff,
Thanks for the great information that you guys provide.
These are the holdings in my wife's TFSA account. I have owned CNR since March of 2020 and have done quite well but I'm wondering if this stock has reached the top of the price range and it's time to move on. The average Price Target is $165. Do you think that CNR still has upside or can you name two stocks to replace it.

Thanks and have a great day
Joe

Q: With the current gong show at Rogers corporate board would you be inclined to hold on to a current position or sell? I currently hold Telus and BCE as well as Rogers.

Q: Why is Suncor trading at such a low price? Also would you rather Suncor or TC energy?

Q: I have a question about the dental health care space. I held onto Danaher for a few years, primarily for its dental holdings, but they were spun off into another company, Envista, in 2019. NVST has not performed as well as DHR since the spin-off, but its product lines are very well-regarded in the field (first-hand knowledge on this point). I believe that the products will maintain their popularity, but I would really like to hear your thoughts on the management of NVST, as well as how you feel the company as a whole will perform in the next few years.

I have been also considering starting a position in XRAY (again, first-hand knowledge of its product lines, which are very good), or pivoting towards distributors, such as HSIC and PDCO. As always, I appreciate your insight, and look forward to your response.

Q: Do you have any insights to share on the US housing market to explain how RDFN may do? We purchased RDFN about 6 months ago but are wondering if we did the right thing since we are down about 35%.

Many thanks for your views.

Q: What type of account is best suited for beginning a position in ECN?

Q: Hi 5i,
Back to PINS and PYPL again. Given SNAP’s lower earnings and Apple’s new privacy settings making it more difficult for advertisers on SNAP, would you expect PINS’ upcoming earnings to show a similar problem? If so, would PYPL have signed some form of NDA with PINS so that they would have knowledge of PINS’ upcoming earnings and any Apple privacy impacts?
Thanks again.
Dave

Q: Oil companies in Canada and globally over the last few years have suffered from low prices and now face the uncertainty of funding availability due to the climate change frenzy to choke off access to financial markets and to overall resistance to further expansion in production. In these circumstances it seems that many oil and gas companies will curtail further investment with the result that over time production will decline, perhaps at a faster rate than demand may decline. In effect they will become cash cows and pay out a greater part of cash flow to shareholders.
I was wondering whether you have done any research on this issue to get an idea of how this may play out and also the possibility that oil/gas prices may increase further and thereby increase fossil fuel company stock prices. Feel free to publish if you wish but not sure whether you might have addressed this issue already.

Q: Good Morning
This morning Peter McKeough is recommending that T is a buy. He is forecasting a 7.7 Price /Earnings ratio for the 2021 earnings.
Is this the right time to average down on this stock?
I will appreciate your insight as always.
Thanks

Q: Hello Peter,

The ETF's above are in the income portfolio. All have different yields that are paid out monthly. My question is, do any of these "dividends" increase over time? Not the yield but the actual payout per share?

Thanks,

Kelly

Q: Hi 5i
Would you be a buyer of PYPL today for a 2 year hold...down about -10% since announced interest in PINS yesterday...
If so, at what price would you be interested and would you expect share price to continue to be negatively effected by this potential deal?
Thx
jim

Q: What would be your choice as a buy now, WMT or TGT?

Thanks Valter

Q: I have had very good returns with both and would like to take some profits off both and buy either tropicus or one semi- conductor position. Which semiconductor stock would you suggest? For 3/5 years. Thank you!

Q: Hello 5i
I have been selling options on the US stocks that I own to make a little extra money. IMy question has to do with buying back the option. I think what I do is ok but I want to check with you in case I am missing something. If I decide to buy the option back before expiration date, if I have a feeling that the stock price has a good chance of continuing to rise.

I check to see how much I made with the premium and combine that with the difference now between the strike price and the current value of the stock.. For instance, Costco at a strike price of $460. The stock is now $477, for a difference of $17. Then I check how much it will cost for me to buy the option back. In many cases, I will get pretty close to the original premiums,, say in this case, $210 rather than $250. Then I can sell another option. The only downside that I can see is if the stock price should decline after buying back the options. I would only do this, of course, with stocks that I wanted to hold anyway. Any problems here?
thanks for you service

Q: Hi
Just read you market update and wonder if you could give your best recommendation for a semi conductor play at present and do you think this would be a good time to step in?

Q: Hello Peter,

I am learning how to build a position and would like to know how one should go about it.
In this case, I waited nearer to market close to buy AMD. As the price kept going up relentlessly, I decided to buy half a position.
I was aware that it was near the 52 week high and that it was going to report after 2 trading days. So the chances of the price retreating before that was not going to happen. Am I correct to assume that?
And now for buying more to complete my position. Should one do it immediately tomorrow, the next trading day or should one wait for the earnings report and buy once the trend is confirmed?
Thank you in advance.
Regards
Rajiv

Q: Good day. Could you please clarify the Sundial offer for me. I am up quite a bit on CLIQ and wondering what to do now. Thank you.

Q: In the growth portfolio you bought REAL for $12.95 and sold it, per your Oct 12 update, on a day when the highest price it traded at was $9.81, locking in a 24% loss. If you "like the industry and the company's fundamentals continue to look decent," isn't this a classic case of "buy high, sell low" when nothing but sentiment has changed in the company's long term outlook?

Analyst consensus EPS is $0.47/share in 2022 and $0.56/share in 2023. If such earnings materialize, this would be 19% growth in earnings for a company with no debt. I know it's a big if, but if REAL does achieve $0.56/share in 2023, traders selling it today would be selling a stock with estimated 19% growth in earnings for only 17 times 2023 earnings. What am I missing?

I took a quick look at the 5I Growth Portfolio and found that a couple of your big losers, QST and MRS, are bigger losers than REAL and have no earnings and/or none forecast. Why not sell these instead of REAL?