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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: When considering weightings of a particular stock do you look at the weight as a percentage of just a stock portfolio, or would you consider it as a percentage of stock portfolio plus defined pension. For example, CSU has grown to 9% of my stock portfolio, but if I include my defined pension it is 3.5%. So if I consider only the stock portfolio then I would consider trimming (to maybe 7%) whereas if I include my pension in my calculations I have no need to trim.
Read Answer Asked by Dennis on May 27, 2020
Q: I want to buy two stocks from above selection. What would be your prefrence.
andrew.
Read Answer Asked by Andrzej on May 27, 2020
Q: Does you portfolio allocation as referred to country investment recognize that some companies despite designated as domestic (Canadian) have and derive significant income from abroad ?
Therefore these are more diversified by the location as it appears in the Portfolio Analytics summaries.Basically the summary understates the total portfolio diversification by the country .I give the two above companies as an example but there are more companies to which this would apply.
Read Answer Asked by Miroslaw on May 27, 2020
Q: Is this transaction a little unethical when the President of Fairfax builds up a 40% position in Torstar and at the same time involved in a private company and now the same company has offered to take it private? This arrangement does not seem to be fair to Fairfax shareholders?

The company that owns the Toronto Star and more than 70 other newspapers agreed to be taken private by two prominent Canadian business families.
NordStar Capital LP, controlled by the Rivett and Bitove families, will acquire Torstar Corp. for 63 Canadian cents a share in cash, according to a statement released Tuesday night. Based on about 81 million class A and B shares outstanding, the deal values Torstar at roughly $51 million. The offer represents a 58 per cent premium to the closing price on Tuesday.
The deal represents the end of an era for one of Canada’s largest newspapers, which has been controlled by a voting trust of several Toronto families for decades. Torstar has been unable to turn around years of steady losses in advertising revenue and circulation. The shares have fallen 77 per cent since the end of 2017.
The proposal has the support of Torstar’s board and its largest independent shareholder, Fairfax Financial Holdings Ltd. Torstar Chief Executive Officer John Boynton is expected to continue in his role following the deal and former Ontario Premier David Peterson will serve as vice chair, the companies said. The deal is expected to close in the third quarter.
Paul Rivett was a senior executive at Fairfax, a Toronto-based insurance and investment holding company, when it built its 40 per cent stake in Torstar’s Class B shares. He announced his retirement from the firm in February.

Jordan Bitove is a partner at private equity firm Spectrum Capital Partners in Toronto. His family was part of the ownership group that brought the Toronto Raptors basketball franchise to the city in the 1990s.
Read Answer Asked by fwb181 on May 27, 2020
Q: What are your thoughts on this announcement?

WELL Health has made a $250,000 investment in Phelix.ai, a Toronto based digital health company. Phelix.ai is a technology service provider that has developed an AI or artificial intelligence powered clinical assistant. Phelix.ai's software allows health care clinics to automate key workflows and administration tasks so that non-medical staff can focus on higher value tasks.
Read Answer Asked by Robert on May 27, 2020
Q: Recognizing that these two Cdn. companies are in different sectors etc, which of the two would you prefer to buy at the present moment giving consideration to safety of dividend, management, recovery potential and debt. Thank you. Don
Read Answer Asked by Donald on May 27, 2020
Q: It looks like there's some mean reversion going on today with some of the tech names that saw big spikes of the last few months. Any names you'd pick up today, or would you wait to see how this shakes out over the next little while?
Read Answer Asked by Rick on May 27, 2020
Q: Hi 5i,
I have half positions in: KXS, DSG, LSPD, DOCU and full positions in MSFT and NVDA. Do you attribute the current sell off in tech names to profit taking and sector rotation (possibly to financials)? Of my four half positions; which two names do you think would be the best to add more shortly in this selloff for a long term perspective?
Thank you!
Terry
Read Answer Asked by Terry on May 27, 2020
Q: Could you please explain what this means when a stock "does a secondary".
I am thinking that when a company/stock first goes public, they issue a certain amount of shares to raise money. Then, I am thinking that if they "do a secondary" - they issue more shares? So then the value of shares you have are less? Could you talk a bit about this.
Thanks so much for your help
Margaret
Read Answer Asked by Margaret on May 27, 2020
Q: In response to a recent question on BIP.UN, you mentioned it is best in a RRSP or non-registered rather than a TFSA. Is that the same with BAM.A:CA and BRF.PR.E:CA as well? Is the RRSP the best account tax wise? I understand this is true for all US Dividend paying stocks and US Reits, but is it also the same for any TSX listed stocks that make income outside of Canada? Then for TFSA accounts, are they best for Canadian and US growth Stocks, and Canadian Reits?
Thank you!
Read Answer Asked by Pat on May 27, 2020
Q: Could you explain their new offering please? The stock is up 5% this morning. If they are releasing 1 billion in new shares (20%of current market cap), how does that dilution not drag down the share price? Is it just that the market is happy that they will have more cash to weather the downturn after the sale? I feel like I’m missing something?
Read Answer Asked by david on May 27, 2020
Q: Hi 5i team,
I just read a comment from a subscriber stating that he only buys Canadian stocks and does not like reading the U.S. ones. Most of my portfolio is U.S. with a sprinkling of Canadian names. So, I read all the U.S. ones and just scan the Cdn names and read those of interest. From the questions, it appears that more and more subscribers have U.S. investments. I know your focus is a Canadian service, but you have given a wealth of valuable advice on U.S. stocks to all of us, so please keep us in mind in any future changes.
Thanks again for your insight, especially on the U.S. side.
Dave
Read Answer Asked by Dave on May 27, 2020
Q: BNS is up AFTER they posted loss, increased reserve provisions etc., BUT it seems ALL the banks are up today even though news about their future is still pending!
Should we "read" that "birds of a feather" phenomenon is operating here and the market has decided to ignore the pending results of other bans and is into a full blown buy mode!
Do you think it is risky or reasonable response to the current situation and one can buy bank stocks now? I know your favorites are RY,BNS,TD.
Read Answer Asked by Savalai on May 27, 2020
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