Investment Q&A

Q: We're now $1900 underwater on 800 shares of KEY. Any hope for the future? Sell, hold buy? These are troubled times ! Many thanks - Ted

Q: together these 5 stocks make up 10% of my portfolio. not a terribly large weighting but enough that i have felt the recent decline. I understand the correlation between interest rates and these companies that are viewed as bond proxies. Since Jan 1 2018 BCE is down 5.5%, BEP is down 7%, BIP is down 8%, TRP down over 9%, ENB down over 10% (all return % are excluding dividends). ENB is now yielding over 6% if their Q1 2018 dividend is extrapolated for the FY 2018. my question is at what point does one consider the decline overdone and step into one or a few of these? a 6% yield on ENB is looking attractive to me but do you think there is still more downside risk in these names?

Q: ILMN gave non GAAP projections of about 13% earnings growth for 2018. About $4.55 from $4.00. This seems somewhat meagre. Do you know if they are generally cautious with their numbers historically? I like their business but do not know quite how to take this information of seemingly slower growth. Are the hedging expectations overly?

Q: Hello team,

Do you think the sell off on these fine dividend payers is done? I want to buy some blue chip dividend payers (I have none) but I wonder if the impact of future rate hikes is already/completely priced in for these types of stocks. What do you recommend: wait a bit longer or just buy now? I am afraid of buying now and watch them go much lower than their current price. At what price(or multiple) each of these would be a pounding-the-table buy? Would you please order them in terms of your preference for a very long-term hold.

Thank you very much indeed!

Q: Given the dump the market has taken the last few days, I would like your opinion on to the underlying reasons behind it and which companies, specifically from the growth portfolio, you feel are the best buys because of it.

Thank you in advance,

Brad

Q: I would like to combine JPM with two new other US positions in a US$ portfolio to achieve a good mix in the financial sector. Wondering what your thoughts are about adding an investment company like SCHB or AMTD or is there another entity that you suggest?....and also an insurance company that you would suggest that would benefit from rising US interest rates? (I currently hold SLF in a Cdn$ portfolio.)....Thanks

Q: What is your current view on this company and it's future prospects. I've held it since 09/15 and traken some profit on the runup in 2016. But the last 12 months It has been on a sever down trend to the previous lows.

Q: Hi:
I'm currently underweight in bonds, and all my current bond holdings are in Canadian dollars. I am considering the iShares TIP. Could you please give my your opinion on this ETF? Thanks

Q: Good day 5i team. Has the Short interest in these companies declined at all? I am even on both and no rush to sell, however ... Shorts tend to also have a long time horizon

Q: What do you make of the latest report? Are they on the right track? I am underwater on my (modest) holdings. I sold half for a capital loss in Dec and so I feel content to hold the balance for the rest of the year, in which case I would possibly take the balance of the loss I have. The remaining impact on my overall portfolio is minimal. The real question is do I increase my holdings by about 30% to average down in anticipation of a positive return. It would bring my overall weighting to about 2.5%.
Thanks

Q: Hi Peter, Ryan, and Team,

Darren Sissons, in a recent BNN "Top Picks" segment wrote an interesting few paragraphs in which he attempted to debunk some common 'opinions': "Telcos, pipelines, consumer staples and consumer discretionary are now inferior investments. (NOT TRUE, in his opinion) For fresh capital, the yields in these sectors are now actually becoming increasingly attractive. The broader issue is these segments have been over-owned since the global financial crisis and the recent underperformance is skewing their longer-term performance. For fresh capital, these segments offer an attractive risk-adjusted total return looking forward, in addition to protection against market corrections.

If you agree with his thesis, what stocks (in particular, from ones that you cover) in telcos, pipelines, consumer staples, and consumer discretionary would be most attractive at this time?

Thanks for your valued insight.

Q: It seems XIT "Don't get no respect" from analysts, yet it has performed well over the past few years and smooths out the volatility in the sector. Oddly, XIT seems to do just as well as ZQQ. Where does 5i stand on this ETF?

Q: I currently have about 140.00 in D.B. through the pension plan for employees where i work. I will be retiring this year and would appreciate your advice and time.
The employer gave me two options to consider.
Option 1: lifetime pension.
I'll receive about 680 dollars per month, this lifetime pension is a lifetime annuity.
Option 2: Lump sum transfer.
This commuted value is eligible for transfer in lock-in and tax differed basis.
I'm a subscriber of 5i research and CMS (95183)
Thank you.

Q: So many questions related to income and share prices as interest rates increase: here’s one more.
Could one justify selectively adding to the ENB-BCE- KWH- FTS - TRP -T types of stocks as share prices drop... and we therefore see higher dividend rates?

The strategy is to own these companies almost forever (unless something unforeseen or disastrous happened) and enjoy the dividends.

From my vantage point this seems to make more sense than buying bonds or low rate gic’s for income.

Your thoughts please with this dilemma. We of course have already seen the share prices drop and are wondering what to do with cash on the sidelines currently.

Q: Can you help with secor allocation for 2018. Realise that the allocation will vary depending on factors such as risk tolerance, age etc. Just seeking your thoughts on reasonable ranges for allocation with a view to tweaking our investments. Thank you as always for your much appreciated assistance.

Q: Hi 5i:
I'm currently trying to reduce the number of stocks I hold in my RIF account to around 20 - 25. In the materials sector I currently hold SJ, CCL.B, AEM, and MX. To reduce this to 2 (maybe 3) stocks, which would you drop? I want my portfolio to be as resistant as possible to market shocks such as NAFTA and general downturns, so feel free to suggest alternative names. Thanks again. Roland

Q: Can you comment on the recent rise to all time highs for Herbalife, and on the outlook for this stock. Thank you.

Q: Would you buy Paychex at todays price?

Q: Hi 5i
I intended on holding (PUR and AVO) for the long term but cannot due to their being taken over by XYL and MSI. These acquisitions will mean a cash infusion and I'm wondering whether a purchase of the acquiring companies is sensible. What is your opinion of these US companies (it is understood that they are not your focus but I respect and appreciate your opinion)

Thanks

Q: What is your feelings about using an inverse ETF such as the above to protect a portfolio against North American interest rate increase over the next year?