Investment Q&A

Q: The data currently coming from Israel and the UK indicate that the vaccine efficacy is waning, earlier than many predicted. Given that most Western countries have employed a vaccine strategy to address Covid, I would like your advice regarding how to position a portfolio in the event of a Black Swan event.

In the fall, we will likely have another flu/virus season in northern US and Canada. Basically, I see 4 possible scenarios of decreasing probability but increasing risk: (1) the vaccine acts as advertised and we have few cases/deaths; (2) the vaccine is less effective than expected and there are many cases, but few deaths; (3) the vaccine is not effective and there are both many cases and many deaths; and (4) as has been suggested by some top scientists, there are long-term risks with these mRNA vaccines and deaths/ adverse events are much greater than if no vaccine was taken.

If an investor has concerns about scenarios 3 and 4 in particular, but is hopeful that such an event does not occur, how should one best position the portfolio. Should one stay fully diversified sectorially and geographically in stocks? Should one consider increasing allocations to gold, cash, bonds, etc? What are your thoughts?

Many thanks for your insightful advice.

Q: Dear 5i,

do you like any of these TXN, ADI, TSM?
If yes, how would you rank them from best to least favourite.
Can you give general reasons for your selection please.

thanks

Q: Dear 5i,

If one were to use these two ratios; P/E and P/OpCashFlow to get a rough idea of valuation. Based on historical ratios. As a rough guide how many years averages would you recommend. I think 1 Year is too short. I was thinking perhaps at least 3 to 5 year averages. Where could one find this data and where could I find the corresponding Earnings Growth and Operating Cash Flow growth figure?

thanks

Q: Are there any sites you would recommend where you can see which companies are buying back shares? Or what is the best avenue to obtain this information for multiple stocks? Thanks, Marc

Q: Would you buy it now?

Q: I have 1.4% of my total portfolio in AMZN in a TFSA. I realize this isn't much of a commitment and am tempted to sell and invest the money instead in one of my other TFSA holdings (all of which are around 3%): LSPD, NVDA, APPS, ADBE or GOOG. Your advice, please.

Q: What are your thoughts on this company?

Q: Earnings came out last week and looked great to me but the stock got pummeled.
Comments, please.

Q: I believe Home Capital reports next week. What are your expectations? Looks like you thought it a hold. I am finally above water so just wondering whether I should sell and deploy resources elsewhere

Q: Hello 5i,
With all the recent changes at AT&T is it still a good hold? I've had it for a number of years and am still about level. The dividend has been good which helps but less now.
Thanks for your excellent service.
Greg

Q: I heard about this company via a 'tip'...... Since that time it has been rising on increased volume. I bought some shares as a lottery ticket.....

I understand given its size, etc that you can't endorse it, but can I ask for a quick assessment. Is it a classic 'pump and dump' or is there some actual potential here.

Feel free to take more credits than usual since this will take you off the 'beaten path'. Thanks

Q: Time to deploy a small amount of cash in an un-registered account. My 2 smallest holdings are SU and MAL. I am hesitant to jump back into oil and gas as the glory days are likely behind them. SU valuation is attractive but long term I just dont see the good times ahead. MAL I've owned forever and glad to see you add coverage and into the income portfolio. It has been beat up a bit and makes it attractive but worried about a slow airline recovery hampering revenues. Coin toss or do you have a preference for next 3-5 years. Not really enough cash to bother with a 50-50.

Q: I own the above three and and all having trouble getting some traction---now down 13-5 and 15% respectivily.Should I hold or add to them?I assumme you wouldnt suggest sell.
Thanks

Peter

Q: This is being bought out. Can you recommend another REIT or ETF in the industrial space to replace it?

Q: Please comment on 2nq q numbers. This stock appears to have more upside, long term.

Q: Decision time...all because WIR.UN is being acquired. When WIR.UN was bought in Cdn loonies, I flipped it to the US dollar side of the account. Now will have US dollars to top up one or more of 44 US positions. But which ones? Like BLK, a very large asset manager with exposure to index ETF that has held up well. Or a specialty retailer, DG. Or TDOC that looks to have a bright future but is down at the moment market price wise. Or finally, XYL with it's water machinery and it has market momentum at this time. Me, looking for your take....like which one or some of these at this time or any others US ones you are excited about. Many thanks for your insights, aka guidance to me.........Tom

Q: It has been 7 months since you last commented on IBI Group and in that time, the company has done well. They have been awarded multiple contracts, their recent earnings were solid and included raised guidance, and they just hit a 52 week high. Would appreciate an update of your views going forward.

Q: Some random musing (ramblings?). In a few-years-old article on Stella-Jones (currently in my portfolio thanks to you), Canadian Business remarked that Brian McManus, CEO of SJ, in respect of SJ's acquisitions strategy, "straddled the fine line between paying a fair price and never overpaying" for acquisitions.
I'm trying to wrap my head around that terrific concept in the context of the sometimes apparently exorbitant prices being thrown around for acquisitions these days (e.g. IPL/PPL/BIP, and lately especially MG/VNE/QCOM) -- which leads eventually to my question:
I can understand why MG would want to acquire VNE -- they are in similar or complementary businesses -- but fail to see the business reason why Qualcomm, a wireless-telecommunications-focused company, would be interested in VNE? And especially at those seemingly-inflated prices?

Q: Hi 5i,
Do you think that Brookfield Global Infrastructure BGI.un will benefit from the passing of the Biden infrastructure bill? They have quite a diverse ownership of assets with approximately 70% in the US. They also pay a very good dividend. Thanks

Q: Hi Folks,
finally breaking even with KXS - do you think it's a sell at this price or does it have more runway left in it ? Would a switch to GOOG or FB make more sense at this time?
Thanks