Investment Q&A

Q: Good morning 5i
thanks for the prompt answer to my question yesterday. I need just a bit of clarification on the answer, though. I was keeping companies like Alphabet and Microsoft along with etf"s because I thought they might have an outsized upside in the future. You say, thought, that all these stocks can be found in a typical etf and then go on to suggest another handful of stocks. I am not sure if you mean that because Alphabet, Microsoft etc, are so well represented in the etf's that I don't need to hold them separately and focus instead on stocks similar to the ones mentionned?
thanks

Q: As always, thank you for your great service. Would you be a buyer at these levels or would you wait for a pullback. Looking at 5 year hold on this company.
Thanks

Q: enbridge came out with annual investors day presentation today and just wondering if you guys listened to it. they increased the dividend by only 3% but to me that was being cautious for outlook next year cause who knows what will happen but happy in their decision to raise a bit at least. just wanted your thoughts and as a sidenote i get a
newsletter from a reputable writer in ontario here and he was saying in one of his latest reports that 80% of all trading on the canadian markets [tsx] comes from south of the border now. i did not know that and is this right?
thanks

Q: Hi folks...I see Nuvei won a contract with Columbia's leading operator on on-line gaming; Wplay. It accounts for almost 50% of gaming revenue in Columbia with 1.6M users. Any idea if this is the biggest on-line gaming contract Nuvei has won to date (Colorado, Indianna, West Virginia). Is Nuvei the leader in processing payments for on-line gaming....and should it be the big beneficiary on recently legalized on-line gaming in US & now Canada. Stock has done well but seems to be flying under the radar with min volume, and not much reaction from analysts....thanks as always, jb Piedmont QC

Q: I have owned BIP.UN for four years and have a 76% unrealized capital gain. I also have a small amount of BIPC as a result of the recent spin off which has a 78% unrealized gain. I do not want to own both as they are essentially the same and BIPC represents only 0.3% of my portfolio. The plan is to amalgamate by selling one and using the proceeds to buy more of the other.

The question is which one to sell? This is in an unregistered account. Which of these two do you favour in an unregistered account? A sale of BIP.UN will result in a greater immediate tax liability than BIPC but the tax will have to be paid at some point anyway and it might be a good idea to decide, at this time, which is the best one for me to own going forward. I know the premium on BIPC is expected to decrease but so for it has not. In fact, over the past 8 months BIPC has increased approximately 78% while BIP.UN has decreased 6%. Over this time, BIPC has increased in market value approximately the same percentage as BIP.UN has over the past 4 years.

Q: Hello,

In the upcoming shareholder meeting, the following changes to the investment restrictions are proposed:

Current Investment Restriction:
[Each iShares Fund] shall store all the Bullion owned by the iShares Fund in: (i) with respect to CGL, the vault facilities of a Schedule I Canadian chartered bank or an approved subcustodian or sub-subcustodian or an affiliate or a division thereof on a segregated basis; and (ii) with respect to SVR, the vault facilities of a Schedule I Canadian chartered bank, or an affiliate or a division thereof, or a sub-custodian on an allocated basis.
[Each iShares Fund] shall ensure that the Custodian has adequate insurance in place in respect of the Bullion held by the Custodian on behalf of the Fund.

Proposed Investment Restriction:
[Each iShares Fund] shall store all of the Bullion owned by the iShares Fund in the vault facilities of one or more entities that meet the requirements to act as a custodian or sub-custodian for assets as described in NI 81-102 (or are permitted to act as a custodian or sub-custodian pursuant to exemptive relief from the applicable requirements granted by the Securities Authorities), on an allocated and segregated basis.
[Each iShares Fund] shall ensure that the Custodian itself has, or that the Custodian or sub-custodian(s) are required to ensure that their respective sub-custodian(s) have, adequate insurance arrangements in place in respect of the Bullion held on behalf of the Fund by such Custodian or sub-custodian(s), as applicable.

Would you be able to please explain in simple(-er) terms what's being proposed here?
Also, if the proposal is approved, how it would affect attractiveness of CGL going forward? I.e. would it be a good idea to continue to hold it?

Thank you kindly

Q: Could you please tell me what % of the world economy the following countries/regions
have:
U.S.
China
Japan - Asia pacific
Europe
Many thanks.

Q: Hi,

Of these relatively new biotech companies that have or will soon be IPO'ing, Repare Therapeutics (June IPO) and Abcellera Biotech (upcoming IPO), where would you put some play money? A bit of both? Or another recent IPO/choice altogether?
It seems that Abcellera might be a little ahead of the game wrt being profitable already. And I'm pretty sure given the expected interest, I may have to get this initially on the open market.
Are there any things from a finance view we should be aware of with these IPO's other than biotechs can be more risky dependent on clinical trial results, etc..
Repare has done well since its IPO in June.
Can you pls also add Repare to your db? It did not come up in a text or stock symbol search.

Cheers,
SteveMc

Q: I have both Canadian and US stocks in my TFSA in separate accounts. Is it a mistake to own US stocks in a TFSA due to potential tax issues? Thnks

Q: good afternoon 5i,
On December 3 you responded to a question by Curtis by saying, "We also think a low cost index product for the majority of a portfolio overlain with a basket of individual stocks to generate alpha is also a pretty good strategy, for those inclined to hold 6 or 7 individual stocks. "

This is a strategy that I more or less use, at least for my US and International holdings. I haven't done this with my Canadian holdings because of capital gains, which would imply tax, and also because it seems to me that the Canadian etf's are heavily weighted towards the few sectors we have in Canada. Therefore, I think I would be better in individual stocks rather than an etf. I would appreciate your take on that perspective.
Also, I am wondering which four or five stocks you would look at in the US for such a strategy for a retired person. And how would you weight them given that an etf strategy was used. The stocks I have listed are the ones I own. How would they fit in such a portfolio? The only one I might kick out for someone my age is Docusign. Any others that could be suggested?

Thanks for the great service

Q: Hi there,

What are your thoughts about taking a position in DKNG long term? What do you value the stock in USD?

Q: Hertz HTZGQ Any comments on this stock. cheers

Q: Good Morning, I purchased 2 stocks for their dividend income, and to hold for at least 5-10 years. OKE is about 3.7% of my US portfolio and KEY at 2.9% of my Canadian portfolio. Am thinking of selling and taking advantage of the tax loss since they are underperforming. Would this be a wise move or should I stay the course and keep them. If I do sell I was thinking of adding X and Well along with DUK and GILD...thoughts or suggestions?

Q: Good morning - I am overweight Utilities and underweight Energy. I have large positions in BEP and AQN, both of which have considerable capital gains as well as FTS which has plowed along steadily but not much gain. I am thinking of selling FTS and buying ENB or TRP. In an earlier question you suggested that you liked TRP over ENB if you had to choose. Do you like any other energy sector company better for a long term dividend loving old timer? I already have a chunk of SU and Canadian Natural Resources. On the other hand, I am noticing analysts starting to love FTS. Should I stay or should I go, and to which energy company? Thanks for helping me stop going in circles. Al

Q: I bought IWO back in April and it has now risen to 11% of my portfolio. I am wondering if it would make sense to reduce and pick up some US Large Cap. I already hold MSFT, GOOG, DIS. Or, being reasonably risk-tolerant, should I just continue to hold?/ Thanks Jim

Q: Hi Peter/Ryan, in one of your answers you said that these two were essentially the same company. Is it then not wise to keep them both in an RRSP and therefore should one be removed or replaced. Thanks

Q: Hi,
Will you recommend this company?
Thanks,
Morris

Q: this stock seems to have gained some recent momentum can you give me your opinion going forward?

Q: In your reply to my earlier questions, you advised that RPAR and NTSX could be considered core.
1. Given low volumes, should liquidity be considered a risk in a down market?
2. How do the Sharpe ratios compare? Do they achieve the goal of less risk than the market, with decent returns?
3. The drawdown with NTSX was much higher than RPAR - can you explain?
4. What percentages would you advise for one or both as core holdings?
Thank you.

Q: Hi,
I just came across the "Venture 50" list on the tmx money website. Please see link below. This is a good list of small caps that have had strong price appreciation and market cap growth (and that is all, there is NO other criteria to make it onto the list).
But 4 of the 5 venture-listed stocks in the 5i Growth Portfolio are showing up on this list which is a good sign (and WELL was there too, but has since moved up to the TSX).

Do you agree this is a solid list to use as an initial screen/filter for finding good investment ideas in the small cap space? For sure, more investigation is required because for example, I just looked at the #1 stock overall on the list (DYA) and it has no FCF, and expenses are rising faster than revenue, and it is just a 52-cent stock, and it didn't get the bump that others in green-clean energy/technology got from the recent positive market sentiment. It's worth watching but not ready yet..? Thx.

https://www.tsx.com/venture50