Investment Q&A

Q: Given Ternium's apparently strong financials and excellent dividend, would you consider this equity a solid, non-ETF way to get Emerging Market exposure?

Q: Hi group would appreciate your views on Wayfair its on fire after some recent developments re Covis-19 can you see it making new highs (its been as high as $166 early last year on this recent run or? most importantly would you buy it after the recent movement ?thanks

Q: I bought a position in this "cleantech" firm a few weeks ago. I know it's in the beaten up oil services sector (they've already lost some customers) but they have a ton of cash and a practical way to reduce methane and other emissions. It has proven to be super volatile and I'm down about 20% already. Did I blow it?

Q: Hi,
I am thinking of adding a defensive U.S. stock into my portfolio. Between COST and WMT, which one would you pick and why? Thank you!
Martin

Q: I realize that while you view AGI as "decent", it has never made your best of gold stocks list. But the SP has really begun to pick up steam in the last month. While part of that is obviously related to the rising price of gold, the other part may be a favourable market reaction to their operational update from 2 April. This is a bit ironic as they were primarily dealing with suspension of operations at Island Gold and Mulatos. So the only positives would be continuing (and unaffected) construction on the Young-Davidson mine together with details on their strong balance sheet (which is likely the most important factor). So is AGI now beginning to climb your list of good gold companies?

Thanks for the great work and stay safe.

Q: Hello 5i,
Thank you for providing a clear and modulated message through the past 2 months.
For a 5-10 year hold could you rank the top 10 highest (TSX) yielding stocks with the safest dividends. ( strongest balance sheet, lowest payout ratio, historical dividend growth, etc).
Could you also rank them separately in terms of bounceback / growth potential over the next 2 to 3 years?
There may be redundancy in this question vs others asked and the 5i portfolios - so please take as many credits as necessary.
Thank you

Q: I understand that for an ETF such as ZQQ, that's hedged against C$, this fund would not be negatively impacted if C$ rises against its US counterpart. But if C$ loses value against US$, would the hedged ETF benefit from it? Or there will be no + or - impact on the value of the ETF.
As for un-hedged ETFs, I assume then the price of these ETFs are affected by a) the movements of the stocks they are holding; and b) the movements of C$ against the underlying currencies. Is my assumption correction.
Cheers,

Q: I sold Lightspeed at $26.64, and would like to get back in, but I'm wondering if it would be better to wait until the next report on May 21. It will be their annual report, how do you see this report looking, will it reflect any downturn in business due to Covid, or would that be the subsequent report? Thank-you!

Q: I noticed something incorrect in your response to Stephen's April 27 question about GWO/POW. You said that he would have to wait until May 13/15 to sell them and claim a tax loss because he last purchased shares in those companies on April 13/15. If he sells ALL of his shares in the company he sells, he does not have to wait until May 13/15. The superficial loss rule applies only if you hold shares in the stock at the end of the 30 day period following the sale. If you buy something and THEN sell it within 30 days for a loss, you can claim the loss as long as you don't hold ANY shares in that stock at the end of the 30 day period following the sale.

Q: Hi!

I believe 5i has correctly stated in the past that in a recovery the bigger, stronger names will bounce earlier and more powerfully than smaller and perhaps more speculative names. Companies like TTD and TEAM have either bounced or held up better than names like RUBI or YEXT which fits your comments. SHOP vs LSPD in Canada would be another example. My question is not about these names specifically but if you could please list 4-5 names in the USA space that are well capitalized (can survive) and undervalued (haven't bounced like you might have thought yet). I am not looking for value stocks but growth themed stocks that have been unfairly punished or neglected in the recovery.
Thanks so much!

Q: Question on minimum rate reset and simple rate reset Preferred shares:
Minimum rate reset preferred shares lists distribution rate as higher of Minimum and the BOC 5 year rate +x%. The questions are:
1. Can they change distribution rate before the next reset date?
2. can they change distribution rate formula at the time of the next reset date
3. At the reset date, can they swap with other preferred with lower distribution?
4. I suppose they can recall and pay the face value at the next reset date
5. I understand company can not reduce or stop distribution on preferred shares until they cancel dividend on their common shares, correct?
6. is it possible to have any other fine prints on the prospectus that makes them more riskier investment?

Q: They have just added two new board members. Your opinions of them as far as impact on the company.

Thanks Steve

Q: In the recent past, the Federal Government has toyed with the idea of increasing the Capital Gains tax to 75%. With the amount of increased debt, I expect that this will come about in the next Budget or even before if that is possible. I know that the CG tax was introduced in 1972 and was increased and decreased several times since then. I am wondering if any of your members who are tax gurus would have an opinion on this. Would the Feds have a valuation day so that the CG would be taxed at 50% up to that day and 75% after that date? Or would they would just go with 75%?

Q: Are the Lifeco's in general going to be hurt badly because of relatively high death claims due to Covid,
or is this possibility already priced in ?

Q: Can you please provide upcoming May 6th, Q results, expected , consensus etc.
Thanks

Q: Hello 5i!

Appreciate all the great work.
I am looking for a canadian as well as US listed tech ETF. And semi-conductor fund to be held in my RRSP. Diversification and of course hoping for long term growth.
Currently XIT (TFSA). Using the room in RRSP for US listed dividend stocks/ETF's. Or whichever is the most tax and growth efficient.

I'm wondering what your top picks are in that sector and why? One concern of mine is some have a much higher mer. Is that worth the performance in the long run?

Or better bang for your buck on keeping fees low as usual and the most diverse fund. Company and cap wise. Hence holding a primarily large cap and semi conductor. Or just 1 solid all around.

If I'm missing a far better pick please enlighten me.

Thank you for putting together such a great site and program. Info is fantastic.

Q: My question is what is the new cost base for UTX, now RTX?
I held UTX and then it spun off Carrier and Otis. With these spin offs, I thought my cost base would be reduced for the spin off values for Carrier and Otis. But itrade and also Globe & Mail still show the original UTX cost base. 
I read that the spinoff and merger where to a non-taxable events.....or that's I took it.
Any information you can provide me to clarify this situation......Thanks.....Tom

Q: I am looking at the fixed income side of my portfolio and I am questioning the wisdom of holding CLF. Now I know there can be some sense in holding bonds even when interest rates are low (ie for the yield to maturity (YTM) and for the possible capital appreciation if interest rates go even lower). But for CLF this barely applies: the avg YTM is only 0.56% and the avg duration is 2.66 years (according to the Blackrock website on Apr 27). Thus the potential capital appreciation is very capped as the appreciation would only be in the 1.5% range if interest rates dropped to 0 and yet the potential capital depreciation is much much larger if interest rates rise significantly. So one is risking capital for a very low ytm without much potential upside and if interest rates rise, a potential rather large downside. Wouldn't holding cash make more sense?

Q: Greetings!
How do you see these two for buying the dip? I'd expect they will fall short on earnings report. The dental field in Canada has been shut down for about 6 weeks. Any insight would be great! Thanks

Q: Hi,
I have a few questions.
1) BAM is still about 50% off its February high. Why is that, given that so many other stocks have recovered considerably more? What is your opinion of it as a long-term investment? What about BEP?
2) What is your opinion of MIC as a long-term investment? Does it at least merit a “hold” at present?
3) How likely is it that the following small-caps will survive the present crisis: PL, HTL, ENW, VFF and PILL.CN?
Thanks,
Camille