Investment Q&A

Q: 11:08 AM 7/21/2020

Would you please comment on the future viability of Royal Caribbean International and Celebrity Cruises RCL.

Given the ongoing worldwide Covid crisis it seems to me unlikely that this company or any other Cruise line can continue to operate.

They hold a vast amount of cash as prepaid cruises by customers, most of which they will have to eventually return or write off in bankruptcy or reorganization. They say that the cruises are just "deferred" till 2021 but Covid will roll on and most customers will never go back. Will this tip the company over the edge?

May 20, 2020 you said " We would go to RCL in a 'gamble' scenario." That the share price up $12 since then surprises me.

How huge is their debt now, and do they have any meaningful ability to service it. Would you invest in this company now? Their present income must be about nil. Looks to me like a binary outcome...... brilliant investment or bankruptcy.

Thank you......... Paul K.

Q: It seems you are quite bullish on this mid-cap gold producer. Is this because Eric Sprott has made an investment or are the fundamentals good as well? I can never quite understand gold producers and how they compare to each other.

Can you comment on the transaction today to sell its take in a nickel mine? Also, is the share consolidation the same as a reverse-split?

Q: Over the past few days, MMX has not appeared to have been among your recommendations in the gold sector. I was just wondering if that was a simple oversight or if something material had changed that has shifted your view of the company.

Many thanks

Q: More of a comment then a question - I would think that the market is well aware from what happened with BIP.UN / BIPC, that BEPC will trade at a premium and that premium will be priced in is as soon as it begins to trade and selling your BEP.UN to buy BEPC may not result in any advantage.

Q: The market doesn't seem to like today's announcement. Do you have any concerns with the move?

Q: I read in one of your answers today that you consider HWX as one of your favourite small cap energy stocks. As far as I know this is the first time you have mentioned this company.
What reasons do you have ? Is one of them because the management team comprise of the old Raging River team.

Thanks
Peter

Q: After doing quite well selling my BIP and replacing it with BIPC after receiving the "free" BIPC, I intend to do the same with BEP.UN and BEPC. Right now BEP.UN is "overbought" according to its daily RSI and I would expect a minor correction to get the RSI down but should the price of BEP.UN dip on the day this "special dividend" is effective all other things being equal?

Q: Hi 5i Team,
I have to step on my pride here and ask a question as I'm still confused.
If I understand correctly:
1 - If I hold 100 shares of BEP.UN as of July 27, on July 30 I'll hold 100 shares of BEP.UN AND 25 shares of BEPC? Is this correct?
2- If I hold in RRSP or TFSA I should sell the 100 BEP.UN and buy BEPC shares? Should this be done right away? Wait a few days/weeks?
3- If I hold in unregistered margin account I should keep everything as is? 100 BEP.UN and 25 BEPC?

Thanks for you patience.

Q: I have been following this stock and some where I read the gold is going to be hard to recover because it is dirty gold , what is meant by this . Also what is your opinion of this stock.

Q: In my research on the 5g buildout , I came across Macom Technology Solutions ( MTSI ) and compared performance for 3 months and 12 months to other high fliers like, AAPL, ATVI, NVDA , QCOM , as well as comparing T-Mobile to Verizon. . I had never heard of Macom and Iyou have never mentioned it. Have you any thoughts on this MTSI , or am I better to limit my choices to better known entities ? Thanks

Q: I serendipitously sold my BNS before the pandemic and have been slowly buying it back as it remains low compared to historical levels. I intend to go a little overweight as the dividend and value in the stock seems to me to be quite attractive, if you consider this a long term hold. If I retire in 10 years, this seems to me to be a great purchase now and that I will look back at myself thankfully for making this purchase now.

Do I need to be looking at this differently? I know there BNS faces risk in Central America but it otherwise seems like a good buy now.

Robert

Q: I would like to now your favourite small cap oil stock. I already own WCP.

Thanks Steve

Q: There have been a few questions related to an upcoming change for BEP.UN. I am not clear on what is actually happening or why.
I hold BEP.un, and would appreciate it if you could please explain what is going on, what you are recommending and why as well as timing of implementing your recommendations. As always, many thanks for your help.

Q: I haven't seen anyone from 5i on Market Call for some time. Is there an appearance in the near future?

What would be your top picks if you were on the show today?

Q: This is a comment and a question. The comment is that something very significant happened in the silver investing world on July 20, and that is that silver finally broke out of a six year bear market. This breakout was confirmed today. The silver miners are responding and this could be quite exciting.
My question is about Alexco. They have a deal with Wheaton whereby they give up 25% of their Keno Hill production and will get nothing in return if silver goes above $25 ( I believe that this deal was modified recently). In your opinion is the Wheaton deal going to be a major problem for Alexco going forward? Thanks, David

Q: I follow your balanced portfolio. Besides cae gsy which 3 or 4 stocks do you like for growth in the next few years.

Q: In the question asked by James on gold and silver you mention DBC but I can’t find any information on this and CEF was the symbol in the heading.Is it DBC or should it be a different Stock/ ETF ?

Thanks

Q: I have several beat up stocks that are now small holdings so looking to clean up the mess a bit and reduce my holdings to a more reasonable number. These are all in my unregistered accounts so will generate a tax loss although that wont do me much good this year with no likely gains to harvest.... So my general plan was to sell some and consolidate in other holdings I already have: ( use as many credits as required)

Sell HSE ( 1/4 position ) and add to my 1/2 SU . I get the tax loss to carry forward and move from HSE that is mostly heavy oil to SU with less downside.

Sell CHW ( 1/4 position) and add to my 1/2 SJ. These 2 don't really match up well like HSE and SU but the CHW is such a small position, unlikely to move until late in the recovery and with the div suspended I think I am going to take my lumps on it. I am a bit lite on SJ anyways.

Sell my MX ( 1/2 position) and add to my MAL ( 1/2 position). Once again not good matches but these 2 are small position in the same account. MAL hasn't done much in terms of stock movement but has generated a good yield over the many years I have owned it. I am not feeling the love in the energy sector for the next few years and I have a felling that the good old days in oil and gas might be at an end with the cost of solar improving and the steady growth in electrifying transportation....

And last sell 1/2 position of AD and buy ALA ( 1/2 position). Once again not a great fit in terms of sector but yields are comparable and ALA is essentially a utility ( and not a oil and gas) so should be a somewhat stable yield.

I wish I had a few big winner I wanted to sell to harvest the tax losses now but will just need to put them in my pocket for the big recovery in a hopefully not to distant future... These moves reduce my small holdings, Get rid of some holding you don't have in your portfolios, de-risk my portfolio somewhat and finally move that money into companies a bit better placed to maintain their dividends during covid/post covid

Q: Hi,
I note your favourite residential REITs but they have almost no exposure to BC. Is there a reason for this? Which REITs have the most West coast exposure? What do you think of them?
Thank you for your advice,
Bryn

Q: What is historic silver price to gold ratio.last 10 years.? Where is it now ? Is silver a buy ? What are Industrial uses of Silver besides jewelry /What are your silver picks. SVM did well last week. RAK