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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: What is the strategic value of BIPC acquiring IPL? Most pipelines have under performed (stock price performance) the past 5 years. Oil is not a growth industry. Why not buy a renewable energy name like NPI instead? Also, how significant is the deal relative to its entire portfolio? Is there anyway to get a % revenue/earnings breakdown of the industries BIPC is involved with?
Read Answer Asked by Albert on August 23, 2021
Q: Assuming you could keep track of N companies, would it not make sense to own as many as possible if business fundamentals are good, the price is reasonable, and you have the funds? This is compared to trying to select which specific company to add to or purchase from a basket of options. My understanding is that often a few really great companies can end up carrying your portfolio and make up for the losers (I believe this was from Peter Lynch's book). The reason I'm asking is because I look at more volatile growth stocks like APPS, AT, NVEI, EGLX, TOI and GUD , and keep asking myself that question. I'd love to hear your thoughts.
Marc
Read Answer Asked by Marc on August 23, 2021
Q: We have done very well with Apple in an RRSP account. So much so that it has grown to represent 15% of the portfolio. While I do believe Appl can still grow in value I think it would be prudent to sell some for diversification purposes. Can you suggest a good US company to buy? We also hold Disney in this account.
Read Answer Asked by David on August 23, 2021
Q: Hello 5i friends - Thought this might be a good holding for using Canadian dollars to invest in semi's valued in US dollars as a portfolio currency diversifier. The subscription is small at this time but this is a new ETF. First, do you like the holdings and their weightings, would you expect this ETF to attract investment over the next year or so in order to satisfy your standards for a sufficient level of investment, do you have any comment regarding the MER and finally other than the low current investment level do you have any cautions to offer. Many thanks for your input. Ken
Read Answer Asked by Ken on August 23, 2021
Q: Endo Pharma tanked on Friday (down one-third) after announcing the hiring of a Restructuring Advisor. Do you think they will survive?
Of course, this revives the "will Knight ger Paladin" question.
I have always thought Endo would never sell to Knight because they would be embarrassed after paying so much for the company to Goodman and Co...
I guess it's now if ever...
Read Answer Asked by Steven on August 23, 2021
Q: Hi, we have a small <1% holding in Well Health. Stock does not seem to gain traction over $7-$8 level, despite great news time to time, over past 2 years. I know, you have a lot of conviction in the company, based on the CEO's past record. Even the last news of their majority share holder and HK business tycoon, snapping company's shares @ $9.50, during a private placement. My question is that is the stock worth holding due to its growth potential ( despite not so impressive price movement ) and if so, do you believe, it could reach $9-$10 in next 1-2 years. Or, we should be patient, expecting a buyer, at some point in the future.

Thank You
Read Answer Asked by rajeev on August 23, 2021
Q: Hi 5i Team

I see your Balanced, Growth and Income Funds annualised return since inception are 16.6%, 11.8% and 6.8%, respectively.

If one was to have a portfolio of a mix of these Co’s - banks, utilities and then Co’s like WSP, TFII, etc…..modelling out future returns what annual return would you use?

16.6% is obviously too high and 6.8% a bit low….is using 8% realistic?

Thx

Cam
Read Answer Asked by Cam on August 23, 2021
Q: Both AMD(acquirer) & XLNX(acquiree) have great results on July 26 & 27 prompting them sharply to New Highs.Then Biden's antitrust crackdown on Aug 5 hit both hard.Also tensions between USA & China. China can thwart mergers of U S companies if they have significant presence in China. In view of foregoing,is it ok for me to buy AMD?.The merger is expected by year end & is reportedly a good marriage & will result in taking data centre business from INTC. Txs for u usual great services & views
Read Answer Asked by Peter on August 23, 2021
Q: I initiated a half position in NVDA recently when it dipped below $200. I know you really like it. I see that the US is asking Taiwain to help with chip shortage and the last 3 months TSM has lost ground. Two questions: Between the two which would recommend to add/start a half position for 1. Short term and 2. long term? Thanks again.
Read Answer Asked by Danny-boy on August 23, 2021
Q: Lots of questions about this one.

One argument I've heard for why the stock isn't up on the dividend news is that the dividend isn't tax efficient for US holders, who evidently own about 40% of ECN float. That coupled with the embedded gains and worry about taxes increasing has them selling now, and the CDN demand for those shares being sold isn't enough to push the stock price higher.

If this is true, it may limit the near term opportunities even after the dividend if Americans feel burned that they didn't get a good deal out of a great deal made by ECN.

That all said, I've added to my already large position due largely to management and they're proven abilities.

My 2 cents, curious what you think.

Cam
Read Answer Asked by Cameron on August 20, 2021
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