Investment Q&A

Q: Cleaning up at year end - winners & losers & am left with approx. 200K in a RIF that still holds ICHR, BOTZ (an experiment), VGT, SQ, FB & KXS. I definitely favour US however, am open to your suggestions & expertise. As always, thank you for over 6 years of excellent guidance & advice.

Q: How do you currently feel about Boyd Group Income Fund - would it be negatively impacted if NAFTA didn't get resolved - are there any other companies that would be negatively impacted - and any companies that it would be positive for. Thanks.

Q: Good morning. I currently have about 7% in healthcare consisting of GUD (4%) and CELG (3%). I'm considering selling CELG and buying CSH.UN. Do you see this as a good trade? Or alternatively, I could go overweight healthcare and hold all 3...thoughts?
Thanks.

Q: Good morning,

Husky has been a non-love company for the past year or so. Lately is has been upgraded by Goldman and McCleod. Husky has not participated in the rise of oil. What are your thoughts on this company and would you advise to invest into it?

Thanks

Paul

Q: Last year BNS was hired to examine the sale of this company.
Has there been and subsequent news on this study?
Thanks
Bob Rose

Q: Hello Peter and team,
What do you think about these fixed income ETFs to make up twenty percent of my portfolio?
CBO 5%
CLF 5%
XHY 5%
XEB 2.5%
VBG 2.5%
Should I also add a real return bond ETF?
Thank you.
Pamela

Q: Hello Team
Could you please state 3 significant indicators of an imminent market correction or market re-evaluation that the retail investor could watch for or be wary of.
Thank You
Clarence

Q: I have always thought of ENB and TRP as utilities rather than energy companies, as they are involved in distribution of oil/natural gas, rather than dealing with exploration and refinement of these energy sources. Furthermore, while their revenues may have sensitivity to oil/gas prices, there is always a need for oil/gas distribution, whether energy is in a bull or bear market, which is why I have always considered the, as utility companies. I recently noticed that they are listed as energy companies by Bloomberg. For the purposes of sector allocation, is it reasonable to consider them utilities, or should I consider them purely as energy holdings?

Q: These are my only two commodity stocks. They have done quite well. Up around 25% on both. Would you be a long time holder of these? is it wise to trim the position after a decent gain?

Q: Would you recommend a switch into Cardinal Energy from Torc. Thank you Jack.

Q: Would appreciate your recommendation on three large cap CAD equities with limited downside potential that have increasing profits and cash flow and dividends for a short term investment of 4 mo

Q: Six million shares traded on Friday, almost all in the last 20 minutes. Price spiked 7%, then fell back.This is about 30x typical trading volume. Did you hear any rumours that might account for this? The increased focus on content after the Fox-Disney deal has put those with a library in focus. Fine Capital touted DHX as a potential $30 stock last May (when it was at $6). There was speculation on Stockhouse that Fine was buying CI's remaining shares. If any of this is true, would you see Fine's position as a positive? Do they have a reputation for astute calls?

Q: Will there be a repeat of Fridays market call, or are you going to re-broadcast on line? I would love to send it to some potential subscribers.
Thanks
Bob

Q: Hello 5i team,
I read an interesting article in the Globe on Thursday on Dollarama. According to the author they are essentially borrowing money to buy back their own shares and are now in a situation of negative book value. In other words, if the stock were wound up today, shareholders would find themselves with negative equity.
Your comments please.
Thanks,
David

Q: Your thoughts on CSX with the passing of Mr. HARRISON and how much does this stock drop on this news? THANKYOU

Q: Season's Greetings 5i:
Can you please tell me how many significant deals Mr. Goodman made before and after his accident.

Q: Hi 5iResearch Team,
I have finally decided to give up my full position on ZCL and was wondering if you can recommend something regardless of sector/industry, to take its place. Preferably I would like something with a dividend but it is not a must. As always, good works guys.
Cheers,

Q: I have owned Open Text for a couple of years and have had a little growth. I would like to obtain some cash to buy Avigilon. Does selling Open Text to buy Avigilon for better growth make sense.

Thank you,

Bob

Q: Peter and Associates,
The question of rising rates and their impact on bond proxy alternatives.

There was a time one could somewhat believe a certain reasonably consistent relationships existed between investment alternatives? There also used to be a principle that government and corporate bonds tended to move in opposite directions depending on the economy, especially downturns? Financial engineering has created paradigm shifts, anomalies/distortions, if not bubbles?

In a low inflation environment as rates went low, one could still find 5 year government bonds ( i.e. Provincials) producing 5% +/- returns. In today's artificially low realities? How many TV guests suggest the last BOC increase was a mistake or at least not wise? Is what we are hearing suggesting the Canadian economy and likely even less, highly indebted consumers are capable of handling significant rate hikes? Are there not suggestions technology and globalization are causing , deflation as part of our new economic paradigm?

Given yields on bond proxy alternatives, how real is the likelihood of fixed income rates becoming a strong competitive alternative in the immediate future? Other than giving central banks dry powder wiggle room, more than a few professionals are of the opinion we are in for years of low rates? Somehow a 2.09% 10yr rate (BOC stats) has not only a long way to go, but multiple hurdles to be a disruptor? Is stagflation a concern?

Using the Buffett principle, if corporations cannot find good uses for excess cash, they should return it shareholders? Are corporations acting like we are entering a period of strong economic expansion ? What message does consolidation and right sizing with closures/ job cuts give? My reading of the tea leaves , a tepid bull market cycle? Low grow and rates for the foreseeable future? Reasons to increase and/or declare special dividends for shareholders?

I n a world where the half empty/full glass is used to divide optimists from pessimists, direction and content are often overlooked, if not lost? The fact is, a lot of money can be made regardless to the direction of any market! Low rates, optimistic pessimism?! My conclusion, rates will remain borrower favorable and if so, what will the likely "new" normalized rate structure look like?

For all, capital appreciation is always desired but for retirees ,economic repression and its consequences on needed reliable income of far greater "interest"? Any feed back or counter opinions would be much appreciated. As usual, thank you for sharing your expertise, it is always trustworthy and extremely useful.

Season's greetings and best wishes for a prosperous 2018!

Mike

Q: Regarding the decision to add AVO to the BE portfolio, what is AVO's strategy shift that you referred to, what metrics did you use to conclude its valuation is cheap (PE is around 36) and any concerns about the declining sales growth?