Investment Q&A

Q: What are your thoughts on oil supply and demand? I know you favour Parex and Suncor. Do you have a price deck you are working off, or oil and gas forecasts? With Brent and WTI at or above USD50, I would think there are some companies with a ton of operating leverage.

What companies have the most torque if oil goes to $60 this year?

Q: If I am purchasing AEM today, would you purchase a full position or part of. This would be my only gold play.
Would you also give me your clarification as to what type of stock you would purchase in a TFSA and which in an RSP.
Many Thanks,
Regards

Q: Anticipated a double bottom last March that never happened. Our RESP currently is 40% cash with 5 years to go before withdrawals. VBAL is the largest holding. Current valuations are holding me back from putting new money into equity index ETFs. The RESP has money in ZUT, up 32% and ZRE, up 12%. I am considering adding to these favoring ZRE because of its valuation. Do you concur? I would welcome some other alternatives, but I want to stay away from individual companies.
Thank you

Q: Could you comment on the just announced acquisition of Vicom Computer Services by Converge Technology Solutions? At first glance, it looks like a solid acquisition which will nicely expand its operations in the US Northeast.

Thanks as always.

Q: Recommendation sought for investing new TFSA contributions. Expected drawdown on TFSA to start in 4 - 6 years.
My wife and my combined TFSA holdings are about 18% of our total portfolio, and the combined TFSA holdings are made up of:
PRMW & KEL <1%
PXT 3%
BCI 4%
BAM 7%
SIS 8% (20% loss)
XAW 8%
KXS 11%
VGRO 55% (the only investment also held in other accounts)
Cash 3% plus new contribution
I'm considering WELL (for growth) and FTS (for dividend & stability), possibly TFII?, or add a bit to PRMW (none of these are held in other accounts), for the new money.
Reasonable? Appropriate? Other recommendations?
Thanks for all you do, and I wish all of you a healthy & happy year.

Q: In response to Paul's question
Q: I am with TD and they do not list this ETF (PSA) wish they did - is there a TD product that is available that compares.

I think TDB8150 (CND) and TDB8152 (US) would be the equivalent - they are listed under mutual funds (not ETF) on the Waterhouse platform

Cheers
Scott

Q: The market is once again voting its lack of confidence in Bam’s recent announcement to takeover the balance of BPY.The stock has been a dismal performer throughout 2020 as well.Why should investors continue to own this name?

Q: I have 0% exposure to the materials sector at the moment. I prefer stocks that have a decent yield. I am allocating 8% to the materials sector? Does that sound reasonable? Also, how would you split the allocation between base metals and precious metals? Any suggestions for good stocks in this sector?

Please take the number of credits necessary.

Thank you,
Jason

Q: Looking to add a bit of consumer staples to the portfolio within the US. Not entirely apples to apples but could you please indicate your preference to either one of these listed or a combination?
Thanks, Tom

Q: Please recommend a commodity stock such as a copper producer or nickel producer that you think might do well in this cycle.

Q: Hi guys. Hope you had a enjoyable and safe holiday. You must have backlog of questions to answer? I have hung on to my Siyata wireless shares thinking they would finally start getting more shares with their new sales team in place and so many vendors agreeing to resell their device (ex. ATT, Verizon, Bell, Rogers, and more) but sales are still sluggish. The Nasdaq listing doesn't seem to have increased exposure to new share holders. In your opinion is this company simply a dud? Also they have not released their Q3 financials and we are in January!! If they are now on the nasdaq is there not a time limit on how long a company can delay the release of quarterly financials? My patience is wearing thin but I still like the story behind this little company. What's your take on SIM?

Q: Hello 5i Team,
Your thought on 1 of these 2 companies for long term hold over 5 years for TFSA is very much appreciated.

Thank you!

Q: I am an older, 'dividend' investor, financially secure, with about a 5 year window to take advantage of a small growth portfolio. The purpose is to provide interest and education during this pandemic period, and subsequently to pass any profits on to the young adult cohort in our family. I have recently taken small positions in WELL, KXS, XBC, CTS, BB & GRN and am considering LSPD(too expensive?) and DCBO(slow growth?). Any comments re buy or sell would be appreciated.
BTW, since taking a membership in 5i I have already had an excellent education! Thank you.

Q: As an answer I'm looking for a general discussion (not a treatise) on sector allocation.
Have you or would you produce a recommended weighting of sectors, and where applicable, sub-sectors.
Are the traditional sectors still relevant? Should we be trying to fit all the emerging technologies (SEMI CONDUCTORS, CONSUMER PRODUCTS, 5G, GAMING, EV, AI, AUTONOMOUS DRIVING, SAAS, GREEN ENERGY, RENEWABLES, GENOMICS to name a few) into either INFO-TECH or one of the traditional sectors. What percentage of a portfolio should be in emerging technologies regardless of sector etc?
thanks, Hugh
p.s. you answer many questions that involve sector allocation - you may want to create a category for this in your searches.

Q: Hi,
No rush for this question.
Could you please recommend some stocks to build a portfolio for the Smith Manoeuvre.
2/3 would be in an unregistered account and 1/3 in a TFSA?
I'm looking for about 15 stocks (or more) in order of your preferred ranking of what to buy first. Also, which of the ones suggested would be preferable in a TFSA?
Please deduct as many credits as you see fit.
Thanks

Q: Hi 5i,
This may well be 4 questions, so please deduct points accordingly.
Portfolio Analytics indicates that I'm underweight in Communications Services, Consumer Defensive, Industrials and Consumer Cyclical, and I'd like to top up these sectors.
I try to be a balanced investor and like income, but I don't mind taking on more risk and little or no income on something with a solid premise. Especially right now I'm looking for companies that are poised to benefit from the return to (more or less) normal life that 2021 might bring.
My present Communications Services weight all comes from the following ETFs - TXF, ZDI, DISC and ZWU. Can you provide a few Canadian equities to look at in this sector at this time, other than the big four?
My present Consumer Defensive weight comes mostly from NWC, with a smidgeon from ETFs like ZFI and DISC. Are there two or three Canadian equities in this sector you'd currently recommend looking at?
My present Industrials weight is in FTG (which I'd be happy to sell unless you think it has the potential for recovery in the coming year), QST and XBC. Are there another two or three Canadian names you presently favor in this sector?
And finally, my only Consumer Cyclical other than whatever might be in the listed ETFs is NFI (although I'd have thought it would properly be classified as an Industrial). Again, could you recommend two or three Canadian equity names that might qualify as viable Consumer Cyclical holdings going forward?
Thanks a lot and Happy New Year!
Peter

Q: Hi 5i team, I would like to convert $6000 Canadian to US dollars in a tfsa at Qtrade using Norbert’s Gambit. Is this a good strategy? Is there a preferred holding for this strategy like DLR? Are there any pitfalls to watch for? Thank you for your help!

Q: What is your opinion on FNV.ca for the next 1-3 years.
Thanks, Stan

Q: Hi Peter
Am looking for candidates for my tfsa
Could you please rank these based on potential upside, debt and balance sheet.
Also, am trying to transfer USD from my TD Bank account or my TD non-reg USD account to my tfsa USD acct. It is not working -- am I not able to transfer my own USD into the tfsa USD account? ie. must I convert from the tfsa CAD acct? It is bizzare.
Thank you for your great support, very unique indeed.

Q: Hi Peter & 5i team,
I have topped up my TFSA contribution limit and now have a considerable amount of cash to deploy. Currently I have the above mentioned names and am looking for a good dividend growing stock addition. In your opinion, what would be your top three suggestions.
Thank you for your opinions in the past and present.