Investment Q&A

Q: Hello 5i Team,
Although it's been on a slow upswing since the merger announcement, I'm still down 27% on The Stars Group. Is it worth hanging onto for a while longer, or could you suggest a current growth favourite to replace it (U.S. or Canada). Thanks.

Q: Peter and His Wonder Team
Assurance Global Services has offered to buy CTG for $7.00 per share, an all cash deal. What does this mean for existing share holders? If the deal goes through...will I just automatically get $7.00 per share and no longer have any shares. Or will I have an option to keep my shares in a new company? Thanks...for your help!

Q: I am currently holding a full position of JPM in my RRSP account. I'm considering selling it and buying a full position in GOOG for more growth potential over the next five plus years. Your thoughts please.
Thank you

Q: What investment would you recommend for a 20 year old with their first $6,000 to invest in their TFSA? Someone who is using their TFSA for long term savings. Thanks.

Q: What are your top “Green” stocks for 2020 and what would be your top REIT stocks as well?

Thanks

Q: I've clipped the following out of the original debenture offer:
"The Debentures will be subordinated, unsecured obligations of goeasy and will bear interest at a rate of 5.75% per annum, payable semi-annually in arrears on July 31 and January 31 of each year, commencing January 31, 2018. The Debentures will be convertible at any time at the option of the holders into common shares at a conversion price of $44.00 per share. The Debentures will mature on July 31, 2022.

The Debentures will not be redeemable prior to July 31, 2020. On and after July 31, 2020 and prior to July 31, 2021, the Debentures may be redeemed by the Company, in whole or in part from time to time, on not more than 60 days and not less than 30 days prior notice at a redemption price equal to their principal amount plus accrued and unpaid interest, if any, up to but excluding the date set for redemption, provided that the weighted average trading price of the common shares on the TSX for the 20 consecutive trading days ending five trading days prior to the date on which notice of redemption is provided is at least 125% of the conversion price. On or after July 31, 2021 and prior to the maturity date, the Company may, at its option, redeem the Debentures, in whole or in part, from time to time at a redemption price equal to their principal amount plus accrued and unpaid interest. "
Would I be correct in interpreting this to mean that the company can't redeem the debentures until after the July 31, 2020 date and then only with a minimum of 30 days' notice? I also note the bit about the average trading price having to be 125% of the conversion price and am not sure I understand this wording. If you could help to clarify that I would appreciate it. I am thinking that it is better for me to hold a bit longer, as the 5.75% interest beats what I would receive as a dividend once converted to shares, but doing the math otherwise it seems to come out about even. When is a good time to convert? I assume prior to the date(s) the company can do so for me - but there seems to be two time frames in which the company is able to convert - after July 31, 2020 and after July 31, 2021, with the latter being something you would want to avoid. Am I understanding this correctly? Any additional thoughts you can offer would be appreciated - as always!
Thanks for all your good work!
Dawn

Q: I am thinking to replace VMD with WELL in my TFSA account.
Is this a good idea? Which company do you recommend and why?

Q: Greetings 5i,

FFN has been on a nice run lately. Ive been enjoying the dividend but what accounts for the increase in share price lately?

Cheers!

Q: Hi 5i,

I have about a 40% gain on Emera in an unregistered account.

Assuming an otherwise adequetely balanced portfolio, would you suggest a trim? And if so, could you tell me which SECTOR (Cdn) you would invest new money in at this moment if you could only pick one - again, assuming an already balanced portfolio.

Thanks!

Q: Currently hold Dollarama in my RRIF and underwater. I am considering moving it to my TSFA as part of my yearly contribution $6000.00. If and when a downturn occurs I am thinking this stock should be a decent holding, or should I just sell and take my loss
Your thoughts and thank you
Rick

Q: I HAVE VERY LITTLE EXPOSER TO TECH AND I WOULD LIKE YOUR OPINION AS TO WHICH IS A BETTER BUY AND WHY. THANKS, JAMES

Q: Nice move today on what looks like a great start in getting their technology out. You say????

Q: I have, for me, significant positions in the US technology sector with decent positions in Apple, Microsoft and XQQ, and a smaller position in Cisco. As the new year begins, I am evaluating my holdings and I notice that, even though I like many of the Canadian technology companies, the only position I have in Canadian technology is a small position in Shopify through a Fidelity mutual fund. Given that I like many of the Canadian companies (Enghouse, Kinaxis, CGI, Constellation, Descartes, and Open Text) what is my best strategy to enter this space? As I am not sure it is prudent to create enough space in my portfolios to buy all of these at one time, is there a Canadian technology ETF that holds a number of these companies?
Thank you for your advice.
Don

Q: You have often talked about several criteria’s when selecting buying or selling a stock.
I do not recall ever reading your take on ETF’ selection. Also I don’t remember you ever saying to not buy a particular ETF. Their are hundreds of ETF’s to choose from. This is what I look at, please tell me what’s missing. MER, dividend yield and frequency, market cap i look for more than 300M, income or growth, geography, % of sectors invested, performance history,covered call or not. What’s missing in my analysis ? If all of the above criteria is acceptable for one’s decision, which other factor or factors would influence me in not buying a particular ETF.
Thank you for educating the membership.

Q: Hi All at 5i! There have been several questions about the various Brookfield stocks. I read an excellent article explaining all of them, their dividends and interconnections yesterday ( Jan 13) on seeking alpha. The article was by Alexander Steinberg and was entitled “ Not All of Brookfield’s Subsidiaries are Created Equal.” Cheers, Tamara

Q: Hi, here is the email response as received from the CFO of Boyd Group, for clarification about conversion price of units. Hope it's helpful. I now, intend to take it up with my broker.
" At December 31, 2019, the closing price of the Trust Units was $202.00, which could be deemed to represent the fair market value of the BGSI Common Shares on January 1, 2020. This position is not binding on the CRA and we recommend that you consult your tax advisor with respect to the appropriate mechanism of valuing the BGSI Common Shares received pursuant to the Arrangement. "

Q: I am assuming that a company with lots of cash can withstand a major pullback better that a company carrying a lot of debt. could you give me 5 or 6 companies any sector with lots of cash that could withstand a market correction with less impact to their share value?.

thanks Dave

Q: Happy New Year!

What is your opinion on MELI in general? What is their risk level comparing with Ebay, Shop etc? Is it buyable? Thanks.
Lin

Q: I am now over 7% with SHOP, thinking of trimming back to 4% or so (not the first time I have trimmed back, thanks 5I!) and buying more ROKU to which I am currently at 2.5%. I am heavy in tech and a little low in communication as is although I am not too concerned with the sector balance at this point. I also do not mind holding to 8%

Q: Which Canadian Blue Chip companies in Industrials and Utilities would you recommend investing in at this time?