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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: Looking for income and capital gain for 1 year or more. LIF seems to have bottomed and rising while CHR dropped back and now might be going forward again. Which one would you go with? Without regard to portfolio diversity and only $5k for this investment. Or a better suggestion ?
Thanks,
Mark
Read Answer Asked by Mark on January 29, 2020
Q: In finance or investing media there is often reference to portfolio insurance. I did not know such a thing even existed. The discussion often makes a passing reference to “... buy the VIX.... “ If this is correct, how would one do that? If insurance--- I assume that means mitigating risk--- is unrelated to VIX , is portfolio insurance even buy-able (OTHER than by use of options)? If options are the only way to mitigate risk, do you know some reliable sources one can go to? If I am going to pull my hair out worrying about “toppy markets” (a favorite phrase of some market commentators) I would like to be able honestly to claim I did make best efforts before the said hair-pulling.
Read Answer Asked by Adam on January 29, 2020
Q: Hey guys,

Thanks for the portfolio update, I have Shopify at 6.2% and Xbc at 1.4%. For a "balance portfolio" does it make sense to sell 1% of Shop and purchase more Xbc?
Thanks again,
Jim
Read Answer Asked by jim on January 29, 2020
Q: I was left with a small position in MS due to a partial fill on a sell order. Recently however MS has stirred back to life, and I now wonder: rather than sell the remaining MS, perhaps add and bring it back to a full position.
1. I understand MS has a very good and growing wealth management business. Is this true?
2. Is MS a good buy based on:
ROE
ROCI
PEG
Price to FCF and Price to EDITDA
Dividend growth

3. I assume one cannot compare MS to a retail-oriented bank like BAC or any of the regionals. Is this correct? If yes, is MS less vulnerable to ultra low interest rates which squeeze net interest margin than , say, Goldman Sachs?
Read Answer Asked by Adam on January 29, 2020
Q: With gains over the past year, I'm overweight in these holdings - BAM 7%, BEP 12%, BIP 8%. I'm not uncomfortable with BAM and BIP but BEP is high.
Do you think there is more short-term upside in either BEP or BIP due to the addition of corporate structures?
What overall weighting would you recommend for these 3 companies and do you have a preference for any - these would be long-term holdings (8-10 years) in an income focused portfolio?
If trimming is recommended, what are your top 3 recommendations for reliable and growing dividend paying stocks, sector not being an issue?
Thank you
Ian
Read Answer Asked by Ian on January 29, 2020
Q: Hello 5i Team
I am looking at adding funds to the small/mid cap energy companies, as I already own my desired holding in the majors (CNQ, IMO, SU) as a base position.

I am reviewing the royalty plays Prairie Sky Royalty and Freehold Royalty as potential companies due to the royalty companies having no exposure to operating costs/risks.

Please provide your opinion which is the better company of the two to purchase or should I split the dollar amount between the two companies? Should I wait till the Q4 results are published (Feb 10 for PSK, unknown for FRU) before making my final decision?

I note that CN Pension trust through Rife Resources Ltd. and Canpar Holdings Ltd. has a related interest, however I could not find how many shares CN Pension trust actually owns. Would you be able to provide the ownership of FRU by CN Pension trust.
Is there a major shareholder of PSK?
Thank you
Read Answer Asked by Stephen on January 29, 2020
Q: I've been holding this stock for 3 years. From March of 2017 the stock has appreciated by $1 from wence I bought it and yes I have been receiving a 5% dividend.

However during that time period I have owned BCE, FTS, BEP etc which have done markedly better on a total return basis.

My experience is this is a strict dividend play and I was wondering if I wanted a more growthy income play is there a few equities that you could say you like better than this one which offers a healthy dividend and perhaps some capital appreciation potential as well.

Please offer a few suggestions as I currently have a very extensive portfolio.

Thanks

Sheldon
Read Answer Asked by Sheldon on January 29, 2020
Q: A few years ago, I had some losses on several semiconductor companies, foundries and equipment suppliers to the industry. Since then I have more than made up. I VAGUELY recall a financial analyst saying one should not buy chip companies when they have low P/E.... that one should only buy when they look expensive. Does this heuristic make sense to you ? If yes , does the suggestion apply to all cyclicals or just some sectors?
BUT how does one actually apply the ‘rule’ , in other words:
What specific ratios should one use, including inter alia :
Trailing P/E
Forward P/E
PEG
It seems counter-intuitive and migraine-provoking to *intentionally* buy expensive and later intentionally to sell cheap.
I am interested in YOUR thoughts.
Read Answer Asked by Adam on January 29, 2020
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