Investment Q&A

Q: hello 5i:
we're interested in starting a small position in HBND.
First, can you clarify something.
You said, in reply to a previous question: "But if rates stagnate or decline, and for an investor seeking income, the yield on this ETF may come under pressure, but its unit price can see capital appreciation. "
Are you saying here, that if (for example), the 10 year Treasury were to fall from 4.8ish to 2.4ish, that HBND would then yield around 5%? Along with a capital gain?

Second: would the decrease in HBNDs yield matter that much, as Treasuries and GICs, etc, would have a similar decrease in rates (a 1 year GIC paying around 2.5% vs a current rate of around 5%?

Third: isn't a stagnant yield almost ideal for a covered call bond, as nothing is changing, other than the seller continuing to collect the premiums from the sale of the covered calls?
thanks
Paul L

Q: at this moment, smci is up 27. at 317, i sold some of a very large position.
do you still like and why the big move today
dave

Q: I am thinking of entering into a position in Boyd. Thoughts on this as an entry point
and how does it compare with the prospects of the industry as a whole?

Q: Dear 5i
I can't decide on which to buy for a growth stock ,BN or LMN or whether both could be owned . Assume an otherwise balanced portfolio . Would now be the time to buy ?
Thanks
Bill C

Q: Someone told me rumors about Microsoft planning to announce they are making semiconductor chips soon, and would cause the price of Nvda to drop. How reliable are those rumors and should I act on them? How do you see Nvda compared to google or Microsoft or apple, in terms of risk and long term potential?

Q: If we had $75K in an unregistered account, would it be accurate to say that purchasing an ETF like HSAV would be better than putting this money in a GIC or high interest savings account, due to the fact that there are no distributions and thus, only 50% of any income are taxable?

In other words, if I am deciding between a 6% GIC, or HSAV (which I believe has a similar yield), I would pick HSAV correct?

Are there similar ETFs like HSAV that have similar characteristics (ie do not pay out dividends) that you would prefer over HSAV?

Q: Hi folks,
I am looking at topping up to a full position in either Telus, BCE or ENB. This will be in my TFSA account. Can you recommend one that not only will have some growth when interest rates peak but the dividend will remain intact as well.
Thanks

Q: Everyone, I have held LSPD since the summer of 2019 and I bought and sold throughout the last 24 months. My remaining amount is less than 2% so not a significant amount of $. They have $700 million plus in cash; they call EBITDA positive this year; they reduced the head count which lowers expenses; interest rates will be increased once or twice then a wait period and then a slow decline. All positives for the stock price. And the Quebec Pension still owns a large block of shares - they haven’t given up! The stock price seems to have held at this price range, so there is no real material downside risk. SQ and Toast are in the same stock price position, an industry decline not a stock specific decline. In a better market this stock will quickly do a triple from here.. So … buy and wait … or… move on? Clayton

Q: Hi, ATS price action for past few weeks has been disappointing, to say the least. There was a similar comment from another member recently - ATS stock price has started a definitive downtrend, asking for a possible explanation. 5i response was along the line - "ATS share price has been under pressure recently along with the broad market ". The issue is that ATS follows the broad market ( growth stocks ) during declines but fails to participate during market rallies. Even on Tuesday when Bond yields moved significantly lower, prompting a nice bounce in most growth sectors, including Technology and Industrials, ATS showed only a muted response. Any further insights or possible explanation ?

I am aware that ATS is one of the largest holdings in your Growth Portfolio and it's one of your favorites. Thank you for your invaluable service !!

Q: Hi
I am looking at some tax loss selling. Would BEPC make a good alternate for NPI at this time and can you suggest alternates for CTS and DND as well.
Thanks, Keith

Q: Hi 5i team.

This question is about how model portfolio annual returns are calculated.

Specifically I would like to know how those securities that have been removed from a portfolio over time are reflected in the yearly returns. For example, in the Balanced Portfolio, securities such as AC, NFI and many others no longer in the portfolio, how are their losses captured in the annualized figures.

Perhaps if the absolute dollar value (based on the $100,000 initial investment) were to be reported each year, then we could see the return that would include both dividends and also account for deleted securities that would have incurred losses. This would provide better comparison to those of us that use the model portfolio to structure our own real portfolios.

Thank you.

Q: Somebody thinks this is worth $13 a share, and it trades today thanks to failed takeover at less than half that….what to do?? Buy, sell or hold if you have it??

Q: Everyone, I own the above stocks and I have had them for many years. Under what conditions would you sell them individually or collectively. My investing philosophy is to own the best of the best and hold them forever. Clayton

Q: What are your 3 top TSX natural gas picks?
Jerry

Q: I have funds to put towards an aggressive attempt at obtaining an average 20% annual return over the next 3-5 years (own CSU, NVDA, GOOG, BN and few others with such potential). Not looking for a detailed analyses or commentary, but do any of these choices seem to be unlikely candidates for the desired outcome - ADBE, INTU, WIRE/ATK combo, HEI/TDG combo, ZTS, BX, LVMUY?

Q: According to your company statistics page, CAR’s 3 and 5 year dividend growth rate was -100 and -66 respectively. Does that mean they significantly cut their dividend at some point in the last 3 years and, if so, was there a particular catalyst that drove them to do that? Assuming I am reading the information on the statistics correctly, what are your thoughts on the reliability of CAR’s dividend in the medium term? Contrarily, how likely is it that the dividend growth rate will accelerate once interest rates start to fall, say to catch the company up to where the dividend per unit was before the cut?

Q: What would be the 5 Canadian & 5 US stocks that have the biggest moats at this time? Thanks

Q: I have been holding ENB and PPL for over 5 yrs. The dividends are great but the stocks are not going anywhere. Down 15%. Would like to sell one of them and buy IMO. Have full position on both of them. Which one should I sell?

Q: This morning, Opsens received a takeover offer from Haemonetics. Do you think there's any potential for other bidders to offer more than the current $2.90 cash offer?

Many thanks.

Q: Good morning 5i. Any recent news on The Keg.un?
It seems to be on somewhat of a slide lately.