Investment Q&A

Q: Hello Peter, Like most of us, are concern about the effect of the coming rate increases. How safe will the above preferred shares be, would you consider them as good choices for income and safety? Also, can you suggest equivalents in the Canadian market? Many thanks for your valued advise, J.A. P. Burlington

Q: A number of posters list off several holdings in a given sector. If you hold several stocks in each sector, don't you end up with an unwieldy number of stocks? Are there sectors where diversification is more important than others? How does one determine how many stocks in each? Am I missing something in thinking you'd end up with insignificant amounts of a large number of stocks? i know: a lot of questions. Dock whatever seems appropriate.

Q: Hello 5i team,
I’m 74 years old; with due diligence and with the contribution of people like you, my RRIF portfolio is behaving very well. My plan is to deplete the RRIF portfolio at age 90. The revenue from this portfolio will continue at the same level if I get a 7% compound annual total return in the next 16 years.
Unfortunately, we expect a recession sometime during those years. If I were to ride the recession, the value of the portfolio would stand still for (let’s say) 5 years and if the portfolio were to grow by 7% in each of the remaining years, my revenue would drop by a whopping one third. In order to maintain the expected level of revenue, my excel projection model indicates that I should obtain a 20% growth per annum instead. That is unrealistic.
Alternatively, I could do what I did in 2008. I sold my holdings after incurring a 15% decline and re-entered the market a few months after it bottomed and started on its recovery path. If I did that and planned for a 7% growth per annum, the revenue would drop by 13% only. That is quite acceptable because there is a 10-15% safety margin in my revenue forecast…a cushion of sorts.
If, however, I knew when the recession will occur, I would exit the market ahead of time and re-enter after the bottom…”but that is another story”.
I would greatly appreciate your collective opinion.
Best regards,
Antoine

Q: Hi Guys and gals

No that the insults, personal attacks and counter attacks have settled and there is a new board in place, How do you feel about the new management? Personally I like to see a shake up in the boards, not for sake ups sake's, but I think that long time management and directors get a little to complacent, especially ones tat have been in place since the IPO. Having said that, how do you feel about the new board and their history with other companies that they have been involved in, is it an upgrade in your opinion? I like the fact that they may exit the states and and look more to Canada to expand, and refresh some of the stores up here, anyways what do you think?

Thanks

Auftar

Q: I have a loss in my account holding AYA,KWH.UN,DBO,HEO,ITC,PHO,ROXG,TV.Long list but need help which stokes to sell and what to buy?.

Q: Am thinking of adding 1/2 a position of NWH.UN to a tax advantaged account. Already have a half position in SIA. Would be interested to know degree of insider ownership and significance of institutional interest in NWH.UN and, if possible, short term debt (say, 18 to 24 month -- because of possible rate increases). Thanks for all you do. Deduct as many question 'points' as appropriate.

Alternatively, could add to SIA. Thanks, Bill

Q: just raised some cash as a result of tax loss sale of QTHR which i plan on
repurchasing before October.
am looking to park the cash in either KWH.un or NVU.un for a month or two. they both pay a handsome dividend - 7.84 and 7.96
do you have a preference?? would the proposed interest rate increase affect either of these two companies?
edward in Montreal

Q: Just a comment this morning... the Conservative Government, at the time of introduction, should have named TFSA's 'Tax Free Spending Accounts'. The original idea was to allow people to save money so they could then spend it on cars, washing machines, dryers etc. The government has the statistics of whom is using this account and whom is not. It has been the biggest (and best) 'savings' tool since 1956 when they introduced RRSP's. I agree with 5i that if people have made 500K-1M in their TFSA for sure they have taken a chance on companies in the TSX , investing in the country ...good on them.

Q: Regarding sector percentage allocations, please suggest an appropriate mix for someone in their 70's with protection of capital as the main goal and being aware of the changing interest rate environment. Thank you.

Q: Hi All at 5i!! Your recommendation for your balanced portfolio was to initiate positions in CAE and BYD.UN. The PE ratios seem to be a little higher in these stocks. Is this a problem? Cheers, Tamara

Q: Hi- can I have your analysis of this IPO? Do you know anything about mgmt. and experience? The concept sounds interesting but the lack of liquidity gives pause. Thanks

Q: I need to increase my holdings of Consumer staples. Please rank the following in order of your preference when the main focus is dividend growth with secondary goal of capital appreciation.
ATD, L, MRU, SAP, WN, EMP.A, MFI, BCB, PBH, PJC.A

I can be patient in the timing of my purchases. Do you think this is a good time in the economic cycle tp purchase this sector?

Many Thanks

Paul

Q: I've spreadsheet-ed all 5i stocks plus others and populated each stock's core fundamental and technical factors. If you could only sort & rank by "Earnings per Share" Growth Rate (i.e. 2016, 2017, 2018) or Earnings Yield (TTM) which one would you choose to rank stocks by and why?

Q: On July 7, 2017 in answer to question about ENGH posted by KC, you state that "...We really do not expect the tech decline to last long." How so? What parameters you look at? Are these fundamental or technical? Thanks

RR

Q: Are there public companies in Canada suitable for playing blockchain?

Q: Hi Peter and Team,

Could you please give me your thoughts on preferred shares in general given the current interest rate environment and the pending rate hike by BOC in about a week's time. Please also provide some names of ETFs of preferred stocks in both Canadian and US denominations.

Cheers,
Harry

Q: Is Cenovus a long-term buy at current prices? Thanks.

Q: 5i, in the past answers you were lukewarm to AC, but the stock has performed very well. Given Canada's population make up (international travel) and their new planes, isn't it the great stock to own at this point in time? I owned it from $9 to $13 but didn't follow your rule of not selling a winner stock unless there is a material change.

Q: Hi Team,
News on pine line financing, Canadian lender Desjardins Group consider no longer lend to any pine line project the Canadian banks too.
So it is time to sell all Canadian pine line companies now?
Your commend high appreciated !
Thanks as always.

Q: Hello,

With the market in a bit of a down spin these days which stocks from your Income, Growth and Balanced Portfolios do you think are good to top up now, with this current decline. Please choose your top 3 from each portfolio and why for each.

Thank You