Investment Q&A

Q: Hi 5i,

My current communications holding (VZ:US/Verizon) only amount to 3.5% of portfolio and should be at about 8% according to Portfolio Analysis.
1. Would you continue to hold VZ?
2. Either way, could you recommend some additional/better opportunities?

Many thanks

Q: Good morning 5i - could you please provide an updated opinion on SEA (Seabridge Gold). I am interested in a short/medium term hold for capital gain in a TFSA account and this seems to fit the bill. RBC recently initiated coverage suggesting a key to success is a partnership; which is being sought now. Thanks for your insights.

Q: You have mentioned a few times that you are not a fan of PFIA’s higher fees. Is there an alternative Fund you would prefer?

Q: Down 28 percent. Is it a hold or sell and buy a different stock. I can also add more if the future prospect is good.
It is in my rrsp.
Thanks

Q: Hi Everyone!
I have all of the above and am underwater on all but Nvee . I am cleaning up my portfolio. I am not in need of the money at the moment , but are any of the ones listed not worth keeping or do they have a good chance of recovery.
Cheers,
Tamara

Q: I own CP, CNR, ENB, BCE, in my Rif account and was thinking about selling these to buy UMAX to increase income and keep me in these sectors. They are about 17% of that portfolio and I don't think I am adding risk by doing this but I will be increasing income significantly. Does this move make sense? Thanks, James

Q: I have owned this company for yield for over a decade but with the share price breaking through the $10 mark on the downside I am considering an exit. May I have your views?

Q: ALA BOM CM CPX CSH EMA ENB FRU FTS NTR TRP

Which are your Top 3 and Bottom 3 choices based on total return over what you consider a longer term?

Thanks

Q: I'm trying to understand how safe the preferred shares of Brookfield Office Properties (BPO) are as they are selling at a big discount to par. I understand that obligations of BPO preferred shares are guaranteed by all of the companies within the umbrella of the Brookfield Property Partner L.P. (BPP) group but am not clear whether the obligations of BPP are guaranteed by its parent .
Any information and views you have on this issue would be welcome.

Q: Hello Peter,
In order of preference for long term, can you please rank the names? Much appreciated.

Q: Hi Team,
With the recent weakness (since the end of July pretty much) it seems like growth stocks, tech have been weak. Do you see this as the start of another "free fall" in the market like we had in 2022 for growth names? I find it odd that the central bankers are telling us how "hot" the economy is running and continuing to raise rates, yet the CEO's all speak of the current "challenging economic period". Sometimes I question the job numbers as being highly manipulated. I heard the other day Canadian jobs were high, but immigration was also at record highs and only half the immigrants got jobs which means the other half are a drain on our economy. I am seeing headlines that credit card debt is at record highs. Consumer spending numbers the government pumps out makes it look good but if that is all credit card debt spending then that's just a crisis in the making. I see today a headline of BMO shuttering indirect retail auto loans due to bad debt. It almost seems like right now that there are no catalysts in sight to support stocks. My portfolio has came up nicely this year but is still a far cry from its 2021 highs being that I was tech heavy. And now I feel like we are headed for another big drop or crisis. What's your take on this and is it time to head for the hills and take risk off the table? Thanks for your input!

Q: I hold the Series 1 Debentures and am quite content to continue to do so, also the rights to purchase Series 2 which I intended to let expire. Should I or is it advantageous to sell Series 1 to switch?

Q: How does the stock look today for a long term investment? Any comments on their Dojo supercomputer and implications in the AI space.

Q: What is your current view of FIVE? I am thinking of initiating a new position. Can you comment on some of its various characteristics.?

A large number of analysts view it favourably with a significant higher target price but...

- some of its financial matrices seem worrisome, a P/E of 33 and a P/B over 6;
- its chart seems to show bad momentum, with a new low for this calendar year;
- some of their competitors have also fared poorly, so is it a bad space?

Would it be better to wait to get into this stock? Many thanks

Q: Hello 5i,

This is a sector allocation question. Portfolio Analytics indicates I have about 14% allocated to Real Estate and should only have 4%. My 3 real estate holdings are DLR:US, DIR.UN:CA and GRT.UN:CA. Would you suggest selling one of these 3 or trimming a bit from each?

Thanks

Q: I am considering selling TD, BNS. 9% of my Rif and SLF, MFC. 3% of my Rif .
I would buy HMAX for 12% of this portfolio, for yield and a little upside.
I would your thoughts on this move. Thanks, James

Q: Peter; I’m with David re the large, and increasingly, big gap between oil stocks prices and the oil price. When I woke up this am and saw the jump in WTI and WCS I was expecting my holdings of ATH, WCP , CNQ to be up also. But no. I’ve always been a believer in the “ don’t fight the tape” and the “ market” knows best- like your Mother! You suggested to David that 18% was too much- what would your exposure be if you could invest in Canada ? Thanks.
Rod
Rod

Q: Hi 5i,

I currently have no healthcare holdings and should be at about 9%. Could you please give me some suggested opportunities?

As always, many thanks

Q: Hi,

Is it too late to buy BRK.b in its CDN version holding for five years? What do you think the effect of Buffets inevitable death will be on the stock?

Q: I received a copy of the debenture prospectus in the mail today and have been reading it with some interest. I think they are going to need an army of accountants to figure out how they should account for it. Although it would make an excellent CPA or CFA exam question, the arrangement seems unnecessarily (ridiculously?) complicated.

The nominal interest rate of CPI plus 6.8% until 2040 looked very interesting at first. However, the amortization of the $33 premium to the year 5 company par value redemption option would appear to almost fully negate the 6.8% (unless a warrant is held and exercised). If the warrant is exercised, effectively allowing the debenture plus its replacement debenture to go to term, the initial $33 premium amortized over 17 years still knocks off 2 to 3% per year. Nonetheless, unless I am missing something, CPI plus (say) 4% until 2040 still looks pretty good.

Having come to the CSU party late I only own 16 shares. That means I can buy $500 of debentures and so exercising or even disposing the rights seems hardly worth the effort. However, I was thinking that as the debentures will trade on the TSX, I could buy more rights or debentures but the amount I would be willing to pay would depend whether I could also acquire more warrants and at what price. It appears that the warrants will not trade on the TSX except when the company issues a redemption notice. That makes buying the debentures look more than a bit risky.

Does my analysis look right to you?

Does the 3.03 ratio of rights to $100 principal value of the debentures also apply to the warrants or is it 1 warrant for each $100 debenture? The prospectus says that CSU will try to ensure that warrants are available to all debenture holders. Do you have any idea how they will do that and will it that mean the warrants value will be suppressed somehow?

Finally, is it likely that the trading price of the debentures will assume the company will never redeem the debentures given the warrants effectively eliminate any incentive it may have to redeem the series 1 debentures early?

Thanks as always