Investment Q&A

Q: I am looking at ALC and CNR. What are the fundamental reasons that CNR commands a much higher P/E? Is this all about growth prospects? Also, how is "fair value" determined by Morningstar?

Q: I hold these 8 equities in one part of my portfolio. I am not sure if it makes a difference, I am up on some and down on others.

The approximate weight and the gain / loss is shown for each. ATZ (3%, +17%); CNR (4%, -7%); CM (4%, +8%); Acuity Ads (0.5%, - 37%); MG (4%; - 11%) RY (6% + 5.5%).

I wish to free up about 2% of the portfolio for a cash requirement. Taxes are not an issue.

Two questions: First, if you were me, which / what would you sell to free up some cash? Second, is there anything here that should be let go because it is time to move on from it? I know AT is too small to make much impact but I am inclined to continue to hold it, for a potential bounce. Many thanks

Q: Hi 5i,
I currently own Cnr 4%, ata 3%, tfii 3%.
For diversity and best 2022-2023 prospects, which does 5i like best: aos or itw or wsp? Which has the highest projected growth for the next two years? Which is the best value at today’s prices? Is there an industrial in Canada or the US that 5i likes better? Perhaps Nvee?
Tia,

Q: If you were to pick 2 0r 3 sectors that might outperform this year in the Canadian Market, what would they be ? Could you suggest 2 or 3 dividend payer in each of those sectors. Thanks so much. Don

Q: Hi Peter and staff, Happy Holidays.

These are my holdings in TFSA account. Can you please suggest two more names, Canadian or US to add for the 2022 contribution.

Thank you.

Joe

Q: I am looking at sector diversification and was considering CN or CP with a starting position. Do you favour either one of these entities for longterm growth (10 year)?

Q: CN went down quite a bit more than CP today - any particular reason?

Q: I would like to increase my industrial holdings, and wonder if you have a current favourite? (Canadian or US)

Q: I do not have any positions in the Industrial sector and would like to initiate a purchase of a solid "Core Holding" security. Could you provide me with a US and Canadian selection for consideration. Looking for a solid performer with good fundamentals. Thanks

Q: Hi Peter & 5i,
Wishing you and the staff a joyous holiday season!
Would you see any red flags in this portfolio for a conservative investor needing the dividends for cash flow. The portfolio would be 50% equities and 50% fixed income - 5 year laddered GIC's.
Here are the stocks and their proposed weightings:
Financial Royal Bank RY 5.7%
TD Bank TD 3.6%
Sun Life SLF 4.4%
Power Corp POW 4.0%
Utility Fortis FTS 5.7%
Brookfield Renewable BEPC 4.2%
Algonquin Power AQN 2.2%
Comm TELUS T 4.7%
Bell BCE 4.1%
Cons Staple Costco COST 4.3%
Loblaws L 4.0%
Cons Discr. Magna MG 3.8%
Restaurant Brands QSR 2.4%
Industrial CN Rail CNR 5.2%
Savaria SIS 3.6%
Energy Enbridge ENB 4.6%
Suncor SU 2.9%
Materials Nutrien NTR 4.3%
Real Estate BMO-Equal Weight ZRE 4.2%
Tech Thomson Reuters TRI 4.8%
Health Evolve Global Health LIFE 3.8%
ETF BMO-Low Volatility US ZLU 8.7%
iShares-US Equity-Hedge XSP 4.8%
Thanks so much for the fantastic service.

Q: Hello, the rumour on the street is that the federal government will be raising the capital gains tax. Does it make sense to crystallize gains this year, pay the tax, move the money into an unused registered account ?

Q: Which would be the best investment today for a long term buy and hold? Please rank. Thank-you.

Q: Hi - wondering your thoughts on the railways for potential lost business due to the BC flooding? Do you think they will have to ratchet down earnings for the qtr and if so, has it been "priced in"?

Q: I am looking to reduce my industrial holdings which are LMT (4.7%), CNR.TO (4.4%), MMM (3%), HON (3%) and TT (2.8%). Please rank in sell order and comments.

Q: Hi Team, We hold CNR and BIP.UN in our TFSA accounts and would like to free up space for other holdings from our non-registered account. We hold AMZN, BAM'A, CSU, GOOG, and QCOM in a non-registered account. If we switch out CNR and BIP.UN before Dec. 31 will we be able to transfer in some of the non-registered holdings in 2022? If so, in which order would you rank the non-registered holdings to take advantage of the TFSA account?
Would it be better to replace BIP.UN with BIPC in the non-registered account?
Thanks

Q: Hi Peter and staff,
Thanks for the great information that you guys provide.
These are the holdings in my wife's TFSA account. I have owned CNR since March of 2020 and have done quite well but I'm wondering if this stock has reached the top of the price range and it's time to move on. The average Price Target is $165. Do you think that CNR still has upside or can you name two stocks to replace it.

Thanks and have a great day
Joe

Q: What is your opinion on the activist investor situation at CNR? I remember when this happened with CP a few years ago. Even though I never bought in, the stock did very well in the years following Hunter Harrison being appointed CEO.

I'm asking because I am currently light in industrials, I have postions in TT, WSP, TFI, XYL. I was considering a position in CNR for my RRSP.

Q: People seem to have varied views concerning the causes of the supply chain disruptions including covid, lack of longshoremen, lack of truck drivers, etc. Do you see any companies benefiting from this; perhaps on the transportation side such as CNR, TFII, or CJT ? Or any other industries?
Thanks for your insights.
Ian

Q: I want make some changes to my portfolio with the goal of getting closer to your Balanced Equity portfolio. I am overweight in CNR.ca, 10% loss on MFC.CA and have gain of 120% for PIF.CA. What would be your suggested 5 equities to replace these? The rest of the portfolio does not have any Consumer or Tech and CNR is only industrial.
Do you think it makes sense to sell all of PIF.CA?
Thank you for your advice!

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

As per an earlier question we posed, we then increased our positions in 12 of the 30 companies. At this time we would like to increase our investments in 6 of the remaining 18 companies. The intent is to increase the other 12 in approximately 4 months. Which 6 would you add to today? Please rank them, include a small blurb explaining each choice and suggest an entry point. Thanks!