Investment Q&A

Q: I was contemplating CP for a month now as a mid risk reopening play for my non reg account, also since pipelines are under attack & on 5i's comments on the company. Saturday 11PM, I see their offer for a huge acquisition. My question: What does one do if still interested in the company and how would one proceed? Would you step in right away or would you let the story run and then see what happens considering they just entered negotiations and I guess an approval process by regulators of different countries?
Thank you for your help!

Q: I have $100000 us to invest medium risk, 3 years. Where should I be?
Also, what about gold coins as a holding?

Q: If commodities continue to rally would you see the rails as a good lower risk proxy for the sector. Which of the two rails is cheaper on valuation.

Thanks

Q: I saw a report on BNN that CP will be using BLDP's power cells in their hydrogen locomotives. Is this announcement significant for either company. Do we know when these locomotives will be manufactured and how many?
Thanks for your insight.
Ian

Q: Have you heard any further news about CP proposal to spit shares five to one ?
Tks---Al

Q: Based on Keystone XL decision, more crude will most likely be shipped by rail. US refineries need Canadian crude oil caused by shortfall from South America. Gibson plans to build facility to maximize crude content of rail shipments.
With footprint of tracks being different, who stands to benefit the most and why?

Q: Looking for a transportation play. These are the 3 that come to mind. 1) Am I too late to get in for economy opening play 2) which would be highest growth potential 3) is there a disruptor or smaller more leveraged play that you can suggest.

Q: Where do you think Canadian Railroad Stocks are going, and do you have a favorite?

Q: Hi folks,
CP or CNR - I currently have both - CNR in my TFSA and CP in non-registered account . Would you sell CNR or CP at this time and why ? Thinking about buying more CP now that they have announced the split.
Thanks

Q: Hi 5i,

First of all, thanks for your advise to help me understand more for the US & Canadian stock markets. I have a feeling that the US market will end the over 10 years bull market soon and bear market will come in. Due to the issue of GME, BB, NOK, and AMC showing many "NEW" investors involve the US and Canadian market (because of the BB), specially the Reddit social media investor forums is not healthy. I guess the Canadian market may also affected, due to the BB issue. Just in case the bear market will come, what the above stocks need to be sold to play safe. I am thinking to sell KXS, LSPD, and NVEI, those stock prices may not be survival during the big drop in coming. Do you have the same feeling that the bear market will come? Can you please rank the above stocks able to survival during the bear market and please suggest to take off any just in case the worst worst things really happen.

Q: My portfolio doesn't have any coverage in the transportation sector. What stocks/etf's would you recommend in this area.

Rick

Q: My 18-year-old daughter is interested in the stock market and wants to understand the value of owning stocks. She is looking to follow 6 stocks. She has some post-secondary aspirations for next year and would like your suggestions on 3 stable and 3 growth-oriented companies that you would buy today. Thanks

Q: What are your thoughts between these two?

Robert

Q: My parents (late 70's) will be receiving proceeds from the sale of a US asset and are looking to add to their existing investment portfolio (an additional 25%) . They are financially stable with a long term balanced portfolio and are interested in allocating the new cash into quality, long term positions with growth potential. US, Canada and industry non specific. What would you recommend as your top 5 US and Canadian positions and why?

Q: Hi,

What do you think generally about the railroads for a long term hold? If you like them, plse suggest one CDN and one US

Q: Why are Cn and Cp down today while Union Paciic a U.S railway and markets are up?

Q: Good morning,

Wondering if you could shed some light on the decline in CP shares this morning ?

Thank you

Q: You have referred to some stocks and ETFs as CORE. What percentage of portfolio would you recommend as core (relative to satellite holdings) and what would be the number of core stocks and ETFs for diversification. What core stocks and ETFs across all sectors would you recommend?.

Q: 7:18 AM 10/7/2020
I am having a lot of difficulty trying to calculate or find Compound Annual Growth Rates [CAGR] of share prices without [and with] dividends reinvested. Do you know opf a reliable source?
Sources tend to differ a lot perhaps because of not properly accounting for share price stock splits.
I would appreciate it if you could give me CAGRs without and with dividends reinvested for
CNR, CP, TIH, RBA, TRI, BAM.A, RY, CSU.
Thank you......... Paul K.

Q: Dear 5i team:
Your software indicates our family’s investments are too Canadian-focused. However, I prefer our “home bias”, for three reasons:
(a) most of our assets are non-registered, and the dividend tax credit is especially favourable for Canadian source dividends in a province such as ours (Ontario);
(b) I like supporting the companies that I invest in (e.g., we buy Peller family wines, since we own their shares);
(c) but most important, many of the “Canadian” businesses we own are surprisingly international; among our top 20 equity holdings are:
Alimentation couche-tarde (Circle K is world-wide);
Brookfield Asset Management (globally focused company that invests wherever the opportunities are);
CGI Group (revenues are 84% outside Canada per 2019 annual report);
CP Rail (significant U.S. revenues);
Fortis (65% of earning are in U.S.);
Manulife (growing Asian revenues);
Restaurant Brands International (most of Burger King and Popeye’s restaurants are outside of Canada);
Shopify (not sure, but suspect international revenues are growing faster than Canadian revenues);
TC Energy (dropped “Canada” from its name to reflect its growing U.S. presence);
TD bank (substantial and growing U.S. presence);
Anyways, the above-listed 10 stocks represent about one-third of our overall equity holdings (in absolute $ terms), but I would not consider these companies as being “100% Canadian”. I wonder whether your software could be rejigged to reflect the relative percent earnings (or revenue) contributions, broken down per Canada, U.S., Europe, Asia, and so forth. I suspect our home “bias” is not nearly as substantial as it appears.
Ted