Investment Q&A

Q: I have read a number of articles predicting that a large number of jobs, possibly in the order of 1 out of 5 or more, will remain work at home after a vaccine is developed for COVID. If companies learn to manage "work at home" employees efficiently in North America, then it seems only a matter of time before these companies start transitioning their workforces to less expensive labour, employees who "work at home" from low cost countries. Do you agree with this hypothesis? If you do, it would seem to me that international HR firms will be in high demand, to assist firms to source skilled labour in low cost countries. Which firms do you see as being able to benefit from this possible trend? At the moment, it seems to me that the market is focussing mainly on the high tech beneficiaries of these trends.

Thank you for your excellent service, and thoughtful insights.

Q: In a question from Brendan posted June 22, you referred to various preferred shares you were comfortable with and mentioned ENB.PR.K; I tried searching that and did not get any result. Is that the correct letter?
thanks,

Q: Today's or recent news show that Alaris is pursuing a corporate reorganization to convert from a corporation to a publicly-traded income trust.
Can you share your opinion on how this will affect investor? What are the pros and cons and what material impact we could see going forward?

Q: What effect on BAM would the taxation of carried interest at normal tax rates be?
Thanks
Bob Rose

Q: Hi.
I read an article recently that indicated that electric cars are going to create a huge demand for copper going forward. Could you comment on which of the two companies you would prefer and what your outlook for copper is ?

Thanks

Q: plus 5 % dividend ok debt,,,,,,, what stocks looks puzzling to you why its still far down a stock with value and when the virus goes away from everyday attention that should have good upside .

Q: Can I get your thoughts on this company please.

Thanks,
Scott

Q: Tony Dwyer from Cannacord likes to refer to "banks and tanks" as good areas to be in when the economy eventually turns positive. I believe he's referring to the more cyclicals. Can you suggest both Cdn and US ETF's that would fit the bill. Thanks.

Q: Could you please provide an update on Morguard REIT. Do you still see it as a high risk investment?

Q: Looking for 2 stock recommendations for each of my children's RESP account. I tend to prefer companies paying a dividend. Child 1 is 15 years old, needing the funds in 3 to 4 years so picks would need to be conservative. Child 2 is 11 years old, needing the funds in 7 to 8 years.

Q: hi there, just wondering about your thoughts on this hedge fund's piece published today and what are your thoughts about equity market in general about a historic bull market?

"Investors could be looking at a ‘lost decade’ in the stock market, the world’s biggest hedge fund warns"

https://www.marketwatch.com/story/investors-face-a-lost-decade-in-the-stock-market-according-to-this-warning-from-the-worlds-biggest-hedge-fund-2020-06-18

Q: What is your analysis on Nexus REIT?

The commercial real estate looks like mainly leased to grocers, dollar stores and banks.

Only concern seems to be their office space which seems to be a small portion.

Also, what % of their real estate is office space?

Book value of yahoo states a value of $2.65. How do they compute this?

Q: WHAT ARE YOUR RECOMMENDATIONS ON THESE SECURITIES. I HAVE HELD THEM FOR A FEW YEARS AND HAVE BEEN SATISFIED WIT THEIR PERFORMANCE BUT I AM THINKING OF SELLING AND MOVING ON TO OTHERS.
PLEASE ADVISE.
THANK YOU, TERRY

Q: Hello Folks,
Perhaps you could take a look at this one and update your comments. It has been a while since you have addressed it. Looking at it from the position of adding to a small position within the context of a speculative tech small-cap.
Kind Regards

Q: Hi 5i Team,
I do not have any international exposure and I am wondering if you would recommend a dividend ETF with some upside potential. What account would it be best held in? Do you think this is a good time to enter? Thanks so much.

Q: BMO has new issues with principal protection. If I understand, many will limit your upside in order to guarantee the downside. Some seem to not limit the upside. My grandchild will require funds in 7 years. Can you give me your opinion as to Bank of Montreal Low Volatility Canadian Equity ETF Principal Protected Deposit Notes, Series 5
JHN2446 suitability. Is there a better “protected” alternative or is it all a case of you don’t get something for nothing. I’m looking at a safe place for $10,000 (Currently 20%).
Thanks

Q: If someone stopped you on the street and randomly offered you $1720 US cash or one ounce of gold, which form of wealth would you take? Assume both the cash and gold are real, of equal value, there's nothing suspicious, and that the decision doesn't depend on any special circumstances or conditions or taxes.

Q: Selling RNX and looking for a replacement in the same sector with similar risk but more potential upside.Some suggestions would be appreciated.Thanks.

Q: I've been watching this one for a while, ever since you compared it favourably within the context of alternative energy / solar stocks. Wednesday's "dip" turns out to have been driven by a class action lawsuit concerning alleged revenue manipulations.

The press release from the legal firm filing the class action has this to say:

"On June 17, 2020, Prescience Point Capital Management issued a report alleging, among other things, that 'at least 39%, or $205.3 million, of [Enphase's] reported U.S. revenue is fabricated.' The report also claimed, citing former employees, that 'a large portion of [the Company's] astronomical growth over the past two years is attributable to accounting gimmicks that artificially inflate revenue and profits.'"

What are your thoughts on Enphase in light of this news?

Also, I'm curious given your experience, are you able to share any insights on how class action lawsuits affect companies and their share performance -- at least, until the allegations are actually proven or rejected in court?

Please deduct as needed.

Kind regards

Q: I am approaching my first year with 5i Research and it has been the best investment decision I've made. Thank you for your great service.

These days, it seems like an attractive strategy to buy a stock that has potential for significant upside recovery and has a great dividend that can accrue while waiting for that recovery. The risks would be that the dividend is stopped/reduced or the recovery doesn't happen. But some companies seem to be "good enough" that we can be *relatively* confident that it works out very well. Am I missing anything? Is EIF a great candidate for such a strategy? What are some better alternatives? Thank you.