Investment Q&A

Q: In finance or investing media there is often reference to portfolio insurance. I did not know such a thing even existed. The discussion often makes a passing reference to “... buy the VIX.... “ If this is correct, how would one do that? If insurance--- I assume that means mitigating risk--- is unrelated to VIX , is portfolio insurance even buy-able (OTHER than by use of options)? If options are the only way to mitigate risk, do you know some reliable sources one can go to? If I am going to pull my hair out worrying about “toppy markets” (a favorite phrase of some market commentators) I would like to be able honestly to claim I did make best efforts before the said hair-pulling.

Q: I have been holding shares of Freehold Royalty for 4 years - they seem to be heading downwards - what is your opinion on this company - hold or sell.
Thanks for your help- Hanna

Q: Could you please comment on their results and outlook?
Should I keep it?

Thanks,
Milan

Q: Can I please have your thoughts and comments on CGI's recently announced earnings. Do you see it as a buy at current levels? Thank You.

Q: Hey guys,

Thanks for the portfolio update, I have Shopify at 6.2% and Xbc at 1.4%. For a "balance portfolio" does it make sense to sell 1% of Shop and purchase more Xbc?
Thanks again,
Jim

Q: I was left with a small position in MS due to a partial fill on a sell order. Recently however MS has stirred back to life, and I now wonder: rather than sell the remaining MS, perhaps add and bring it back to a full position.
1. I understand MS has a very good and growing wealth management business. Is this true?
2. Is MS a good buy based on:
ROE
ROCI
PEG
Price to FCF and Price to EDITDA
Dividend growth

3. I assume one cannot compare MS to a retail-oriented bank like BAC or any of the regionals. Is this correct? If yes, is MS less vulnerable to ultra low interest rates which squeeze net interest margin than , say, Goldman Sachs?

Q: With gains over the past year, I'm overweight in these holdings - BAM 7%, BEP 12%, BIP 8%. I'm not uncomfortable with BAM and BIP but BEP is high.
Do you think there is more short-term upside in either BEP or BIP due to the addition of corporate structures?
What overall weighting would you recommend for these 3 companies and do you have a preference for any - these would be long-term holdings (8-10 years) in an income focused portfolio?
If trimming is recommended, what are your top 3 recommendations for reliable and growing dividend paying stocks, sector not being an issue?
Thank you
Ian

Q: Hello 5i Team
I am looking at adding funds to the small/mid cap energy companies, as I already own my desired holding in the majors (CNQ, IMO, SU) as a base position.

I am reviewing the royalty plays Prairie Sky Royalty and Freehold Royalty as potential companies due to the royalty companies having no exposure to operating costs/risks.

Please provide your opinion which is the better company of the two to purchase or should I split the dollar amount between the two companies? Should I wait till the Q4 results are published (Feb 10 for PSK, unknown for FRU) before making my final decision?

I note that CN Pension trust through Rife Resources Ltd. and Canpar Holdings Ltd. has a related interest, however I could not find how many shares CN Pension trust actually owns. Would you be able to provide the ownership of FRU by CN Pension trust.
Is there a major shareholder of PSK?
Thank you

Q: I would appreciate your outlook on this company and do you think this is a good entry point? Thanks for your insight.

Q: Your opinion on this company, please? I always thought it is a Canadian company. Is it still domiciled in Canada? It is only listed in the US?

Q: ACQ's January 28 new release caused a slight jump in the stock price. Based on the new release, should I hang on for better days or jump ship? I have no reason to hold this stock other than to try to recoup some more of my $20 purchase cost. Thank you.

Q: Your companies database is showing 1.87 revenue growth and n/a for revenue growth for 3 - 5 years. Can you clarify. I see PE of 35. Do you have a different sent of expectations on revenue and earnings please. Thanks.

Q: What is your view of Nutrien with regards to: growth, security of dividend, current entry level and longer term prospects? Thank you.

Q: What is YOUR definition of a momentum stock?
Please name companies in your portfolios that you Currently consider to be momentum stocks.
Thank you

Q: I've been holding this stock for 3 years. From March of 2017 the stock has appreciated by $1 from wence I bought it and yes I have been receiving a 5% dividend.

However during that time period I have owned BCE, FTS, BEP etc which have done markedly better on a total return basis.

My experience is this is a strict dividend play and I was wondering if I wanted a more growthy income play is there a few equities that you could say you like better than this one which offers a healthy dividend and perhaps some capital appreciation potential as well.

Please offer a few suggestions as I currently have a very extensive portfolio.

Thanks

Sheldon

Q: A few years ago, I had some losses on several semiconductor companies, foundries and equipment suppliers to the industry. Since then I have more than made up. I VAGUELY recall a financial analyst saying one should not buy chip companies when they have low P/E.... that one should only buy when they look expensive. Does this heuristic make sense to you ? If yes , does the suggestion apply to all cyclicals or just some sectors?
BUT how does one actually apply the ‘rule’ , in other words:
What specific ratios should one use, including inter alia :
Trailing P/E
Forward P/E
PEG
It seems counter-intuitive and migraine-provoking to *intentionally* buy expensive and later intentionally to sell cheap.
I am interested in YOUR thoughts.

Q: Hi 5i Team,

I have partial positions in both of the 2 stocks above and I am looking at adding to one of them. I've had HTL for awhile and has climbed back to my purchase price and trending nicely even with recent volatility. TCS is a relatively new position for me. I've watched it for a while and missed the initial run I really like its potential. Both are part of a diversified small cap portfolio.

I would like to know if you would be comfortable adding to positions in these stocks today? Do you have a preference for one or the other today?

Many Thanks and have a great day!

Q: Please recommend a few stocks to deploy some cash. I am hesitant to buy into these strong markets (I'm cheap) but am getting impatient waiting for any kind of correction. Looking for reasonable safety, decent dividend and some growth, irrespective of sector.

Thanks as always

Q: Can you please comment on $CNR Earnings and how the Market might react.

Thanks Valter

Q: Hi 5i, Since early October volume on ABT has diminished considerably. The share price has moved up nicely but on low volume compared to historical levels. Do you know any reason why volume would be lower as the company seems to be putting up solid results the past few quarters.