Investment Q&A

Q: I would appreciate your comments on Flyht Aerospace Solutions (FLY) Second Quarter Update released today. The stock is up over 5% on this news release but down 50% on a year to date basis. Is this a buying opportunity at today's price? What will it take for Flyht stock to move significantly higher? Thanks

Q: I’m investing for a parent who is currently 100% in cash, is nearing retirement and has never invested. They will not actually need income for another 3-5 years, but I would like to generate some dividends, so they can see actual cash coming off their investments (this may be reinvested). I think dividends will help psychologically if the equity portion declines as they will at least “be paid to wait” while the market recovers.

I am considering constructing the portfolio as follows:
30% Cash – PSA
50% Bonds – ZAG
10% Equity – International Dividend – PID
10% Equity – International Broad Index – XAW
10% Equity – Canada Growth – 5i

Can you provide 5i’s 2 or 3 highest conviction calls right now. I’m looking for growth at a reasonable price. Not looking for yield, but would like it to at least pay a modest dividend.

I would also be interested in any views you have about the suitability of the portfolio and any alternative / additional suggestions you may have.
If there is a correction in the equity markets in next few years or one of 5i’s A companies slips on a banana peel, I may look to put some of the cash to work and increase the equity potion.

My tactical views are: interest rates will rise with the US leading the way, the US broad equity markets are looking very expensive, Bonds are generally not a good investment and at low rates they will get killed by inflation over the long run (but they reduce volatility).

Also, in terms of allocating these investments between non-registered and TFSA, how should I generally be thinking about this? International stocks and bonds into the TFSA until it’s full and cash and Canadian stocks in the non-registered account? I don’t think they will be making any new contribution so perhaps there is no way to use the RRSP.

I look forward to your thoughts and apologise for asking a multi-part questions. If you start to run out of steam, don’t worry about the tax questions.

Thanks

Q: Peter; Which companies would benefit most from an increase in the price of Brent? Thanks. Rod

Q: Hi !

I invest mostly in growth stocks but with 28% of my portfolio in tech, I may be overloaded in this sector. My present holdings are: CSU (2.7%) PHO (2.5%) KXS (3.2%) SHOP (3.5%) ADBE (3.1%) FB (2.7%) GOOG (2.6%) MU (1.8%) NVDA (2.2%) SQ (3.%). If I were to reduce the number of holdings as well as my tech %, on which stocks would you suggest to concentrate, identifying those with most growth potential and those more risky ? Are there any other stocks better suited to my goal ? Or should I stay the course here ?
Thank you for your good attention,
JD

Q: Howdy!
I am slowly repositioning the Canadian equity portion of my RRSP portfolio to emulate your Balanced Equity Portfolio.
About 27% of my portfolio is sitting on cash right now; I do not yet own the listed companies - Are they all good to buy today? Or please rank them in order of value for purchase today versus perhaps holding off a quarter or two.
Thank you

Q: What are your top picks in CD and CS
Thanks

Q: Hi, Would like your esteemed opinion on this company. Seems to be increasing revenue and profit and paying a nice dividend.

Q: I have recently taken over my parent’s investment account management because of health reasons. I found that my parent’s financial advisor had their money tied up and mutual funds with heavy fees, as well as GICs that were locked in for a long period of time. The money is now available for investing. They are retired and in their 80s. I will be keeping most of the money in HISA, GIC, and some short term bonds if the yields ever go above GICs. I would like to include a couple of stocks that are quite secure and pay decent dividends. And suggestions? I was thinking of RY, CM, BNS, PWF, BCE, CU, TRP, and ENB. Do these sound good, and do you have other suggestions?

Q: I'm a young investor (early 30s) and have previously had all of my portfolio in equities. I'm concerned about risk and want to put about a quarter of the portfolio into safer, fixed income type investments. I'm struggling to understand the benefits of investing in GICs (currently with rates of 2.8-3.5%) vs Bond ETFs (like VAB or ZAG). Can you help explain the difference and benefits between Bond ETFs and investing in a direct GIC? Can you recommend the better choice for me; GICs or Bond ETFs?

Q: This is more a request than a question.
What I would like to know, especially for companies that are carrying high debt levels, is how much debt is maturing each year for the next 15 to 30 years. I don't know what time frame would be reasonable but the longer the better.

Q: Can you comment on the Chinese court temporarily banning MU chip sales. Should I still hold or time to sell? Thanks

Q: I have about a 3% position in HR.UN and a 4% position in SRU.UN. Both pay a good dividend but I'm down about 9% in both. Perhaps I should switch to a residential or industrial Reit for more growth potential. Any suggestions?

Q: Would the team be comfortable in building a long term position in Aecon?

Q: Looking 5 years out, which of these two stocks do you think have the best potential for growth in both share price and dividend?
I am thinking of switching from ECN to PLC after reading your new report on PLC.

Thanks!

Q: Hello- CAS has been taking a beating- will the new tariffs affect it? Is there a better company to invest in in the sector given the present trade issues?What will happen to the paper and packaging industry with trade war?

Thanks

Q: I understand the logic of "getting paid while you wait" but in this particular instance, what am I waiting for? I am now off 30%. Do you actually see this one recovering or is negative momentum going to take it down.

Carl

Q: Peter and His Wonder Team
I know you do not cover this USA stock. It was a Top Pick on BNN recently. Today it crashed over 60%. Anything on the wire? Your thoughts please.

Q: In a previous question, 5i had recommended no urgency in averaging down into RME shares, has this opinion changed at all after the John Bob acquisition?

Q: Why has PRU declined so much? Do you think it has much farther to fall? Would you start a position in it today? I’m curious about its prospects, especially in relation to the big US banks. Thanks for your advice.

Q: Hello 5i,

BNS vs TD.
Am considering a switch from BNS to TD for a long term hold in my RRIF.
However, have noticed YTD that BNS is down 8.8% while TD is up 3.3%.
What are your thoughts going forward ?
Appreciate your opinion as always.
Steve