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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: My wife and I are each opening up a TFSA with 75000 initial deposit in each account. We are thinking of putting 5-8 ETF's into the one account and 10-12 stocks into the other account. Wondering if this is a good strategy or if you would suggest something different? The emphasis would be primarily on growth, but not at extreme risk. Can you recommend 5 or more ETF's (and percentage allotted for each) for good diversity for the one account, and 10-12 stocks equally spread out to cover the $75,000 in the other account.
Please deduct as many credits as appropriate.
Many thanks, Jake

Read Answer Asked by Jake on June 16, 2021

Q: I am underweight in the technology sector with half positions in CSU, TOI and REAL. I have a well diversified balanced portfolio. Please recommend 2 or 3 CDN technology stocks with a good growth outlook, and rank your choices. I'd like a brief rationale for your number one choice.

Read Answer Asked by Robert on June 15, 2021

Q: I would appreciate your thoughts on holdings in the portfolio. All have been winners - I am fairly prudent yet always looking for trends and will hold long term. I don't rely on dividends though they are preferable. Would you make changes for another holding(s)?

Petroleum: TOU, FRU, ENB
Finance: GWO, NVEI
Steel: STLC, LIF (Watching cyclical trends)
Auto: MG
Mining: CXB, KL, (TRQ - I expect an upturn in 2 quarters)
Software: CTS, LSPD, TOI
Healthcare: WELL

Thank you for your support.

Read Answer Asked by Martin on June 15, 2021

Q: Prior to the spinoff of TOI Constellation had a market cap of $37B, roughly where it sits today. With all its distributed and undistributed shares TOI seems to be a $10B market cap leading me to think this maneuver was a huge win for everyone involved - shareholders of CSU before the spinoff, like me who got a free dividend, CSU itself which created a valuable separate asset and the other group of present TOI shareholders other than the public group. Or are there factors to this I'm not considering and who exactly are the group of minority shareholders holding TOI shares who are not in the public float and what do we know about them?

Read Answer Asked by Jeff on June 14, 2021

Q: I hold a small position in ENGH. Since peaking on Sept 4th at just over $80, it has been in a long steady decline for 9 months, to the low $50's, a drop of about 1/3 of its value. The results just released Thursday night look very weak to me, especially compared to the previous year, although covid helped their video division significantly last year, and the stock is still trading at pretty high multiples, despite the decline in the stock price. I know you have mentioned many times that you feel ENGH is a good long term steady business. Wondering if you still feel this stock is worth adding to, or is it time to sell and move on to something that offers more growth? Or do you still think there is reason to expect good revenue and income growth from ENGH over the next few years? Would you sell ENGH and add to existing positions in NVEI, TOI or DSG? Thanks.

Read Answer Asked by Dan on June 14, 2021

Q: Hi, Recent chatter on 5i suggests Topicus shares as Bargain at $44 and Very Attractive at $25 (Based on present Sales), while it is currently trading at $78 after touching a High of $94. So two Questions:
1. Is the stock Expensive at current valuation ($78-$80) or a Good Buy ?
2. If we need to revisit Constellation Software, let's say 10 yrs ago, when stock traded in $80-$90 range, did CSU stock look Expensive or different from TOI's valuation Today ?

I am trying to visualize TOI from the same lens as CSU ( and its history) and make a reasonable assumption and investment decision, although CSU performance may not necessarily be replicated.

Thank You

Read Answer Asked by rajeev on June 11, 2021

Q: Iím 71 years old. As I get older Iíve tried to simplify my portfolio, going from about 50 stocks years ago, to my current portfolio of about 16 stocks, 3 ETFs and 15% cash.
I am a subscriber to your Portfolio Tracking and Analysis service and Iím told I need to make changes to reach a suggested asset allocation and portfolio diversification. Right now Iím tech, utilities and financial services heavy.

Hereís what Iíd like to do:
The following set up gives me an allocation of 70% equities, 20 % bonds and 7% cash. Iím comfortable with this and have gone through many 20 and 30% corrections in the past 30 years without too much despair.

In my Canadian cash account Iíd have CDZ, FTS, AQN.
Locked in RSP (LIRA) I would have AAPL, ZSP, ZEM.
Unlocked RIF I Ďd have CLF, ZAG.
TFSA would have QQQ, ZEM, ZDI, CSU, TOI, SIS.
Iíd like cash around 8% of portfolio.

Iím wondering if I have my portfolio diversification covered and if the right stocks or ETFs are in the appropriate accounts for best tax efficiencies?
Your input would really be helpful.
Thanks
Frank

Read Answer Asked by Frank on June 10, 2021

Q: HelloÖ I didnít see a response so I am resubmitting the question below just in case. Thank you for your help.

I read your report on Topicus. Thank you for putting this together. In the report you state Topicus trades at 10 times sales, however, in the peer analysis it states the price to sales is 3.73. Can you please help me understand the discrepancy or what my misunderstanding is?

Also, I very arbitrary question, but just looking for your opinion - at what price is the stock a generational opportunity and at what price is the stock a bargain?

Read Answer Asked by James on June 07, 2021