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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: This became two questions:
1) I would appreciate hearing your thoughts on Verde's new market study and also your thoughts on the CEO's comments several Brazilian states are competing for their third plant.

2) I'm in a good position that's unexpectedly difficult. I was in early and have very good gains. I've sold a small part just for my own mental comfort. However it really feels like the company is only just starting. Would it make sense to continue with my prior strategy of routinely buying a small position with this company each pay cheque? It's been performing well, I like the CEO, and I continue to really like the story and the path to further growth.
Read Answer Asked by Frederick on April 25, 2022
Q: I have been looking closer at the industrial sector over the last few months, as I believe that societal increases in technology usage and adoption of electric vehicles in transporation are placing increased demands on the generation and distribution of electrical power. I am looking at both Siemens and ABB as investments in this space which can also serve as long-term anchor holdings. Siemens is a very broad-based company which has a portion of its business dedicated to infrastructure and energy generation, which it describes as its "Smart Infrastructure" unit, while having very robust units in manufacturing, transportation and healthcare. ABB Ltd. appears to be more focused in the infrastructure and utility sectors.

The case for Siemens would revolve around its success in multiple sectors of the economy and its ability to generate revenue from a variety of sources, while the case for ABB would be that it is well-positioned to fulfill the demands of societies which are demanding ever more performance from the energy generation and distribution systems from the places where they live. Both seem to have corrected substantially since early 2022 (SIEGY down 24%, ABB down 18%), which could indicate buying opportunities in the absence of significant news which would account for these depreciations in price.

What are your thoughts on these companies, as well as the idea of investing capital in companies which could address upcoming infrastructure demands? As always, I look forward to reading your thoughts. Thanks so much, and have a great weekend?
Read Answer Asked by Domenic on April 25, 2022
Q: Hello, I saw your answer to Stanley: “Bonds may look better next year, and may look better if the market weakens further.” We are expecting rates to climb, which will affect the bonds value. Normally, rates would already be higher at this stage of the economic cycle, and I would understand. I just don’t see the benefits of keeping bonds in ETFs with the current situation. We might as well hold cash or at least ST bond (held to maturity) for market protection. Could you help me understand? I am thinking about changing a portion of my portfolio (VBAL, XBAL MAW104) for a stock ETF / individual bond strategy.
Read Answer Asked by Patrick on April 25, 2022
Q: Hello 5i Team

I am reviewing a spreadsheet I developed for tracking Canadian REITs and the following REITS which were listed on the TSVX and I cannot find current information on:

LRT-UN – Lanesborough REIT

NHT-UN – NexPoint Hospitality REIT

PT-UN – Pine Trail REIT

RRR-N – R&R REIT

I am assuming these are all defunct, however where can I confirm that a company is defunct and the corresponding TSXV listing dropped.

Thanks
Read Answer Asked by Stephen on April 25, 2022
Q: I am low on my consumer defensive allocation.
1. Is this a good time to buy in this sector.
2. What stocks/ etfs would you recommend.
Read Answer Asked by SV on April 25, 2022
Q: TV

Flooding of mine. 8 missing. stock was at $ 1.85 now $ 1.11. Any word on condition of mine ?
Would you buy it at this low level ? RAK
Read Answer Asked by bob on April 25, 2022
Q: This is something I would rather discuss rather than post, but thats not doable.

So here goes. I've been a subscriber almost since your beginnings and more or less understand how you operate and the type of investments you would reccommend in your portfolios.

There is something that really puzzles me, especially given your experience, and know how.

Take SHOP as an example. About 5 months ago it hit a high of $2230. Today it is $595.

In between the highs and the low you have waxed eloquently about the market conditions and risks involved in the Q&A section, almost on a daily basis. You've talked about increasing rates, the aggressive fed, how high value stocks react very poorly to these conditions etc etc.

In the balanced portfolio it was purchased at approx $1200 and so it has gone from a 100% gainer to a 50% loser.

To me that is a very very large opportunity loss.

My question to you guys is this.

Given client sentiment and emotional well being (given people hate to lose more than they enjoy winning) why does 5i not adopt a strategy to prevent this from happening.

For instance, a widely adopted strategy that once a position doubles half is sold to ensure that there are no losses on the position. That would make a lot of people very happy.

OR, I know you resist this, but using LIVE trailing stop loss orders. Imagine if 5i adopted a trailing stop loss order, where there is no emotional involvement, just a limit to how much you allow the stock to retreat before selling it. Imagine if there had been a 20% TSL on SHOP. And you know what, if we are stopped out then 5i can reccomend in one of its monthly updates a repurchase if they deem it ok. How much can you miss out if you are out of a position a month or less?

Most would certainly say darn, we missed a few points, rather than saying darn, what am I going to do now?

I do subscribe to other services that have perfected these techniques and they can work very favorably , especially in horrific markets like we are experiencing now. For most subscribers it can certainly give Peace of Mind.

Food for thought

Sheldon
Read Answer Asked by Sheldon on April 25, 2022
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