Investment Q&A

• S&P 500 (SPX)
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Q: From BMO Capital Markets, regarding the cost of borrowing (rising interest rates) and the new US tax bill. "Starting in 2018, companies can only deduct interest expense of up to 30% of its EBITBA. Any amount beyond this, will no longer be deductible. This will tighten further in 2022."
I read this quote, and noted that while you do not cover US Markets, this tax increase on companies in the States, may largely affect some of your members' portfolios. I really don't have a question about it, but thank you again for your guidance in regards to searching for value stocks. Susan

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Read Answer Asked by Susan on February 06, 2018

• Miscellaneous (MISC)
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Q: With the turmoil in stock market, both good and bad ones are down. Could you recommend the growth stocks that offer best value but trade low due to current volatility.

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Read Answer Asked by Vinod on February 06, 2018

Q: HI 5i, Sorry to ask another question re: a US company. Can you please tell me how the business model has changed with Koninkliijke Philips? I am interested in investing in a a good health care company and Lorne Steinberg recommended the company on BNN. Do you like this stock long-term? Would there be any concerns with Amazon, Berkshire, JP Morgan collaborative initiative? Thank you, Linda

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Read Answer Asked by Linda on February 06, 2018

• Covalon Technologies Ltd. (COV)
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• Amgen Inc. (AMGN)
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• Biogen Inc. (BIIB)
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• Gilead Sciences Inc. (GILD)
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• Knight Therapeutics Inc. (GUD)
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Q: What would be your favourite healthcare stocks in Canada and Us?
Thank you

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Read Answer Asked by Josette on February 06, 2018

• BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE)
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Q: I am interested in zwe for the European exposure and the high dividend. However I don’t understand what a covered call etf is or how it works. Can you
explain the mechanics in layman’s terms.

Thanks

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Read Answer Asked by Valdis on February 06, 2018

• BMO Equal Weight US Banks Index ETF (ZBK)
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Q: in Dec. I added both ZBK and Bank of America to my portfolio...
with the correction, I am thinking of selling ZBK and adding JP Morgan instead...
the concentration will hopefully provide a greater return ( at less cost )!
appreciate your comments on this strategy ( and if you prefer an alternative U.S. financial instead )
ed in montreal

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Read Answer Asked by ed on February 06, 2018

• Allied Properties Real Estate Investment Trust (AP.UN)
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• Granite Real Estate Investment Trust (GRT.UN)
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• Dream Industrial Real Estate Investment Trust (DIR.UN)
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Q: Having sold Pure Industrial, I am looking at replacing it with industrial or perhaps office. (I already have enough retail and apartment exposure.) I have looked at Dream Industrial but am concerned with its small market cap. Also, the 25% ownership by Dream Office seems unusual and I wonder whether it is a red flag.
What are your top recommendations in the office and industrial segments?
In particular, what do you think of Granite REIT? Do you think that the outcome of the dissident shareholder dispute is positive?

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Read Answer Asked by Carl on February 06, 2018

• Descartes Systems Group Inc. (The) (DSG)
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Q: Good day 5i,

Can you comment on the acquisition done by DSG a few days back.

Thanks,
Dave

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Read Answer Asked by David on February 06, 2018

• Acadian Timber Corp. (ADN)
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Q: Your report on this company highlighted U.S. softwood lumber duties as a major risk. But I believe that the Dept of Commerce exempted lumber from this company's territory. Does this change the rating for ADN ?

Does the increase in U.S. employment mean that there will be more demand for lumber for housing and therefore more business for ADN ?

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Read Answer Asked by Don on February 06, 2018

• Covalon Technologies Ltd. (COV)
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• Enbridge Inc. (ENB)
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• TC Energy Corporation (TRP)
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• Alimentation Couche-Tard Inc. (ATD)
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Q: Hello Peter and Ryan,
I am thinking of increasing my weight to 6 percent each for Enbridge and TransCanada to take advantage of the weakness in stock declines during this week. Overall, i am down on both names but expect to keep them for 3 to 5 years as the dividends are great. My covalon technologies position has gone up alot and am thinking of selling half. Lastly, Alimentation couche tard does not seem to be getting too much attention on the positive side as the stock is simply building a base in the low 60s. I would appreciate your opinion on the four stocks please. Thanks very much.

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Read Answer Asked by umedali on February 06, 2018

• Crius Energy Trust (KWH.UN)
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Q: will this correction adversely affect Crius Energy?
there seems to be some consternation in the market place regarding the payouts of utility stocks!
ed in Montreal

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Read Answer Asked by ed on February 06, 2018

• Canadian National Railway Company (CNR)
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Q: Your opinion on CNR please. do you view this dip as a buying opportunity?

would you consider buying this dip in the S&P500 and TSX with the 10% cash i have? or should i invest 5% right now and 5% at a later stage?

i understand there are a lot of moving parts to this question, but im looking forward to your opinion.

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Read Answer Asked by Adi on February 06, 2018

Q: Could you name 2 stocks from each portfolio that would be strong adds during the pull back? Also, in a minor pull back like this would someone be best to add money in blue chip names or growth? Canada or US? Where would you expect best returns?

Much appreciated.

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Read Answer Asked by Tim on February 06, 2018

Q: With the current pullback what 5 names in your income portfolio would be best to ad cash to. Thanks.

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Read Answer Asked by Peter on February 06, 2018

• Boyd Group Income Fund (BYD.UN)
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• Alimentation Couche-Tard Inc. (ATD)
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• Premium Brands Holdings Corporation (PBH)
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Q: If you had to pick two of these three consumer non-cyclicals to buy, which two would you choose?

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Read Answer Asked by Carla on February 06, 2018

• Avigilon Corporation (AVO)
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Q: Hello 5i, firstly let me echo other comments about how nice it is to have an experienced voice of reason on our side during these turbulent times. Thank you!!
I'm considering selling AVO now to free up some cash to buy a few beaten down names. My question is...if the offer for AVO was increased would it likely to be 5-10% or maybe more?
I know this is pure speculation but I am interested in your opinion.
Thank you
Dave

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Read Answer Asked by Dave on February 06, 2018

• Avigilon Corporation (AVO)
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Q: Hi Team, Re: AVO what other company could make a bid for it and how much better could the offer get. Within reason how much would another company offer based on AVO's valuation. Thanks, Nick

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Read Answer Asked by Nick on February 06, 2018

• Ichor Holdings (ICHR)
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Q: This one has corrected quite a bit. Has your view changed, still a good buy ? Good growth expected ? Cheap on a p/e ratio basis.
Thanks,

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Read Answer Asked by Denis on February 06, 2018

• BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE)
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Q: Just doing some more work on ZWE...confused on some beta #s. Globefund has the beta = 2.07. Fundata has a 3 year beta of 0.53. 5iR has it at 0.91. Can you please provide some insight...is it simply different timeframes? I am trying to derisk my portfolio (reduce beta), while at the same time increase dividend income...adding to ZWE seems logical, but the beta numbers are confusing. Thanks...Steve

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Read Answer Asked by Stephen on February 06, 2018

• iShares Russell 2000 Growth ETF (IWO)
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• iShares S&P/TSX SmallCap Index ETF (XCS)
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Q: During market drops/volatility like what has happened the last couple of days is it a good approach to buy some small cap to make quick gains when the markets recover? Your advice is much appreciated. Thanks. Shyam

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Read Answer Asked by Shyam on February 06, 2018