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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 son has AC shares in an unregistered account which were purchased over time as AC shares rose but now the AC price is below all of his purchase prices. He has tfsa room.

I am thinking of suggesting that he transfer those shares now to a tfsa so that he will not be taxed on the capital gains if and when the shares rebound.

As I understand it, he won't be able to use the tax loss due to the 30-day rule but he will not have any unregistered gains to use the offset anyway so I'm thinking that's a moot point. (I don't think he should liquidate and re-buy the shares in the tfsa after 30 days in case he misses the rebound.)

Does the transfer to a tfsa make sense or I am I missing anything here?
Read Answer Asked by William on March 24, 2020
Q: I seem to remember in past recessions that I was able to buy bonds of troubled companies like Air Canada and GM with yields in excess of 12%. I just looked on TD WebBroker and AC bonds are YTM 3.5%! No thanks! Definitely doesn't sound like a good risk reward, and there were many other companies with still 'normal' looking yields. Any thoughts on when bonds will be re-rated (or not)? Even the energy sector at some point should be yielding much much higher, with better risk profile than equities.
Alternatively, I always hear that the bond market is smarter than the equity market. Could this be a sign that equity markets have over-reacted? Thanks for all your good work!
Read Answer Asked by Philip on March 23, 2020
Q: Which of these airlines would you choose given the market downturn and uncertain recovery time in the travel industry? I am looking at buying incrementally into a speculative position over the next six months. I would consider Delta, however USD are expensive at this time. Should that be a consideration?
Read Answer Asked by Terry on March 23, 2020
Q: Hi 5i Research Team:

I have traded Forex before and am new to stock trading. 90% of my RRSP, RESP and TFSA is in cash and I'd like to avail the current market conditions by "gradually" buying the dips.. and holding it over the long term, 5 to 10 years. I understand that no one can time the market or its bottom.

After exploring the reports and questions on your site, I have identified the enclosed 29 stocks based on following criteria:
- Current Retracements of > 75% over 52 week high & low
- Dividend Yield > 5% (in some cases, like WEED, which is a bit risky, I understand there's no dividend in the near term.. and I am simply going for the upside swing over the next 2 years... same for CRON and Air Canada)

Considering my 90% cash position and strategy to partially buy in on dips over the next few weeks, can you please advise if my stock selection is sound. In addition to my stock picks, please advise anything else that I should keep in mind.

Thanks for everything you do. Much appreciate.
Read Answer Asked by Meherban on March 23, 2020
Q: GSY: From 80,6$ to 36,5$.
Possibility of ±120% if going back to higher price

DOO: From 75,4$ to 29,3$
Possibility of ±157% if going back to higher price

AC: From 52,7$ to 15,5$
Possibility of ±240% if going back to higher price

1) Which one have the most chance at getting back to the higher price the fastest?
2) For a 12-18 month time frame, which one could recover faster?
Read Answer Asked by Olivier on March 18, 2020
Q: Good Day Team,
I purchased AC this year at $50.00 a share. Sort of feel lost now as to whether Hold, Sell, or Buy. Would you please give me advice to what you would do.
Have been thinking of purchasing the same amount of shares as previous to off set this loss for when things begin to improve again.
Thank you kindly,
John G.
Read Answer Asked by John on March 18, 2020
Q: MGM has come down a lot approx 65 per cent in the last month and it is easy to see why. If you have a long term view would you be fine holding this name. Bought some at $22 and then again today at $10. For AC I bought some at $32 couple of weeks back. Given the beating they have taken I’m hesitant to sell at these prices with a longer term outlook. How are their Balance Sheets and do you think they come out of this intact and recover over time.
Read Answer Asked by Aleem on March 17, 2020
Q: Hi, 5i Team
In the market updates email that you sent on Mar/01, you mentioned the following companies deserved a closer look:

Air Canada (AC), Lightspeed (LSPD), BRP Inc. (DOO),Maple Leaf Foods (MFI),Dollarama (DOL),Aritzia (ATZ),Gildan Activewear (GIL),
Alimentation Couche-Tard (ATD.b), Canada goose (GOOS), Descartes Systems. Group (DSG), WSP Global (WSP), 

In the "5i special Opportunities Report" within the Special Market Volatility Report email sent on Mar/09, you recommended 10 stocks that were very attractive. Only WSP and DSG were also included. What do you think of the others? Is it a good time to buy them around March?
Are they also solid names worth owning especially now after some huge corrections?

Thank a lot!
Read Answer Asked by Jane on March 17, 2020
Q: if you were going to buy an airline these days, would you lean towards air canada or would you buy an American airline. if so, which one? bonus question: would you buy an airline with this free fall?
thanks for thé excellent service
Read Answer Asked by joseph on March 06, 2020
Q: Been keeping an eye on the travel stocks as they get pummeled by coronavirus concerns. CCL yield becoming very attractive--do you think there is a risk of them cutting the dividend as they battle through the inevitable sales decline over the next 12-24 (?) months
Read Answer Asked by Brett on March 05, 2020
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