Investment Q&A

Q: hello 5i team, I am 68 years old. As I get older I like to simplify my portfolios. Above is my CDN holdings. I have a U.S. portfolio of about 15 blue chip companies.
from this list which ones would you keep and which ones to sell? and time frame to sell? now/ 6 months+?
I appreciate your guidance.
Carlo

Q: What part of the market do you see as undervalued? and can you provide a few choice selections? txs as always...

Q: Dear 5i,
Here are the stocks I have left to purchase from your Balanced portfolio, can you please place these in order or how attractive they are at this time for a long-term hold? Also, is QQQ a good starting point for US focus holding in a registered account? Thank you.

Q: Which stocks like Cruises,Airlines,Hotels,Accomdation,Travel do yoe Recommend?

Q: I am currently helping my wife to add new money to her TFSA account. She is currently holding DND, AC, EGLX and PLTR. Please suggest your favorite growth stocks (Canadian and US) taking into account the latest volatility and recent sector rotation from growth/tech and rising interest concerns. She is looking for 5-7 years time frame.

Q: I am allocating 20% of my TFSA specifically to Covid bounce back stocks and have AC as half of the allocation. Would you name 3 other stocks ( with reasons why ) that would fit this theme.
Thanks. Derek

Q: What are your thoughts on the last quarter for AC? Is this still a buy or hold if already owned? Looking at adding more as only 1% of the portfolio.

Thanks

Q: Am I missing any major sectors with these stock investments?
Where should I focus if I would like to ensure a diverse portfolio?
Are there any stocks that I should dump?

Q: Which one and why for a TFSA ? Thanks.
Derek.

Q: Hi 5i,

After months of negotiating, the federal government and Air Canada announced a deal on Monday that allows the airline to access $5.4 billion in loans while Ottawa takes a $500 million stake in shares at $23.1793, a discount compared to Air Canada's closing price today. If I don't have any Air Canada, should I still buy some? What attractive price should be consider. Please kindly advise the deal, coming target price and any suggestion. Do you consider buy or hold?

Q: Hello 5i Team,
Usually when a government bails out a company (Feds will own ~6%), it does not bode well for the said companies future. I know these are unique circumstances. Are you still comfortable with buying Air Canada? Or will AC go the way of bombardier (Zombie stock).

Have you heard if other airlines in Canada will be helped?

Thank You,
Andrew

Q: If you held Air Canada, would you take any action in response to the (clearly toughly negotiated) government bailout?

Q: Considering the new partnership/investment/bailout with the Government of Canada, How do you see this playing out ?
- I noticed Air Canada stock held up fairly well, considering the Government did the deal at a discount to current stock price.
- It looks like some smart advisers/consultants did the deal, however I am surprised that the stock did not drop more today...
- How the market interprets things these days is a bit confusing to me...
Good thing Vegas is opening up more..., because I want to bet Red on the Roulette wheel as a potential proxy for Air Canada at this point...

Q: Did the federal government's stake in AC today (Apr 13) result in a dilution (I mean, it must have) and if so, was it material ? Also, shares today closed slightly below flat-- why wasn't the gov't "bailout" viewed as a plus for share price?

Q: I don't often get timing right and mostly I get it right when I am not trying to. I sold AC (for a profit) mostly because I found other things that I could hold longer. AC may or may not sell off more but if I were to re-buy inside the 30 day window will that reduce my capital gains tax by averaging?

Q: Hi 5i,
Are the skies starting to clear for Air Canada? The one remaining cloud that I can see is the potential Fed bailout? I don’t hear much about it anymore. I am thinking that the Feds don’t want to bail out the airlines but hope they make it to the other side with the vaccines rolling out. I think the trade-off was a full refund of fares, which the airlines have resisted so far. What are your thoughts on this for AC? I have some shares but am wondering if this will be a catalyst or not?
Thanks again.
Dave

Q: In the answer to a previous question asked on March 22, 2021, you mentioned that you would prefer AC to CHR as an investment.

However, CHR has posted positive net income for Q2, Q3, Q4 2020, which seems pretty impressive for an airline during 2020. CHR seems like a more "solid" company to my untrained eye.

In the answer to the other question, you mention that CHR has been free cash flow negative for the past 5 years, but according to my research, it has also been posting positive annual net income since 2009. How would something like that be possible?

Q: Good Afternoon and Happy Easter:
I was surprised with your answer to Keith's question (Apr 2) regarding order to dispose stocks. You indicated that after the ETFs, KXS would be the 4th or so stock to sell from the list. This was ahead of AC:CA, WELL:CA and PHO:CA. I thought the recent drop in KXS was primarily due to the general pullback in tech stocks and not the result of any specific company bad news. I also thought that even though the company did well during the lockdown, its business model and market position would also serve it well as the economy recovers, perhaps even better than some of the other stocks listed. Please elaborate on your reasoning especially vis a vis the other 3 named stocks above. Thank you, Ian

Q: Hello, I need to liquidate some of the stocks listed. Disregarding sector diversification, in what order should I do this? Thanks for your help.

Q: Is there any news on the AC takeover of Air Transat. I still have credits with Transat, but with Covid numbers going back up again, I'm holding off on any Travel.

thanks! Paul