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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: I am looking for basic material exposure in either ZMT XBM XMA XLB or VAW. What would be your pick for a comeback in basic material.
Thanks
Read Answer Asked by James on July 16, 2020
Q: Will you name five Canadian growth companies which you think have a bright future? Thanks for your help :)
Read Answer Asked by christianne on July 16, 2020
Q: I am a retired, dividend-income investor with a company pension, CPP, OAS and some Insured Annuities. I wanted to get your views on our asset allocation. Currently we have the following targets by asset class (in the equity portion of our portfolio):
Finance = 17.5%
REITs = 7.5%
Telecom, Utilities and half of Pipelines = 22.5%
Consumer Staples & Disc = 17.5%
Health = 2.5%
Industrial = 10%
Tech = 10%
Energy and the other half of Pipelines = 10% (actual is 7%)
Materials = 2.5%

While I believe pipelines should be 100% allocated to the Utilities sector, they seem to trade more like the Energy sector...hence the 50-50 split. Also I normally have 20% allocated to the Consumer sector, but we have reduced the Discretionary sub-sector for a period of time due to COVID.

I read years ago that something like 75% of your returns are associated with your asset allocation as opposed to your stock selection. Our portfolio is set up for mostly dividend generation, with some capital growth.

Question 1 = Do you see any red flags with our allocation targets?

When I attempt to replicate the 5iR Income Portfolio into my system, I note 5iR has a significantly higher weighting in Consumer and Industrials...while significantly lower in Health, Technology, Energy and Materials.

Question 2 = Are there reasons for the lower allocation weights in the last 4 sectors...higher risk maybe? I am asking so I can fine-tune my own allocations, which don't change much over the years...maybe 2.5% here or there from time to time.

Thanks for your help...much appreciated...Steve
Read Answer Asked by Stephen on July 16, 2020
Q: If we are closer to the beginning of the cycle (as opposed to being nearer to the end of things), can you give us some interesting consumer cyclical ideas or other names that you think are worth a look as we come off a full stop in the world economy? Thanks
Read Answer Asked by Martin on July 16, 2020
Q: Hello I was wondering your opinion on this little alt meat company out of Victoria BC. They have only been trading since June 17 publicly before that the founders were on Dragons den and they did a crowd source on Frontfundr for 600k. Yesterday they did a new bought deal through Canacord for 5million. These funds are apparently earmarked for expansion in the US. I have personally tried a couple of their products and found it to be quite good even tastier than BYND (side note I still enjoy a good real burger and steak). Lastly this company has inked a few new distribution deals with grocers like Sobeys and increased their online "meat" club subs. My questions is with this new focus on the US market would it be time to take a chance or start a position.? To my understanding they are in the process of completing a new manufacturing plant in Vancouver to help meet their growing demand. Thanks as always.
Read Answer Asked by Kolbi on July 16, 2020
Q: Hello 5i Team.
Point of clarification on your reply to Leonard yesterday regarding ZPAY. My understanding is that any dividends from this ETF will be subject to the with holding tax, which is then recoverable upon tax filing. If this is the case, then does it matter if this ETF is held in a RRSP or cash account, if the tax is recoverable?

Due to the options strategy of the ETF, what tax implications are there on any capital gains the ETF may incur?

Please deduct as required. Many tx for the continued help.

Steve
Read Answer Asked by Stephen on July 16, 2020
Q: i wish to withdraw dividends from my cdn holdings.
based on type of account, in what order should the withdrawals be made?
1 - tfsa
2 - registered or cash?
i will have losses to apply to the withdrawn income
Read Answer Asked by john on July 16, 2020
Q: Any recent news to account for the downtrend over the last 2 weeks ?
Thanks
Read Answer Asked by Karim on July 16, 2020
Q: Hi,
Please explain why RIGL (US) is down today about 22% after it went up yesterday 100% (mid-day).
My exceptions for the stock were to go up & up after RIGL announce it's trial being conducted by Imperial College London to evaluate the efficacy of fostamatinib, its oral spleen tyrosine kinase (SYK) inhibitor, for the treatment of COVID-19 pneumonia
Thanks,
Morris
Read Answer Asked by Morris on July 16, 2020
Q: Why would the Torstar board agree to a hard lockup on the Nordstar offer when they know there is at least one other bidder interested in buying the company? Also, why would Fairfax indicate they are voting in favour of this deal. Shouldn't a company like Fairfax be pushing the board to entertain other offers. Does FFX have a fiduciary responsibility to its shareholders to ensure they maximize the value of their Torstar holdings. Feels like some inside dealing going on between Nordstar, Torstar board and FFX management??
Also, they cut the dividend in November which knocked the share price down 40%, then in January they put the company in play. Why cut the dividend before putting the company up for sale? Buyers pay a premium over the stock market price to get a company. So if they kept the dividend it is likely any buyer would have to pay a premium on what would have been a much higher dividend supported price. Your comments please and thanks.
Read Answer Asked by Robert on July 16, 2020
Q: Hi there, looks like Eric Sprott is boosting his stake in KRR (formerly RNX), any further thoughts?
Peter, you were involved with Eric Sprott and know him quite well, can you provide any thinking that goes on with his methodology when it comes to investing even more money in a small cap (producing mines) gold company as he just did with KRR?
Can you please confirm if this is the highest he's paid for KRR/RNX shares?
I believe KRR is setting itself up really nicely, with tailwinds helping it start a new run in share price, again! your thoughts would be appreciated?
Just curious, what would KRR need to do (check off list if possible) in order for you to ever consider this small cap gold stock to be included in the 5i Growth Portfolio? Gold seems to be finally proving itself, as an investment, now that its holding above $1800, with possible new all time highs.
Any additional metrics, ratios or analysis for KRR would be greatly appreciated, thanks.
Thanks!
Read Answer Asked by Hussein on July 16, 2020
Q: The above company has come to my attention lately. They appear to have developed a drug NURTEC ODT for pain relief, migraine particularly. I believe the drone just received approval. They are also investors in Kleo Pharmaceuticals working on a Drug for the treatment of COVID-19. I believe Bill and Melinda Gates have just put in 5 million to the same company. I’m just wondering if you were aware of the company and if you are do you have any thoughts about it?

I found this interesting article in Yesterdays Globe and Mail
https://www.theglobeandmail.com/investing/markets/stocks/BHVN-N/pressreleases/88829/

Thanks John
Read Answer Asked by John on July 16, 2020
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