Investment Q&A

Q: What are your thoughts about Chartwell Reit's plans to divest itself of 16 long term care homes?

Q: Hi
Am I correct in understanding that REITs are a good hedge against inflation? All of these REITs have been decreasing- some more than others. Are there any that you think will continue to be at risk in a rising rate environment? would you add to any during this most recent decline?
thanks

Q: In an income portfolio, currently hold CSH.UN at full position and thinking to sell outright to replace with 1/2 positions in AW.UN and SYZ to replace yield and add diversification. What are your thoughts on the move? Does it increase risk?

Q: Hello Peter and team,
What do you think of Arc Resources? Is it too late to buy at the current price in the $15 dollar range? I was looking at vector vest and they feel chartwell and Sienna are over valued by 50 percent. This does not make sense to me. What metrics do you use to determine their valuation and in your view are they currently fully valued or still have some upside as the dividends are decent?

Q: Is it time to buy these stocks? If yes, which do you prefer for growth? Thanks

Q: are any of these something to have as a good investment ?

Q: This is a follow-up to our question from last week (see: https://www.5iresearch.ca/questions/140708).

Based on your response that nothing in the list gives you much cause for concern, we would understand this to imply none of the 30 stocks would be considered a "sell" today.

Please divide the 30 stocks into a pair of ranked (best to worst) lists, one of "buys" and the other of "holds". As well, for each of the "holds" indicate the principal rationale for caution.

Q: About 1 year ago we created an equal-weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases are made with the intent to be long-term holds (10+ years). As well, we intend to increase our investments over the next 2-3 years, and then adjust over time as needed. Currently the amount invested represents ~40% of the eventual total.

Although a goal is to keep the portfolio roughly equal weighted, of the 30 companies, the following 14 were acquired in 3 purchases (full position) and currently have weights in the 2.31% (SHOP) to 5.00% (ATA) range for an average of 3.71%: CSU, MG, GSY, WSP, LNF, ATD, ATA, SLF, BAM.A, BIPC, FTS, DOO, SHOP and TFII. The remainder were acquired in 2 purchases (2/3 position) and currently have weights in the 1.98% (BEPC) to 3.17% (TCN) range for an average of 2.56%. So, overall, the weightings currently range from ~2% to ~5%.

Over the next 6 months we will invest another ~25% of the eventual total. As we make additional purchases, we need to strike a balance between keeping the weights roughly equal while taking advantage of market opportunities. Please provide some broad guidance/wisdom.

Of the 30 companies in the portfolio, which 10 would you have the highest conviction in today? Please rank them.

Are there any of the 30 that you might consider as candidates to be replaced because there are better options, and if so, what replacements would you suggest and why (disregard tax considerations)?

What additional 3 Canadian companies might you consider adding to the portfolio and why?

As always, thanks for the great service!

Q: Hi,
I try to follow your metrics where I can. I think you usually recommend using forward earnings for PE ratios as the market looks ahead. In your answer to Cal on CSH.UN you referred to earnings for the year just ended to give you a PE of 20. Your database shows a PE of 746, which I believe is trailing as well. Did you mean the year ahead to get a PE of 20 or maybe I am missing something?
Thanks.

Q: In the answer to my question for CSH.UN you wrote “It is 20X earning”. Would you please show me how 20X was calculated. Thanks … Cal

Q: I have 3 question concerning CSH.UN. 1) What is i5Research financial thoughts on CSH.UN? 2) Would you rate it is a BUY, HOLD or SELL? 3) If rated as a hold at what price would you consider a time to buy? Thanks … Cal

Q: Which would you prefer SIA.un or Charwell and why.

Q: In a rising rate environment I would like to own a stock that has a reasonable dividend and good prospects for growth, I assume you agree with this thesis.
I’m considering buying one of AQN or CSH.UN. Both have approximately the same dividend.
My question is which would you choose as having the greater growth prospects or do you have what you consider a better choice.

Roy

Q: what would be your top choices as an investment in the "senior homes" (residences) category for both Canada and the U.S.?

Q: I am looking for monthly income. So far I am considering ZEB, KEY, PPL, and either HHL-B or HHL-T. Your opinion on those, and any suggestions you have, please.

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

As per an earlier question we posed, we then increased our positions in 12 of the 30 companies. At this time we would like to increase our investments in 6 of the remaining 18 companies. The intent is to increase the other 12 in approximately 4 months. Which 6 would you add to today? Please rank them, include a small blurb explaining each choice and suggest an entry point. Thanks!

Q: Hi Guys / Gals,

A couple of quick questions.

1/ SGY.CA - bought 5,000 at $0.73. Does it have further upside potential in near term or should I just bail.

2/ CSH.UN.CA - buy, sell or hold for income?

Thanks so much as usual.

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

Our intent is to increase our investments in the 30 companies over time. We have recently increased our positions in BIPC and MG. At this time we would like to increase our investments in 10 of the remaining 28 companies. The intent is to increase the remaining 18 in approximately 6 months. Which 10 would you add to today? Please rank them, include a small blurb explaining each choice and indicate an approximate buy price. Thanks!

Q: Could you please comment on the significance of these two companies announcing new issues today?

Q: Hi !

Would you suggest a top-five list of Canadian companies that have a monthly dividend--with an eye to capital preservation?
Perhaps the same parameters except that it would be for American companies?

Much appreciated!

DD