Investment Q&A

Q: Hi 5i,

What would be your top 10 names for a U.S. growthy balanced portfolio?

TIA

Q: I would like to purchase either Costco or Walmart to my RRSP account.
Which one would you recommend.
Thanks,
Morris

Q: Who knows, with the recent news on Costco and JNJ which one would be better going forward today for the short-term?

Q: Am I right in thinking that if I wanted to " hide " from the madding crowd in my U.S. stocks Costco and Walmart would be 2 companies to consider?

Q: Good evening
Given recent results, is this a good time to take an initial position in COST? Or, are there other consumer defensive stocks you would prefer?
Thx

Q: Given the weakness in consumer staples in the US, if you were looking in this sector what are some names that'd be on your watch list?

Q: Sold FB and have some US$ to spend, can you provide 3 of your current favorites that may provide short term upside from down south please - higher risk is fine? Of the two I provided, which would you choose and why?

Q: My apologies - I forgot to say that I was looking to invest in that thesis with US stocks. I'd like to invest in the thesis that low-mid level income earners are going to start having more income based on a resurgent economy, lower taxes, and a very tight labor market along with reduced immigration. Can you suggest 3-4 companies that would really benefit from this scenario?

Q: Greetings 5i,

Despite their lacklustre performance this year, I am very fond of consumer staple holdings that focus on food and household products. My reasoning is that I consider their essentiality, as well as their (at least theoretically) defensive nature make them excellent, steady, long-term holds that do not need to be constantly monitored; thereby providing a "sleep at night" factor which I highly prize. Thus, my current sector exposure consists of full positions (5%) in L and PG that, barring some fundamental catastrophe in either, I intend to hold indefinitely. I also hold AMZN (5%), but, due to the breadth of its business, consider it more of a "hybrid."

To these, I am considering adding a position in COST, as I feel that, in addition the aforementioned reasons for favouring staples, its business model is perhaps better equipped to withstand the "Amazon effect" than many other retailers (WMT, KG, etc.). I am also looking to add some geographic diversity to my retail exposure, and view the recent weakness in the stock as a good potential entry point.

However, I realize that this addition would increase my sector weighting, and possibly create some unnecessary overlap. I would therefore like to ask your advice regarding this addition, and whether my reasoning appears sound.

I am 36 years old, debt-free, and relatively conservative. My investment portfolio is solely for the purpose of expediting my retirement, and I will have no need of its funds for the foreseeable future. Excluding ETF's, my portfolio currently consists of 22 positions (with none exceeding a 5% weighting), and is, for my goals and investing style, well diversified across sectors.

Based on my situation, does the addition of COST sound like a reasonable course of action to you?

Thank you.

Q: 5th Estate program on "kickbacks" in generic drugs pretty eye opening. I realize there is a difference between monies paid directly to an individual for favours v's monies going to the company entity for overhead and other costs but appears they plead guilty to a wrong doing. Could this not set them up for class action suits for customers to may have been over charged? The other worrisome part seemed to be the practice is widespread. Talk about a bread scandal. Is there a worry here or do you think 5th Estate may have over exaggerated what is actually going on with generic drug pricing?

Q: I am considering selling Macy's for a capital loss. Could you recommend a US name to replace or do you see some upside? Thanks

Q: About a year about, I purchased CVS as a hedge against a downturn in the US health care. Since then CVS price dropped nearly 20 since then....first attributed to Amazon purchasing a grocer retailer, then recovered somewhat but then declined because of the news of three large parties, including Amazon planning to get into the health care sector to reduce costs to consumers. Seems CVS is out of favour...and could be so for sometime. Question - do I hold or do I let it go and focus on another US stock and what names would you suggest?

Q: May I get your opinion on Costco after today's decline ? Earnings seemed pretty good, safe for a small miss on revenues. Do you like the company?
Would you considering entering into a position at this point, or is valuation still too high?
Thanks
Karim

Q: Could AMZN prior to buying Whole Foods short stocks like Kroger, Costco, Target and Wal Mart and use the money made on the short to buy Whole Foods for the win?
Most companies use cash to buy equities. Or would this be totally offside?

Q: Is this a good entry point to buy COST-N for a long-term hold?

Q: Hi 5i team,

Costco has been taking a beating ever since Amazon announced its bid for Whole Foods Market (WFM) three days ago. At the time, it was selling at a premium but today it dropped well below its 200 MA. How much lower would it have to go before you would consider it an attractive buy?
Somehow, I don't see an Amazon-WFM tie up as being particularly threatening to Costco. I would appreciate you view on what the impact might be?
Robert

Q: Your thoughts on HD? Are the other similar stocks you like better and why.

Thanks for your support.

Q: I have both WMT and COST. I will cut one to buy AMZN. Which one to cut? Thanks.

Q: Thank you so much for what you do. 5i benefits people of modest means as well as the wealthy. (A rising market doesn't hurt)!

A reader mentioned grocers earlier today. We went to COSTCO yesterday and the place was packed. They don't have the distribution of the local grocery stores but in a way they don't need to as customers are willing to drive to them. COSTCO is still more of a wholeseller compared to a company like Loblaws and they don't carry all the small products but no doubt they are one reason why grocery stores are finding it difficult to stay profitable.

Q: Merry Christmas to the 5i Team! My question is about consumer discretionary stocks. It's one of the areas in my portfolio that i lack exposure in (0% to be honest). I've been looking at ATD-B for a while and feel comfortable adding at the current price level. To get some more high quality names I've looked to the US and come across the usual suspects that seem fairly highly priced/valued. I've been looking at ULTA and COST. Might not be your area of expertise but your thoughts on these 2 companies or any other specific names you think are worth owning in the Cons Disc space?