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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: Looking at using some cash in our RIF accounts (mostly a mix of Income/balanced portfolios) to boost the yield a bit and am considering AW.un or NFI. With price pullbacks, both currently have a higher than average dividend (sustainable ?) and, it appears, some cushion against any significant capital loss, (barring any new bad news). Do you think these are now good candidates for an income portfolio ? Alternative suggestions?
Read Answer Asked by Alexandra on December 18, 2019
Q: Which 4-5 beaten up stocks do you feel most comfortably will rebound in 2020, in order?
Read Answer Asked by Eric on December 18, 2019
Q: Your opinion on chances of recovery in the next thirty or so days if sold for tax loss this week?
Many thanks guys.
Read Answer Asked by Raymond on December 17, 2019
Q: Why is NFI considered a Consumer Cyclical and SIS considered an Industrial? I might almost see them the other way around since consumer purchases of SIS's products would seem somewhat cyclical according to the propensity of individuals to make major commitments to their lines of products. Purchases of NFI's products would be driven by municipal budgets which might be more stable in good and bad times.
Read Answer Asked by Geoffrey on December 16, 2019
Q: Hi. I own TCL.a in a non-registered account & NFI in a TFSA, both at a huge loss currently. My questions are:
1) What do you think is the risk of continuing to hold these stocks now?
2) What do you think of their potential over the next year and in the years beyond? Do you think they can recover?

Since NFI is inside my TFSA, should I sell it and buy something else? TCL.a could sell for a capital loss. If I have to sell either one, which one should go first? Or should I wait another quarter before doing so? Thanks for your help.
Read Answer Asked by Esther on December 12, 2019
Q: Not a question but an observation. Read article in WSJ yesterday that USA going to pass a bill banning Chinese rail and electric bus companies from operating/ manufacturing in the states. A Chinese owned electric bus company manufacturing plant in the “the rust belt” will close. ( Probably could be bought at good price).

Market for electric buses expected to grow from $745 million in 2018 to $1.95 billon in 2024.

Someone with patience will do well with NFI.
Read Answer Asked by Derek on December 11, 2019
Q: Noticed that NFI is in the balanced portfolio and also in the Income one. Also the return has been very negative (-28%). However, it has a good dividend and a LTM plan behind the production of electric buses. Analysts at TDWaterhouse do no like it . In the last 5 months it seems that its price is making a base. Do you think that a contrarian approach could work here?, How would you rate its management ?, would it be worth to buy and hold the stock for 5 years ?, what is its biggest risk to make it underperfom ?, How safe is the dividend ?, Does it have a high debt ratio ?
thanks
Read Answer Asked by Alejandro (Alex) on December 10, 2019
Q: Everything about NFI says it should be taken out behind the barn and shot. I can't think of a single reason to keep it because:
a) the momentum is horrible
b) the fundamentals are not good
c) there are many amazing stocks with better stories and momentum

The only reason I can imagine to keep it is for a potential bounce once tax loss selling abates. My question is why/how it can be justified to keep this in a portfolio in an environment with better opportunities elsewhere? Can you give me the case to hold vs the points above?
Read Answer Asked by Tim on December 09, 2019
Q: According to 5I or your data supplier NFI is classified as Consumer Cyclical, my sense is that it should be Industrial, not? If NFI is miss classified than I would just add it to my industrial weight.
Having said that, I need to reduce my cyclical exposure to meet our Portfolio Analysis. Of the 3 companies listed if you were to keep one for 3-5 years which would you keep?
What would be your top 2 recommendations for Consumer defensive stock for 3-5 years hold. I currently own ATD and PBH. I can add to them or add a new name regardless.
Deduct as many credits suitable.

Thank you for your clear explanations on all topics and your excellent service.
Read Answer Asked by Yves on December 09, 2019
Q: Hi 5i,

I've dumped some underperforming stocks this month to harvest tax losses and so now am sitting on some cash to deploy.

Notwithstanding that I may repurchase a few that I still like after 30 days, I would love to get your "as-of-this-moment" Top 3 Canadian equities that you would throw some money at if it fell into your lap.

Criteria would be:

1. Must be Canadian
2. Sector is irrelevant - assume its a small part of a wider, well-balanced portfolio.
3. Dividends not relevant
4. Held in a cash account
5. 3-5 year hold

Thanks!
Read Answer Asked by Ryan on December 09, 2019
Q: I will be coming into some cash around the middle of next summer and will be re-orienting my portfolio towards income. I want to have 4%+ overall yield. To that end I am looking for a bunch of higher income stocks so I can hold on to my low or no yield, growth stocks. Specifically I am looking at stocks that have over 6% yield and whether you think a full or partial position makes the most sense for each. Please deduct as many credits as you see fit. Thank-you.
Read Answer Asked by Alex on December 03, 2019
Q: Which 6 top Canadian companies do you consider the best tax year selling purchase for this year?
Read Answer Asked by john on November 29, 2019
Q: Hello 5i,
I sold NFI, PSI and CCL.A as tax losses on October 25. Should I buy them back now, just add to the positions I now have or are there other equity opportunities to consider in replacement. I am a retire, value, dividend investor, 60/40, evenly distributed with many from the INCOME MODEL PORTFOLIO.
Stan
Read Answer Asked by STANLEY on November 22, 2019
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