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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: These four stocks that I have an equal weighting in came to my attention because of the insider buying. Could you please comment on if this insider buying and overall ownership is significant and rank them from best to worst based on that information only. Then please rank them on which would have the best overall return based on dividends and capital gains for the next 3 years from best to worst and explain why (the pros) for the one you ranked first overall and why(the cons) why you ranked the fourth stock last.

And lastly is there any of the four you just wouldn’t buy today. Thank you.
Read Answer Asked by James on September 14, 2022
Q: Growth Stock Set to Soar 163% From Its 52-Week Low, According to Wall Street. Datadog (NASDAQ: DDOG) is one of them,

52-week low of $81.12 in June, and one Wall Street investment bank predicts it could soar to $214 within the next 12 to 18 months. It has already recovered to $103.84

Do you concur?

Thank you.
Read Answer Asked by Ross on September 14, 2022
Q: Hi Guys
I hold a large amount of U.S. stocks, my concern is i have been paying a high exchange rate over the last 4 years purchasing them. If the U.S. dollar falls 20% over the next 5 years or so I'm going to take a substantial haircut on my overall returns if i sell and move the cash proceeds to the CDN side of my Portfolio.
I guess the answer to my question is don't sell them, they all have a great record of dividend increases over the years, and they are in the U.S. side of my non registered Portfolio.
My other thought was to use GLD as a hedge, my thinking is a falling U.S. dollar would increase the value of Gold owned in a U.S. Portfolio
Thanks
Read Answer Asked by Gordon on September 14, 2022
Q: TV recently announced:

Trading of the Company's shares has been suspended since August 22, 2022 as a result of the Company filing for protection under the Companies' Creditors Arrangement Act ("CCAA") and this suspension will continue until the delisting takes effect. In addition to the TSX delisting, the Company expects its common shares will also be delisted in due course from the other exchanges on which the common shares currently trade.

Shareholders retain their legal rights and equity interest and are advised to contact their brokerage where shares are held regarding retention policies for unlisted shareholdings and potential for shares to trade in over-the-counter markets.

Can you please guide me as to what my options are.
1) are the shares I hold virtually worthless or is there a decent possibility that if I hold onto them I will receive something? what would you put the odds of getting something at and what do you think it would be relative to their last closing price of $.205
2) If I wanted to sell the share in the "over-the-counter" market they refer to, how do I do that
3) if it were you, what would you do?

Thank you for your advice

Scott
Read Answer Asked by Scott on September 14, 2022
Q: Hi,
In your recent blog on 5 investing principles, you say it is important to distinguish between permanent and temporary market losses. However, you do not say how to do that. DOCU, PTON and NFLX all did great in the pandemic. All are floundering now. So, do you view the market losses in DOCU, PTON and NFLX as permanent or temporary and why?
Thanks.
Read Answer Asked by Dave on September 14, 2022
Q: Hi there. In light of last week's BoC's decision to raise interest rates by 75 basis point I was hoping you can help me understand why the banks have yet to raise the rates they offer on their 1-5 year GICs. When I look at the rates that were offered last month vs. now they are basically the same. I was hoping, maybe naively, that I'd see at least a 50 point increase across the board but nothing yet.



I know when the BoC raises rates the banks will increase their variable mortgage rates the next day so what gives? Did the banks already raise their GIC rates in anticipation of the announcement, is there a lag and they’ll raise rates in a few weeks or will they gauge market demand and offer the lowest rates they can get away?


I'm looking to create a 1-5 year ladder and I'd hate to do it now only to see the rates offered on GICs go up 50-75 basis points in a few weeks. Thanks for your insight.
Read Answer Asked by Clinton on September 14, 2022
Q: Hi Team,
I am looking for your opinion. I am thinking of adding 5k to my kids RESP after todays ugly selloff. I am banking with the ATB and most of the resp is currently in the atb compass growth fund. My question is...do you feel that I am best off adding to this fund, or buying an idividual stock? As far as stock I was thinking stable growth with a dividend. I had either BNS or SLF in mind. What are your thoughts? Or any other better suggestions as opposed to the ones mentioned? I don't plan on using any funds for at least 2 years. Thanks

Shane.
Read Answer Asked by Shane on September 14, 2022
Q: Dear 5i,
COWZ is a US listed ETF which attempts to select the highest FCF Yield companies from the Russel 1000 index. The reported ETF Operating Expenses are 0.49% and the latest reported portfolio turnover is over 100%.
It seems that US listed ETF's do not provide TER fees in any of there documentation. I would like to know the impact of excessive trading has on the overall Total Return for an ETF. Am I correct in that US ETF's are not required to disclose TER fees?
Read Answer Asked by Ian on September 14, 2022
Q: Are there any compelling reasons NOT to buy META at these prices (under ~$160 USD) for a long term investor? Very profitable, ~11x PE, ~7x cash flow. It is the same price as 5 years ago but the company has doubled revenues and profits since then. They are spending a lot on metaverse development and AI but Zuckerberg has always sailed the ship in the right direction. Huge user numbers and WhatsApp is barely monetized. It feels like all the bad news is baked into the price today (revenue decline of 1%, Sandberg leaving, metaverse capex). They are also buying back about 1% of the company per quarter at this valuation.
Read Answer Asked by Marco on September 14, 2022
Q: Considering the recent announcement regarding the declining ad revenue going forward , how safe is the dividend? Please rate On a scale of 1-10 where 10 is extremely likely to cut the dividend. Is there a turnaround story here at all? How low can it go, what’s the bottom? I’m down around 48% and very disappointed and frustrated with this investment. I’m wondering whether to cut my losses now and take a 50% loss or wait for a possible turnaround or takeover. Many thanks for the amazing service you provide.
Read Answer Asked by Anthony on September 14, 2022
Q: I am on the sidelines right now. If the market drops significantly I will buy back in. If it does drop enough for me, which 6 oil and gas stocks would you buy? Majors, micro, US, Canadian. It does not matter to me.
Read Answer Asked by Dale on September 14, 2022
Q: Hello 5i. Can you explain some market psychology. First of all who is buying shares that are being sold in this market downturn. How can the markets get spooked one day and fall 5% and yet climb 2-3% next day. Its been known for a while that the fed will be raising rates to tame inflation and yet the market reacts as if this is a surprise. Very confusing market. What would be a few indicators that we have reached a bottom in this bear market and are back in a bull market?
Read Answer Asked by pietro on September 14, 2022
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