Investment Q&A

Q: Greetings,

I know 5i isn’t a fan of averaging down and while it is a strategy that has worked well for me in the past, initiating positions / timing hasn’t worked in my favour and I tend to buy the peaks. Hence the DCA strategy working for me I guess in lowering the average share price and eventually seeing some reasonable returns. Of course it tends to lead to overweight positions which I trim back. Examples are BA and vermillion.

Now here I am again in a situation. Holding ABX and BTO and down about 25%. Even so I am VERY comfortable with these 2 companies in my portfolio and I see them as complimentary to each other. I don’t see shifting way from them as I feel comfortable even being down 25%. However I am looking to DCA these 2 and bring my total gold exposure in my portfolio up from 7% to 10%. I have no other precious metals exposure. As I am aware 5i tends to be comfortable with 10% total sector position.

Could you weigh in on the narrative in general, address timing of purchases (as 5i tends to like a company and be “comfortable buying here” and seems indifferent of timing), DCA strategy, and advise of your opinion on these 2 companies, strengths, weaknesses, expectations.

Deduct as needed as my credit burn is quite slow.

Cheers and thanks for all the great advice! You have made a big difference. 🙂

Q: LNR is way off from the recent highs. I know, it more then doubled in 1 year; I bought pre pandemic, up 50%
Would you switch to MG now or wait for a bounce back to 90ies? I know you prefer MG from your past answers.

Q: Hello 5i,

We purchased QBTC when it was available, then purchased BTCC.B when it was recommended by 5i, and it looks like BTCC is now recommended. Can you clarify which Bitcoin stock is preferred - BTCC or BTCC.B or another Bitcoin stock?

Would it make any sense to own 1/2 of the ETF stocks in BTCC and 1/2 in BTCC.B if you have a 4% position?

Thank you for your fantastic service.

Cheers,

Debbie and Jerry

Q: Does CSU maintain an economic interest in Topicus? Based on my review of the final long form prospectus for Topicus and insider reporting it looks like CSU holds voting control and a significant number of pref shares in Topicus. What I'm trying to confirm is whether I need to buy Topicus to obtain exposure to its growth or whether as a CSU holder I will already have some exposure.

Q: Hi , Starting my 5 month old grand daughter's RESP. After reading all your other suggestions to other members, I am thinking of VEQT for the diversification of world markets and VUG for that extra torque and US dollar exposure. Would you add anything else here or suggest otherwise? I thank-you in advance. Sam

Q: Could provide an opinion on these ETF - ZDY/ZGI - read a Morningstar report on each and their opinion is they are underperforming peers.
Can you provide examples of better performing ETFs to replace them.
Thanks

Q: Please comment on yet another acquisition by Well. Txs for u usual great services & views

Q: Hi,

In my RESP's fixed income/cash allocation, I hold CMR, CBO and HFR.

With a rising rate environment I'm thinking of switching the CBO share into HFR (although the laddered aspect of CBO mitigates problems a bit). And with CMR stopping their distributions, I thought of switching out of that too. Does this logic make sense or would you prefer having both CBO and HFR for diversification purposes? Thanks!

Q: Please comment on the year end numbers, released today. This company sounds interesting but these investment gains may be lumpy so not easy to evaluate so I would appreciate your take.

Q: Hello 5i,
Further to your answer to Sylvain, I was wondering if you could now compare AEM to KL. While you slotted AEM ahead of Barrick, you did not compare it to KL and I am curious as to how you feel they compare.
Many thanks!!
Cheers,
Mike

Q: Good morning,
Just a quick clarification about a question I asked the other day about option buy backs. My question should have been whether you claim that loss this year, or do you roll it into the acb of the underlying stock,
thanks

Q: Andrew McCreath on Final 15 on 7 April showed and interesting ratio graph of Mega-cap Unprofitables (the 50x next years sales) versus Profitable IT stocks (the P/E reasonable stocks) over the last 5 years. It shows the continuous growth of Profitable to 2019/2020, then precipitous decline to 2021, then the sharp turnaround we're currently seeing with Profitable rising again. I, personally, think this would make a great white paper or report for you folks to research and write for members. What do you think? I think it's more than growth versus value and would love to see an indepth review of it. Publish if you feel it is worth putting up.

Q: Hi group is it a good strategy to sell some of my big winners before the Federal Gov taxes capitol gain differently? - Do you agree this is an area (as well as other areas)) they will target to help pay for all the stimulus. If they took away all the capitol gains it would be very negative for a lot of folks. also please comment on how the govt taxes day traders and how they might get more aggressive in taxing day traders as business income Thanks for your insight

Q: Hello to all of you

MDF Commerce announced another bought deal on February 23 at 14.50 per share, the deal is now closed, what do you think about it?

I have had a fairly large position in this company for the past 5 years and am in a slight loss right now, I am wondering if I should continue to be patient with it, I saw in other questions and answers that you didn't like this company that much. I am a new trial member and I have to say I really like what I find with you.

Thank you very much.

Forgive me if my English is poor.

Carl from Québec

Q: I just got my T5013 for my 2 Brookfield companies and I can see what they've done to create the Corporations that pay eligible dividends but I don't understand why the taxable part far exceeds what I actually received. First, my eligible dividends have disappeared and I guess these go to the Corporation shares. However, on my BIP.UN I received about $2029 in distributions in 2020 but my T5013 shows distributions in excess of $8000 of which $4500 is Return of Capital. Any idea how my $2029 becomes $8000? PPY is much closer in amount, only about 6% higher than what I actually received.

Q: Roll-up companies can be amazing wealth compounders over time (CSU and BYD, for example). Do you have any tips on how to spot a good roll-up oriented company during the early stages of their development? Were there any specific catalysts or metrics you looked for when initiating coverage of CSU and BYD?

Two examples of roll-up companies I am looking into are PHA and NLH, which operate in the health care space. I know these two companies are probably too small for 5i to cover currently (but CSU and BYD were also small once-upon-a-time), but I am wondering what I should look out for when evaluating these two companies.

Q: Hi! I'm wondering if Canadian firms will be able to participate in contracts relating to some of the infrastructure spending happening in the US? If not, would we be better served exiting WSP Global for a US firm at this time? If so, who would you switch out for?

Q: I would like to know your opinion of the CloudMD announcement today of the $100M acquisition of Oncidium one of Canada's largest healthcare management companies. It sounds very impressive with it stating many of the companies connected with Oncidium are Fortune 500 companies. CloudMD calls this acquisition its largest to date and says it is transformational. Also, is the time coming for CloudMD to consider doing a share consolidation of ex: 1 for 5 to open the door for more institutional investors? Thanks

Q: Can you recommend your top one or two ETFs for S&P500 exposure. Do you recommend CAD-hedged or unhedged?

Q: I have 15K to put to work in my TFSA. Which one would be your preference for short term growth. As usual thanks for the great service and thoughtful advice! Dan