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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: Hi 5i team,
It seems the IPO market is in a frenzy these days, with DASH and ABNB, in particular. I always enjoy reading Professor Damodaron, as per your recent blog, and his musings on ABNB. He views fair value at $36B. The IPO was priced at $68, resulting in an initial company value of $47 billion. It opened around $145, about 3 times the Professor’s view of fair value.
Some market analysts view these IPOs as a market top, a view I don’t share. I just think people are crazy to pay these prices to get a pizza delivered to your door.
Thanks again for your thoughts on this frenzy and what it means for the markets, if anything.
Dave
Read Answer Asked by Dave on December 11, 2020
Q: I'm a bit confused about your interest expense deductibility answers on money borrowed in order to generate income. Aside from a line of credit, looking solely at a mortgage, is the requirement in order to be able to deduct the mortgage interest that the borrower use the borrowed funds to invest in Canadian dividend paying equities solely? So the borrower could not deduct interest expense if funds were invested in non-dividend payers? Appreciate the clarification on this.
Read Answer Asked by Ken on December 11, 2020
Q: I’ve been very fortunate with LSPD since I first bought it at $18 and continued to buy on the way up to $65. I’m up over 130% overall. But now to tough part...when to sell. It seems that it has a very long runway and because of that, i’m hesitant to sell a single share. I have it in multiple accounts ( about 3/4 in a tfsa, and 1/4 in a LIRA ). I’m 47 and 10 year away (I hope) from retirement but consider myself an aggressive investor and have some stomach for volatility (how can you not during these times) Given where the SP is today, where do you see the stock going in the next 2-3years? Would you sell and buy something else? Or, let it run? Looking for ideas.
Read Answer Asked by David on December 11, 2020
Q: I am intrigued by how VEEV has succeeded over the last 5 years. In 2015, one commentator on BNN stated that salesforce (CRM) would likely crush VEEV, because all VEEV did was customize existing software (so reduced start-up costs) and sell it in the life sciences vertical, while undercutting its competitors on price. It then quickly gained market share. Why did VEEV succeed and how did it fend off CRM and others? How big is VEEV's "moat"?
Read Answer Asked by Alfred on December 11, 2020
Q: Contemplating selling VGT and buying ARKK. The only thing stopping me is ARKK's 10% investment in TESLA. Would you stay away from ARKK given its strong bet on this one stock with a history of volatility? Additionally, how do you see TESLA's price (and therefore ARKK's) being impacted by TESLA's addition later this month to the S&P500? Thank you.
Read Answer Asked by Maureen on December 11, 2020
Q: Hi 5i Team

I have AX.UN and NWH.UN and want to add a full position of a pure industrial reit. If you had to pick one of DIR.UN, GRT.UN or SMU.UN, which would it be and why? I'm primarily interested in dividends and their safety and growth potential. Alternatively, would you go for a 1/2 position of two?
Thanks
Peter
Read Answer Asked by Peter on December 11, 2020
Q: Can you recommend the best way to purchase a Canadian equity in-trust for a child that is not my dependent?
Read Answer Asked by Jeff on December 11, 2020
Q: Hi group bought MLM Nov 9th so far its down 2% and not acting particularly well. Do you still like it longer term ? also bought BEP (down 6%) same time. These stocks were bought to ride on Joe Biden winning the US election with a bet on a healthy infrastructure spending. Do you still like them both seem to be laggards Thanks for you guidance on this PS they are both full positions
Read Answer Asked by Terence on December 11, 2020
Q: Bruce Cambell was posiive on the above stocks. i wish to consider one of these four.
not necessarily the best potential but the safest
Read Answer Asked by thambirajah on December 11, 2020
Q: Steve asked about donating shares to charity. Would this site be a good choice as well: https://www.canadahelps.org/en/donate/donate-securities/
Read Answer Asked by Danny-boy on December 11, 2020
Q: any thoughts on this company and the the exchange it trades on
Read Answer Asked by robert on December 11, 2020
Q: Thinking of adding some telecom/media exposure to my portfolio. BCE is the only one in your portfolios. Would you buy BCE right now or do one of the others offer a better buying opportunity currently. 5 year hold, I follow a hybrid of growth and income portfolios with more recent moves toward income thus the interest in these names. Or is it evan a good time to buy into this sectors?
Read Answer Asked by Tom on December 11, 2020
Q: If you had a 10-15 year time horizon what would be the top 8-10 Canadian stocks that you buy for a combination of growth and income?

Thx
Read Answer Asked by Cam on December 11, 2020
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