Investment Q&A

Q: Good morning
On a RSP portfolio that is about 6% of our net assets, what would you think of the strategy of the Dogs of the Dow? Is it worth the trouble or would I be just as well to put in DIA, I could concentrate the low or no dividends in investments accounts.
I saw there is an ETF which purports to follow the dogs of the dow, but its mer is .75%, I would not spend that much in trading commissions in just following the strategy.
Your Thoughts?
Thank you.

Q: I know you don't do us listing/ chinese companies much, but BIDU has come down a lot and I am wondering if this is an attractive entry point for a long term investor? Is it just NA/ China worries that is causing the pullback?

Q: Is the recent momentum for HYG due to the increase in backlog? They are still losing a ton of money. Thanks.

Q: I currently have a roughly 1/2 position (on cost) in DR and am underwater roughly 12%. I hold it for the income stream. Two questions: Do you think a full position is appropriate? Do you think the market has fully reacted to the disappointing quarter?

Thanks
Peter

Q: What do you think about yesterdays Crowdstrike IPO? They are a strong player in the Cyber Security/anti virus field but how are the fundamentals?

Q: Good morning 5i Team

Would you please compare/contrast CRWD and BB in terms of Revenue, Profitability, Growth and Market Cap and any other metrics you consider important. Also, how similar are the markets they operate in?

Deduct credits as appropriate.
Thanks
Peter

Q: Is XAU.to a valid speculation on the short-term potential of gold or just OTC:bb type “flim-flam”? I would sincerely value your perspective.

Q: If looking for an oil & gas producer to introduce to an otherwise o&g-free portfolio, how would you rank these? Is there a glaring omission in my list?

Q: Why do I get remarks on PagerDuty when I request Precision Drilling questions?

Q: Crp seems to be the type of commodity infrastructure company I need; however, are they suffering from restructuring/expansion costs that will hurt temporarily or are they just a true dud?

Q: Looking to buy a REIT and wondered how you feel about these two. What would be your top pick in Reits.

Q: Are you aware of any Canadian ETF's that focus on Fintech. I can't find any in the almost 600 that trade in Canada.

Q: It appears that the world has finally woken up to the fact that we are choking in plastic. Do you have any stocks that you think might be poised to take advantage of this? I did come across one, TREX-N, that I found interesting. It is a US stock but your opinion would be appreciated.

Q: Hi 5i team, is there any rules to buy and sell stocks that trade at daily volume of 500 shares such as BCI if one wants to set the amount at 50000.

Q: Hi 5i team, thanks for the valuable information about quarter earning beating estimates for companies in your balance and growth portfolios. Will appreciate again if you can list similarly for the following companies: TIH, WCN, CJT, PBL, QBR.B, GIB.A, DSG, SMU.UN, RY, WEED, KL, OGI, FSV.

Q: Hi All at 5i! I was reading an article in the post which made reference to Canadian debt. Not just the debt held by individuals, but also , the debt held by corporations. In a down turn, it has been predicted that this could be a large problem for the corporations and the lenders. Are there corporations that we should stay clear of as investors, which are heavily debt laden, to the point of being a major concern? Cheers, Tamara

Q: Can you please comment on their latest earning report and prospects, thanks

Q: Hi there, regarding the following you answered today, isn't this exactly the right time to start picking away at real good names that are well managed in the energy sector, specifically higher dividend paying names that have top quality management/board and good balance sheets, that are just being thrown away with the bathwater? Getting paid well to wait after so many years in a down cycle, ie Vermillion, VET. (they performed well in previous down cycle, and have proven themselves).

Is this not what Warren Buffet tells us to do, start adding when no one cares or wants them at all? Especially after four/five years of a down cycle already in the sector!

Income Portfolio Question;
Isn't this the right time to add something like VET to your income portfolio with cash on hand, 2% starting position, considering it seems way better then when you had Crius, KWH.UN, in there as a risky income play?

Even if they cut the dividend in half, it still seems like a good return for the income portfolio, and for them to use the funds to pay down debt, while also supporting their shares, with a normal course issuer bid buying back even more shares?

Thanks!

Q: Peter; Do you think selling all your energy stocks now is a typical “retail” investor panicking at the bottom- conversely is this a contrarian’s dream? Thanks. Rod

Asked by Rodney on June 13, 2019
5I RESEARCH ANSWER:
Probably; we do not think we have seen the 'capitulation' volume where everyone just wants out, but it still 'feels' that way without the volume. Oil is up 3% this morning so it will be interesting to see if anyone cares about the sector. We would still suggest more than a 0% weighting, but don't think an investor needs much of the sector right now.

Q: I understand that Beyond Meat's valuation is "beyond" believable ... but I'm wondering if there isn't something there. While I see that both Tyson and Maple Leaf are getting into the game, the question is: are these other products even edible?

I have not tried any of them, but it seems to be the consensus of the younger generations that Beyond Meat is beyond believable -- and the other products are "spit them out now before you choke". These other companies, while they may have a similar product, don't have the magic of Beyond Meat.

Do you not think that that might be a moat in itself -- and that Beyond Meat is buyable? I'm not saying back up the truck, or even a full position, but it certainly would seem eminently investable, given the quality of its product. Sometimes you pay for the name, while you wait for the valuation to catch up. Agree or Disagree? Your thoughts would be much appreciated!

Q: I bought shares in IPL in 2007 at $9.70. The current yield, based on my purchase price is 16%. I am thinking I should sell but find it difficult to do so given the yield on this stock. What would you recommend in a situation like this?