Investment Q&A

Q: PNG recently did a $10M "bought deal" financing at $.67. If it is a "bought deal" does that mean Canaccord are in essence buying $10M worth of newly issued shares at $.67 and they are getting a big discount (prior market was $.78-.80)? Will Canaccord be re-selling these shares to clients at a premium to themselves or just adding them to their own portfolios? Also, if Cannacord have already bought the shares why is the market reacting so negatively? Is it because of the dilution? Last but not least why such a big discount for Canaccord?

Q: I have heard a lot about wealthsimple.what is your thought about using this platform.If you can trade for free,how do they make their $?

Q: Looking at the chart for PHO I note the gap up in early May. I often hear comments about stock prices moving to, "fill the gap" over time and I have never really found a satisfactory answer as to why this is thought to occur. What would your thoughts be on this gap thing?

Thanks

Q: Thanks for the recent update, I look forward to your monthly emails.

With respect to point two about locking in some profits, I've often wondered how this works for institutions. Would they actually sell their portfolio and go to cash for the remainder of the year? Do most mutual funds not have to be mostly in the market thus having only a small cash position? I suppose you're referencing other major institutions like pension funds, hedge funds, etc.? Are they more flexible in how much cash they can hold?

Personally I'm tempted to sell to lock in my 2020 gains which have been my best ever (lots of great 5i picks, thanks) but then the question of when to get back in always confounds me. I'm all registered accounts to so no loss to write off and no gains to worry about at tax season.

Say one did want to lock in some gains what would you suggest? Selling high fliers, only to potentially miss some more gains? Sell the lagards? Sell the high risk? Balanced?

Cam

Q: Dear 5i,
I have a number of questions regarding shorting securities I hope you can answer;
1. Where does one find out how much it costs to short a security?
2. Who gets the borrow fee for the security?
3. If brokers keep the money can it be a significant amount and why is it not shared with the security owner to be fair?

thanks

Q: I wasn't able to listen to Peter's Money Show talk. Any chance you have a link to watch it?

Thanks

Q: Just want to let your readers know that Peter's presentation for the MoneyShow is now available on the youtube MoneyShow page. Just search for MoneyShow and you can find it. Thanks for packing in all that information in to 30 minutes.

Q: Could you please offer some guidelines on how to execute an averaging up strategy, ie when to initiate, pyramidal buying ratios, stop losses, etc.
Thanks in advance!

Q: Do you have any Post pandemic suggestions?

Stocks or sectors?

If you find airlines and Cruise lines too precarious at this time, what does work for you?

Q: Hi Folks
I read in Bloomberg "investors are pricing in expectations of higher volatility around the elections ... In the stock market, investors have been purchasing volatility protection extending beyond November."
Can you please guide me what that volatility protection purchasing would actually be ? Is volatility protection only for investors who don't want to stomach the turbulence, or is there a broader interest in it? Many thanks for sharing your market wisdom.

Q: hi, according to the bnn website the tsx forward (I presume) PE is at 24.78, which as far as I can research is astronomical for a "recovery" period. can you shed some light on the tax historical forward PE, and provide some data/statistics on how well the tsx does over the next 6-12 months with a PE of 24.5 or above? I assume you have access to this data?? cheers, chris

Q: Hi Folks,
My question is about the concept of a 5 year "stepper" product described by one leading financial institution as having a one-year term and automatically renews for four successive one-year terms on the maturity/anniversary date. The annual interest rate automatically increases on each maturity/anniversary date. The investment may be cashed in full or in part on the maturity/anniversary date.
Rates are year 1 - 0.85%
Year 2 - 1.10%
Year 3 - 1.75%
Year 4 - 2.00%
Year 5 - 3.55%
Effective Annual Yield - 1.846%

For someone who has a portion of their portfolio in GICs, does this type of product make sense? What are the pros and cons please and thank you. Michal

Q: Hi Peter, I read your Saturday column in the FP very religiously. This Saturday you suggested that a Portfolio with 90% Govt. T-Bills and 10% Call Options can provide significant Upside & just as much Downside Protection. I don't know much, if anything about T-Bills & Options. Would you kindly explain? Also, where can I learn more about them online?
Thanks so much

Q: From my previous question, Re: Cramer discussing IPOs last week: it seemed he was suggesting that many tech / growth stocks would be driven down as buyers funded their new ipo positions with previous winners and that this would be a good time to buy growth stocks from this price action.

Your thoughts please.

Thanks

Q: Dear 5i,

Re Peter's article in the Financial Post article Sept. 17;
A comment was made about how an individual investor might
make a simple structured investment product using T-bills and call options. This interests me and I would like to learn more about how to do this and the risk and return behind this strategy. Can you please suggest some good reading material.

thanks
Ian

Q: Am I able to buy shares in Samsung, and if so how would I do so ?....please and thank you...Cheers

Q: Hello 5i,
I have the above ETF's in my TFSA as I believed the distribution is interest. I read in reports that distribution is dividend or "dividend interest") All quite confusing. In the TFSA's are also a GIC 5 year ladder, growth stocks (LSPD, LNF) and some high dividend paying equities. Should I journal the above ETF's to a non-registered account and refill the TFSA come January with more growth and GIC's or leave everything alone? I am 73 with a defined pension and 60/40 fixed / equity
Stanley

Q: Hello 5i Team
Is there a readily available website listing the subordinated voting shares on the TSX?
With the recent takeover offer for Cogeco / Cogeco Communications, a spotlight has been shown on multiple voting / non-voting shares?
What is 5i opinion on whether multiple voting / non-voting shares are beneficial for the small retail investor?
This might be a suggestion for a blog entry similar to Canadian companies paying US dollar dividends.
Thanks

Q: In the event that Corporations, REIT's or other company structures are taken private what options would they have relative to Pref Shares. Convertible Debentures etc. would they have to redeem them or could they still continue to be listed under their original terms? If the latter does that encumber the private Company in any material way?
thanks, Hugh

Q: hi, do you have a best estimate for the combined book value of the companies in the TSX now, versus what it was just before the covid19 shock. and what is your prediction 6 months from now, assuming no vaccine and things with covid grumbling along.