Investment Q&A

Q: I am wondering if there is a concern about liquidity when purchasing an ETF with just over $100 m in AUM and an average volume of 74,000. If I purchased 1,000 units, would there be any problem when trying to sell.....one of seventy four seems to me to be a potential issue. On the other hand, the underlying equities in the ETF have very large volumes; does that mitigate any potential issue? Yes, there is one ETF I have in mind but this might apply more generally, so I leave it this way. Thanks for your excellent service.

Q: Any idea when one can find the official closing price of an ounce of gold in Canadian dollars? Is the Comex closing price the official one? Is that at 1330 ET? Thanks.

Q: What does it mean that STC filed for a ‘preliminary base shelf prospectus’? Thanks!

Q: Hi Peter, Ryan and Team,

I have a question about TFSA accounts. Are the maximum limits to the TFSA cumulative? For illustration purposes, say if the limit were $5,000 per year for 5 year period, the maximum to contribute is $25,000. But if during that 5 year period, I only contributed $10,000, am I able to make up the $15,000 difference in year 6?

Throughout year 6, would I be able to contribute $20,000 ($15,000+$5000) and does it have to be one lumpsum? I am a bit confused, because every time I make a contribution to the TFSA, the bank has a statement that warns about overcontributing for the year.

Thanks.

Q: Re Fred’s question about longterm gains on RY
canadastockchannel.com has this info
If bought on Jan4, 2000, $1 worth of RY would be worth $12.46
assuming dividends are re-invested on a tax free basis (ex. RRSP)
If dividends are not re-invested, on a total return basis (including dividends, but still no tax paid) your $1 is worth $8.75.
You can enter different dates to get exactly what you want.
I personally find this type of analysis instructive but I know not everyone is a fan.

Q: Hello Peter and Team, Looking at company reports, do not see "revenue growth". What other parameters would you include / consider in assessing growth companies ( and while avoiding over leveraged or buying at the top).
Thanks

Q: i noticed before the markets opened that cu was at 30.32 then jumped to 33.03 before the market opened. how does that happen, its obvious someone is allowed , trade on overnight information before we as individual investors are. Thought the market was suppose to be transparent. Who is allowed to trade before the open and why.

Q: Good morning,
I own a small house in Ottawa that is free and clear with a current market value of approximately $350,000.
A recent discussion with my trusted mortgage broker confirmed that a 5 year term (Closed & Fixed) term mortgage can be obtained at a rate of 2.29%. This mortgage is said to be:
a. insured through CMHC,
b. portable, and
c. transferable.
At that rate of 2.29% and given that the interest paid would be tax deductible if I use the funds for investment purposes, I'm seriously considering borrowing around $200,000 and investing this amount for an initial 5 year period with an expected net rate of return on investment of 4.5% .
Q1. With $200,000, what are your thoughts of splitting this amount in 5 different chunks of $40K in the following instruments:
a. Mawer Tax Effective Balanced Fund,
b. Mawer Global Balanced ETF Fund,
c. Vanguard Balanced ETF Portfolio,
d. IShares Core Balanced ETF Portfolio, and
e. BMO Balanced ETF

Q2. As an alternative to the above and given the 5 year time frame, would your preference be to invest the $200,000 in a selection of best in class individual stocks split between different sectors and if so, would you be so kind as to provide me with ya listing of your best ideas at this time.

I thank you and look forward to hearing your thoughts on both of these investment strategies.
Francesco

Q: This is emailed to Members and also posted on the Home page of the Members' section on our website.
On the home page , I have comments from may 21st only,
Is this right, in view of the answer and ththe question from your member
Thanks
cdj

Q: Hello 5i Team
1 - Is there a source for Normal Course Course Issuer Bids (NCIB) available on-line, other than reviewing news releases from individual companies?
2 - Is there an easier way to determine NCIB purchases other than searching SEDI for individual company purchases or reviewing quarterly financial reports for the individual companies?
Thanks

Q: Where can I find on 5i website News and Report Updates at 5i Research emailed yesterday at 4:44pm. Thank you

Q: I wonder if you can point to an article or other guidance on what key metrics to look at and how to interpret them for a stock. Being relatively new, I tend to look mostly at profitability and revenue growth on a go/no-go basis when looking at a company in the absence of other info (ie 5i recommendations). Using REAL as an example, total after tax profitability is only 9% and 3 yr revenue growth is a tepid 8% and falling from a 5yr rate of 17%. These numbers are underwhelming compared to other co's, so I must be missing something with a company like REAL, and would like to learn how to see a little deeper.

Q: By mistake , I bought CSU & ATD.B using money from my US investment account. Now the stocks are shown in my US investment account priced in US dollars. Would that have a tax implication on dividend credit or when I sell ? Thanks for your expert opinion.

Q: There seems to be a variance on stop-loss pecentages for investors that use.Could you give an opinion on same ?

Q: Hi, If one is anticipating another market downturn , could you please suggest some investment ideas in CAD ? Thank you

Q: Dale asked a question about market conditions and economic analysis. There is one site that gives an outlook once a week. It is, of course, one particular view. But, I find it interesting. The site is called Options Play and the chief strategist is called Tony Zang, if the site below doesn't get you there. They do a market outlook once or twice a week:
https://www.youtube.com/watch?v=ByKBd7VFqbI

Q: Hello Ryan and Peter:

I hope you are all staying well in these trying times. We had our stock club meeting last month and one of our members was promoting hard for preferred shares because of the dividend. We purchased it for the club and I would like to know what are the advantages over the common share beyond the obvious of:
1. Preferred shares have higher pecking order in case of bankruptcy.
2. Dividend of the common share will get cut first before the preferred share dividend cut.

I see more disadvantages than advantages:
1. Dividend of the common share is similar to the preferred.
2. Very illiquid on the markets. The preferred can only trade 3000-5000 per day while the common share trades in the millions.

The slight difference in the dividend does not appear to be worth the risk of illiquidity. Also the higher pecking order in term of bankruptcy seems pointless when it comes to Canadian banks. Also the point of the common share dividend getting cut is not a big advantage when the big banks have not cut their dividend in over 80 years and National Bank I don’t include as one of the big banks.

Is there something that I am missing here.


Regards,

Brendan

Q: I have a personal line of credit for more than 20 years and I am now in the process of securing a business line of credit. So far the big bank that I deal with for my personal life is being a ‘pain in the butt’. The interest rate and other terms are not favourable to my business. The requested loan amount is $100,000 +/- and my collateral is $60,000. Any suggestions from your or others within your 5i family would be appreciate.
Clayton

Q: Can a company cut the dividend on their preferred shares as easily as they can on their common shares?

Q: what is the best source(s) for current and future individual company info like eps and current news. thanks