Investment Q&A

Q: Hi team,
I saw the comment earlier from Rick on TD not offering Norbert’s Gambit option for RRIFs. I am not at the RRIF stage yet but moving closer. I have used Norbert’s Gambit many times for my RRSP, TFSA and Cash accounts at TD. Without this option, I think the FX conversion charge, if I recall past conversations with TD, is a minimum 1.5% for larger amounts, ranging up to 2% or more for smaller amounts. If Norbert’s Gambit is not available at TD once I get to the RRIF stage, I will look at moving my account(s) as well. In a RRIF, I will likely be using Norbert’s Gambit more to move funds back to Canada from the U.S. for the minimum annual withdrawals required by law. Like Rick, I am interested if other members have the Norbert’s Gambit option for their RRIFs.
Dave

Q: Good afternoon, could you explain process to tender GS shares in response to approved buyout by Onex. GS shares are held at BMO Investorline.
Thank you

Q: Is portfolio balancing different than averaging down? I will be doing my semi-annual portfolio over the next couple of weeks and with the decline of names like MG, MX and TSGI to name a few I suspect I will be a bit underweight in consumer discretionary and materials. I see portfolio balancing as shoring up the laggards and trimming the overweight (winners) but that means buying stocks that are not showing momentum and may even be in continuing decline. So, are these two ideas incompatible and if so, what is the "proper" way to rebalance?

Appreciate your insight.

Paul F.

Q: On my previous question on EQNR you stated that they had Debt at less than 1x cash flow, just curious at how you arrived at that value, as when i look at Morningstars info they show ttm free cash flow at 6.8 Billion and short and long term Debt around 25.7 Billion. I find this Debt/cash flow Ratio as one of the more useful metrics as it can give you an idea how fast companies can pay off Acquisitions, however few web sites report it, as well as yours when i search under companies
thanks Gord

Q: Clarification on my question --"whether it is best to convert money to the US and then buy stock or just buy stock and then convert to the USA stock". You say "that if one is buying a US stock there will be conversion at some point. Either C$ gets converted into US$ for the purchase, or US$ gets converted into C$ when the investor wants to withdraw Canadian cash from the account eventually."

There will be no conversion fees if I do below steps.
Example: I buy CSU on TSX Then move to USA Stock
When I decide to sell I move CSU from the USA to CDN and then sell.

Is this strategy will end up saving money or the best way to convert money from CDN to the USA or vice versa.

Thanks for the great service.
Hector

Q: Hello 5i;
I don't understand your reply to Hector's question today about "whether it is best to convert money to the US and then buy stock or just buy stock and then convert to the USA stock". You say "........there will be no difference". If he converts cash, he will be paying a FX fee. If he buys a stock on the TSX and then moves it to the US side, are you saying that there will also be a FX fee involved?

There is obviously a lot of confusion about US/CDN conversion, be it cash or stocks, the question of dividends, etc. The subject keeps coming up, resulting in a lot of fragmented Q & A's. I wonder if you could come up with an informative blog that would address this whole issue (incl. Norbert's Gambit)? I think we would all find it very useful!

Q: A member reported that TD Direct charges a fee for moving funds (via Norbert's Gambit) between CAD- and USD-denominated RRIF accounts. I cannot confirm that this is the case, but it bears noting that, not long ago, TD added a transfer function to WebBroker, such that account holders can execute Norbert's Gambit themselves. I have used this feature for this purpose (between CAD/USD RRSP accounts) and paid no fee - except, of course, the trading costs for opening and closing the position, which, at TD, for a smallish currency move, might well exceed 1.5%. Put another way, being thrifty with brokerage expenses might have more to do with minimizing trading costs than with occasional service charges.

Q: What drives price changes in Canadian-traded ETFs holding US securities on days when US markets are closed? Is it after-hours trading prices of the underlying securities, or something else?

Q: Moving a Canadian stock to the U.S. side in order to keep the dividend in U.S. $.
Is it best to convert money to the US and then buy stock or just buy stock and then convert to the USA stock? Do you end up paying less or is it same? (I.e Fex fees).

Thanks for the great service.
Hector

Q: I just found out that TD Direct does not allow Norbert's Gambit to transfer funds to/from Canada/U.S. within a RRIF. Their fee for moving the money is near 1.5%. Do you know of any discount broker that allows Norbert's Gambit within a RRIF? I am prepared to move my RRIF if so. Thanks. Rick.

Q: I am a new investor with my focus being on the long term. When I review the Reports for different companies, should I focus on specific grades with the Report Card. For example:
5 YR ROE;
5 YR EPS; or
should I place more emphasis on the overall rating?
Thanks.
Matt

Q: I was a latecomer to learn about 5iResearch so alot of your stock picks in the model portfolios had grown too high for me to jump in on and put together a proper plan. I was wondering, with so many new stocks coming on the market since 2013, will you be putting together any new model portfolios with lower entry prices for members who were late to the party? You provide a wonderful service and I am enjoying learning from everyone's questions. Thanks so much.

Q: Good day team,
I'm not sure if this has been asked before but I was wondering if it's better to buy US stocks with Canadian cash or transfer the Canadian cash to US then buy. I have a questrade account and was looking at buying some US options.

Q: You recently provided the short position on chesswood “813,000 shares; 7% of the share float.”
As well it seems the short position question comes up with some regularity.
Can you provide some insight how as an investor I should interpret short positions.
For example I have no idea if chesswoods short position is good, bad or neutral.
Thanks John

Q: Regarding Sanjay's question about moving a Canadian stock to the U.S. side in order to keep the dividend in U.S. $, is this the only way to go about it? And if one wants to sell the stock later in CDN $, then have it moved back? Or would you just specify the currency on the trade order (or would that incur FEX fees)?

Q: Hi Peter/Ryan
Last couple weeks read good information on Q&A section on moving money to US account using DLR/DLR.U. Out of curiosity what happens if I call TD rep and ask him to convert my existing 100 Canadian NTR shares to US NTR shares in RRSP account? I am assuming I will still have 100 NTR shares under US trading account with NYSE listed price at the time of transaction. This way I can keep my US dividends without any transaction cost. If this is the case i should be able to convert any stock which trades in both exchanges. Hope this is not a dumb question. Your expert advice please.
Thanks

Q: My question is about deciding when to invest. I've used your resources to come up with an income portfolio; however, I'm curious if you have any sort of outlook on the optimal time to begin? Also, as a student, would you advise I hold off until I have more disposable income?
Thanks!

Q: How can I find a summary of securities covered by 5iresearch?

Q: You answered Francesco on May 16 that to reduce currency conversion fees on dividends one should sell the stock in Canadian funds and rebuy in American. I have been told by my broker that I am able to journal over a stock such as BIP.UN to the American side of my account without sale and purchase fees. It is in my LIRA but I have yet to call to move the stock so it is an untested strategy. I have moved DLR/DLR.UN this way successfully.

Q: Could you please provide a good source where one can obtain historical financial data on NA securities (minimum 10 yrs). Free sources preferable to paid, however willing to consider paid if better, quicker, easier to use. Thx