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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,
You recently answered a question (from Angus, feb 6th) about a list of large Canadian (TRI, CSU, ATD.B, SHOP, ONEX and BYD.UN and usa) companies that could be long term holds based on their management (past and current accomplishments). My question is: what would be a generic maximum weighting for such companies (one weighting for every one of them) if portfolio is invested for a very long period (no need to withdraw money)? Or another way to ask the question: how many different companies would be needed?
Thank you for your collaboration,
Eric
Read Answer Asked by Eric on March 11, 2019
Q: Hi Gang, good news is I sold most of the above with gains except for COV and KXS, looking closer if I did not the losses would put me in big trouble, over 40% for most of them from the high, I know that 2018 was not a stellar year but I'm 65 years old and can't wait 5 years for these stocks to come back, do you have any thoughts on how to get out before a stock takes a 40% haircut, is a 8% or 10% stop rule help or perhaps farther out. Thanks Anthony
Read Answer Asked by Anthony on March 11, 2019
Q: Hi,
Steve asked about accessing info on stocks hitting a new high. The Canaccord Genuity morning coffee news letter often lists stocks hitting new 52 week highs and lows. It’s free and is e-mailed and daily.
Thanks,
Kerri
Read Answer Asked by KERRI on March 09, 2019
Q: Just a comment based on Darcy’s question on March 7.

While anyone who is invested in stocks based on the balanced equity portfolio, which I suspect is plenty, my own experience is to recommend patience.

Remember when GC was recommenced and then shortly thereafter the news came out about the money laundering. Stock tanks and the natural reaction was panick. Thanks to 5I I held firm and am looking at 60% gain.

I buy the dips, and for the most part, am very pleased, with the BEP.

Thanks team!
Read Answer Asked by Kelly on March 09, 2019
Q: Good Morning
Pat McKeough's TS1 Network issues and sells a number of investment letters such as "The Successful Investor". Which one would you recommend for a conservative dividend investor?
Thanks
Read Answer Asked by Terry on March 09, 2019
Q: When answering Scott's question about the lightspeed IPO you said Shopify is 10X sales. On the 5i's website under companies it says SHOP is 55X sales and on Yahoo finance it says 25X sales on the TSX and 19X in the US.

Can you tell me where these discrepancies come from? It makes it difficult to compare companies. Is it best just to do the math yourself?

Thanks.
Read Answer Asked by Dennis on March 09, 2019
Q: Reading through 5i answers to questions regarding Cdn. coys that pay dividends in USD made me wonder if there is a way to increase my cash holdings in my USD account without incurring FX charges and being eligible for the foreign tax credit.

I currently have AQN and HOT.UN in my TFSA that pay dividends in USD that are converted to CDN$ with the extra wrinkle of HOT deducting withholding taxes that are not eligible for the foreign tax credit because it is held in TFSA. Also hold BAM.A and BEP.UN and BIP.UN in Cdn. cash trading account that also pay dividends and interest in USD$ and are converted to CDN$ when paid.

Can I as owner 1) TRANSFER my AQN (up about 150%) and HOT.UN (down 25%) shares this year from my TFSA to my USD cash trading account to get dividends/interest in USD and 2) do the same with BAM, BEP and BIP from Cdn. cash trading account to USD cash account to capture and keep the USD payments and avoid FX conversion fees and build my USD cash reserves in USD cash account without incurring any fees and charges from my online broker? Or do brokers and CRA have rules against clients benefiting from structuring dividend/interest transactions in a manner like this?

Obviously this would open up SOME space for extra contributions to my TFSA in early 2020 above and beyond the TFS $6000 contribution limit to provide for increased flexibility for sector rebalancing and re-allocation opportunities. Also this would make the USA withholding tax payment on the HOT.UN dividends eligible for the foreign tax credit when filing my tax return to CRA?

Comments?
Read Answer Asked by William Ross on March 08, 2019
Q: My question revolves around Peter's webinar and the thought we should know when to sell our losers. I bought the above just before the decline last year. All outpaced (negatively)the market decline considerably. During the recent market rally 2 have not participated with the market, the others have basically market performed. Leaving the value at this point -23%. There have been some misses in the last reports for these companies. As an investor what am I looking for now to continue to hold these positions or be a seller.
Thank you,
Mike

Read Answer Asked by Mike on March 07, 2019
Q: For the last eight years my portfolio has been almost exclusively US large capilization stocks. My rate of return has been great, significantly above the averages. I do not intend to change my portfolio away from the US markets for the foreseeable future. Am I making a mistake?
Clayton
Read Answer Asked by Clayton on March 07, 2019
Q: What is a better investment in the long term - real estate (as a hard asset) or the S&P 500?
Read Answer Asked by Mike on March 07, 2019
Q: This is a question that could apply to the above companies based on recent results but many others throughout a year. When a company you guys like misses earnings but has a reasonable explanation and the release/conf call doesn't turn up anything wild to be concerned about does it ever not make sense to buy or top up when the market overreacts? GC yesterday was another great example. Your thoughts please on when you would and would not be active buyers following a miss by a company you consider to be of high quality.
Read Answer Asked by Tim on March 07, 2019
Q: I have considerable taxable gains that will be realized this year. I will earn less than 20k in self employment income this year (semi-retired). I am considering buying 3000 shares of STLC before the special dividend recognizing the share price will drop after ex-dividend. I will sell the shares shortly after ex-dividend date. I will receive $3690 in dividends and have a similar capital loss (which I will use to reduce my capital gains). Do you consider this a tax efficient strategy? Am I missing something? Thanks for your advice. Rob
Read Answer Asked by Robert on March 06, 2019
Q: I often read the expression "Markets Wrap". What does this mean?

Many thanks, Peter

Read Answer Asked by Peter on March 06, 2019
Q: In 2018, Metro bought Jean Coutu. I would have preferred to convert a part of my PJc shares into Metro shares in order to defer the capital gain as long as possible. However, I have never received the document offering this choice from Disnat.
I contacted Disnat and the customer service told me that the document with which we had to sign our choice had been sent. I then consulted 2 colleagues who use the Disnat platform and they also confirm that they did not receive this document. The tax bill is important.
Are there any recourse or action to take?
Thank you
Read Answer Asked by Serge on March 06, 2019
Q: Hi, are you aware of a source that reports earnings surprises on Canadian stocks? Thanks.
Read Answer Asked by Gary on March 06, 2019
Q: Would you please discuss "take your profits" and "let them run." What's the rule for using either? Many thanks for your advice.
Read Answer Asked by Elaine or Gerry on March 06, 2019
Q: i want to buy BAM, but i keep nipping at stocks at their highs lately with less than cheerful results ( think SQ at it's high, though i still hold it and feel it will make it's way above it's previous high) . I recognize BAM is a very different kettle of fish. As the market is currently shy about moving upwards, do i wait for BAM to pull back?
Also I am planning to take the funds from BNS. Do I wait for it to a show a more positive move, or go now?
I look forward to any direction or guidance you can provide.

Appreciatively,
Mark
Read Answer Asked by Mark on March 06, 2019
Q: Follow up to my previous question re---- pre-arranged market close orders. This seems to happen very often and in very large amounts. Can you explain why they do this? IE--- how does this action affect their performance? Is it managed personally or by a computer model? What is the average size per trade?
Read Answer Asked by joe on March 06, 2019
Q: Hi,
I would like to read more or get some information on how to
establish strategies to minimize my tax burden and
optimize the disbursement of my investments. Any suggestions on where to start?
Read Answer Asked by Serge on March 05, 2019