Investment Q&A

Q: Peter and 5i team,

With an equity financing, like what has taken place with E recently, how does the average investor buy into the financing? If it's a stock that an investor already likes and is looking to pick up more shares, it sounds like a good opportunity to pick up the stock at a cheaper price (in instances where the financing is done at a lower price than the current market price). I'm just unsure on how to go about participating in these financings. I currently trade with Questrade.

Much appreciated in advance,

Q: I have heard you use the EOITDA frequently.What does t mean and how useful is it for evaluating any stock?Thank yu and have a good day

Q: Peter and 5I team, I think some of your members might enjoy the efforts of this blogger per Canadian dividends...

http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/

"The Canadian Dividend All-Star List is comprised of Canadian companies that have increased their dividend for 5 or more calendar years in a row. I used the dividend record date to determine the length of streaks."

If you don't feel it's appropriate to be posting publically for fear of a whole whack of links to blogs etc; then I understand. Just felt it was worth it to share. There's lotza good blogs out there on dividend investing for sure. Thanks for creating 5I, it's been a blessing in disguise.

Q: I wonder if in your web you could add a column(alphabetically)about the stocks you already have ganswered the question in the past ; so one would not ask any question if you already have answered except some specific reason for.I have noticed many questions that you have already answered about them has been asked before by some one else.Thank you and have a good day

Q: when do you plan to publish income portfolio?

Q: Hi Peter and 5i: I have been reading Ben Graham's “The Intelligent Investor,” on your recommendation among others. Thank you for that. It is a wonderfully provocative read. It has me considering the increasingly defensive positioning one might come to in the later stages of a bull market through balancing and rebalancing the fixed-income and equity components of one’s portfolio. I am considering capital preservation strategies including diversification between components of conventional bonds, cash & short term income vehicles on the fixed income side of things, and (ironically?) gold on the equities side. But I am also wondering about the inclusion of non-leveraged short or “inverse” ETFs (MYY, HIU and the like) specifically to hedge the risk of the long equity positions I might be inclined to hold or accumulate throughout a market downturn, and also to provide the possibility of some positive equity-based returns in a declining equity environment. I wonder though about how reliable they will be in delivering the suggested returns, especially in what may be perceived as “crisis conditions” in the markets. Have they been tested over sufficient time and sufficiently variable market conditions to warrant confidence for capital preservation purposes? They seem to be investments in derivative instruments which are likely not well understood by many investors (me included!). That description reminds me of the “black box” ABCP investments that caused a significant crisis of confidence prior to the 2008 market meltdown. I also wonder about the dynamics of a derivative products market which becomes increasingly larger than the supposedly underlying repositories of value (the equities themselves). Should one be concerned that the next major market crisis may result from a loss of confidence and unravelling of the same derivative products that people may be depending on to protect them from a bear market? Am I completely off base or would you suggest any parameters for restricting one’s approach to investing in specific kinds of “non-leveraged” inverse ETFs or ETFs in general? Thanks for any thoughts! (Please feel free not to post this if you think it is unsuitable.)

Q: Still a new-ish member, wondering about the March 1 Research Report.

Am I correct in thinking that this extensive list does not represent necessarily your favorite stocks, just ones you have decided to do research on? I assume our favorite stocks are in the Model Portfolio instead. I am just wondering what criteria you use for a stock to make the research list, since there are many stocks you like in the Questions area which are not on the Research list.

Thanks so much, Peter, Ryan and team!

Q: You have advised to notice the start of dividend payment as a significant event in corporate development and investment worthiness.
Could you please list companies that have started dividend payments over the past 2 years plus any comments you have on them. Is there a site to find this sort of information? Thank you.

Q: Hi, question on reporting taxable gains. Several years ago I put some money into a trading account. I have not added or taken any out. I made several trades/gains last year but I am still down overall about 40% due to Lightstream holdings. Do I have to pay tax now on those trades ? I have of course being paying tax on the dividennds.

Q: Hello,


On Feb 27 a reader sent this comment. Can you provide more information as to where I can find this "guest fund websites".

Thanks


Not a question but a comment to my fellow members. I have noted a number of member remarks as to a shorting suggestion on a recent BNN telecast. I frequently watch these telecasts as well for different views. I would suggest that members go to the guest's fund web sites for performance of their particular fund as a reference point. I find myself that some guests have better advice than others. I do not find that particular recent guest to be in the more reliable camp. - See more at: https://www.5iresearch.ca/questions?page=5#sthash.OHPM5HZX.dpuf

Q: RE: Bill on CSU split

I don't understand the obsession with CSU stock split. I am happy with the dip as it allowed me to buy a few more shares at the price of 2 month ago. As a small investor, I bought 11 shares at $222. It cost me $9.99 for the trade - same as if I had bought 100 shares at $22 (assuming a 10:1 split).


The only two real benefits with stock split that I see are:

1- Full 100 share lot are easier to get filled on a 'limit' order than fractional lot. Full lot must get priority because I have seen prices go lower than my fractional 'limit' order without it being filled...

2- Spliting stock results in a lower price which is more easy to DRIP (divvy reinvest) if your discount broker requires full shares - like mine does. I am actually happy with HCG 2:1 split because I have sufficient (constant) divvy dollar to buy a full share now at $43 - but could not at $86. But with CSU, even with 2:1 split, the stock price would still be $125...

Q: Peter,
I am trying to find a Canadian website that gives financial ratios of Canadian stocks, Book value/share, cash/share, revenue/share, NTA/share, ect. ect. These ratios will be handy for comparing different stocks in the same sectors. Why is this information not easily available in Canada? If it is not available for free, is there a paid service that can provide these summaries?
Thanks.

Q: How can the average investor determine how much of a stake the company insiders have in the game? Some of us think it's an important factor in making our investment choices.Is it?
Thanks
Garry

Q: When you trade in a cash account, will the discount brokerage firm send you a capital gain/loss statement on each transaction made at year end or do you have to keep track of all the transactions yourself ? Thank you for the great service.

Q: Peter and team, I have a managed RRSP account that I wish to transfer into my self directed account. The account contains some large cap US stocks but mostly medium and small sized Cdn stocks. Is there a preferred strategy to move the account holdings ? I had thought to ask the firm to liquidate and transfer the proceeds but am now thinking the thinly traded small companies would be better sold over time. Is transferring everything in-kind better ? Thanks you.

Q: Do you have suggestions for safe places to park excess cash sitting in a discount brokerage RRSP, perhaps for a few months, while waiting to invest it in the market? I've used HFR (Horizons Floating Rate Bond ETF) previously.

Q: Hi Peter & 5i: Just a comment. I haven’t asked a question for a couple of months but I have continued to read the 5i members’ Q&A daily. I have gained lots of information from others’ questions and your responses. It may seem frustrating sometimes when someone asks a question you really can’t answer or includes a lot of extraneous information that won’t be relevant to your response. I very much appreciate your approach to answering these questions anyway; to try to give people something for their effort, at times despite the way they have asked their question. You are usually able to offer them something useful and sometimes that is useful for me too. If somebody asks for too much or provides too much info, it may just be that they don’t yet understand the turf well enough to ask for exactly what you can give them. But they still need some help and that is the point of their membership; to gain some assistance in an area they have not mastered and to be educated a little bit along the way. Thank you for your patience.

Q: Not a question but a comment to my fellow members. I have noted a number of member remarks as to a shorting suggestion on a recent BNN telecast. I frequently watch these telecasts as well for different views. I would suggest that members go to the guest's fund web sites for performance of their particular fund as a reference point. I find myself that some guests have better advice than others. I do not find that particular recent guest to be in the more reliable camp.

Q: Not a question, but a comment.

As a member who rarely posts questions I am annoyed with individuals who list their holdings and ask for a portfolio review. The latest being Karen who posted today, listing 38 holdings and asked for a detailed review.

My issues are 1) We are members not clients; and 2) Your site is clear on the scope and nature of the information provided.

I think your response on these questions should be that it is outside of the scope of 5i's service and they should consult a financial advisor.

If individuals want to be treated as clients then spend the money on a financial advisor rather than expecting the 5i members to subsidize their needs.

Q: About Catherine's questions on stop losses and when to sell criteria, I read last night Peter's earlier blog posting -

https://www.5iresearch.ca/blog/some-possible-reasons-to-sell

and I thought I would e-mention it as I found it helpful...Tom M