Investment Q&A

Q: Hi
Before I posted this question, I went through CMS archives and searched the questions bank here as well. As I didn't get any "hits" I thought of asking you folks.

I was recently told that establishing a Joint Partner Trust is a good way to go if one

a. wants to avoid probate fee even for the primary residence
b. to shelter probate and other fees for assets held in a private corporation
c. transfer wealth to future generations with certain amount of protection.
d. Arguably the best way to go forward if one's adult kids are in the US (through a Dynasty Trust)
Any thoughts about JPT? Especially for professionals who own a private holding company/corporation. If you think JPT is not the way to go, what would you suggest?

An article is begging to be written in CMS!
Many thanks.
Mano.

Q: I appreciate this is not a US/Cdn stock, but curious what your thoughts would be. The space they are in seems to be hot these days, but they are trading at almost a 12 month low. Results are supposed to be out in a few days, wondering if market is expecting mediocre?

Q: Could you please some insights into the relationship between the number of analysts covering a company and the number of institutions holding that investment? For example, I was surprised to hear that TOI only has one analyst, while Yahoo shows 109 institutions holding shares. Is this simply because they were "given" shares from CSU? If that wasn't the case, how many institutions would you expect to be holding shares (roughly)? I'm trying to get a sense of what high vs low institutional interest looks like. Thanks
Marc

Q: Please clarify this for me so my thinking doesn't go off on a wrong tangent. CDIC covers up to $100,000 in a bank savings account and up to $100,000 in a bank chequing account. What about cash sitting in a registered account [TFSA, LIF, RIF] or in a non-registered account [Margin]?
Right now I'm carrying varying amounts of cash, depending on the account, using it to buy stocks low and sell high. At times the cash balance can exceed $100,000.
Thank you

Q: Regarding your recommended portfolios, is it safe to "assume" that if an investment is still in the porfolio, you would consider buying still? If not, is there anyway you could colour code, or highlight that you support acquiring still or just hold as some investments have been there a long time.

Q: Can you provide guidance on what is the most appropriate strategy for profit taking? Should you have an objective in mind when purchasing, and when that goal is achieved, sell? Or if underlying investment still has solid fundamentals, continue to hold?

Q: Hello 5i. Can you please tell me the simplest way to get earnings dates for all my stocks, in one place. Thank you.

Q: Do you think that the other Canadian banks will follow NA's zero commission? If yes, does this mean they would profit from Order Flow, meaning less attractive prices for investors?

Q: I just noticed TSLA.NE

CATSLA Or TSLA CA on TD
TESLA, INC. CDR (CAD HEDGED).
Can you ad this to the list and who is managing this? Is it simply TSLA USA hedged?

Q: Hi 5i,
I have been investing in my work-RRSP for a number of years and am somewhat lost in trying to define the proper calculation to track my progress. As an overly simplified example,
Year 1: invest $10k
Year 2: invest $5k
Year 3: invest $7k
Year 4: current value $30k

What kind of calculation would help me calculate the growth? Something like compound annual growth rate seems to only take the beginning and final values into account and I was hoping for something with a little more substance since I'd be continually adding to this fund every year.

Q: What about National Bank no fee's for trading ETF and stocks. Will the other banks follo. This could save a lot of money for investor's like me. Tks 5 i

Q: Assuming you could keep track of N companies, would it not make sense to own as many as possible if business fundamentals are good, the price is reasonable, and you have the funds? This is compared to trying to select which specific company to add to or purchase from a basket of options. My understanding is that often a few really great companies can end up carrying your portfolio and make up for the losers (I believe this was from Peter Lynch's book). The reason I'm asking is because I look at more volatile growth stocks like APPS, AT, NVEI, EGLX, TOI and GUD , and keep asking myself that question. I'd love to hear your thoughts.
Marc

Q: I am getting close to retirement and have saved sufficient funds for my retirement. I am also expecting an inheritance equal to or greater then my retirement fund. I have always been a do it yourself investor, but at what point should I hire outside advise? And how do I find someone I like.

I have enjoyed your advise and don’t think I’ll find anything significantly better. It also gives me the confidence to keep doing what I am doing. But it is a case of I don’t know what I don’t know. Is there a size of investment portfolio that you feel would benefit from professional advise.

Q: In terms of starting and building out a large position in a new stock, how do you proceed? As a professional portfolio manager, is there a certain method or strategy you followed? What metrics did you look at in making your decision? Split the purchase into 2-4 chunks? I know its probably more of an art than an exact science but could you shed some insight into how you did it? For example, if I wanted to build a 3% position or had $50k allocated to MAGT, how would you scale in after its had its recent run. Thanks for your insight!

Q: Good morning 5i team,
I am researching a few beaten-up Canadian stocks. Can you please let me know how I can research the terms and conditions of a public company's common shares. Specifically, I am interested in knowing whether a takeover offer can be made to the majority shareholder(s) and exclude the minority shareholders for the companies I am researching. Thank you for any suggestions you may have on this.
Edward

Q: Hello
When watching BNN, I occasionally see ads for companies promoting their stock. Out of curiosity, what are your thoughts on this?

Thanks,
Greg

Q: Hello
My & my husband's accounts each hold about 60% stocks and 40% bonds. I am considering putting all our bonds into our RRSP/LIRA accounts and increasing the equity portion of our TFSAs and non-registered accounts. This would allow us to hold higher growth stocks in our TFSAs.

We bought most of our holdings last spring/ summer so we would be taking a loss on the price on the long bonds and buying equities at a higher price.

Here are my questions.
1. Does our thinking about where to hold bonds make sense?
2. Is there any advantage to distributing the bonds across the various accounts?
3. Would it be better to hold off on the reallocation until equities come down a bit and bonds go up in price? I know you can’t time the market, but we are at all time highs in equities.

Thanks

Q: Many questions relate to a stock that has run into difficulties with a downward stock price. Your customers are looking for an indication of what to do. Quite often they ask 'is it a buy, hold or sell'? In all my years as a customer of 5i, and skimming through the hundreds of thousands of questions, I don't recall more than a few 'sell' responses. Mostly 'hold' is the way to go. I, and probably most of your customers, would appreciate a bit more of a definitive answer. I realize giving a sell response is a big decision that could backfire if the stock recovers. You might end up with unhappy customers. What about qualifying the hold response. How about rating the 'hold' with a number scale from 1 to 10 where one is a weak hold and 10 is a strong hold. A '1' might apply to a company that has missed guidance a quarter or two but has a chance to recover in their market (there is still potential). A '10' might relate to a solid dividend paying company that missed guidance due to a large sale being delayed, currency issues or a temporary drop in margins.

I'm sure others would appreciate this clarity. Keep up the good work.

Q: Benzinga reports unusual options activity today for Digital Turbine. I purchased recently and am down. Can you explain what this means and what effect it will likely have on stock price.

Sentiment: BULLISH
Option Type: SWEEP
Trade Type: PUT
Expiration Date: 2022-03-18
Strike Price: $45.00
Volume: 820
Open Interest: 14

Q: I'm confused: Your "Shares out" for Verano is stated as 122.23M and that # is the same when I check VRNO's TMX listing but MarketWatch lists the shares out at 131.08M.

VRNO started trading on the CSE on Feb 17/21 after its reverse takeover of Majesta Minerals. It also trades OTC stateside under the ticker VRNOF.

Portions of VRNO's total float are "locked up" in escrow, to be release on the 90th, 180th, 240th, 310th and 400th days following the initial offering on Feb 17/21.

According to a fellow who passes himself off as "MJ Stock Trader" on Twitter, the unlock schedule for Verano is as follows:
1. 17-Feb-21: 60M shares
2. 12-May-21: 42M shares
3. 10-Aug-21: 42M shares
4. 08-Nov-21: 42M shares
5. 06-Feb-22: 42M shares
6. 18-Mar-22: 56M shares

For a total of of 290M shares.

The questions:

(i) Do these numbers represent VRNO's CSE listing or the stateside OTC operation?

(ii) When large chunks of escrowed shares unlock, bidders can make hay of askers, which is what appears to be happening to VRNO this week; how likely is it that the tables will turn in November when another chunk of locked shares unlock and the US fed govt presumably inches closer to legalization?

Thank you!