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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 All at 5i! With the tech market taking a bit of a hit and the DPO of Spotify coming out on Tuesday, should I wait to buy some or get in right at the opening bell? I am waffling here because I have never bought IPOs before and have heard that they can start strong, only to lose value within a few day or weeks. Spotify is a DPO, a bit of a different beast. If it were you ( with your cloudy crystal ball handy) how would you handle this?Buy the first day ,wait a while or gradually trickle in? This is for a long term hold and not quick profit. Thank you for your help and have a great long weekend.!



Read Answer Asked by Tamara on March 28, 2018
Q: Do you have any info / opinion for this companies IPO for March 26?
Read Answer Asked by Darryl on March 28, 2018
Q: My question is twofold.
1) I am trying to determine if Spotify will be a good investment. It appears to have a lot of positive momentum; however, it has never made any money, there appear to be lawsuits, everybody in the music business is not happy, and over the years I've read on occasion that their business model is not viable (as the artists and/or studios are not properly compensated and the business model will need to change). I do not think that the music industry will ever revert to its former self but possibly pricing/offerings may need to change. Your thoughts are much appreciated on how you see this company possibly making a sustainable profit if the issues are valid. (On a positive note revenues appear to be increasing nicely, their market share is approx twice as big as it nearest competitor. BTW. I have not read the prospectus other than some articles referencing the doc. Anything else to share if you have read it?)
2) If I do want to acquire some shares, how do you proceed? I have read that this is not going to be an IPO but a DPO. This is what I read "In February 2018, Spotify filed for a direct public offering (DPO) — a type of offering without intermediaries". I have also discovered that they will list on the NYSE on the week of April 2nd but there will not be any opening price but a suggested price range ($90-132/share). This seems like Russian Roulette, so do we take a chance and buy at any price (not an intelligent way to invest) or do you recommend that we see what happens by waiting a few days or weeks after the DPO, once things have calmed down.

We have been paying subscribers of the Spotify service for many years, probably from the initial days it was offered in Canada. It has much improved and we like it a lot.

Thanks again.
Read Answer Asked by Walter on March 14, 2018
Q: Do you think this stock will perform well once its public?

If yes, do you think it would be wise to get in right away or let it marinade a bit before investing?
Read Answer Asked by Harrison on March 05, 2018
Q: With Web Broker I have US stocks in my RRSP account. I also have US Stocks in my US open account.
In my US account itself my overall cost for stock purchases is just below the $100,000 level so I don't need to fill out the T1135 Foreign Property form.

I now have cash building up in my US open account. To avoid going over the $100,000 cost level, yet still wanting to receive increasing dividends in USD, would it make sense to purchase Canadian stocks listed on the NYSE that pay dividends in USD? My goal is to have USD dividends coming in for travel south during retirement. I am assuming I would receive the dividend credit for Canadian-based stocks listed on the NYSE (?)
Read Answer Asked by James on December 04, 2017
Q: Patrick Horan was on BNN yesterday morning. He indicated that he had done considerable DD when deciding whether or not to participate in the IPO. Recognizing that the retail sector is tough these days, his conclusion was that $12 was too expensive, however, if it subsequently dropped to $10, he would be much more interested as there certainly is value at this price. Your thoughts?
Read Answer Asked by karl on October 26, 2017
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