Investment Q&A

Q: Hi.. are there any other companies like WPK.to or CCL.. in Canada?
Thanks..

Q: In a question from Darren on living off dividends in retirement, your answer did not mention the punitive tax treatment of dividends with respect to OAS clawback. I would appreciate your comments on this. My understanding is that the preferential tax treatment of dividend income is that it is based on an dividend payments by companies on earnings after the company has paid tax on its net revenues and the favourable tax treatment to the individual investor is only to level the overall CRA tax take. Why then are seniors being hit double with tax.

I have benefited greatly from your expertise and the daily dialogue in the Q&A. Thank you.

Cyril

Q: Hi Peter and Staff,

If I bought a stock, and never added to the position, but later sold it to generate a tax loss, am I correct in assuming that the Adjusted Cost Base (ACB) and the Book Value are one and the same? My broker supplied only book values. (I'm assuming that CRA considers ACB and Book Value to be different when an investor continues to add to a position, either through trading, or when enrolled in a DRIP program.) Am I correct? Is this why some advisors recommend that in order to simplify your tax return, you shouldn't enroll in a DRIP in a non-registered account? Or is calculating ACB when you DRIP easier than these advisors suggest?

Thanks as always for the valued advice.

Q: Help! I'm not an analyst or an accountant and I'm trying to do the calculations for EV/DACF on my oil stocks. I have added preferred shares to my EV less working capital(just added this recently). DACF= CFO+financing costs + exploration expences. Income tax and interest expences are already included in CFO so I'm not sure if I should be adding them in again? Would it work just to add financing activities and investing activities to CFO to get DACF. My head is swirling but i am determined to get it right. Need your help badly. Thank you for your service.

Q: Can I get your views on the Linde Equity fund and the Linde Equity Report ( mentioned in the recent issue of Moneysense)

Q: In addition to 5I's recommendation &/or great comments,IE,the discount brokerage arm of CIBC,provides bullish technical analysis: Target price range:1)DSG $30-31.5 2)SYZ $9.70-9.90 & 3)MNW $11.-11.49 5I,thanks for your usual great services & opinions

Q: I am overweight in metals and have 4% of my portfolio G/YRI and 4% in SLW. Which stock(s) should I sell and/or trim to get to 5% of my portfolio and which 2 consumer stocks (greatest total return 1-3 yrs out) would you recommend I buy with the proceeds. Thanks.

Q: Hi Peter, I still hold it from the growth portfolio. I did not sell when you asked to sell. Anyways, as they halted trading on TSX I called RBC Direct Investing. They asked me to call the Investor Relations of Guestlogix. Anyways, I called but could not get hold of anyone at their IR department. Although the receptionist told me to go to this PWC site.

http://www.pwc.com/ca/en/services/insolvency-assignments/guestlogix.html

I could not decipher what PWC is saying here, Are this guys bankrupt? The receptionist told me that they are going to get financed again by May 8.

Anyways, I still hold 9756 shares of it. Is it worth zero? I saw today at RBC Direct Investing that they started selling at US gray market with ticker GUESF. Should I just sell it with 7 cents a share? Or hold until end of May? What does this creditor protection mean? Does not mean that they are bankrupt and PWC is liquidating their asset to pay their creditors? Please suggest.

Q: I am a conservative, retired, dividend-income investor with a well balanced portfolio.

I have a half-position in TRP. With the future share offering occurring at $45.75, should I wait to "leg in" some more OR is the offering price this low to provide incentive for the financing boys?

I like TRP for the guidance provided on dividend growth until 2020, not to mention the current amount of the dividend.

Also, would you add to WSP at these current levels?

Thanks,
Steve

Q: is it a buy?

Q: Good morning Peter and Ryan,
At today's prices, would you buy Open Text, Enghouse or Descartes? Looking for growth over three years. Thanks for your great service.

Q: Please provide an updated assessment for CWX. Thank you.

Q: Hello Team,
What would be your comparative assessment of these two packaging company?
It seems that ITP is fairly stable whereas CAS seems to be sliding.
Which one has better growth potential and which would be your preferred choice?
Thank you, as always!

Q: I have a growth oriented portfolio that includes AD, CXR, CXI, DHX.B, KXS, GUD, NFI, OTC, PHM and SIS amongst a few larger stocks. I am committed to holding these long term and won't need the money for at least 20 years, but I want to have a strategy in place.

What does the end game for this type of portfolio usually look like? 10 years from now will some of these stocks be negative and one or 2 have gains over 1000%? At what point do you recommend selling off stock?

Q: Hi Peter.

Just read your interview chapter in Market Masters. Thought it was excellent and should be required reading for all 5i subscribers! Keep up the great work!

Cheers,

Scott

Q: For companies with US dollar distributions (such as BEP.un and TRI), is it better to hold them in registered or non-registered accounts?

I am under the impression that companies with distributions in US dollars are better held in registered accounts, to avoid the US withholding tax. At the same time, dividends from Canadian companies are taxed preferentially if kept in non-registered accounts.

What should I do with BEP.un and TRI?

Thanks for this tremendous website and service!

Q: Hello Peter,
Do you think the surge in metals is on an upward swing for a while as teck and hudbay keep rising higher and higher? Also, would you say natural gas stocks will continue to be pegged to oil stocks or do you think they will be considered a sector on their own? lastly, if you had a choice between gold stocks and base metals like teck,, would you rather focus on gold given the low interest environment or would you put half and half. Thanks very much.

Q: Could you please provide your feedback on DR's Q4 and F2015 earnings released today. What are the valuation metrics (P/E, P/CF, etc.) and outlook for this company?
Thank you.

Q: Would you comment on their recent YE report please. Seems earnings growth has certainly slowed. Thank you.

Q: An RRSP portfolio has been designed with some ETFs and high yield/dvd payers/growers based on some of your recommendations I've picked up over time. The yield is required for withholdings so its a delicate balance between high yield for a safe distribution and increasing yield potential. Holdings listed below.

Do any of these concern you as too high risk? Considering switching the weakest 1-2 to ECI which should have more short term growth potential given the accretive acquisition value that is not being reflected at this time. Many of these are under water but some have had some good short term momentum.

CSU.DB, AI, TMC, AD, ENF, BPF.UN, BIP.UN, BEP.UN, BPY.UN, DIV, DRA.UN, EIF, NVU.UN