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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: In my research of BDX the forward PE ratio is 19.7 or 6% higher than its 5yr avg, but when I look at the PEG it is 1.4 or 23% lower than its 5yr average. What measure is more appropriate to gauge its relative valuation?
Secondly, how much weight do you put into the ROE when looking at a company, the ROE for BDX is only 0.3%, is this alone a reason to stay away from this company?
What grade would you give this company?

Thanks
Read Answer Asked by Albert on June 26, 2018
Q: In response to Scott's question about US citizenship, if he was born in the US, he is a US citizen. This applies regardless of his parent's citizenship or their status in the US at the time. He should be filing a US tax return every year, as well as submitting an FBAR annually. Ridiculous yes, but the US law nonetheless. The penalties, particularly with the FBAR are onerous, to say the least. Scott is flying under the radar and can probably continue to do so, with one wrinkle being his passport - presumably it shows a birthplace in the US - and any US border agent should know this makes him a US citizen and he should be entering with a US passport. Obtaining a US passport might just unravel his situation. But I'm just guessing. Scott needs to contact a Canadian lawyer who deals in these matters to properly understand his position and his options.
Read Answer Asked by grant on June 25, 2018
Q: I was hoping that you or one of your subscribers might be able to assist me. My understanding is that the IRS requires all US citizens to file US tax returns even if they do not reside in the US or have ever worked in the US and recent laws make the failure to do so extremely punitive. My question is - I was born in the US to Canadian parents who were in the US 60 years ago for a brief work term. When I was born they applied for and received a "certificate of Registration of Birth Abroad" from The Canadian Department of Citizenship and Immigration to certify that I am a Canadian citizen. Am I still required to file yearly IRS tax returns even though I have never worked in the US and am legally a Canadian citizen?

Many Thanks

Read Answer Asked by Scott on June 25, 2018
Q: I have owned NSC and CSX for many years and have done quite well. I am thinking about trimming some profit and diverting into Amazon. I want to own Amazon but wonder if I am getting into it too late and where the valuation is excessively high. How might you approach this scenario? Would you consider selling profit off of CSX and NSC and buying amazon or stay put? I am a long term investor.

Thank you
Read Answer Asked by Darrin on June 22, 2018
Q: Friends given the higher price to earnings ratio of the growth stocks in the Russell as held in IWO what is your opinion of IWD the holdings of which have a substantially lower p e ratio from both a safety and a growth perspective (does a lower growth tilt in IWD get offset by these holdings' enhanced safety in your view). Do you think a half position in both makes some sense this late in the cycle or would you stick with the growth provided by IWO. What concerns if any do you have re IWD and do you have a different recommendation for a Russell value etf. Many thanks as always.
Read Answer Asked by Ken on June 22, 2018
Q: Hello 5i team. I own TD and BNS. I'm up over 20% on TD this year while I'm generally flat on BNS. Should I rotate out of TD to another bank or does it have more legs to run. I also own a half position in VB and own BAC and C in the US. Thoughts?
Read Answer Asked by David on June 22, 2018
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