Investment Q&A

Q: SHOP did an offering at $137US on Feb of 2018.
They also did one at $154US on Dec of 2018 which is 9 months later.
8 months later they also did an offering at $317.50 SEPT of 2019.
Add another 8 months and we get to May of 2020.

Do you think this is a perfect chance for them to do another offering at these high prices? Are we due to have one?
Thanks

Q: I believe the supply chain area will be a strong investment theme in the future due to the rise of nationalism in the world. I know you like kxs and dsg primarily based on this assumption.

Can you give me three names in Canada (excluding the above) and three names in US that you currently favor to play this theme.

Thanks for all the great independent advice that you have provided over the years It is a no-brainer renewing for another year.
Keep up the great work!!!

Q: Hello 5i Team

I have an equal number of shares in both Great-West Lifeco (GWO) and Power Corporation (POW).
My average cost for GWO is $22.00 per share and for POW is $21.90.
Since POW owns 70 % of GWO, should I purchase more shares in POW and sell my GWO position? This would result in a slightly higher yield going forward on the POW shares. Or should I consolidate my position in GWO and sell POW?
I have matching dollar positions in MFC and SLF, so I want to stick with GWO/POW.

Do POW and GWO share price move in tandem (i.e. same percentages) because POW holds 70 % of GWO or is POW restrained by its holding of IGM Financial?

My last purchases of POW/GWO was on April 13 and 15 respectively. Do I have to wait until May 13/15, before I sell either one, if I want to claim the small capital loss?

Thank you for the great service.

Q: Do you think Chorus Aviation will be able to survive this global shutdown?

Q: I have no positions in renewable energy, my watchlist includes the 3 companies in question. Could you rate these 3, add a 4th if you you know of a stronger candidate in terms of balance sheet strength and growth prospects. I’m a long term, buy and hold investor.

Q: Hi there, just catching up on questions. There was a comment a few days back that the first $2,000 from a RRIF is "tax exempt" which is not correct. It is taxable but if you meet the requirements the first $2,000 allows you to claim the $2,000 pension credit which save you a flat 15% Federal credit - there is also a provincial credit which can vary - Ontario only gives credit on the first $1,463 so even someone in the low tax bracket (20% in Ontario) owes some tax on the first $2000 depending on other credits. If you are in a 40% tax bracket from other income you have, then the pension credit does not offset all the tax on the first $2,000 withdrawn. Just wanted to clarify the facts, thanks, Ed

Q: I already have Franco Nevada In my TFSA. I’d like to add one of the above or would you prefer a smaller position of each. We are hanging in there...the 5i team sure helps. Thanks for your guidance,

Q: I have all 5 big banks and the 2 telecoms in my Margin Account for income purposes. I sold FRU and IPL because the dividend was reduced significantly. So I have some cash available to top up.
Given the Banks have Yields and Pay Out Ratios as follows (BMO 6.34% - 46.83%; BNS 5.90% - 44.47%; CM 7.49% - 36.67%; RY 5.25% - 44.84%; TD 5.82% - 44.76%) I am considering CM as the best yield and lowest Pay Out. Would you concur?
Thanks

Q: Although you do not specifically follow US companies, could I ask your opinion on this company, including fundamentals and volatility?

Q: Im intrigued by Kinaxis and have been looking at it as a way to increase my Canadian tech exposure. How were you able to get confortable with Kinaxis' very high valuation? How would you recommend initiating a position given the recent run in its share price?

Q: I'm thinking of selling my ALA for a tax loss and moving on + set aside some cash, but I'm trying to determine the right opportunity (it was ex-dividend today, so that's one thing!).

What sort of potential impact with the pandemic have on ALA that could make waiting dangerous? They, of course, report on April 30.

Thanks.

Q: I have no gold in my Tfsa and am looking to add a small position. Would this be advisable and if so can you recommend the best Canadian etf and give insight for the choice? Thank you.

Q: With the Papua Govt, taking over the mine there, what happens to Barrick? Thanks!

Q: Can you tell me your 2 favourite Industrial Reits in Canada and one in the US.

Thanks Valter

Q: Your comments on MSI:CA latest results would be appreciated. Thanks.
Dave

Q: Another reason why it maybe down this morning (question by Eli). It seems PNG decided to nationalize one of Barricks mines.

https://www.mining.com/papua-new-guinea-snatches-barrick-golds-porgera-mine/

Q: This one looks interesting if one wants to hold a basket of energy stocks in the US. It even pays a dividend, but the amount paid is not consistent.

Q: I am wondering how to assess SHOP going forward based on its recent runup. If the increase is due, in large part due to perceived success during COVID, the next quarterly earnings report will only partly reflect their success/failure for this period. Are you then looking for the guidance they give, the quarterly results they post or will you be continuing to value the company based more on what you know about them from having followed them for some time? I guess my question is valid for all companies during the next 6 months but this one has run up so much, I am wondering if I am being unduly cautious as to how much I continue to hold.

Appreciate your insight.

Paul F.

Q: Hi 5i Team,
Given the current low interest rates, low crude prices and the covid-19 situation and all these factors have a negative impacts on insurance companies and big banks. What are your thoughts on taking a position in FIE?
Cheers and your great works are appreciated.

Q: Further to Mark's question regarding the spin-off of Dow and Corteva, there is definitely a way to set this aside for this taxation year, and ultimately have it as a capital loss/gain. The CRA calls it Election 86.1, and I've included the link here to CRA's website, where they show that they have approved an 86.1 election for both companies mentioned.
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/eligible-spin-offs.html
if you do your own taxes, google "86.1 procedures" or something similar to that, and you'll find all the necessary instructions. i've done it myself for the HP spin-off, and essentially, you include a letter with your taxes (or re-file if you've already submitted your taxes) and state that you are exercising this election, and thus will not be including that specific T5 with your tax return this year. And then keep that letter, in case when you eventually sell, if you ever have an issue.

But to this point, when a US stock gets close to a spin-off (in a non-registered account) I always sell, to avoid this hassle. And it is a hassle.

Hope this helps...