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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: Hello 5i members,
In one of the recent questions i noticed that you had quite a positive view on Microsoft for growing , in the future. I hold some Microsoft in my TFSA and although I don't like the idea of having to pay US tax on the dividends, I have felt that because I am positive about the growth of mfst and because the dividend yield is only .95 per cent, I am better to keep it in my TFSA despite the dividend tax. I was wondering how you would see a situation like this
thanks
Read Answer Asked by joseph on August 25, 2020
Q: General question on asset allocation. I'm an income investor that is planning to live off distributions in the future. Portfolio analysis shows that I'm underweight in technology by about 8%. I'm overweight in the traditional dividend areas (financials, utilities ect).
With so few technology companies that pay decent dividends, does it make sense to stretch and pick a few for diversity when much more stable dividend payers exist in the sectors I'm overweight in? It would appear to me that there is some risk here in diversifying?

Thanks,

Joe
Read Answer Asked by Joe on August 25, 2020
Q: Hello, can I please get your general opinion, as well as comments on recent earnings for the following small caps: HTL, CLIQ, AND, MVP
Read Answer Asked by Philip on August 25, 2020
Q: It seems like there are a few interesting upcoming IPOs in the tech sector, Palantir, Snowflake, unity, Asana, stripe (possibly) airbnb etc.

What would your top 3 be of any upcoming ipos you know about with the above included? investing for growth for 10 plus years risk is not an issue.
Read Answer Asked by Michael on August 25, 2020
Q: Hello Peter and Ryan.

I was looking back at your portfolio updates from Mid March to July, congrats to you, I think all of your stock buys have been winners since March-17 updates. Specifically WELL up over 80%, SLF, LNF, XBC, DOL, DSG, QSR and more all up 20, 30, 40 percent or more. Also I wish somehow there was a way to track your USA stock picks as I imagine those would be even better since the March lows.

I am wondering though, how close you were to buying more of GSY, DOO and LSPD (all in your growth portfolio). These stocks in January and February of this year before COVID had all hit all time highs DOO - $75, LSPD - $45, GSY - $79. I know they were favourites before and still are, knowing that GSY and DOO were well managed with many years of great execution and Lightspeed which has been public for 1 year, but was clearly much stronger now after a year of growth and acquisitions and now in a business environment that really should accelerate its growth in the end (e-commerce and payment processing becoming a must have for mostt/all businesses).

5i was asked on March 19th about LSPD
Question: “Never in my wildest dreams could I have imagined LSPD at $11.03 and closing at $12. Is this the beginning of the end of a company like LSPD if the coronavirus issue continues to persist?”
Answer: “LSPD is fortunate in that it has about $300M in cash which is more than 15 years of cash (at 2019's spend rate) and no debt. We do not see this as the 'end'.”

I bought more LSPD shortly after I read your answer, so thank you for that and for all of the advice shared each day.

GSY reached a low of $22, LSPD $11 and DOO $20 March 18-19 and that last week of March wasn’t much better and buying any of these stocks at these lows essentially would get 300-400 % return if they ever returned to February highs (which seemed likely with a 5 year timeline), even in April on the 23rd when you bought again these stocks were still down 50% from previous highs.

Did you come close to buying these 3 stocks and what was your major hurdle for each?
Read Answer Asked by Michael on August 24, 2020
Q: Hello,

I know they don't ring a bell at the bottom (or the top), but I am wondering whether any of the airlines, hotels, cruise lines or restaurants seem compelling right here. Not really the restaurants that are Covid beneficiaries like the pizza joints or Chipotle, more than the ones that have yet to recover. I am very concerned that with more gov't money being plowed into these industries the pre-restructuring shareholders would be wiped out. Thanks.
Read Answer Asked by David on August 24, 2020
Q: Peter,
I came across the following share certificates. Does your research sources show anything re what happened to these companies ?

Tyon Gold Mines Limited - 1000 shares - August 14,1947
Norpax Nickel Mines Limited 1,500 shares Jan 8,1962
Crowpat Minerals Limited - 1,000 shares Jan 8,1962.

They were each issued from trust companies located in Toronto.

Thank you

Paul
Read Answer Asked by paul on August 24, 2020
Q: Hello 5i Team
To increase my fixed income allocation, I need to add fixed income to my non-registered account.
I am looking at the Horizon Corporate Class ETFs, in particular the Horizons Cdn Select Universe Bond ETF (HBB) in comparison to BMO Discount Bond Index ETF (ZDB), BMO Aggregate Bond Index ETF (ZAG) and/or iShares Core Canadian Universe Bond Index ETF (XBB). I am not familiar with the concept of Corporate Class ETFs.
1 - Is HBB a reasonable alternate to the listed major bond funds?
2 - Please confirm HBB does not pay a distribution and that “income” is reinvested in units of the ETF resulting in potential increase capital gains in the future.
3 - What would be the impact of a future increase in capital gains inclusion rate (from 50 % to 75%) have on corporate class ETFs?
4 - Is there a minimum dollar amount where the corporate class ETFs start to make sense (i.e. is better to pay the tax on a distribution from XBB when the dollar amounts are relatively small)?
Thanks
Read Answer Asked by Stephen on August 24, 2020
Q: in your answer to Scott today, which US company are you talking about ?

Thanks,
Jacques IDS
Read Answer Asked by Jacques on August 24, 2020
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