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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: I am slowly building up my TFSA each year by withdrawing funds from my RRSP.I am 68 and often make 1-3 trades per month,sometimes not trading for months.
In 2017 I had a return of 41%,then lost 17% in 2018.My balance today is about $72,000.Do you think the CRA would treat me as a trader and tax me accordingly.
Read Answer Asked by Allen on March 05, 2019
Q: Hello Peter et al.

Furthermore to my question I asked on this company on Jan 31st after their plans to delist from the TSXV and be only listed on the LSE AIM to save costs I have some other enquires.

I have currently been employing a strategy to consolidate all of my shares into one account - my RRSP account prior to the delisting to limit the impact of the higher brokerage fee of $250 vs. $9.99 currently. I still believe in this company and believe in the long term hold of another 2 to 3 years and I will be rewarded.

However, I have been reading that the LSE AIM is not an exchange that is allowed to be used for RRSPs or TFSAs. Because of this if I hold this stock in my RRSP I will have to pay a monthly penalty of 1% of the capital value of the stock. Are you aware of this or can provide any advice?

I assume I can hold it in a regular stock account and pay no penalty.

Any advice will be appreciated. I plan to also ask my discount brokerage about this as well.

Regards,

Brendan
Read Answer Asked by Brendan on March 05, 2019
Q: Hi 5i and Peter:
POW has announced a Dutch Auction for some shares.
Would your answer be the same for POW as your answer on a Dutch Auction question regarding BPY.UN on February 22nd?
Your answer - "Companies do these when the believe their stock is undervalued, and want to cancel a block of shares at the same time, as opposed to doing a normal course issuer bid (which does not have to be completed). Generally, we are of the view that the company knows its own business better than investors, so almost always advise not to participate. A lower number of shares increased per share earnings and cash flow leverage down the road. In an auction, the company sets a price range. Investors tender with their price desired, or agree to tender at a clearing price. Typically, more shares are tendered, and the company pays the lowest price of the range that will fill its required amount of shares it wants to buy. Shareholders typically get pro rationed and only sell a portion of what they tender (it depends on the popularity of the offer)."
Thank you.
Read Answer Asked by Dennis on March 05, 2019
Q: What are the best ETF options to invest in the UK FTSE 100?
Read Answer Asked by Ciaron on March 05, 2019
Q: I've done very well holding Cargojet for the last 5 years. However, I just read the CFRA, QUANTITATIVE STOCK REPORT dated March 01, 2019. and it rates this stock as a SELL. Further, the report states: " TSX: CJT's SELL recommendation is based on its score from CFRA's quantitative model for Canada." Is there any cause for concern? Is this due to their debt load?
Read Answer Asked by Helen on March 04, 2019
Q: I notice that most stocks end the trading day with very large volume. Can you explain what is going on?
Read Answer Asked by joe on March 04, 2019
Q: Currently have both these companies in an unregistered account. I’m at break even on Toy and down 25% on NFI.

I’d like to purchase one for my TFSA and sell it from the other account. Which one do you like for growth based on current valuations?

Thanks in advance,

KC
Read Answer Asked by Kelly on March 04, 2019
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