Investment Q&A

Q: What is CRA's position on short term trading of a security in a TFSA while it is also being held in a non- registered cash account or a corporate holdco account?
For example if I have a long term position in ENB.to in my core dividend growth portfolio am I allowed to swing trade ENB.to in my TFSA account? Additionally, would it make a difference if the long term position was in the black or red?
Thanks,

Q: Over the years I've adjusted my portfolio so that it's almost identical to the balanced portfolio. So I own SJ as of now. I see that you recently sold it and AIF but have only purchased TSGI. Will you be adding another new stock soon to replace SJ? Thanks for all of your expertise. Cheers
ANdy

Q: I know you like COV and it has been rocketing up. I am wary about buying in now that it's at an all time high after such tear. Should I step in today?

Q: What did you think of NVDA earnings?

Q: I’m thinking of selling one or two of these holdings, all currently in a RRIF, and re-buying them in a TFSA. I’m thinking that the best ones to transfer would be the most “growthy”. What would you advise? Could you list them in order of expected growth?
As always, thanks for this great service!!

Q: Hi Peter
which stock do you recommend:
GOOS or DOL and why
Thanks
Ron

Q: Any reason why Yellow Media is back from the dead? Could we have your assessment, please? Thank you.

Q: Follow-up comment to the question asked by Cameron on CSU ever having been approached for a takeover.

Suggest reading the old annual President Letters for some very interesting CSU history.

Several years ago, when the shares were around $50, some large shareholders were unhappy with the stock valuation so the board of CSU tried to sell the company. They were unsuccessful. The sale process itself resulted in a rise in share price and liquidity for investors who were looking to get out. The board found the process to be very time consuming and distracting and were glad to put it behind them and go back to growing the business. Stock is up 20 fold since then.

Lets hope the business can continue for several more years before the last chapter is written.

Q: Has CSU ever been approached for a takeover? 5i (and others) obviously think very highly of them...why have they not been picked up by a bigger player in all their years of excellence?

What are you opinions on a takeover - who could do it and would they?

Q: My broker took a large position in my account on Hydro One Debentures. They are now down 30%.
Is there something I don't understand about these debentures?
HYDRO ONE LIMITED CONVERTIBLE UNSEC SUBRDINT DEB VIA INSTAL

Q: Good morning,
What are your thoughts on the relatively new VUG ETF, and is there a Canadian equivalent that holds the same or similar stocks as that held in the VUG ETF? Thank you.

Q: Risky but growth possible similar to pho,which other stock would you recommend?
No consideration to sectors.

Q: Hi 5i I was interested in stars and have not really bought anything for growth. (Mainly on weakness and very large companies) should I buy this on weakness? or on a new 52 wk high? Or just buy it and forget about short term gyrations?
Thanks for all your help and the webinar was great thanks Mark

Q: Would like your opinion on what company to add to my RRSP. I currently have BNS, TD, BCE, T, TRP, ENB and PFE. Would like some something with growth potential and a small dividend. I notice you seem to like SIS - would that fit in OR can you suggest others I can look at ? Thanks for your help.

Q: Not a comment, but some information. According the company, "Our intention is to work in both North Dakota and Pennsylvania during 2018." That is in addition to Colorado, of course.

Q: In response to the question below, First United was recently added to the Russell 2000 index. This would explain the recent run up. My question would be, is there any research on how long the boost for being added to an index lasts. Is it short term (ie. a week) or do stocks added to an index trend higher over a 6 month or 1 year time frame.

Q: I hold BABA.us in a registered account. I bought believing Chinese sponsored ADRs are subject to SEC disclosure requirements. Your response to my question on MOMO.us confirmed the above. But I am not so sure now that you or I are correct in our beliefs. I was not necessarily surprised to hear Jim Chanos say he was shorting BABA.us. That’s not odd per se. I was however startled to hear him go on to say his SOLE reason for shorting BABA was that he didn’t trust its accounting and filings. He went further and said BABA-- and I now presume other Chinese ADRs--- do not follow US or international acctng rules (IFRS, FASB etc. and not SEC regs). Yet BABA is by law required to file disclosure with the SEC. Please comment on the issue of the RELIABILITY of financials AND those all-important DISCLOSURES, that BABA and its auditors need to file with SEC. Should I believe those filings as much as you do? Chanos’ argument and puzzlement were over the fact that net value of BABA was lower today than when it did its IPO. Chanos wonders where the profits and cash are flows the company has generated and reported since IPO ! Chanos or his shop is do not slouch when it comes to doing homework on filings. What gives? Should I believe those filings (as stated in your response to my question on MOMO?) I have a lot in Chinese Tech ADRs and this issue now has me re-thinking the basis for my buy decisions.

Q: Rising interest rates have definitely put downward pressure on bond-proxy types of companies i.e. those that pay dividends. I am an investor who believes that those companies that pay dividends and have the ability to raise those dividends consistently over time tend to outperform. I would like to purchase 6 such companies for the income portion of my portfolio, and would appreciate the names of your favorite companies that pay, and have a history of increasing, their dividends.

Q: chorus seems to be continuing on a down trend it is time to sell? brenda

Q: Very disappointed in your CGX trade in the Income Porfolio. You don't seem to follow your own advice when it comes to the income portfolio and recommend stocks that are in a downtrend/negative momentum simply to chase yield.

Aug 30-2017 you stated - Rationale: While the growth potential behind CGX is lower, now that the yield is in the 4.7% range, we view CGX as a good addition to an income portfolio. Cineplex offers size and stability along with an attractive dividend stream, making it a good fit for the income portfolio.
June 14-2018 you stated - Trade Rationale - Cineplex has been frustrating to say the least. On one hand, we do view that it has been unduly punished but on the other hand, management does not appear to really be helping the case. They have not done a whole lot to address the specific concerns against their core revenue base and while diversifying into the Rec Room business has potential, it is a slow roll-out and capital intensive. One could argue it is also akin to doubling down on the current business model.

Everything that you stated June 14,2018 also applied Aug 20, 2017, yet you still bought it seemingly for the yield.

The Balanced Portfolio seems to be where all the 5i focus and interest is, where the income portfolio is an afterthought. I assume most in the income portfolio are like myself, retired and living off dividend income. Yet you are recommending stocks simply for yield, even if the fundamentals and technicals are both negative.