Investment Q&A

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.

Q: Why DIS shares are up after the approval of AT&T and time warner deal? I would thought DIS shares would go down given the higher bid for fox assets by camcast.
Thanks.
Liping

Q: I am currently down 12% should I continue to hold?

Q: do you knoe the issue price of the shares with the latest offerings? Thx

Q: Thanks to Lloyd (5ier) and 5i, I purchased this etf for my mom’’s rrif. I purchased it for the 2020 dec 31 maturity date, low(ish) mer, and ok yield. Since purchasing, the etf has changed names twice and may have new owners- Guggenheim-power shares-, invesco. I have noticed that her monthly payments are never the same but not so bothered by that. Will the mer change? Will the maturity date change? What normally happens when paper is shuffled around like this? Is it a bad sign? If I hold to maturity will there be a capital loss?

Q: Good Morning Team,

Just wanted to confirm the following:

- Capital gains on a US or Canadian stock held in an RRSP and TFSA are not taxed either by Canada or the US
- Capital gains on a US or Canadian stock held in a non-registered (RRSP) account are taxed
by Canada only.
- Dividends on a US stock held in a non-registered (RRSP) account are taxed both by Canada and the US.

Thank you for your confirmation or corrections!

Q: I'm thinking of following your lead and selling Stella Jones in my TFSA. Also, I have a small amount of cash to deploy. I hold the above stocks in less than full positions. Which would you add to at this point? I could also include COV although it's near a full position after it's nice rise. Also, what are the implications of holding an American growth stock in a TFSA. What would be your top 3 suggestions if you were going to add an American stock. Charge as many credits as necessary! Thanks.

Q: I feel like I should be buying more KWH.UN ...
I am down 20% since I bought it but I love the monthly dividend. I have a 5% position in it now. Would you be comfortable at a 7% position?