Investment Q&A

Q: Good morning 5i team
The 2018 audited statements say VET recorded a $128 million "Gain on business combinations", which were 1/3 of the co's. net earning for the year. $68 m gain came from assets acquired in Wyoming, and $59 m from acquiring Shell E&P Ireland Ltd. Notes to the statements say the gains came from ... changes in values from when the purchase agreements were entered into, compared with when the transactions closed, in the following two areas:
- recognition of additional reserve value (in Wyoming), and
- increases in the fair value of capital assets (in Ireland)
These gains do not impact 2018 operating cash flow numbers, but to someone without industry experience, they raise questions. That said, please advise,
- How unusual in 5i's experience are these types of gains in energy company acquisition transactions?
- Does this raise any red flags in considering an investment in VET?
Thank you.
Edward

Q: I asked you about the earnings on xlnx yesterday and I see the questions and answers today on this company.

I have a somewhat significant loss after today as I’m into it around $130 per share on 3,000 shares but fortunately I have gains in Veev and Five that outweigh the loss on xlnx. I tend to hate owing anything at a loss as I lack patience and I worry about a turning of momentum. I don’t know whether to do nothing or sell one or more of my other holdings and go home with a profit and my tail between my legs. May I please get your advice? Thanks I’m advance.

Q: Hi. I'm looking for some 'safe', high yield income for the next 2 years. Do you like any of these split-share corps. for my purposes? If you could please explain you answer. Thank you.

Q: What’s your opinion of these 2 big cap US companies, now that they’ve reported their latest earnings/forecast outlooks?

Thnx for your very insightful opinion!
Dave

Q: Hi Team,
Is this a buying opportunity?
Thanks!

Q: Hi team,
Why +5% drop today? I don't see any news..
Thanks!

Q: Hi guys.

What are your thoughts on European Residential REIT? They have done a couple of interesting deals with CAP REIT. Looks like there is some management and trustee overlap.

Thanks,

Scott

Q: This is a follow up question about a portfolio for my parents. Thank you for your response, yet again.

You suggested an ETF for growth as another option. How about XHC and IWO? Any other suggestions?

You mentioned that tax reporting for trusts are a nuisance. I agree. But if I put it in an RRIF, which would you suggest?

Thanks again,

Fed

Q: Hi - just a clarification re the Revera law suit and ads. SIA is not the
same company is it? My understanding Revera is a private co. unrelated to Sienna

Q: Could I please have a few of your top Smart Beta ETFs recommendations. I was hoping to get a few ETF ideas that cover USA, global and international only. A few that trade on the TSX and in the USA would be great. Thanks

Q: You mentioned that Sangoma Technologies got upgraded by Acumen Capital. What is their new target price? With a current market cap about $90 million do think the stock price and multiples will jump when the market cap exceeds $100 million? For example based on last quarter's revenue run rate the stock trades only 0.75 X sales despite its strong growth rate, profitability and good balance sheet.

Q: Would it be worth taking a stab at Village Farms, Do you think there are better investments out there in this space.

Q: In Lam’s earnings release I can’t find any detail about whether memory demand is picking up. Please let me know.

Q: Hi guys,

What is your current opinion of IVN and what do you think of CITIC Metal Investing an additional $454 Million US at C$3.98 per share? Does this make IVN a more interesting investment?

Thanks

Q: Greetings 5i team,
I own AQN, BIP-UN, BEP-UN, EMA, FTS, CU, SPB and VNR = approx 13% of my portfolio.
Q1 When might we expect the VNR offer to come to fruition and
Q2 Would RNW be a good option to replace VNR?
Thank you
Steve

Q: 5i,
Question: Which of these three companies are preferred going forward for 2019? Should we hold all?
5I RESEARCH ANSWER:
We think GOOG looks best here, though we will give credit to MSFT for adjusting well to technology changes (the cloud).
FB we think will be a longer recovery, and we don't think is a must-own. We would be fine holding the other two.
DO you still feel the same ?
Thanks

Q: Could you offer me a suggestion for a dividend income etf. Also going forward with a corrrection coming would this be a moderately safe position thank you Ken

Q: I have taken over all my parent's finances due to health issues. It has taken quite a while to sort through things (2 years), but I am almost done. They are both over 80, and in 'ok' health. They are thinking of 20% exposure to the market, so I have come up with the following as a plan. Do you think this is reasonable?

HISA and Cash - 100% of their past year's expenses

Percent based on the remaining funds:
57% GIC
20% Bonds
6% Preferred Shares
13% Dividend bearing stocks
4% Growth stocks


Also, any suggestions for other categories not mentioned, like trusts (eg BEP.UN)?

Thanks for your great service over the past year!

Fed

Q: Please give me your assessment of CWF701. Thanks for all your advice.

Q: Hi 5i,
HXQ vs. XQQ – Questions and Comment: 1. Is the XQQ’s dividend subject to US tax withholding? 2. If not, is it eligible for the Canadian dividend tax credit? 3. My discount brokerage site indicates that the MER on HXQ is actually lower than that of the XQQ but I understood you to suggest otherwise. Can you please just confirm on that one?
It seems to me the elimination of the total return feature of the HXQ may not be the most important element in deciding between these funds. The charting function I use shows HXQ to have outperformed XQQ measurably over a 3 year period. While some of that might be attributable to HXQ’s lower MER and ‘total return’ feature, isn’t the bulk of the difference attributable to the fact that HXQ is unhedged, while XQQ is CAD-hedged, and over the 3-year period HXQ’s return has been amplified by the Canadian dollar’s decline against the US buck? Or is there something else in the mix? In any case, maybe the decision on whether to switch from HXQ to XQQ should be mostly a matter of whether one would prefer to be CAD-hedged or currency-exposed over the anticipated investment timeframe. Whatever tax consequences might flow from the other variables involved, they could easily be overwhelmed by a currency move of a few percent and, in a taxable account, any gain on a currency move would remain tax-deferred until a disposition event. Even then, the applicable tax rate would still be the capital gains rate. So that aspect of HXQ’s tax efficiency would be preserved. HXQ may not end up being as tax efficient as it was when it could avoid cash distributions. But if it is just going to have a yield akin to XQQ’s 0.44%, and if available alternative holdings (like XQQ) are already doing that, the fact that HXQ may have to pay a distribution may not be the most important consideration for a switch decision. Or am I missing something? Thanks!