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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 was reading online about how Citron Research has been charged with pumping and dumping stocks before. They are currently tweeting positive things about this stock (even though they are a short seller). What do you think is the likelihood of them putting out a short report and shorting it after their positive tweets?
Read Answer Asked by Caleb on December 06, 2024
Q: Hello, with the overall stock market reflecting a historically high valuation I would like to rotate some of my profits into a few safer names, ideally with relatively lower down-side risk and/or that pays a healthy dividend so I can receive some income in he interim. I appreciate that trying to time the market carries its own risks i.e. it could take a while. What names would you recommend?
Read Answer Asked by Al on December 06, 2024
Q: I have owned GSY for a good number of years and it has been very profitable over the long term. The share price turned negative at the end of July 2024, with a bigger set back in mid October. Many analysts have a positive outlook, though Morningstar has a price target of $152 (about 10% below its current share price) and CFRA recommends selling. The CEO is on his way out. Its last earnings results seemed quite strong, yet the share price continued to decline, and forward estimates seem to be lower.

While my patience is being tested, I am mindful you have observed that one should assess a stock's performance over the long term ie over a number of years, not just a couple of quarters.

But everything is relative....is there a better place for my investment dollars, or would you hang in? Do you see any catalyst that will turn this ship around?

Many thanks for your excellent service.
Read Answer Asked by Leonard on December 06, 2024
Q: Today I asked the following question

"I am looking at hedged ETF's and specifically VSP. I was interested to see how well the ETF tracked the index and found that over a 5 year time frame - it underperformed by about 11%. (Total return for VSP is 81.0% and SPX is 93.33% - The Vanguard US ETF - VOO tracks SPX almost exactly.) I am assuming that this underperformance is because the hedging strategy is not perfect?? .......or does the 11% difference represent the cost of hedging?? Also - would other hedged ETF's have similar comparisons?? Thanks"

The answer

"The performance difference is not that the hedge doesn't work, it is because it does. VSP takes away the currency impact. The Canadian dollar has been quite weak over the time period noted, so VSP has not benefitted from the rise of the US$ vs the C$. "

This answer makes no sense.
If VSP takes away the currency impact - the returns should match the S&P 500 Index ....that is the whole point of hedging - but its 11% off - that is the question. It is either because the hedging strategy is not effective or its due to the cost of the hedge.


The unhedged equivalent Vanguard Canada ETF VFV outperforms the S&P 500 index as you would expect due to the weaking CAD........because it is unhedged....which makes sense.
Read Answer Asked by Gary on December 06, 2024
Q: I hold CSH and CRR. The later being a very small position (1%) I'm looking to consolidate. Could you rank these 3 or do you have a better REIT to suggest?
Thanks
Read Answer Asked by Robert on December 06, 2024
Q: Hi, just looking at CPX, (unbelievable). I missed out on this one , not my first or last miss, but was wondering if you could provide two or three recommendations that are geared towards the electrification boom that is here or coming. (I already have HPS.A) or is CPX still the one to buy?
Thanks
Read Answer Asked by Brad on December 06, 2024
Q: Retired, dividend-income investor. Long, long term holder of BCE in my wife's cash account. Sold it in mid-Nov, captured a $12k cap loss, and plan to buy it back next week....prior to the ex-dividend date.

I am ok buying it at the roughly $38 level, even if it floats around that level for the short to medium term. I understand that there might even be some further downside risk. I plan to buy around 1400 shares, either in one shot or maybe 2-3 tranches.

Your opinion on which makes more sense in this case? Multiple purchases is the more conservative way to go, but one shot gets the full dividend back (and more) to where we were a month ago. The BCE board has said they would not touch the dividend for now....although their credibility has taken a hit lately. We are ok with "some" volatility. It's almost a "flip a coin" decision.

Thanks for your help...Steve
Read Answer Asked by Stephen on December 06, 2024
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