Investment Q&A

Q: Hello 5i team,
If it is in your mandate, I would appreciate some precision on the options strategy that you proposed. I Have been using it and doing quite well. Recently my option for Calm was assigned at $52.50. The price today is about $51.50, or so. I notice that the price swings of Calm can be quite large. So, my question is whether I should wait for one of these swings, letting it go to say, $49 or $48 before buying again and selling an option? or, would I be better to simply buy when the option is assigned and start all over again, not waiting for the fall in price?
thanks

Q: The stock will get hammered today. With the CEO, with full board support, denying any wrong doing and previously indicating his interest in taking the company private, will this present a buying opportunity? Is the likelihood of CEO making an offer greater now with this issue?

Q: RBC and a number of the other banks have recently issued preferred shares(series BM ?) where the dividend rate will reset every five years at a rate equal to 4.80 per cent over the 5-year Government of Canada bond yield. Do you think these are a good buy for income and safety? If yes are they available now and what is the symbol of the Royal Bank version ? Thanks Ken

Q: Can I get your quick analysis of SOX. I like everything but the debt to equity.

Carl

Q: Hi, could you please comment on Boyd Group earnings released this morning? Looks like company beat on revenue and EBITDA and just met the earning estimates. Did you note the FX impact on earnings/revenue? Company is projecting to double its revenue over next 5 Years. How do you relate this expected future growth to today's valuation ? Thanks for your valued insight, as always.

Q: With today's announcement, what should we do?

Q: So what are the implications for the stock. CEO charged with 25 counts of insider trading. Ouch!!!!

Q: Zms has moved up nicely the past 2 days. Can you please let me know why? What are your thoughts on this stock?
thank you

Q: Further to Charlie's question, does this US acquisition spree and it's debt, change your view on the quality of Fortis preferred shares.
Would you own them for income?

Q: Is it time to dump this stock.

Q: I have been fortunate to recently get positions through secondary offerings for TRP / PPL / ENG. In the short term are all enjoying a nice bounce. I am concerned that they total 7% of my portfolio. My advisor feels I am not overweight, but I have asked him which one we should sell as I feel with my energy positions I should only have about 4% focused in pipelines. Which of the three would you drop, or would you just trim back all three to my targeted 4%. Keep up the great work.

Q: For a diversified portfolio, would you choose DFS or FNV for roughly a three year hold? Thank you again for your careful answers to members' questions.

Q: I had sent you a question last week about accepting the offer to convert to the new series preferred shares and wonder if I misunderstood you now. I did call the discount broker and told them that I would tender my preferred shares to the new series as the deadline was March 15 and then on Friday I received another notice that I could get $20.00 per shares in Cdn funds or US funds equivalent to $20.00 CDN. I called back the discount broker and told them that I wanted to take the US funds but was told that I could not because I tendered to the new series. Would this be correct? Should have I not received both options at the same time? I am wondering if you meant that I should tender to the offer price and not to the new preferred share? Normally when I get a take over I sell into the market to avoid all the confusion that can happened. I know that I can still sell into the market and most likely will but just wanted you answer on this situation.Should I call the trust company handling this transaction to see what their answer is?

Thanks
Dolores

Q: I would like to purchase an ETF in a high yield bond fund similar to XHY but in US$. What are my options and which one would you recommend?

Q: your thoughts on chh please

Q: Would appreciate your view on PBH's aquisition of C&C. Accretive to earnings, but how much does this increase leverage from a higher debt load? What would their new debt to equity rario be? What is your view on the convertable debenture? For an income portcolio, woild you but the stock or the convertable debenture? Is the debenture a relatively safe investment, or should this be viewed as more risky high yield debt?
Thanks, great service.

Q: I hold JPM and INVN in my US portfolio. INVN has not done much and JPM seems to be too dependent on the Fed.
What is your opinion on these two stocks and would I be better off selling these two and buying GILD.
(also own BRK.B, CVS, INTC, IWO, QQQ, VIG in my US account)

Thanks

Q: Your thoughts on etsy please.would you buy this or suggest an other stock.
Also I am thinking of adding to SPB.TO ,you think this is a good idea?

Q: Can you compare RNW with BEP.UN? Which one would be the most preferable choice for income with some growth potential within an
RRSP? Thank you . Joe

Q: In a question from Darren on living off dividends in retirement, your answer did not mention the punitive tax treatment of dividends with respect to OAS clawback. I would appreciate your comments on this. My understanding is that the preferential tax treatment of dividend income is that it is based on an dividend payments by companies on earnings after the company has paid tax on its net revenues and the favourable tax treatment to the individual investor is only to level the overall CRA tax take. Why then are seniors being hit double with tax.

I have benefited greatly from your expertise and the daily dialogue in the Q&A. Thank you.

Cyril