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Investment Q&A

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Q: A follow-up to the discussion on the ACB of stocks held in multiple accounts: the real complication, here, is if some of your funds are managed professionally. It's by no means unusual that, acting independently and at arm's-length, both you and the money manager have taken positions in the same security. However, your money manager's end-of-year documents will pretend that only they own shares. Conversely, for you to integrate their cost-of-shares into your own end-of-year documents has the potential to get obscenely complicated, and (since the money manager doesn't reciprocate) pointless, to boot. I've never heard of the CRA complaining about reporting ACB separately for separately-managed accounts. After all, it would only create make pointless (i.e., unremunerative) work for them, too.
Read Answer Asked by John on October 21, 2015
Q: Hi Peter,
Sorry for another question on the same companies. Jason Donville recently recommended Valeant and Concordia and Bill Ackman owns a fair amount of Valeant shares. These folks are very smart people. I understand that the shorts are effectively ruling the show right now as the same thing happened to Nobilius Health. The stocks are not reoovering. One would think that if the fundamentals are there, the stocks would have a bit of comeback. What is missing here please given your experience?
Read Answer Asked by umedali on October 21, 2015
Q: My apologies for adding to the barrage of questions on Concordia -- I promise to sit on my hands on any further questions until the end of the year. Pinky swear : )

Now, what validity should be attached to the Citron Research report? Is it factual? Is it accurate? Is it truthful -- three very distinct entities, from a legal perspective.

More importantly, what's Citron's vested interest in all this?

From my understanding, the prime researcher on this is a renowned short-seller, so is this report as obvious a ploy as it looks?

Being naive? Or conspiratorial?

I'm just not sure what to believe anymore. I'm holding on to my shares for now, in this gale-force wind, because 5 I reiterates that there is value in the stock and that the fundamentals will speak for themselves, if we can hang on through all this noise.

Thanks for your advice, as always.

Read Answer Asked by Sylvia on October 21, 2015
Q: On Oct.20 you told Henry to use the "text" search function in the Q&A section - where does one find that?
Read Answer Asked by chris on October 21, 2015
Q: Good morning,

There seems to be a lot of opinions about excess shorting by U.S hedge funds that is causing considerable disruption to stocks in the Canadian markets. I have never been an advocate of shorting as it is destructive by nature, but it is what it is.
My main concern is that there may be a return of excessive naked shorting and there is little defense against this activity.

What are your views on this? and how can we protect ourselves against this.

Is the uptick rule still in place or has that gone the way of the Dodo ?

Thanks Peter



Read Answer Asked by Peter on October 21, 2015
Q: Hello, and sorry for the very general question. Are there any financial actions we could do before the change of governments?
We are retired but find the TFSA very useful. Should it be topped up before the change ? Any other things that could come from left field?
Read Answer Asked by Deborah on October 21, 2015
Q: Orbite has recently redeemed all its 2012 debentures. Forgetting Orbite past history, Can redeeming debentures ahead of time be considered a good sign ?
Read Answer Asked by Terry on October 21, 2015
Q: Hello 5i,
Regarding your response to Kenneth today: Not quite like that. The adjusted cost base is the AVERAGE cost of ALL the shares owned, in all non registered accounts.

Does this include tfsa accounts and corporate accounts?
I would think corporate accounts would be separate and as there are no capital gains or losses in tfsa accounts I would think they are separate as well?
Read Answer Asked by Randy on October 21, 2015
Q: Peter
I know this question is asked with some regularity, but it remains a great one to hear your thoughts on periodically - what would be your 5 picks today for stocks that might be 10-baggers, in 1-3 years?
Read Answer Asked by CAMERON on October 21, 2015
Q: What is causing the general spike in the prices of rate-reset preferred shares and is this a good time to buy? I was expecting selling pressure as we approach year-end to pick up good value (lock in spread vs GoC 5-yr in a 5 year ladder) but now I am fearful of both the potential for losses from currently elevated prices and of letting the opportunity slip away if they keep rising.
Read Answer Asked by Benjamin on October 21, 2015
Q: What is your opinion of Dundee corp. down at these levels. What is their book value and is it realistic.
Thanks
Read Answer Asked by Doug on October 21, 2015
Q: Hi 5i,
In adding 2% to the Tech sector of my portfolio (currently around 10%) I am considering two small cap names: Kinaxis and Shopify.
Would you please give me your thoughts on both and if you would have a preference of one over the other at their current prices.
Or is there another stock in the Canadian Tech sector that you prefer (I already have ESL, and OTC plus AAPL, GOOGL, QCOM and CTSH).
This would be for a 2 to 3 year hold.
Thanks very much.
Read Answer Asked by Brian on October 21, 2015
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