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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: Hi Team,

I am doing my tax return and am struggling with one transaction for foreign reporting purposes (form T1135).

In 2012 I bought a Wells Fargo Financial Canada bond (CUSIP ID: 94975ZAX4) and sold it in 2014. I can't conclusively determine if Wells Fargo Financial Canada's bonds are foreign or domestic. I bought the bond through TD Waterhouse in Canadian Dollars.

The Wells Fargo Financial Canada site (https://financial.wellsfargo.com/canada/en/index.html) provides a Mississauga, Ontario PO Box as its address. The fine print on the web site says: "Wells Fargo Financial Corporation Canada is associated with Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company."

Do you know how I can determine if this bond is a Canadian or foreign asset?

Many thanks for any suggestions....

Michael
Read Answer Asked by Michael on March 24, 2015
Q: Hi Again, I may have found an answer to my question. CRA states that Specified foreign property does not include (among other exemptions): a share of the capital stock or indebtedness of a foreign affiliate.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135-eng.html

Wells Fargo Financial Canada would appear to be a foreign affiliate therefore its bonds are exempt.
Read Answer Asked by Michael on March 24, 2015
Q: News today regarding the debenture issue. Could you comment please on the investability and the reasons for such a vehicle. That is, floating rate based on CPI with 25 year maturity.
Read Answer Asked by Greg on March 24, 2015
Q: I have two stocks- in my portfolio that are to my mind dogs. Bombardier and Canadian Oilsands- like most investors I am slow to get out of the losers- but there does come a time. Neither position is that large- not after the recent debacles, now I'm thinking I should put these two behind me and move on. Your thoughts.
Read Answer Asked by Warren on March 23, 2015
Q: Have you had a chance to look into the new Cara offering, expected pricing of $19-22, expected yield of 1.9 - 2.1, to be announced the week of April 6th? Likely will be well over-subscribed, but if one could get access to them at the IPO price, would you invest in it for the long-term?
Read Answer Asked by Warren on March 23, 2015
Q: Hi peter, I have the opportunity to participate in this new Restaurant IPO stock, Would you recommend this stock for Growth?
Read Answer Asked by samuel on March 23, 2015
Q: Would appreciate your individual analysis of SGY's 4th quarter & year end statements. They were in line with RBC but I much more value your opinion (no politics)!! Thanks
Read Answer Asked by Robert on March 23, 2015
Q: Is it safe or wise to own Baytex? Should I buy more or sell at this time?
Read Answer Asked by Paul on March 23, 2015
Q: Previous question on REBALANCING still pending?
My RRSP is heavily overweight in Financials (35 %) and Tech (25 %) and I would ask your advice on the three positions that are considerably down AVO,SYZ,SGY.
Would you consider trimming all of the banks and adding to healthcare or consumer products ? Should I hold these three or add to them with the depressed prices and the Energy sector as a whole
Thanks for your input
Peter
Read Answer Asked by Linda on March 23, 2015
Q: Is there a Canadian ETF based on insider buying and if so your thoughts? Thanks, Bill
Read Answer Asked by William J on March 23, 2015
Q: Hi 5i,
Not a question, just a further comment for Brenda who asked about selling half on a double. I purchased Keyera in the low - mid 20's and was tempted numerous times over the past several years to sell as it rose in share price - but didn't. It underwent several sharp (for me) corrections, but I hung on. It recently topped at slightly under $100. Didn't sell. Now it is down to about $80 or so but is also going to have a 2 for 1 slit in April. Meanwhile, I get a modest cash dividend every month with which I have the option to re-deploy elsewhere. I will likely hang on to this one indefinitely (i.e. pending some compelling structural change) and see where it goes. The short message from this long missive is merely to reinforce your point that patience can indeed be a virtue on many occasions. Look to the fundamentals and be patient and good things can happen - but NO guarantees........
P.S. I know also that I am not unique in this experience - I think many if not most of your members would have very similar stories.
Publish only if you feel it is worth it. Best of luck to Brenda!
Read Answer Asked by Mike on March 23, 2015
Q: Mr. Dalsin has said in three different calls/interviews now that a dividend, by the company, is one of their milestones once they reach the 20-25 million EBITDA. Do you still consider the initiation of a dividend as being one of the strongest indicators of a company's strength?
Read Answer Asked by Kyle on March 23, 2015
Q: Do you have any opinion on this IPO it used to be a public trading company in the past
Read Answer Asked by OSCAR on March 23, 2015
Q: Hi. How do ETF's Manage their fees. I am mostly questioning how can they add/decrease their positions in whatever companies they have in the Fund as money pours in and out of them. Are they not charged trading fees? How much will the Listing Exchange Charge them? Eventually there must also be a couple, few people who get paid from the ETF Company or Broker/Dealer that are creating the units as well. Are they able to bury certain fees in the ETF? I know they manage super large amounts of cash and investments but it seems that there could be manipulation of services/charges/arbitrage from the NAV vs underlying stocks. I tried understanding the Wikipedia definitions but it did lose me, and I was hoping you could tell me in simple terminology or perhaps do a Blog on the subject one day. Thanks
Read Answer Asked by Jeremy on March 23, 2015
Q: Good morning, I am looking to enter CXI for my TFSA. I use TA as one tool in looking for an entry point. Currently I see that it is sitting right at its 50 day moving average and has a MACD that could turn positive very shortly. Would you consider CXI to have a good entry point taking its technicals into account? Also, how to you feel about DW.to DataWind, with its new partnership in India?
Thanks a bunch
Seamus
Read Answer Asked by Seamus on March 23, 2015
Q: Hi Peter & Team: Could I please have your thoughts on yxm now that it has been operating for some time. If positive, would you still consider the unhedged version given the amount the cdn. dollar has already fallen.

Thanks, David
Read Answer Asked by david on March 23, 2015
Q: Hello Team, Can I get your thoughts on this company and does it look like this is something worthwhile accumulating. The metrics do not look bad except the debt to equity seems high to me. Its revenue and ebitda have been increasing over the last five yrs. It's paying a small dividend, PE is about 14, roe is about 28, price to cash flow seems a little high. It seems to be gaining market share and getting more revenue streams. Your thoughts please on this company for long term investment 5yr+
Read Answer Asked by pietro on March 23, 2015
Q: Could you please give an overview of this company. Thank you, Bob.
Read Answer Asked by Bob on March 23, 2015
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