Investment Q&A

Q: For George on April 1st you ranked a list of Royalty Streaming companies. What is your current view of that ranking, do any stand out and what is your reasoning for the top 3.
Thanks, Hugh

Q: Hello 5i Team
Given 5i are not tax experts, could you please comment on the subject below as I could not find a clear answer.
1 - If I own, in a taxable account, a US based REIT (i.e Monmouth REIT) and if a portion of the distribution is "return of capital (ROC)", is the US ROC treated the same as Canadian ROC (i.e. deducted from the capital cost of the US REIT each year therefore reducing the adjusted cost basis)?
2 - Or is the US ROC "lost" and I pay tax on it similar to a dividend from a US corporation?
3 - I have noticed the US REITs do not post the tax breakdown of the annual distribution as the majority of Canadian REITs do.
Any suggested source of information for this topic?
Thank you

Q: Hi, I have have 152 shares of BEP.UN in my RSP. I understand I will get 1 share for every 4 I have so I would be getting 38 shares of BEPC. What would be my avg price for these new shares? Also if they are both sitting in my RSP, what should I do instead of holding both?? I know I can sell both and then buy BEPC in my margin account to get the dividend tax credit going forward or if I wanted to continue holding them in my RSP, is it best to just consolidate them into one? If so, which one? What would be the most efficient thing to do? Thanks!

Q: My two US industrial companies just reported. The SYX results looked quite good to my inexperienced eye. Not so sure about XYL even though it was advertised as a beat. XYL basically has not beaten earnings in the last year or so and I am wondering if there are better US opportunities. I do hold SIS, TFII, CAE and WSP but overall am a bit underweight industrials. Any suggestions?

Q: From what the company discloses, what are their plans to adapt, diversify etc and re start in light of where the world is at. I realize cashflow is good and debt repayment is into the future which gives the co breathing room for now...but what are they doing to adapt

Q: Hi 5i Team - I have held Shopify in two accounts for several years now and although I have sold much of it over the past couple of years at a substantial profit (thanks to your advice) there is still some left which it seems becomes more significant each passing month. I find myself, however, unable to describe it's business with any degree of confidence to other people. Could you provide me with a simple description of exactly what it does in plain terns that I could relate to others.
Who are Shopify's customers and clients - do these terms mean the same thing - and how many are there. Do they have other relationships with large corporations beside Amazon and what exactly is that relationship with Amazon. I feel I should have an understanding of all of this but it very limited.
Thank you.

Q: Where do you see the market going by the end of the year?
Clayton

Q: I just noticed that CNBC has gold futures- Dec.20 - $1993, but Investing.com has gold futures-Oct.20-$1981, the difference of 10 dollars and month is not the same. I am confused which futures is correct.? Please kindly explain, many thanks

Q: LSPD on US today closed @ US$33.94 + $5.77 on 135shs(4392 sh , av/3mos) on no apparent news.On July 31,CIBC issued a report expecting a good Q1 with a outperform & C$47 TP. PI has a C$43 TP On July 30 it announced a launch of new features to drive digital transformation of retail smbs. Do you have other news? Reporting on Aug 6 before open.What is the estimated EPS & Rev. Txs for u usual great services& views

Q: These positions are down and under weight in my portfolio. Would you suggest holding, adding or replacing? Please offer a few suitable replacements.

Q: I've been considering Dollarama for a small position. You seem generally positive about it.

I found it to be the only company among the ones I researched with a negative shareholder equity. Investopedia tells me this is a warning sign, indicating the companies liabilities exceeds its debt.

Can you explain Dollarama's situation and advise as to whether this is a company to avoid?

Thanks as always.

Q: I have BEP.UN shares and have seen the price drop. When should I expect to see the shares of BEPC show up in my portfolio. My understanding is that the value of those shares will roughly cover the loss of value in the BEP.UN shares. Is there a date of record for this transaction?

Q: If you could only buy one today for a long term hold which one would you choose and why? Microsoft or Apple
Thank you

Q: I hold BEP.UN in my RRSP account. Would you recommend converting all BEP.UN shares to BEPC shares or just keep both shares? Thanks

Q: further to your answer on USD vs Gold price. Thanks for your clarification. Does printing money increase the Money supply?
With more money available BoC buys government bonds increasing Govt to spend more, is that responsible for Asset prices to rise, ie real estate which is limited and of course Gold which is also limited.
I most appreciate your expansive replies on this subject.
Art

Q: Dear 5i,
I would like to spice-up my portfolios with small allocations to some small/mid-cap/thematic/sector ETFs. The Active ETF's can be sold on a US or CDN exchange and the holdings can be in any country. Can you suggest as many as you can so I can do some further research. (ie ARK products look interesting to me)

thanks for your suggestions

Q: What are your thoughts on Maple Leaf Foods? Would you buy, hold or sell?

Thank you

Q: Hello 5i,

Lots of volatility before and after the split. Obviously people are trying to mimic BIPC game plan and it is not playing out the same way. What do you think the current fair price for BEPC and BEP.UN should be and what do you see the price being 12 months from now?

Q: what happens when USD/CAD etc is devalued "over night" as it happened many decades ago when the Israeli Pound was replaced by the Shekkel. People holding cash lost a fortune but those that had not sold their homes, (my wife's relative) were sighing in relief.
QUESTION: If the USD were devalued over night what happens to share prices quoted on the NYSE in USD.?? The value of the company who had issued the stock may not have changed much in terms of profit potential as an economic entity??? unless it held a huge amount in cash then it would suffer the same as the common folks.
Art

Q: I listened to a commentary where the analyst was suggesting one have a bond fund, in this case US, which receives income in a foreign [non-US] currency and then the fund converts that to USD. As the USD depreciates from QE relative to other currencies [if this happens in reality] the inflow to the bond fund will be worth more in USD. Is that a logical approach and would Vanguard’s BNDX be an appropriate? Even if the above is a stretch would holding some of one’s bond allocation in BNDX be prudent?

Thank you.