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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: In light of the recent price increase and news, do you think there may still be some growth potential in the company and that dividend is sustainable. If not, what other companies might you recommend in the sector?
Read Answer Asked by Colleen on March 04, 2019
Q: A person diligently saves and invests, and is now in retirement. He has a diversified portfolio. He has maxed out TFSA contributions every year. He has a few hundred thousand in an RRSP, which holds good solid US dividend paying stocks. He also has a few hundred thousand in a non-registered account containing a diversified mix of good Canadian dividend paying stocks. He doesn't have a company pension. He does receive CPP and OAS.

He decides to open a RRIF account early (before age 71) and begin taking at least the minimum annual RRIF withdrawals. He wants to take the withdrawals as "in kind" transfers. (He may sell some stocks to raise the cash to pay the withholding tax, if necessary.) He doesn't need the withdrawal amounts as cash to live on so he wants to keep the withdrawal amounts invested in the stock market, hence the in-kind transfers.

The question is: what to do with the terrific US companies in the RRSP that will be converted to a RRIF, and will slowly need to be withdrawn? To transfer the US stocks in-kind to the non-registered account, means that the US dividend income will now be classified as ordinary income, which will be taxed at a higher rate, and there will be a US withholding tax of 15% on the US dividend income. Is one of the options to keep only low or no dividend paying growth stocks in the non-registered account?

It doesn’t seem to entirely make sense to sell the US stocks and start buying more Canadian stocks. If this were done, eventually the portfolio would become too concentrated in Canadian stocks.

What is the best and most tax efficient strategy for this senior?
Read Answer Asked by Helen on March 04, 2019
Q: Interested in your thoughts on Liberty Gold as an investment. The company has a number of projects in the U.S. But is also has two projects in Turkey. Does the political situation in Turkey have any potential impacts on its projects there. How does Liberty compare as an investment to other juniors like Victoria Gold for example.
Thanks as always.
Read Answer Asked by Chuck on March 04, 2019
Q: I know that no one is making any money on this corpse of a stock.
But to share my success with it, I wanted to let readers now that it can be a very consistent and profitable trade vs investment.

Over the past 16 months I have purchased GUD between 7.5 and 7.7 and sold in the mid to hi $8 range.
Just opened my most recent long yesterday at 7.60.

FWIW.

Sheldon
Read Answer Asked by Sheldon on March 01, 2019
Q: "NetCents Technology Announces Launch of Apple and Android Applications which will allow NetCents users to transact with Bitcoin, Litecoin, Ether, and NCCO at any merchant, worldwide, that accepts these coins as payment. The key innovation for NetCents users through these applications is their ability to spend their cryptocurrency, online and off, simply by scanning the QR code with their NetCents app."

I would like your thoughts on this recent announcement and whether its a good time to buy this stock.

Thanks
Read Answer Asked by John on March 01, 2019
Q: I saw your comments on GUD and they make sense. But if I told you I owned a stock that has been down 25 percent for 2 years and that it continually disappoints shareholders, (GUD took in only about 11 million in REVENUE last year, despite a market cap of 1.1 billion and 750 million cash sitting on the balance sheet. This is mind boggling, really) I think your answer would be that it's dead money and that I should move on. So while this might end up being a good long term investment for 'my grandchildren', it really doesn't seem to fit with your overall philosophy, does it?
Read Answer Asked by Alex on March 01, 2019
Q: The results in TD's capital markets segment in Canada mirror other banks and makes me think we have a canary in the coal mine scenario. That being, Canada's business community is not active in raising capital through both debt and equity issues and, in turn, not spending money on capital projects. This would be partially from the collapse of our oil and gas industry but I am thinking it is wider spread than that. Comment?
Read Answer Asked by Greg on March 01, 2019
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