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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: Further to Peter’s question this morning about passive income earned within a corporation, given the new punitive tax rules that are being implemented, limiting fair taxation to the first $50,000 of income, what stocks should he be switching out of to limit his annual income? He was asking for stocks that did not pay a dividend.

A note to fellow member Peter, which is that you still have to be very careful when realizing capital gains, because they too will be treated as income, just at the 50% inclusion rate. So if you have some dividend income still, and you realize capital gains of $100k in a single year, you’ll still go over the $50,000 threshold. I personally don’t know of a way around it, but the stocks you mentioned already have a preferential tax treatment, so short of removing funds from the corporation and investing outside of it, I don’t see a way around it. I’d be very curious to know how other members are handling this new tax. Any chance of writing an article about this, as I’m sure in your wide membership base, there must be a good number of people affected by this.
Read Answer Asked by Warren on March 06, 2018
Q: A number of times my questions/answers have come up as private, yet I do not "click" on the Private Question.
Just curious.
Read Answer Asked by Stephen on March 06, 2018
Q: Hi Peter
RE: reducing weight in Financials and adjusting to non dividend companies.
I am very overweight in Financials and well balanced otherwise in other sectors except Gold and Energy. I would like to trim the former into opportunities for growth.
Can you suggest 3 companies that have been had some "correction" but remain good picks for future growth ? (prefer non-dividend)
Thanks,
Peter
Read Answer Asked by Linda on March 06, 2018
Q: While beyond your normal scope, I wonder whether you have a view upon IBN as a play upon the Indian market?
Thank you.
Read Answer Asked by Peter on March 06, 2018
Q: I have 3 big losers in my US account, MITT, IPCI and IVR. MITT and IVR pay good dividends and the stock price loss over the last few years has been mitigated by the great dividend. I would like to sell each of these stocks and buy a good US growth ETF. These are the only stocks I have in the US account. Can you suggest a good ETF? I am retired so any one with a dividend would be nice but not essential.
Thanks for your great service
Kevin
Read Answer Asked by Kevin on March 06, 2018
Q: Hello,

I currently have $3,500 dollars invested in CIB486 (Unfortunately half of my portfolio) in my TFSA. I also hold positions in PHO, COV, and GUD. I am in my early 20's, looking at a long-term hold, with a high-risk tolerance. I am thinking it is probably best to sell? If so where do you suggest going?

Thanks for the advice!
Read Answer Asked by eric on March 06, 2018
Q: Hey 5i, thanks for your great service. Have done very well by your previous recommendations.

Can you suggest your favourite picks for growth over 2018?
Read Answer Asked by Jeff on March 06, 2018
Q: Hi Peter and Team
I am retired and have only "passive" income in my company investment portfolio but hold an overweight in financials (>35%) such as GWO
With the new budget proposals, I am considering reducing my high dividend financials and purchasing non dividend companies that have a better growth profile, especially after last month's downturn.
Can you suggest 3 positions that I might consider after trimming the positions in my banks and financials??
Your advice as always appreciated
Peter
Read Answer Asked by Linda on March 06, 2018
Q: Hello,

My question is on Intermap Technologies. The company had issues with their former CEO and a failed contract which landed them into debt. A new CEO has taken over since Sept 2017. The company looks to be turning a corner with increasing revenue Y/Y and they are now generating positive cash flow. The past two quarters they have earned 11c EPS USD (7c Q3, 4c Q4). They company is trading less than 5x these two quarters. Company has 220M in NOL, plus I believe their combine tangable and Intangible assets are at least equal to long term (Interest free) debt and other liabilities.

I like the fact the company has a low share count of approx 16 so any good news could make this stock jump quickly. However, the volume and lack of interest concerns me.

Can I please have your thoughts on this company and why the "the street" is ignoring them?

Thank you! I look forward to your reply.

Sincerely,
Michael
Read Answer Asked by Michael on March 06, 2018
Q: In spite of a climate of increasing interest rates, Canadian reset prefs prices are falling while CPD seems to be holding its own. Could you give me some insight into this. Would you continue to hold , increase or decrease position in Canadian reset prefs.

Read Answer Asked by Roy on March 06, 2018
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