Investment Q&A

Q: Tax related question after reading various post about stocks in different accounts.
If I buy a stock in a non-registered account and then buy the same stock at a different price in an RRSP or TFSA, no dollar cost averaging will take place here right? It is safe to say it only happens when a stock is bought at different prices in a non registered account?

thanks,

Paul

Q: My friend, age 59 and recently widowed, is interested in investing “a few dollars” to get some growth. Her modest portfolio would be just under $100K. Although she and her husband worked hard all their lives, her husband’s serious terminal illness took away much of the equity they had built.

On the plus side, she has no debts, owns her home outright, has a small pension of $750.00 per month, and works part-time, which covers all her needs. She plans on working as long as she can and plans to be able to contribute $300 per month on a continuing basis, to her TFSA, so she doesn’t foresee touching any of her capital for the next 10 years.

My very real concern is: should she be in the stock market at all? Granted, if needs arise, she could sell her home which would conservatively net her $500K. But, in the meantime, there is a very thin financial cushion between her and any serious financial needs. If she gets ill and is unable to work, that $100K could disappear very quickly. She has no disability insurance.

She says that at some point she will sell her home. As such, I thought it might be better for her to wait to get those funds in hand before jumping into the market. She prefers to start now. Her bank has advised her with a handful of mutual funds, but she would rather not.

Given the above scenario, what would Peter advise to someone who came into his office? Would it be wise, in any way, to get into the market, with some conservative companies and/or ETFs? If so, would you please suggest what percentage of her funds might be prudent for her to invest, and which companies/funds she could start with?

Thank you, sincerely, for addressing this “real life scenario”. My friend’s situation makes me think there are so many more people, just like her, who struggle with this same problem, as they near their retirement years.

If you feel this would be useful to the general membership, feel free to publish.

Q: What is your view on ZUH? Is it and the sector breaking down or just a setback? Would you add to the position.

Q: I believe the best Seasonal performance for lumber is NOW and going forward until April ... What is your fave ... Canfor, Western, Interfor, Acadian ? . ADN and WEF have decent dividends in case something goes haywire short term ... or do CFP , WFT and IFP which have low dividends perform better seasonally : or is this a dumb way to make investment decisions ? .... Thanks.

Q: It may be that some of the money leaving Valeant is going into more established names like Gilead. Its up over 6% today.

Q: In previous comments about this company, you expressed some reservations as you felt there was a lot of competition in the space. I have Sirius in my car and think the product is excellent and I am not aware of any competition. Could you elaborate. Thanks, Bill

Q: What are your thoughts on LND & GXI are these good buy at todays price.

Q: I have a reasonable weighting in dh and am thinking of buying more. Your thoughts on it going forward. Also, is their revenue stream/cash flow consistent? Or maybe other names that have a better risk/reward than DH.
Thanks guys

Q: Do you recommend Tax Loss Selling? Is now a good time to do it for Guestlogix, Patient Home Monitoring, and Questor Tech.

Thanks, Colin

Q: Valeant Pharmaceuticals and Concordia in the last few days have been absolutely punished. What has been the rational as they are currently at ridiculously low PE's and seem to have a strong balance sheet and pipeline. Is this a good buying opportunity?

Q: What's your latest view on WPK? Something you still like on a go forward basis that you'd add to one's position?

Q: This is a follow up question from Kristine's question on SDIV.US on October 21, 2015. Global X SDIV vs. DIV seems to be a Global vs. US equities ETF comparison, but can you recommend any comparable, better options to consider? (taking into account comparable monthly yields). Also looking to hold this in a $USD account, not concerned about tax implications for this comparison - just looking for fund recommendations only. Thx!

Q: Hello everyone. This has been a painful investment for me. I believe in the turnaround in this name so I have increased my position. One has to look back to DEC 2008 to find the stock price down at these levels. Yes things are different but when I add up the some of the parts if someone was to strip it down and sell off it seems to be at a discount. Could I have your view on what you see the dollar per share for the some of the parts/cash and also the dividend going forward. Thank you again for your assessment. Jay

Q: I would like to add to my positions in these companies.
Can you please tell me if it's a good time for these 5 or would you wait on any of these?

I just renewed for two more years. Thanks for the good service.

Q: The share price of DH has been sold down steady of late. Is it just the trader playing their usual game, or something happened to its operations that we should be aware of. Thanks.

Q: In your estimation will the Healthcare sector be effected by what is currently happening to Valeant, Concordia, PHM etc. It's the old cockroach theory. An ETF such as ZUH or comparable products might not be immune. Would it be wise to avoid this sector until the dust settles? Would it be wise to get out entirely for the time being?

Thanks

Q: Hello team,

Please inform me how these fixed income ETF'S are taxed?
If taxed as income i would consider holding them in a registered account.

Thanks for your help

Stephen

Q: Hello Peter & 5i team,
I'm quite frustrated at the way the market reacts to a Citron report whose motivation is quite questionable; is it not possible that their report is so designed as to support their objective of shorting the stock?
Supposing their report is misleading, how is it possible that they can get away with it with impunity?
Now that the QSC starts investigating Valeant, who is investigating Citron?
Regards,
Antoine

Q: Your report on GUD indicated a very favourable view of the company. I would appreciate your thoughts on the possibility/likelihood of the very smart and very patient Mr. Goodman taking advantage of the recent slaughter among many of the small cap specialty pharma companies. Is this when that large cash balance starts to be deployed?
Thanks.

Q: Hi guys,

Would it be possible to get some help regarding how many shares, of the 4 million, Glenn Chamandy has sold already in his share disposition plan?

CIBC's Investor's Edge has consensus 2016 estimates at $1.91US which translates to $2.51 Canadian. The shares, here, look pretty attractive to me, trading at just over 15x 2016 estimated earnings. However, I'm not sure I want to add to my position if Mr. Chamandy still has several more weeks of selling ahead of him.

Thanks for your help.

John