Investment Q&A

Q: Like others I have been struggling with what is the real book cost I should use for the Topicus (TOI) shares I received as a spin-out from CSU.

My broker (RBC Direct Investing) shows it as 0.0001/share. Based on what I read here I tried to convince RBC to adjust it to $63.30 (Feb 2nd closing price) as suggested by Peter. RBC would not change it unless I fill out a form and provide proof that it should be $63.30.

So tonight I emailed Constellation Software this question. Within 30 minutes (at 8pm) I received a response from Jamal Baksh (CFO at CSU). He said:

“It is our assertion that the value of the business has been ascribed to the preferred shares and hence the value ascribed to the subordinated voting shares (“SVS”) is nominal (close to zero). The future growth of the business will result in the appreciation of the SVS. As described in the prospectus the preferred shares will get converted to SVS at which time the SVS will reflect the full value of the business.

I’ve attached a copy of the bulletin from CDS which shows the cost at C$0.00015641/share.

Note that you are better off from a tax perspective having a nominal dividend and a larger capital gain.”

The attachment he sent says this:
“06JAN2021

UPDATE: FAIR MARKET VALUE

CDS has been advised by the agent of an update to the FMV per subordinate voting share as follows:

CAD 0.00015641 based on 0.0001 EUR converted to CAD at 1.5641

CDS will credit participants with the shares upon receipt from the agent.”

I do have the subordinate voting shares (SVS) of TOI. So I guess I really have a 69 million % unrealized capital gain on these shares. Looks great on paper.

Paul

Q: Morning 5i Team, in order to add some torque to the fixed income portion of an RRSP, what do you think of the combination of these two @50% each? Better alternatives?
Thanks, Lavern

Q: Hi 5i team,
This is not a question. Regarding the book value of TOI , it's best to confirm with CSU. Apparently, the book value for the stock distribution is indeed close to zero per CSU client relation.

Q: Further to my earlier question about ZST and HFR, I don't think you have addressed the issue. The l0yr average total return for HFR is practically 25% more than for that for ZST. (as per your references). They are both ultra-short bond funds but their behaviour is vastly different. Why?

Q: Hello 5i team,
Before a change in a weather system strong winds pick up with extremes of air pressure close together, then a calm before the storm hits. Over the years it was a big deal to see a holding jump 50 cents either way. NOW, we see the likes of not only growth stocks such as GWG and LSPD moving $5 and $6 at day but also ETF's such as IWO and VGT. Some "staid" stocks such as MSFT also move a chunck at a time. Are these moves indicative of a major change coming or is it smart money rotating or dumb money jumping on the bandwagon? Or is it anybody's guess? Should I be worried but stick to the plan?
Stanley

Q: Can you please recommend a couple of good Canadian equity mutual funds, like MAWER 106, with a proven track record ? Thank you.

Q: Good morning Peter, Ryan, and 5i Team,
Can an poorly performing stock in a TFSA be transferred 'in-kind' to an investment account for possible a tax-loss benefit later in the year? Can the TFSA then be 'topped up' or do you have to wait until next year? Are there any merits to doing this transfer? Thanks as always for your insight.

Q: Hi group i am moderate risk investor i am struggling with FOMO on Tesla + Bitcoin. What would be the least risk way to play them both ? thanks Appreciate your help with this.

Q: Hi, currently holding these as my industrials, looking to add 1-2% to this sector. Looking for long term growth, would be in RSP. How would you rank these if I were adding? Thanks!
TSE:XBC 2.72%
TSE:WSP 2.41%
TSE:ATA 1.83%
TSE:AC 1.46%
TSE:SIS 1.4%
TSE:GDI 1.2%

Q: Info about and how do you rate cig50011.

thanks.

Q: Hello 5i Team,
I recently listened to "The Outsiders: Eight Unconventional CEO's". I quite enjoyed it. However, it was written almost 10 years ago; so I'm wondering who are the Outsiders for the next 10 years?

Thank you,
Brent

Q: With the caveat there is not an abundance of info to go on, what do you think of dht.un? Scotia has a price target of $19US, which seems a little overexuberant for a major broker to place on a reit.

Thanks, as always.

John

Q: Good morning, This companies share price has exploded in the last 52 weeks their tech seems very interesting the share count seems low can you add your opinion on this potentially life changing tech and how this company looks.
Thanks

Q: thoughts on the quarter please?

Q: Affirm: buy, hold or sell please? If a sell, what would be a good replacement? Thank you.

Q: I became aware of this stock reading questions and answers and it has dropped quite a lot in the last little while. I am under water. Is this just market related or are there other issues with this company? Other stocks I have researched PUBM (Pubmatic)similar to Trade Desk, FIVN and GRWG (pot stock) - have been recommended by others - your thoughts and could you please rate them. Thank you again from a long term member

Q: Hi guys
Market rotation. There are so many small to midcaps
I have WELL, could you suggest 6 more that will benefit in different sectors ,or is there an etf or mutual fund that i could look at. My large caps are diversified I have mawer 150, for years thanks to 5i and done really good.
thxs. Bob

Q: Do you have a favourite U.S. Mid Cap ETF?

Q: Do you see see an upside potential in the above companies - short term - 6 months to a year - 20% gain in stock price? Thanks.

Q: In the portfolio analytics in the section of portfolio industry allocation do the listed sectors waitings include portion of particular sectors/industries included in diversified ETFs which constitute a significant portion of my portfolio?
Thank you