Investment Q&A

Q: Bonjour, I would like to have your comments on Fidelity Corporate Class Funds such as American Disciplined Equity Class, American Equity, Fidelity Europe Class and Fidelity Dividend Fund. Are corporate class funds an efficient means to reduce income taxes?
Merci

Q: BAM is down today. what is your opinion of the company and if you like it, is this a good entry point?

Q: I have just read that 7 minutes after the market close, 250,000 shares of ZEN were crossed. Is trading of these shares legal after the market is closed? Thanks

Q: C-COM Satellite Systems earnings report today showed declining revenue and net profit (7% & 17% respectively). They still have lots of cash, but it would appear they need new products and they have one they are working on (in-motion antenna, which will deliver broadband Internet over satellite into vehicles and trains while in full motion). Is the market big enough and are they close enough to commercialization to justify holding a position in CMI?

Q: I bought MartinRea (MRE) about 1-1/2 years ago at a depressed price due to board issues. The price has since rebounded so that I am up 49.5% as of today. I notice that you believe that XTC has a better future than MRE. Since I wish to take advantage of your knowledge, guidance and experience, I am wondering if you would recommend selling MRE and buying XTC with the proceeds. The negative (but acceptable) for me is that MRE is in a taxable portfolio. I would plan to keep XTC for at least 5 years and it would constitute about 1.5% of all of my family's liquid investments. Perhaps a silly concern is I notice when I buy a stock it frequently goes down over the next month or so and when I sell the price then goes up. For example I just sold Home Capital Group (HCG) to buy Progressive Waste Solutions (BIN) in keeping to your guidance. In this short term this trade was definitely a negative. Is there any reason other than trading costs that what I have noticed should occur? I would think not but wanted some confirmation. Thank you very much. As always I value your expert opinion.

Q: Most of the oil/gas trusts that converted to corporations continued to pay relatively high dividends. Now that many have had to reduce their dividends, what might happen when (if?)oil prices start going back up - will they increase their dividends accordingly, or be content to stand pat with dividend levels that allow them greater flexibility and are more in line with other industries? I realize that this is mostly a guess on your part, but would be interested in your comments. The 2 companies in which I am looking at are Vermillion and Bonterra.
Thank-you

Q: Mr. Hodson, Amaya is in the news this morning, but apparently not rightly so. David Baazov is adamant there is nothing wrong with the matter, and yet Amaya suffers from this bad publicity. Must Amaya and its shareholders just await the outcome. This starts to be a farce.


http://affaires.lapresse.ca/economie/quebec/201504/21/01-4862879-un-hells-investisseur-le-pdg-damaya-se-dit-stupefait.php?utm_categorieinterne=trafficdrivers&utm_contenuinterne=lapresseaffaires_LA5_nouvelles_98718_accueil_POS5

http://affaires.lapresse.ca/economie/quebec/201504/20/01-4862864-la-police-intriguee-par-des-actionnaires-damaya.php

Q: Shopify has filed a prospectus and about to IPO. Can you tell us which brokers are participating in Canada?

Q: Response to Magna selling some of the company has resulted in a negative market reaction. Could you please provide your outlook going forward. I believe you gave this company a B+ in your report.

Q: Here is the English translation of the newspaper article about Amaya in La Presse

Amaya (Tor., AYA), which became a global giant of online gaming last summer. La Presse revealed that the police questioned the presence of people associated with crime organized among investors who purchased shares of Amaya Exchange before the latter acquires the internet giant PokerStars last June. These investors include Salvatore Cazzetta, one of the leaders of the Hells Angels in Quebec, Police sources say four. And several other members of organized crime, of various origins, also held shares of Amaya at the time of the transaction 4.9 billion US, according to our sources. The Sûreté du Québec is well aware of the situation, but the case is in the hands of the Royal Canadian Mounted Police (RCMP). A squad of the RCMP's mandate is to prevent "serious fraud in the financial markets that threaten investor confidence and economic stability of the country."

Q: Baylin has been dropping significantly over the past few weeks. There was of course a big step down when the CEO was replaced, but the decline is continuing. Is there any particular recent news to explain this? Is it a good speculative buy at this level?

Thanks!

Q: Good afternoon:
Do you still feel that XSH is a secure etf in which to park spare cash and get a 3.2% yield?

Thanks,
Michael

Q: What are your thoughts on today's announcement regarding their latest financials as well as the dividend cut. I got stopped out at $ 15.90 but wondering now if I should re-buy (even if it's a little higher). Do you see it going much below $ 16.00 in the next few months ?

Q: hi 5i. what do you think of their merger plans. the stock is up again today even with a dividend cut. stephen

Q: Thank-you for your excellent article on preferred shares providing much needed perspective on a very complex and misunderstood asset class. The comment below however could be unintentionally misleading. Other than a default situation (which can occur in any asset class), an investors capital would never fall to essentially zero. While there could be a decrease in value of these securities in certain market environments (like we are in now) there will always be an open market for them and they can be sold relatively easily to raise capital. Thanks.

"In other words, the investor could deal with the invested capital declining to essentially zero, as long as the income is maintained to meet whatever the cash flow needs are. Preferred shares can make a lot of sense when you need cash flow, but do not need the capital."

Q: This is information about Amaya. Police found that members of organized crime bought shares of Amaya before the acquisition of PokerStars, including Salvatore Cazzetta.
http://www.lesaffaires.com/secteurs-d-activite/general/10-choses-a-savoir-mardi/578068

Q: Hi 5i,

What do you guys think about the recent financing of bam.a? This is a stock I have been looking to buy for a while. I am looking to perhaps sell home capital and replacing it with brookfield. I am a little cautious about valuation however, all the great stocks are always expensive.
Thanks for the great job, and keep doing those blogs!!

Q: You've mentioned in the past that CGX has the characteristic of being "recession-proof".

As we move into anemic growth in the economy, what other companies would you say fit this category?

Q: anything behind this morning sell-off and would you recommend buying at this point or wait for more news / resolution of investigation..thx

Q: Hi guys. Please give me a Canadian equivalent etf which will protect against Cdn $ appreciation against U.S. dollar