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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: Thoughts on Arista Networks?

Also, if I bought this company back in January for a long-term hold how much homework do I need to do moving forward? The volatility doesn't bother me I just never know when a pullback is due to a long term structural issue or short term trading activity. There is a lot of noise out there!
Read Answer Asked by Gooding on May 04, 2018
Q: I own the WARRANTS here, ACB.WT and NOT the Stock/ACB. I got a Marging Change Notice from Questrade yesterday, so wondering what I should read into it? Thanks! Could it have to do with possible Accelerated Expiry?

Effective May 7, 2018, the margin requirement on long positions of symbol ACB.WT.TO will increase from 50.00% to 60.00% and the margin requirement on short positions will increase from 100.00% to 100.00%.
Read Answer Asked by Austin on May 04, 2018
Q: I have a small position in Canopy. I would like to add one or two more marijuana stocks to my portfolio. Could you please make a few suggestions?

Many thanks, Peter
Read Answer Asked by Peter on May 04, 2018
Q: Here are my top 10 holdings by value in order-Visa, BAM + BIP, CGI BofA, ALPHABET, FB , CCL ,BOYD ,SJ , GOEASY.
As you can see there was no thought of sector allocation or othe strategy and am surprised to see Goeasy in the list!
I have about 15 other stocks. I want to keep it to this number and here is my question
I like to let go of two or three of the other stocks -ZZZ (is this a growth stock still ?)ECN , ECI HWO.
I would like to buy Stars group new and maybe add small amounts to current holdings - Constellation software, Savaria GUD , Sandwitch co.
Appreciate your comments on one or two to let go and one or two to add so the only new money is to buy Stars group
Read Answer Asked by thambirajah on May 04, 2018
Q: Hi Peter, Ryan, and Team,

Perhaps you could shed some some light on this ETF, as I believe there's a serious pitfall with the product. I sent First Asset an email yesterday, wondering about the so-called "reinvestment" that was "paid" on Dec. 28, 2017. I refer to it as 'so-called' because this $1.63 per share "reinvestment" does not give you cash, nor does it increase your number of shares! In other words, it appears to do nothing for me.

Here's the email I sent First Asset:

Hello,

I purchased 1395 shares of TXF on July 21, 2017. I see that on Dec. 28, 2017, the fund "reinvested" $1.63 per share. This would, in my case, be an amount of 1395 X 1.63 = $2273.85.

My broker, Scotia iTrade, increased the adjusted cost base (book value) of this fund, so I now show a slight loss when not considering the cash distributions received on Oct. 4, 2017, Jan. 4, 2018, and Mar. 29, 2018.

Here are my questions:

Should I see the amount of $2273.85 on the statement from my broker?
If I were to sell my shares of TXF today ($16.69 at this moment), would I receive 1395 X 16.69 = $23282.55?
What happened to the "reinvested" amount of $2273.85?

I look forward to an explanation of the above questions.

Here's the response from First Asset:

Hi Jerry,

The $1.63/unit amount is a non-cash distribution that was reinvested in the fund, which is why you see an increase in the Adjusted Cost Base. To answer your questions:

The amount of the distribution should be reflected on your statement but only as an increase to your Adjusted Cost Base. It wouldn’t increase the amount of units or the market value of your position in TXF.
If you were to sell your shares based on a unit price of $16.69 you would receive approximatively (1,395 x 16.69) – Adjusted Cost Base (including the $2,273.85) minus any other fees your broker my charge you.
The amount of $2,273.85 has been added to your Adjusted Cost Base.

I realize that 5i doesn't really care much for the covered-call aspect of TXF, but I was prepared to live with that. However, I certainly didn't expect the ACB (book value) to increase by the amount of this non-cash distribution! How does this help the investor? Am I correct in my assessment of TXF?

What would you replace TXF with to stay in the same sector, and one where the "reinvestment"is actually paid to the investor?

Thanks in advance for your guidance. I realize that this is a long and detailed question and your answer would be helpful to others. Please deduct as many question credits as you deem necessary.
Read Answer Asked by Jerry on May 04, 2018
Q: Your staff is allowed to buy stock on the US exchange.Can you tell me what your people are buying as of late?
What are your thought on Qcom?
You think its a good candidate at this moment and why?
Read Answer Asked by Josh on May 04, 2018
Q: Hi, could you please post the estimates for upcoming earnings. Thanks
Read Answer Asked by rajeev on May 04, 2018
Q: Hi folks, please get your opinion on Q1/18 results for Source Energy. Posted a profit and Scotia very bullish on stock going forward, but only trust the judgement of 5I research haha. Would you rate a buy, hold or sell. thanks PS: Peter Hodson is best guest on marektcall, they should expand show to two hours when he is on, jb
Read Answer Asked by John on May 04, 2018
Q: If you were to start a growth and balanced portfolio in the USA tomorrow, what would be your top 5-8 picks for both portfolios. Also, based on your experience, what management teams do you regard as top allocators of capital, USA firms. Thanks for your great service.
Read Answer Asked by Aaron on May 04, 2018
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