Investment Q&A

Q: Suggest sell the 350 ECI & leave the proceeds inside the RRSP. There is no tax at your marginal rate on the $5600. Keep cash until something diverse comes along.
Borrow funds in your margin a/c to purchase 350 ECI. Interest on this trade would be tax deductible.

Joe

Q: A comment on Jimmy's question. As probably he might know,the 10% is only withholding tax, transferring securities from his RRSP to his son's account will be subject to taxation at his marginal tax rate on the full value of the transfer. He may have to pay extra or get back some money depending on his tax situation for the year of transfer. He may also consider selling the security in his RRSP take the money and buy the security back in his son't account, that if commission is less than the $ 50 charged to transfer the security, however he has to be aware of price fluctuation which may benefit or cost him extra. Hope that helps.

Q: Don't know what rules various brokers have for same day selling & simultaneous
purchase of same security between US & CDN mkts. but it is not illegal.
Some brokers specialize in this area & are happy to make a few pennies on a trade.
It's really a necessary function to keep things balanced.
Joe

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Because you have a subscriber base to start with you can experience great success by sampling a past issue of the etf newsletter to this base for free.

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Good luck

Q: Hi Team. Roland asked (Dec 3) about capital loss in one account but having the same security in another account creating an above cost ACB. Did he/you mean 2 non registered accounts?? or does this mean that having the same security in a TFSA or RRIF and a non registered will null and void a capital loss (and create a gain) if one of the accounts creates and above cost??? In other words, I have several securities in 2 or even 3 accounts (TFSA, RRIF and Non Reg) that I have shaved for loss or gain throughout the year. Much thanks for all you do!

Q: I purchased some names to start building the growth portfolio about a year ago.
I started with CXI, DHX, PHM, PUR all are in a position of retreat, I now plan to add another name, is there a particular name you would suggest adding at this time.

Q: Hi Peter & Team: Your answer to Roland Dec.3, does the average ACB apply to cash & register accts? Thank you and wish you all have a wonderful X'mas time!

Q: Earlier this week, Frances Horodelski mentioned the large number of short positions which exist on the CAD and few other currencies. Almost unprecedented levels. The suggestion from one of her guests is that, under these conditions, a significant and sudden reversal of the CAD against the USD could happen.

Would you agree with that? i.e. on both the reversal and the magnitude?

If this happened would it likely last for a while or more likely be a pop and drop scenario?

Thanks for your opinion on this.

Q: Can you expect this company to still be in business out 18 months.

Q: Is the game over here? Should I sell and not for tax reasons.

Q: I have held SPDR Health Care E.T.F. XLV-N for some time. At this time, it is a hold or sell? Going forward for a longer term horizon, Is there another US ETF that I should take a position in?

Q: I was thinking of buying this ETF for my RRSP. RRP shares which are laddered - down a lot due to concerns about interest rates I assume - however, these type of preferreds would benefit from a slow increase in interest rates in Canada when that happens - rate reset means increased payouts. I think this would be a better bet than the CPD? Big potential for capital gains and get paid 6% to wait.

Q: Hi Peter and Ryan, can you provide any commentary on KWH.UN. Why has it dropped so much over the last month ?

Thanks

Dave

Q: I understand that you don't give tax advice but a general answer would be OK or if any members know the answer. I purchased 350 shares of Enercare at 14.68 Lets assume I would like to move them in kind to my non registered account. There is a $50.00 and I would pay 10% in tax up front of today's value. ECI currently at $16.11 So I would need to have cash of roughly $615.00 in my RRSP and the 350 shares of ECI gets moved to my non registered account. My question is once in the non registered account what is my average cost? Is it $14.68 back when I purchased it or is it $16.11 when I moved it over?

Thanks Jimmy

Q: Preferred shares have taken a killing this year, but is it overdone? Will preferreds be ready for a bounce next year? If so,
would ZPR be a good way to play the preferred shares market?

Q: Hi,
I bought it a month ago based on your upbeat position on the stock. Down 12% in a month, but what worries me most is that the stock seems to go down regardless of the market direction. Yet, the company looks good to me (re fundamentals, P/E and dividend), so I hesitant to cut losses and walk away. What is your current view of the company, do you see any growth potential in a mid term (1-3 years)? Do you consider the dividend safe? I know they increased it twice, but dividend cut will obviously cause avalanche selling - most of your subscribers experienced it with WIN...

Q: I currently hold Enbridge at 3.7 % of my 50/50 equity/income portfolio. Would bumping that up to 5% for a long term hold make sense at this time or should I wait until after Dec 16th.
Have a great Christmas everyone and thanks 5i for all your help.

Q: I thought with the threat of higher US interest rates gold would drop?

Thx Blake

Q: <I>December 03, 2015 (asked by Desmond)

Question: I would like your opinion on Saputo, would it be a buy at this time. Thanks for all the great information this year.

5i Research Answer:
Saputo is not overly exciting, but in this market that is not a bad thing. Good earnings growth is expected over the next two years, but it does have a fairly weak record of meeting estimates. Its business is fairly secure and its balance sheet is 'OK'. It is buying back stock, and at 21X earnings is a bit expensive. Over the past 15 years the stock is up nearly 10-fold, and we would be comfortable with a long term position.</I>



I have to mostly disagree with your response to Desmond regarding SAP. Or at least the tone I extracted from your response.

How could SAP not be anything but exciting if a person is looking to make money? Unless they "play" stocks for excitement as in gambling and look only at short term fun.

If SAP has been almost a 10 bagger in 15 years that is a 16.5%/annum return plus a constant growing dividend. An original investment of say, $100,000 would now be approx. $1,000,000. A profit of $900,000! Most people and retail investors would love to have that big a profit both $ wise and % wise as most never produce that in a life time.

I am an investor who does not care if a company meets estimates! So what? Who cares other than the media? Without insider information is not an estimate just that? An estimate, a guess?What matters is the question, "Is the company growing itself, revenue and free cashflow...properly and in a sustainable way?"

I find SAP to be exciting in the short term because I can sleep at night knowing I do not have to monitor it daily/weekly and it should continue to make me money as I sleep with a growing dividend income stream for my future retirement days. Just like CNR, ENB, BNS....

Have a great day.

Stan

Q: IPL recently raised it`s dividend and is now yielding 7.21%. As a person who relies on divs, I ask myself "Is this to good to be true? The chart is terrible but the div. is fantastic. So my question: If oil stays at $40 for a longer term at what point in time does this 7.21% become in danger? Three years,5 years? I understand that you do not have a crystal ball but is IPL turning into a yield trap? Thank You Ron