Investment Q&A

Q: Should I sell now or wait for takeover is there much of a difference

Q: Reading through 5i answers to questions regarding Cdn. coys that pay dividends in USD made me wonder if there is a way to increase my cash holdings in my USD account without incurring FX charges and being eligible for the foreign tax credit.

I currently have AQN and HOT.UN in my TFSA that pay dividends in USD that are converted to CDN$ with the extra wrinkle of HOT deducting withholding taxes that are not eligible for the foreign tax credit because it is held in TFSA. Also hold BAM.A and BEP.UN and BIP.UN in Cdn. cash trading account that also pay dividends and interest in USD$ and are converted to CDN$ when paid.

Can I as owner 1) TRANSFER my AQN (up about 150%) and HOT.UN (down 25%) shares this year from my TFSA to my USD cash trading account to get dividends/interest in USD and 2) do the same with BAM, BEP and BIP from Cdn. cash trading account to USD cash account to capture and keep the USD payments and avoid FX conversion fees and build my USD cash reserves in USD cash account without incurring any fees and charges from my online broker? Or do brokers and CRA have rules against clients benefiting from structuring dividend/interest transactions in a manner like this?

Obviously this would open up SOME space for extra contributions to my TFSA in early 2020 above and beyond the TFS $6000 contribution limit to provide for increased flexibility for sector rebalancing and re-allocation opportunities. Also this would make the USA withholding tax payment on the HOT.UN dividends eligible for the foreign tax credit when filing my tax return to CRA?

Comments?

Q: Good Morning,

What would be your top 2 or 3 picks for cloud space investments in the USA and Canada?

Thank you!
David

Q: I want to invest in a small cap lithium mining company. Looking at tmi.t, wmi.v, and lith.v Which one do you think is the best choice or do you have an alternative suggestion? thanks

Q: Preferreds have slowly recovered however the ones from Brookfield infrastructure seem to be stalled out. Is there something in the set up of these ones that i am missing.

thanks as always

Q: I would appreciate your comments on ENG's earnings release.

Thank you, Peter

Q: I am currently researching the Vanguard Conservative ETF Portfolio. I would like to confirm that I understand the total fees properly.

The Vanguard website indicates that the MER for this product is 0.25%, and "For any Vanguard fund which invests in underlying Vanguard fund(s), there shall be no duplication of management fees chargeable in connection with the Vanguard fund and its investment in the Vanguard fund(s)."

VCNS holds a portfolio of other Vanguard ETFs. I interpret the above paragraph to mean that the total fees paid to Vanguard is 0.25% (ie. that there is no stacking, that I do not pay the separate MERs for the underlying portfolio ETFs, PLUS an additional 0.25% for the VCNS ETF). Can you please confirm that my understanding is correct?

Thank you for your help and your insightful advice.

Q: Lightspeed, what are your thoughts on $16 IPO price? Is it recommended as a buy, considering normal IPO risks? Do you know when it will start trading? Overall, what are your thoughts on prospects?

Q: Hi Team,
I know your focus is equities. I would appreciate any thoughts you may have about the risk of buying Morguard's 5 year corporate bonds on offer to retail investors? They would be part of a diversified 5 year bond ladder of corporates rated BBB or higher.
Many thanks. Michael

Q: Further to the question on Brookfield prefs, the 5i response likely refers to BIK.PR.A (the Investment corp). I hold BIP.PR.C (Series 3) in a registered account because as can be seen from the link:
https://bip.brookfield.com/~/media/Files/B/Brookfield-BIP-IR-V2/2018-tax/2018%20Canadian%20Taxable%20Income%20Calculation%20Preferred%20-%20Series%203.pdf
the majority of income is foreign. All BIP.PRs are the same and I believe BEP also.

Q: Good Day Team,

Between VEEV and AYX which would you prefer for long term and why? Would you please compare them on their:
1- Quality of management, 2- Software competitiveness, 3- Potential for growth, 4- Current valuation, 5- Balance Sheet.

Much appreciated as always!

Q: I have been waiting for the bleeding to stop on NVDA. Down over 40% and still falling, time to move on? I have about 1.5% in COV and thinking about bringing back up to 3% with selling NVDA

Q: I currently have TOY at 1.6% weight. It was higher but with the recent decline in price this had made my weight lower. Would you be comfortable buying this stock for the long term for at least 3 years or wait to see how the next 2 quarters are? I am thinking of buying to increase it to 2.6% weight.
Thanks

Q: Hi team,

As you know from my questions, I like tech and am a growth investor. I do own some lower beta non-tech stocks as a counter-balance; I just don’t ask a lot of questions on them. The cloud is working these days, with a few normal hiccups. I follow a ton of stocks in the space, so I will ask about five (down from ten) that were bid very high going into earnings, that is, TEAM, TTD, SPLK, AYX, WDAY. Earnings and guidance, as far as I can recall were great, yet the stocks sold off. I attribute it to normal profit taking after big run-ups. I own TTD and TEAM. I owned WDAY in the past, but sold it prematurely. I am a bit shocked and impressed today how AYX shot up about 5% when the market had an awful day. I could see no news on that on the websites I check. Any reason for that? How would you rank these five for growth prospects over the next several years and are there any red flags or undue risks for any so that you would avoid that company?

Thanks again,
Dave

Q: Hi,
I have approx 10% weight in these in a long term RRSP following your porfolios(Only 1% WN as spin off)
I have about $!0,000 to add. What are your thoughts?
Add to a few laggards or add new?

Q: I have been contributing to my TFSA since inception and I currently have $90,000. I just put in $6000 as my 2019 contribution and I'm wondering what stocks I should look at. I'm 27 years old, have a long term time horizon, and I'm very comfortable with a lot of risk. Looking mainly for growth at this point. I currently have 30% of my account in the following (wxm, iwo, xsu, tdb3055 and RBF1035) (pretty well equal amounts). In addition I hold T, rY, BNS, JE, Enb, dol, ala, cjr, and fts all set up in Drips in roughly equal amounts. I also hold about 10% of my tfsa in ABM, EDT, loto and GQ for risky plays, all of which are down 50% except abm which is up 50%. what do you suggest adding at this point? Thanks so much!

Q: Your thought on earnings coming out tomorrow

Q: My question revolves around Peter's webinar and the thought we should know when to sell our losers. I bought the above just before the decline last year. All outpaced (negatively)the market decline considerably. During the recent market rally 2 have not participated with the market, the others have basically market performed. Leaving the value at this point -23%. There have been some misses in the last reports for these companies. As an investor what am I looking for now to continue to hold these positions or be a seller.
Thank you,
Mike

Q: Would AQN be a long term hold.

Q: My Technicals tell me this is in a very bullish pattern. BUT my senses tell me when looking at the charts it is overbought, is hitting 5 year highs and has certainly broken the 5 year pattern channel between 18 and 21.

Bit confused if this chart looks like a buy to you at this point?

Thanks

Sheldon