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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: just to follow up on my paysign question. would you buy paysign ahead of square.
just a comment, there have been a number of mergers in the payment space with i think another one tomorrow.
also i wonder why no one has stepped up and bought square, big u.s bank etc.
dave
Read Answer Asked by david on May 27, 2019
Q: Hello 5i;
I don't understand your reply to Hector's question today about "whether it is best to convert money to the US and then buy stock or just buy stock and then convert to the USA stock". You say "........there will be no difference". If he converts cash, he will be paying a FX fee. If he buys a stock on the TSX and then moves it to the US side, are you saying that there will also be a FX fee involved?

There is obviously a lot of confusion about US/CDN conversion, be it cash or stocks, the question of dividends, etc. The subject keeps coming up, resulting in a lot of fragmented Q & A's. I wonder if you could come up with an informative blog that would address this whole issue (incl. Norbert's Gambit)? I think we would all find it very useful!
Read Answer Asked by chris on May 27, 2019
Q: I am considering entering into a 2% position in ITC or STC. Or alternatively increasing my position in Namsys from 2% to 4%. Which option appears best?

Thank you,
Read Answer Asked by Liam on May 27, 2019
Q: I am trying to hunt down highly defensive, high performing companies that do well if a recession hits. Two that I am considering are Ross Stores and Waste Connections. Which do you prefer for it's upside potential in the long run? Which do you prefer for in a large market correction?
Read Answer Asked by Liam on May 27, 2019
Q: I agree that Trevali needs to show consistency in earnings but having beet expectations last quarter, and with a strong balance sheet, could investors show frustration and pushing the stock price to a yer low?How do you see zinc prices in the neat 24 months and would this be a good time to buy an undervalued overly "punished" stock?
Many thanks,
Jean C.
Read Answer Asked by Jean on May 27, 2019
Q: I understand this is a US company but I'm curious if you have any thoughts on it or what you think the biggest red flags are. I like the space they're disrupting and looking at the runway that's in front of this company, valuation seems good compared to many other pre earnings growth companies.

Thanks for your thoughts.
Read Answer Asked by Dennis on May 27, 2019
Q: A member reported that TD Direct charges a fee for moving funds (via Norbert's Gambit) between CAD- and USD-denominated RRIF accounts. I cannot confirm that this is the case, but it bears noting that, not long ago, TD added a transfer function to WebBroker, such that account holders can execute Norbert's Gambit themselves. I have used this feature for this purpose (between CAD/USD RRSP accounts) and paid no fee - except, of course, the trading costs for opening and closing the position, which, at TD, for a smallish currency move, might well exceed 1.5%. Put another way, being thrifty with brokerage expenses might have more to do with minimizing trading costs than with occasional service charges.
Read Answer Asked by John on May 27, 2019
Q: Hello 5i,

We are looking for advice on stocks that should be held in a US account rather than a CDN account. Our RBC RRSP has both CDN and US funds available. After reading several questions and answers it is clear that we are very confused about this topic. We are hoping questions below can help us grasp a general rule of thumb on which currency should we purchase and hold stocks for our RRSP's.
e.g.
1. should stocks that pay dividends in US funds be held in the US account or CDN account if they can be purchased in either currency? i.e. AQN, BAM
2. if we buy a stock such as Google (no dividend) to hold for a long time should this be purchased with US funds or CDN funds. Is this a stock that should be in a TFSA instead of an RRSP?
3. if we buy and sell lows and highs on stocks without dividends such as AMZN, and BABA, (2-3 transactions per year) should this be purchased on the US or CDN side of our RRSP.
4. if we are to purchase an ETF that pays a dividend in US funds should this be purchased and held in US funds?

Thank you for your help.
Debbie and Jerry




Read Answer Asked by Jerry on May 27, 2019
Q: Good Day. Is it common or normal for a utility type company (i.e. Cdn Utilities) to have a negative free cash flow yield? Tx.
Read Answer Asked by John on May 27, 2019
Q: Good afternoon 5i Team,
Looking for the advice on building up the portfolio.
I currently have CAD RRSP and USD RRSP accounts worth $10200 and $8500 respectively.
I hold 4.3% of OSS shares and 11.4% of TRZ shares in CAD RRSP currently.
My question is whether I should still hold 2 accounts in both currencies or consolidate them in CAD going forward?
Also, what would you recommend to invest in? Risk - moderate.
Thank you and happy Friday
Read Answer Asked by Nick on May 27, 2019
Q: What drives price changes in Canadian-traded ETFs holding US securities on days when US markets are closed? Is it after-hours trading prices of the underlying securities, or something else?
Read Answer Asked by Yasin on May 27, 2019
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