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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: So the B.E. Model Portfolio has had a cash balance of at least 9% that was deployed Feb. 18. Who knew cash had been building as it has been several years since this was reported in the monthly numbers? Personally I think this would be useful for members to know if cash is being accumulated; for members who want to emulate the p/f's this can be critical information and I urge 5i to add a reporting line for cash held.
Read Answer Asked by Jeff on February 26, 2016
Q: Hi 5i team, thanks for all your good advice. You have mentioned brk.us as a mutual fund like. Can you recommend a better one for long term growth in US and Canada ?
Read Answer Asked by victor on February 26, 2016
Q: What do you think is the potential downside risk with cpd....where is the bottom.please give some hard numbers.
And is the potential upside higher then the downside?
Read Answer Asked by Josh on February 26, 2016
Q: Can you comment on the latest dividend slash and latest news. Would you consider G's valuation high now?
Thanks.
Read Answer Asked by Mark on February 26, 2016
Q: Haven't seen a question on their recent earnings report yet. Market liked it. Your thoughts?

Thanks

Robert
Read Answer Asked by Robert on February 25, 2016
Q: HI,
Savaria has been going up alot. Have you any ideas what has been the catalyst.
Thank you
Read Answer Asked by Charles on February 25, 2016
Q: Can I have your opinion of Peter Schiff and his advertisement on the Globe Website concerning America's Financial Suicide and the Inevitable Armageddon? Pretty scary stuff and he makes a convincing argument.
Read Answer Asked by Bryan on February 25, 2016
Q: Hi Peter/Ryan and Team, a follow up to your PHM answer just provided. The question is have you followed up with management for clarification regarding this 'hidden' information, considering PHM is in the growth portfolio? Any further insight from you would be greatly appreciated as I have slowly been building a position in PHM. Time to use caution on this one?
Comment: Hate the hidden way they provided this information and this in-of-itself should be a cause for concern!! Sorry, but this is Not management inexperience in my opinion! Seems calculated and the market is reacting! Thanks!
Read Answer Asked by Hussein on February 25, 2016
Q: Hi Peter, Ryan and Team,
Fully realizing that taxation is not your area, I have a general question that concerns where one would go to find out info on a U.S. company doing a spin-out, to determine what potential tax implications there could be, for Canadian holders.

Specifically, opening my T5 summary today, I got a nasty surprise from the HP I was holding before they split into two last November. Apparently they didn’t just do an even split, rather they held the original (and full) book cost of one side of the company, and spun out the other portion as a 100% dividend. So if the original cost was $45 for HP many years ago, after this spin-out my book-cost has been increased to $45 + $14.72 (for the spin-out), and the $14.72 is a fully taxable event for the 2015 taxation year.

One of the lessons, I guess, is never continue to hold the stock of a foreign company once they announce a split. This is a very costly lesson, and given that, I’d like to know how I can avoid it in the future, short of selling before the spin-out/split occurs. In speaking to my broker, this was supposed to be a non-taxable event for foreigners, it just never materialized though.

Would one look at U.S. SEC filings, or as a general rule, would you just suggest selling, and if one really wanted to continue to hold, buy back in after the event occurred?

Thanks for thoughts on this one.
Read Answer Asked by Warren on February 25, 2016