Investment Q&A

Q: Good morning 5i,

I have a question regarding the PSA ETF. There will be a change in January in the nature of the ETF, for me who owns a significant amount in PSA, will this change anything in regards to its safety or any other drawbacks (or benefits). I would appreciate your informed opinion.

Posted by Purpose Investments on Nov 22nd, 2022 —
Purpose Investments Announces Fund Merger of Purpose Money Market Fund into Purpose High Interest Savings ETF and Name Change of Purpose High Interest Savings ETF

Purpose Investments Inc. (“Purpose”) today announced its proposal to merge Purpose Money Market Fund (“PMT”) into Purpose High Interest Savings ETF (to be renamed Purpose High Interest Savings Fund) (“PSA”) (the “Merger”) on or about January 27, 2023 (the “Effective Date”). These funds are designed to provide investors with monthly income while preserving capital and liquidity by investing in high interest deposit accounts. The Merger is being implemented in order to more effectively and efficiently manage the fund portfolios as well as to reduce costs for the benefit of unitholders.

The Merger will be implemented on a tax-deferred basis. Following the Merger, PSA will continue to provide an opportunity for preservation of capital and liquidity and monthly distributions.

As a result of the Merger, holders of Class A units and Class F units of the Fund will become holders of Class A units and Class F units, respectively, of PSA on the Effective Date. The change of name of PSA to Purpose High Interest Savings Fund is expected to be effective on or about January 13, 2023.

Thanks

Q: Peter; It seems to me that so far this winter it’s been colder across most of North America- I’m on the west coast and minus 7-9 is very cold. Yet NG keeps going lower ? Thanks
Rod

Q: Hello Peter,
I know you may not provide 100 percent guarantee on this answer but am now getting worried. I am not very impressed at our investment managers (when reading news papers or watching BNN) as it seems not many are doing proper research.. For example, AQN was a go to stock but all of a sudden with bad results, everyone is bailing out.. it was obvious that with high rates, utilities would be hit ; why is this a big surprise now and most managers are bailing out.. xbc wow what a stock to buy ; all of a sudden it is bankrupt.. With BAM and BN, BIP, i am not worried about the stock price. I think the leadership is smart but i am worried about potential accounting issues. I know you have said that the issue has been brought up before, but in your opinion, is it something to be concerned about in terms of reducing 5 percent weights. I would hate the shoe to drop again.. if you owned the companies in Brookfield, would you be worried about accounting issues? Since you are not pushing the stock purchases, i am thinking your answer is more objective.. Please advise.

Q: I hold shares in BN, BAM, BIPC and BEPC. I am now underwater with BIPC, which I have held for its generous dividend. Given BN seems to be struggling even more than BIPC for shareholder love, would you suggest selling BIPC for a small tax loss and replacing it with BN? Looking for a 3% dividend with some growth. Thank you.

Q: Witch company would you prefer buying between EQB and GSY as a longterm investment?

Thanks

Q: I have very little exposure to real estate in my portfolio (app 2%) due to concerns about the effects of covid & now rising interest rates. I am considering selling app 50% of my real estate holdings (Riocan - 3000 shares) and using proceeds to increase holdings in either BCE, Telus or Enbridge.

Please give me your thoughts

Q: Looks like Brookfield has a challenge ahead of it.

RISK ANALYSIS - Simply Walls Street

1. Earnings are forecast to decline by an average of 62.6% per year for the next 3 years

2. Interest payments are not well covered by earnings

3. Dividend of 4.2% is not well covered

4. Large one-off items impacting financial results

Only one firm's opinion.

Q: I have been following the Questions and have been a keen reader of the opaque notices and statements from Brookfield . I own units in all the subsidiaries mentioned above too. So I am trying to keep position size of each in mind when I look at the BN holding corp and allocate it to the various sectors, Months ago, before the split you had answered a question confirming that the BAM.A sectoral breakout was 39% financial, 35% RE, 16% industrial, 10% energy?? Does this breakout still apply to BN and/or BAM or is there a new breakout given the spinout of the new corporation.

Q: Hello Peter,
According to your response, Veritas Research put a sell on BIP.UN; where do you get latest upgrades / downgrades as on the TD app, i have not seen it yet; also, do you agree with this assessment? From what i have read so far, it is solid.. when downgrades are done, is it due to current situation only or does company, Veritas, feel long term outlook is not good for BIP.UN ? Is this something Brookfield would respond to or they would rather focus on the business and let results speak for themselves? Thanks very much

Q: Now the tax loss season is over which would be your favourite 4-6 re-buys for January.
Publish at your discretion.
Thank you
PB

Q: Are there any Canadian ETfs or low mer mutual funds that invest in investment grade corporate bonds with duration of 5 years less.?

Q: gear is now at a buck yielding 12%, generally this is a warning, but they have zero debt and oil is hanging at about 75.
is this a great buying opportunity, or am i missing something. i guess there are lots of companies like this now.dave

Q: At what price could this stock could represent a reasonable" Buy" ?

Q: Is BX partnership or a corporation?
thanks jerry

Q: Retired dividend-income investor. Is this how you spell "capitulation? The VIX is still pretty low...not even at 30 yet, let alone 40.

Thoughts?

Just sittin' here on my hands for the most part...doing a tiny bit of buying.

Q: What is your opinion of Shopify as a worthwhile investment? Quite a drop in price over the last year from $180 to $48. What did they do wrong or is it a tech market pricing issue? Are they well managed - is their future positive? Recently watched Brian Madden of First Avenue on BNN he was very positive on this company.
Thanks
Reg

Q: A short while back there was a 5i comment that you thought there was a good chance that small cap stocks would rally early in the new year. Wondered why you thought that? At the moment there appears to be a great deal of fear and pessimism in the markets . Many good companies are getting pounded. And technical charts are pointing downward. So , within this environment where it is hard to resist not selling everything and moving to the sidelines, what reason is there for small caps to rebound?

Q: What are your thoughts on BIPC as a long term hold? It fits my portfolio and what about adding more? For whatever reason, Brookfield in general is not getting much love. Should we be concerned, in your estimation?

Thanks

Q: Hi 5i,
Well, FRII sure proves that patience is a virtue, if holding on to a stock that lost 90% of its value almost immediately after it was purchased long enough (years, in fact) for it to recover 25% of the value that it lost can be considered virtuous!
Seriously though, I'm very glad to see that FRII is finally being bought as I've hoped it would be for years now (no matter that its being bought very cheap compared to what it was once thought to be worth) and I'm going to get at least some of my long-departed money back. My question is whether there is any possibility that the $2.30 / share it's apparently going for might possibly rise, or is that likely all there is? I ask because I don't really know how these things work and wonder if the public facing statements about the sale might cause another suitor to step forward with a higher offer. Or is there any likelihood that a shareholder with enough clout to object might say no to the money currently on the table and compel a different outcome?
Thanks for your thoughts 5i,
Peter

Q: WSP is down 5% on the 3rd highest volume of the year.

Any sign of whats going on?

Sheldon