Investment Q&A

Q: In your answer to me on the BMO and Hamilton covered call ETF's regarding " return of capital " you refer to ZWB having a return of capital of 75% and HMAX as 84% .... Your answer basically addressed taxation which in my case is inside a RRIF account...... And in a follow up question from Bruce you give a brief explanation. I don't think I understand what the term means as to me it sounds like I am getting my own money back which strikes me as a bad thing. Could 5i explain just what exactly the term means ? And whether or not it is a good thing, bad thing , or nothing to be concerned about ..... Thank you as always for your sound advice .....

Q: If someone had $100,000 and could do nothing with it except let it sit in a CAD bank account or change it into USD on Monday would you see investment upside in buying the USD? With the two economies seeming to be on divergent paths, where do you see the loonie moving vs. the USD by Jan 1, 2025?

Q: Healwell is tremendously appreciating in share price. How does Well health tech. benefit from this. I don't know if they have an investment, part ownership or if its just a collaboration.

Thanks Steve

Q: I had purchased this company after using stock screener which showed very low valuation. Recent annual earnings were also 26 cents. However, the stock keeps declining especially a large decline from $3 to $1 on very hight volume. Since then volumes have become small. What do you think? Do you think there is still potential. Also, after the annual results, I do not see any quarterly announcement even thought appratenly thier quarter ends Dec 31, 2023. Please provide any insights you may have.Thanks

Q: They have the only non invasive basal cell carcinoma treatment at the moment that is effective as a cure. They found this out after the phase 1 safety and tolerabiliy study. No side effects. Does this look like a good opportunity for investment even though it is very early in clinical trials. This kind of investment is usually high risk but it seems mitigated.

Q: I'd build a sizeable position in XEI - can you suggest a strategy to do this over time?

Q: will you buy both or one only and which one?

Q: When I read your answer to Richard on April 11th about BCE I shook my head and said, 'Yes, you've got it right.

Then I read the speach of the BCE CEO from the BSO conference and he stated as follows:

An important mandate is to create greater diversity within Bell Media, adding that diversity makes for great business. He said the company wants half of the English and French language programs it commissions this year to be generated by creatives from Black, Indigenous people of colour and nder represented groups. He wants to make sure the company delivers "differentiated storytelling" by having a "diverse inclusive workforce".

I have been a shareholder of BCE and have not been pleased with its performance to date, by a long shot. If I read the above, that the CEO delivered I wouldn't go near the equity.

Given what you said in your prior answer that needs to be done to retain the dividend and grow, I'm not sure this guy wants to, or knows how to do it.

I just feel he wants to run the most woke communications company in Canada.

Do you have faith in him doing what you stated to succeed?

Thanks

Sheldon

Q: Hi Peter,

Can you provide comments on Grey Wolf Animal Health Yr End and 4th Qtr results. Also do you think it is a buy at these levels for speculative position. It looks like a nice result and good margin. It is profitable and appears to provide consistent results. Nice cash position on the balance sheet. Also like the Palidan Labs connection with the current CEO. Your feedback would be appreciated.

Thank you

Q: As far as you know, is there a way to execute a gambit between USD and Euro, similar to DLR?

Thanks

Q: I just discovered DRX in the Globe's Stars of the Week. Do you still consider it a buy after its runup on recent earnings? PE is now over 10.

Q: You recently suggested Duolingo as a good 5 year hold and I am wondering what would be the case for buying the stock/ Also, what would the negatives be, or things to watch for.
As always, your thoughts are appreciated.
Mike

Q: Hi,
Our NBLY pharmacy shares were bought out and cash received. In our TFSA we now have shares of Neighbourly Pharmacy Inc temp with a purchase price of 24 cents per share with a total value of $168. I got a letter from itrade indicating these shares cannot be in a registered account subject to 50% penalty. Can you please help me understand what these new shares are?
Thanks,
Kerri

Q: Hi,
A nice article on Gold in today's Globe and Mail. (April 10 2024).

Any thoughts on Gold ? Your opinions on the recommendations made in this article? At this particular time and cycle, what are your recommendations for the Gold sector.

Q: Hi 5i
Current shareholder 2% position...Rather shocked by the 50% sp drop when i checked Friday Apr 12. As far as I can tell there is a short report released by fuzzy panda ..... Is there any validity to the fraud claims being made and how should one react to this news.... The share price drop seems rather extreme, however at this point what line of action should one take.....sell, hold, buy.
Generally i would expect a "wait and see what happens in the short term" as a reasonable action..... however i would appreciate your opinion on the situation. How do you see this playing out and what would 5I do.

Thx

Q: What are your thoughts on Salesforce interest in acquiring Informatica. Do you consider Salesforce a buy?

Q: Of these three utilities, BEPC’s share price has suffered significantly more than the other two over the past year. Is there a specific reason why?

Q: What do you think the catalyst is that is behind the momentum over the past 6 months?

Q: With the proliferation of ETFs using covered calls there have been numerous questions about the return of capital classification of the distributions. Many of the questioners seem to think that Return of Capital means that they are simply getting their own money back. And while this may be true in some cases in many ETFs this is a tax classification of certain types of distributions and not the erosion of capital. Many of your answers do not fully explain this and often leaves the impression that the questioners belief that they are simply getting their money back and their capital is being eroded is correct when in many cases it is not. I think an article from yourselves more fully explaining this popular group of ETFs is in order.
After much research I have recently embraced ETFs using covered calls as a means of funding my retirement. For someone younger, focusing on growth, this may not be the right choice but as a retiree I’m looking for income without having to sell investments during market downturns to fund my retirement

Q: Have some cash available to add to one or 2 of the following: CLS, DOL, DOO, GIB.A, IFC, QSR, STN, TIH. For a purchase at the current price, please rank from 1 through 8, for total return over the next 3 - 5 years. I believe you are pretty positive about each of these companies. No concerns about sector allocation.