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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: I have these stocks in varying amounts in my TFSA . I have decided to sell one, two or three names to fund a purchase. Which three would you sell first? Thanks as always
Read Answer Asked by Frank on April 05, 2021
Q: TD WebBroker assigns a negative $1.93 capital cost of TOI shares from the spinout resulting in a potential capital gain in a cash account greater than the current value of the shares - is this possible?

According to the CSU - CFO the preferred shares, which I believe CSU holds, will be merged with our SVS shares in future at which time the SVS shares will reflect the full value of the business. When will the merger take place? Does this mean our present share value reflects only future growth and could a bump be expected on the merger? Market cap shows as either $3BB or $6BB depending on where you look and does this number therefore reflect the total value with the pfd. shares? Share volume of 40K seems pretty light for an outfit this size, agreed?
Read Answer Asked by Jeff on April 01, 2021
Q: Good day! I will be receiving a large income tax refund in the coming days and will be adding in to my wife's TFSA which already includes positions in ATZ, NVEI, KL, GSY and TRUL. Time horizon of 20+ years affords a healthy appetite for risk. Her others accounts are well-balanced and moderate risk. I'm looking to add 2-3 positions in the above stocks. Please rank in order of preference for a long term hold. I am also open to any other suggestions. Thank you! (Note: I own WELL, XBC, LSPD, GOOS in my own accounts)
Read Answer Asked by Matthew on March 29, 2021
Q: Based on recent market movements, if you have to pick 3 - 5 companies to buy (Canada or US, irregardless of risk), which ones would you pick?
Read Answer Asked by Hua on March 29, 2021
Q: I have a half position in each of the above stocks.
Would you add to any of them at this level to take them to a full position? Would you sell any of them at this level? I have a five year time frame.
Read Answer Asked by Ric on March 20, 2021
Q: Hi
Reading into your answer a while back that TOI could be compared as a mini CSU. Could one assume then that TOI has a better growth potential long term?
I'm considering switching my CSU shares over to TOI.
Thanks
Jeff
Read Answer Asked by JEFF on March 11, 2021
Q: Like others I have been struggling with what is the real book cost I should use for the Topicus (TOI) shares I received as a spin-out from CSU.

My broker (RBC Direct Investing) shows it as 0.0001/share. Based on what I read here I tried to convince RBC to adjust it to $63.30 (Feb 2nd closing price) as suggested by Peter. RBC would not change it unless I fill out a form and provide proof that it should be $63.30.

So tonight I emailed Constellation Software this question. Within 30 minutes (at 8pm) I received a response from Jamal Baksh (CFO at CSU). He said:

“It is our assertion that the value of the business has been ascribed to the preferred shares and hence the value ascribed to the subordinated voting shares (“SVS”) is nominal (close to zero). The future growth of the business will result in the appreciation of the SVS. As described in the prospectus the preferred shares will get converted to SVS at which time the SVS will reflect the full value of the business.

I’ve attached a copy of the bulletin from CDS which shows the cost at C$0.00015641/share.

Note that you are better off from a tax perspective having a nominal dividend and a larger capital gain.”

The attachment he sent says this:
“06JAN2021

UPDATE: FAIR MARKET VALUE

CDS has been advised by the agent of an update to the FMV per subordinate voting share as follows:

CAD 0.00015641 based on 0.0001 EUR converted to CAD at 1.5641

CDS will credit participants with the shares upon receipt from the agent.”

I do have the subordinate voting shares (SVS) of TOI. So I guess I really have a 69 million % unrealized capital gain on these shares. Looks great on paper.

Paul
Read Answer Asked by Paul on March 11, 2021
Q: hi
what would be your top picks from your income and balanced portfolios in this current downturn in terms of valuation? do you consider their current prices to be good entry levels or should we wait a bit?
thanks for your help
Read Answer Asked by Mary on March 08, 2021
Q: I follow the Balanced portfolio for my RRSP; it's time to make my 2021 contribution. My goal for this account is steady, long-term growth while accepting moderate volatility as it is all-equity.

I have a small amount of TOI from the CSU spin-off, and am contemplating adding to it to bring it to a half-position, would you endorse this move? If not, then I would close my position since it is quite small at this point.

I would then have enough money to add to maybe 3-5 additional positions, which of these would be good to add to right now?

AEM, AC, ATD.B, CCL.B, ENB, GUD, MG, PKI, SHOP

I am fully weight/overweight the other Balanced Portfolio holdings so would rather not add to those.

Please deduct as many credits as required. Thank you.
Read Answer Asked by Walter on March 03, 2021
Q: Good morning. I'm trying to decide on whether to add to my existing KXS or start a new position in either DND or TOI. I have a long time frame. Are the prospects for DND/TOI compelling enough to start one or even two new positions or should I just build on KXS, which you suggested way back and which has been a stellar performer.
Read Answer Asked by alex on February 26, 2021
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