Investment Q&A

Q: Dear 5i,
Out of all the countries classified as Emerging Markets.
In your opinion which countries are expected to outperform the S&P500 index if held for at least 5 years? Can you suggest some Canadian and/or US listed ETF's that might achieve this goal. I'm interest in holding a 2 to 5% position for at least 5 years in my TFSA.

Q: hello 5i:
would like your take on this ETF, for a registered account. We're looking for sustainable income: I've reviewed the sector and holdings breakdowns and realize the fund will not do as well in a bull market. Part of the reason we're so interested is that Seeking Alpha’s Quant system rates DIVO the very best nontraditional equity derivative income fund out of 14 choices, which is a fantastic stamp of approval.
If (a big word), we return to a bull market where growth handily beats value, DIVO should still see gains in NAV, correct? And the yield (around 5%), should be sustainable, correct? What have we not thought of here, or in other words, what are the red flags we've missed?
thanks
Paul L

Q: I am looking at either one of these companies for my first foray into materials. Would be for a TFSA. Which would be your pick and why ? Is now the time to buy or wait 3 to 6 months ?
Thanks. Derek

Q: What is your 3-5 year outlook?
Philip

Q: Hi Peter,
My question is about Target Maturity Corporate Bond ETFs. Please comments on the advantage and disadvantage of using a ladder of these target maturity bond etfs as a base for the fixed income portion of one’s portfolio. Seems to me instead of buying individual bonds at a discount to take advantage of capital gain upon maturity, the investor can purchase these target maturity bond ETFs to achieve the same goal with more diversification. Is this correct? For investor, is the tax treatment between individual bond and target maturity bond etf the same on an annual basis on the interest income received and on the maturity year when the principal at par is paid out? What should we watch out for when considering this kind of ETFs? What will be your pick for the best target maturity corporate bond ETFs offered in Canada and in the US? Thanks.

Q: What would you do with doo today if owned at a loss.

Q: Hi, Why has the stock dropped sharply over past 2-3 days, including this morning ? Thanks

Q: What do you think of WSP's purchase of Calibre? Good deal? Will it have much impact?

Q: Why would the Canadian Government invest 100’s of millions into a company that seems to be based in the UK and has gone bankrupt 3 or 4 times

Q: I recently purchased the above preferred shares of 'Brookfield Properties', I believe a subsidiary held privately (51%?) by BN. I was intrigued by the generous 10.5% yield. Most of the these shares are owned by the 'who's who' in Canadian investment. Can you elucidate on their 'commercial real estate' risks that everyone is concerned about generally? Is the yield a factor of this general fear of commercial real estate, or is there a more specific risk in this company? Or, is it simply a factor of low volume? I am also somewhat attracted to the many 'mortgage reits' in the US, many showing 15% =/- yields. Can you speak towards these types of investments as well please.
Thanks
c

Q: I am 30% down on AQN. Would appreciate your thoughts on AQN. Is it time for me to move on?

Q: There was a recent question as to the significance of GSY's $41m credit risk at Canada Drives and why it was not reported, I asked this very question of a Hedge fund tht holds GSY and below is their response. Feel free to publish if you think it will be of interest to your members.

"The are a few moving parts to the Canada Drives story.

The business is split into two segments 1. Retail 2. Lead Business

The retail business is the new business that was losing money and is being wound down. They expect to liquidate their inventory over the next couple months and pay off all existing debt facilities.

The Lead business was Canada Drives original business from 2010 and has been consistently profitable. It generated $11m in EBITDA on $86m in sales in 2020. This business is asset light and doesn’t take the balance sheet risk like the retail business did.

GoEasy owned $40m of the $50m of convertibles notes. The court documents show that GSY may acquire or end up owning the Leads business which has been stated that it will continue to operate.

Overall, I don’t think GSY disclosed much of this publicly because it doesn’t breach materiality. $40m of capital on a $2.9B enterprise value."

Q: DA Davidson has downgraded DOO. They said,

“From conversations with our dealer contacts, we estimate March ORV retails ales were relatively in-line to slightly weaker than what dealers experienced in February,” said Mr. Rolle.

How accurate are these type of checks?
Thanks

Q: Lately the worlds central banks have been buying ton's of gold. At the same time the price of gold has been moving very slow compared to the buying. Are the central banks buying paper gold or are they actually taking delivery of physical. If they are taking delivery of physical where are they getting it from as it seems to be way more than mine supply and the you tubes show massive buying at the coin shops in the US.

Q: Brucey asked a question today about capital losses from previous years and you said to refile previous tax returns to claim the loss. If he is referring to losses he has reported when filing his previous tax returns, then the easy thing to do is report the loss on line 61 of the current year return "net capital losses of other years". The government doesn't automatically do this for you because you can carry forward the losses as long as you want and use them in any future year.

Q: 1. Anaergia has sunk to a point where failure has to be considered; yet I would have thought that unlikely?
2. If you ignore the 2020 blip in their share price NWH is now discounting five years of growth. Two questions; why, and is this a sector phenomena – as in health care or if appropriate real estate more generally, or is it an individual problem applying to solely to NWH?

Q: Followin on the other question regarding TRI, if you held it, would you opt out or take the cash?

If you're a patient investor, opting out seems like the way to go but interested in your thoughts as that doesn't seem to be the default. An investor has to take a positive step to opt out.

Robert

Q: Not a surprise: I am seeing news media reporters with income portfolios cutting Algonquin after their recent drop and dividend cut. It is also noteworthy that it has rallied.
Realizing that it apparently made some leadership decisions that weren’t ideal, its cash flow due rate increases was flagged as a major reason for the dividend cut.
Do you see that this continues to justify this drop or should it hopefully rectify itself when rates stabilize or drop again?

Q: Thinking on selling my $8K in ESN and splitting it between PSI and TCW. Thoughts on this ??

Q: Everyone, IF (speculation) there is a collapse of the current government in Russia what would happen to the markets in the short term, say less than 6 months. Clayton