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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: Thank you so much for what you do. 5i benefits people of modest means as well as the wealthy. (A rising market doesn't hurt)!

A reader mentioned grocers earlier today. We went to COSTCO yesterday and the place was packed. They don't have the distribution of the local grocery stores but in a way they don't need to as customers are willing to drive to them. COSTCO is still more of a wholeseller compared to a company like Loblaws and they don't carry all the small products but no doubt they are one reason why grocery stores are finding it difficult to stay profitable.
Read Answer Asked by James on January 25, 2017
Q: I buy a number of my international stocks on the OTC Market, since my brokerage account does not let me directly transact on exchanges outside of North America. The American Depository Receipts (ADR) for a particular company ("xxxx") have the ticker format xxxxY, whereas the "fungible" shares (i.e. for which there is somewhere, at least in principle, an actual stock certificate issued by the company) have the ticker format xxxxF.

Assuming that there is at least some liquidity for the shares of a particular company, it is almost always the ADRs (xxxxY) that have the most trading volume. However, sometimes the fungible shares (xxxxF) are slightly more liquid than the ADRs.

In terms of risk (e.g. in the event of another major financial crisis) are the ADRs more risky, i.e. do they depend on the solvency of the custodial bank in New York (e.g. BNY)? On the other hand, who actually possesses the fungible shares (xxxxF)? Is it this same custodial bank? Is there a real stock certificate somewhere?

Thanks!
Read Answer Asked by Gregory on January 25, 2017
Q: I have been watching this company for some time now. Despite the stock being up quite a bit over the last 12 months it has stalled. Trading at a ridiculously low valuation compared to other competitors who can't even seem to make a profit (MDI etc.), is the market missing something here? I have Geo at under ten times earnings with essentially no debt. I have no Gold exposure at this time and was thinking about starting a position.

Thanks
Read Answer Asked by Scott on January 25, 2017
Q: I have always been interested in this company but have never "pulled the trigger". In an answer to a question yesterday you indicated you consider it presently a good value stock. What valuation metric are you using? Scotia Itrade gives two p/e valuations, 14.4 and 16.2. Stockreports+ says is have a trailing p/e of 7.3 and a forward p/e of 9.6. What valuation are you currently putting on this stock? Thank you. Bill.
Read Answer Asked by Bill on January 25, 2017
Q: The answer to a t1135 question by Sylvia 2 days ago wasn't correct:

T1135 - This form has nothing to do with the USA or USA estate taxes. It is a form required by the Canadian government. The purpose of the form is to make taxpayers more forthcoming about assets they have outside Canada. The problem is that the people that file the forms are the same ones that would report their foreign income anyways and the ones that have hidden foreign assets will just ignore the T1135 requirement. The penalty for not filing / late-filing is $25/day to a maximum of $2,500. Registered assets don't have to be reported on the T1135.



Read Answer Asked by Christopher on January 25, 2017
Q: BPY-UN has offered $30.10 per unit of BOX-UN on January 23.
BOX-UN closed at $31.25 on January 24.
Please confirm or explain following:
Is the BPY-UN offer all cash
Is a tax free rollover contemplated
When will the purchase close

Would you sell the BOX-UN into the market and buy an equivalent amount of BPY-UN? I am comfortable holding BPY-UN.

Would you recommend another Canadian "office" REIT to replace BOX-UN. I specifically purchased BOX-UN to represent high quality Canadian office REIT.

Thanks for the great service.
Read Answer Asked by Stephen on January 25, 2017
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