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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: Re RSP tax efficiency. If we buy a foreign content ETF, DIA for example, do we get the same tax exemption on dividends like on individual stocks? What about if we buy the canadian currency version of the ETF?
Also if I believe the Canadian Dollar is going to go back up closer to par, is then better to buy the hedged version of the ETF?
Thank you.
Read Answer Asked by francois on July 15, 2019
Q: these 4 holdings are held in equal weight in a RRSP account and have some US cash and wonder what you think the best ETF would be to complement what is currently owned?
Thanks
Read Answer Asked on July 15, 2019
Q: If one was to invest 100,000 into the balanced equity portfolio on day 1 and keep those same stocks never selling or trading or following any rebalancing or 5i recommendations (assume dividends are just held in cash), what would the balance be? The purpose of my question is to compare the performance of buy and hold as opposed to an active fund. Is there a link to an excel spreadsheet that one could access to do their own evaluation if this is too onerous?
Thanks
Read Answer Asked by Gooding on July 15, 2019
Q: EFN is on the verge (again) of breaking through $10 resistance established back in the fall of 2017 (it also peaked around $10.25 two months ago). If the breakthrough is sustained, there should not be much to stop it running back up to the $12+ range. Would you continue to hold for another 3 - 6 months to see if this plays out? Aside from technicals, is the company continuing to make progress in its restructuring?
Read Answer Asked by David on July 15, 2019
Q: Blackline (BL) seems to share similarities with Lightspeed (LSPD) except that, instead of targeting restaurants and small retailers, it focuses on providing SAAS to accounting departments in small and medium-sized firms. Can you provide any insights on BL from your Bloomberg terminal or any other research that has been done on the company?
Robert
Read Answer Asked by Robert on July 15, 2019
Q: I have always considered ALC to be a proxy (maybe a weak proxy) on the iron ore pellets market. I know ALC ship grain and petroleum too. Of course ALC has other issues like water levels in the Great Lakes as well as replacing an aging fleet which has been slowed down as a number of ships supposed to be delivered weren’t due to problems with the shipyards defaulting or failing to deliver. Nonetheless I would have expected to have seen the share price of ALC strengthen more than it has with LIF doing so well. Am I missing something?
Thanks,
Jim
Read Answer Asked by James on July 15, 2019
Q: It seems that cyber security will be of increasing focus and the industry should be somewhat recession resistance. Do you like either of these ETFs ? If not do you have a suggested stock or fund in this area. Thanks
Read Answer Asked by gary on July 15, 2019
Q: Is LIF selling more pellets this year or is the price of the pellets simply higher. I do find it odd that the prices of other industrial minerals (copper, zinc, etc.) are weak but iron ore seems to be strong or possibly just stronger than prior years. I would have thought the prices of industrial minerals would move as a group. I have always assumed iron ore pellets are too large a market to be manipulated. Do you agree?
Thanks,
Jim
Read Answer Asked by James on July 15, 2019
Q: I have exposure to gold in the above companies. I'd appreciate any comments you may have in regards to whether to dump or hold, and which gold companies may provide a good alternative at present. I'm thinking some consolidation might be a good idea (too many positions). Thanks.
AGI, ATC, ABX, GFI, GSV, OGC, PVG, SBB
Read Answer Asked by Brad on July 15, 2019
Q: Would you be able to compare these two companies or are they too different? If I understand correctly they are both in the materials sector, are well managed and are companies which combine some growth along with a healthy dividend. Possibly MX has more of a global reach and so has some control over its destiny while LIF is a royalty company and simply reflects the current price of iron ore pellets. If I understand correctly LIF would have a risk of ore exhaustion or depletion even though the Labrador Trough has been a source of high quality pellets for years now. MX buys hydrocarbons (oil and gas) to make methanol so their input costs should be low yet methanol prices must be even lower so we have a problem. You note MX is projected to have 60% growth next year which is a high number but the stock continues to decline. Based on your years of experience do you feel this is a valid projection? Is the 60% number based on anticipated recovering demand or is the company opening a bunch of new factories next year?
Any other thoughts you have would be appreciated.
Thanks,
Jim
Read Answer Asked by James on July 15, 2019
Q: 2:00 PM 7/14/2019
I expect to be parking a lot of cash in our 4 TDWaterhouse accounts... two RRIFs and two TFSAs
I want to be sure the money is covered by CDIC insurance
.--------------------------------------------
The CDIC site states :
Eligible deposits are insured separately in each of seven categories:
in one name
in more than one name
in a RRSP
in a RRIF
in a TFSA
in trust
for paying taxes on mortgaged properties
.-------------------------------------------
From the CDIC website :
We insure eligible deposits at each member institution up to a maximum of $100,000 (principal and interest combined) per depositor per insured category.
Eligible deposits include:
1. Savings accounts
2. Chequing accounts
3. Term deposits, (such as GICs) with original terms to maturity of five years or less

Uninsured financial products include:
1. mutual funds (including money market funds), stocks and bonds
2. term deposits, such as GICs, with original terms to maturity greater than five years;
3. foreign currency deposits (e.g., U.S. dollars);
-------------------------------------------
The question is just what specific securities are eligible.
Do the :
1. TD "savings" account TDB8150,
2. and the Purpose High Interest Savings ETF PSA.TO
3. and the Horizons Active Floating Rate Bond ETF Common HFR.TO
all qualify or are they considered to be "Mutual Funds"

So it looks as though just <5 yr GICs, and cash sitting uninvested in these accounts actually qualify

Can you please clarify this issue and tell me just what savings vehicles actually do qualify?
Thank you.

Read Answer Asked by Paul on July 15, 2019
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