Investment Q&A

Q: The dust has settled a bit on the BAM spin off. So much for newBAM being undervalued within oldBAM ( now BN). Before the split I had shares of one company worth 44k, now I hold 2 companies one worth 36k (BN) and the other 8k (BAM). I have no need to hold both BAM and BN, do you have a preference for balanced but moving to income investor. 5+ year hold. The book on BAM in my account is showing as " zero" so looks like selling BAM would be 100% cap gain...Selling BN would be about the same net cap gain as I have done well owning it. So there is no real tax advantage to going one direction or the other in my unregistered account..

So hold both and get annoyed looking at the smaller positions in both, sell BN and buy BAM, sell BAM and buy BN or Sell both and buy your current new favorite...

Q: Any thoughts on Goodfellow inc./GDL. Debit looks reasonable, low p/b and p/e and ok dividend, I must be missing something?

Thanks

Q: For my wife's Cash account. Ignore asset allocation...I already own all of these and have some top-up monies available and assigned towards each of these 4 = BNS, FTS, NRGI, NWC.

I have designated monies to invest/month over the next 3 months (I am roughly half way into my re-investment strategy).

In terms of upside potential, what order would you buy these? My thoughts => NRGI, then BNS, then FTS, then finally NWC.

Thanks...Steve

Q: I have about 2% ish in AAPL and GOOG, how comfortable should I be to increase that % on those companies at these rates? Increase to maximum of 5%? Increase to a maximum of 8%? Increase to a maximal of 10%? AAPL and GOOG are long term holdings. Clayton

Q: These two preferred are going to be reset next month. Is a conversion from BCE.PC to BCE.PD, or the reverse, tax-free if we choose to do so?

I was very successful in the last 2 years with the BCE.PD floating shares, but would it be wise to let them go and convert to the fixed-reset at this moment of plateauing interest rates? I guess it could depend on the new rates which will be determined on Feb06.

Thanks to the team.

Q: Your thoughts on acquisition just announced

Q: Hello Peter and Team,

We are celebrating the start of CPP and OAS this year. With that in mind we have to think about RRIF in 7 years, investments , bonds, and GIC's in our RRSP's. We also have a small TFSA for higher growth stocks. With that said, it is time to retool our investments. We have not been a fan of bonds for over 10 years though we are open to bonds now. .

Which mix of CDN/US/Foreign Bonds, GIC's, and top 10 stocks would you recommend for RRSP's if you have a clean slate with a 7 year outlook.?

Thank you so much for your service. It is the best site by far for advice, CDN portfolios, and general questions by subscribers.

Sincerely,
Debbie and Jerry

Q: CHE.UN CUT THEIR DIVIDEND. DO THEY HAVE ENOUGH CASH FLOW AND ETC. TO MAINTAIN THE DIVIDEND? WHAT IS THEIR FUTURE,IS IT BUY,SELL,OR HOLD AND THE REASONS WHY?

Q: I am having difficulty finding out about fees associated with CDRs. On the one hand I see the answer 'there are no fees'. On the other hand, I see this on CIBC's website: "The notional currency hedge includes a spread earned by CIBC which will on average not exceed 0.60% on an annualized basis." Is this 0.6% paid for by owners of the specific CDR? If so, is there a similar expense at every bank or brokerage through which one might buy a CDR? This would severely hurt the value of buying CDRs would it not? You are still taking all the equity specific risk, you would still be charged the withholding tax, and unlike an ETF, you are not gaining any diversification for your fees. Thank-you.

Q: My son has a small portfolio consisting of two ETF’s and seven stocks (CN, AAXN, NVDA, CRWD, DDOG, DIS, TTWO). We have picked stocks that have good potential, but that are also fun for him to follow. He is using the ETF’s to give his portfolio some diversification with 20% in ZSP and 15% in XIT. He is investing for the long term. He now has some extra cash to buy another stock or two. Would you have some suggestions? We are also thinking of selling XIT and splitting the proceeds between CSU and maybe one other stock. Any suggestions or recommendations would be appreciated. Thanks.

Q: Hi 5i team,
I am holding AEM and SSL , and thinking to add one more gold stock.

What is your opinion about Victoria Gold, would you be comfortable buying this stock ?

Thank you for your advice as always.

Q: With the purchase of Westinghouse nuclear reactor maintenance operations and the re-opening of the McArthur River Mine which should double production, do you have an improved outlook for the Cameco? How would you rate this equity versus other uranium producers? Would you recommend purchasing and if so, what purchase price would you recommend?

Q: Hamilton ETFs have a new ETF trading called HMAX to begin trading January 23, 2023. In order to generate such a high yield, they will need to write call options "at-the-money" instead of "out-of-the-money" which will result in a higher call premium. Would I simply be expecting just a high yield with a stagnant or declining share price? What is your opinion of this new ETF, and do you think this strategy will work?

Q: Peter,

A while ago I asked about a non market weighted ETF that follows the S&P 500. You mentioned RSP. Is there one that follows the S&P 500 , but in Canadian dollars?

Thank you

Paul

Q: I hopped on this one a few months ago. The fundamentals lookeed really good at the time but it has since declined. Do you see any upside or should I sell and take my lumps.

Q: Hi

Thank you for your reply below.

We will not be selling our BRK,B.

We can not afford to buy a worthwhile position in CSU without selling BRK.B.

Another factor is that BRK.B is in our RRSP accounts, and the capital gains becomes an issue if we go to our cash accounts.

Would it make sense to add to XIT as CSU is its largest holding.

Its a situation of having champagne taste on a beer pocket book.

Thanks again

Mike





Question:
Hello I am low in Tech and high in Financials. Thinking of selling my BRK.B and buying CSU. Your comments or your suggestions are most welcome. Thank you Mike

Answer:
We would consider both of these to be very high quality stocks, and would be fine with this switch if it matches one's sector goals. Because BRK.B is so solid, though, we might consider swapping something else if there are other financial stocks to choose from.

Q: Have held RNW for about 6 years, and seen it go up, then down, then way up and way down. At the moment I am up a couple percent on the stock price (not including dividends). I know they had some issues with their off-shore turbines, and recently I have read some comments about them probably reducing the dividend in the near future. Could you comment on RNW in general, and the dividend issue in particular. Do you think it might be better to take a small gain and move on, or just sit tight?
Thank-you, Grant

Q: Prize targets, Analysts issue price targets were there is a financial benefit, potential or real, to a company. What value do you give to those targets? Has there been any research on the accuracy of targets? Clayton

Q: I haven't seen any recent comments on FXI. I would appreciate your thoughts on its current trend. Also, I didn't see the MER on this fund in the profile so could you please tell me what it is. Finally, are there any issues I should be aware of of holding this in an unregistered account? Thanks!

Q: I would appreciate an updated opinion on StorageVault, particularly in light of their recent successful $100M convertible debenture issuance at a relatively low 5% interest rate.
Thanks!