Investment Q&A

Q: Hello Peter and team,
It looks like BAM will be spinning off the asset management unit. On their earnings call, i believe they mentioned it and the stock went up quite a bit and then went down again. Now that it is confirmed, there was no reaction.. Any comments? In case they do spin it off as a shareholder would one get shares of new companies similar to their other spinoffs and would this results in surge in stock price? In other words, if you are a BAM holder , would it be good idea to buy more shares at current price of $61.00 cdn assuming it is within our allocation in our accounts. Much appreciated.

Q: Hello 5i Team,
I own ZIM in my TSFA and RRSP. I expected they would withhold tax in TSFA; however I was surprised they did in my RRSP. The $17 dividend was very nice, but the 25% withholding tax was not so much. My buddy mentioned I need to fill out some form my RRSP. I don't know. Perhaps, it's because they are Israeli domiciled?

Thank you,
Brent

Q: I found this excerpt from a December 29, 2000 New York Times article instructive:

From 1995 through 1997, the bull market was good for almost every company. Then, starting in 1998 it became more selective and by late 1999 and early 2000 it was focused on a fairly narrow group of stocks -- many of them highly speculative. The big market news of 2000 was the bursting of the bubble for many of them.

The collapse of Nasdaq appears to have damaged consumer confidence and contributed to the poor holiday sales this year. But most investors have stuck to the stock market, even as they abandoned Internet retailers and saw Microsoft lose 62 percent of its value. The Dow Jones utility average is up 46 percent in 2000, its best showing since 1943, as utilities profit from increased demand for power after years when few new generating plants were built.
End of excerpt.
In 2001 we had a 8 month recession.
Sound familiar?
I realize that there are a lot of differences now. We have the supply chain issues caused by the pandemic and a war which has caused a temporary spike in oil and gas and some agriculture related shortgages. in 2001 we had a recession. All this will pass. Not clear who will be the winners in the next 18 months. My guess is, all that money to be spent on infrastructure, anything to do with electric cars and weapons. Follow the money.

Q: Hello TEam,

I my opinion TSU reported great earnings but it is on ha large declined. Did they announce bad news, am I missing something? What do you think of this name here and now?

Thank you

Q: I'm thinking of a Covered Call strategy on dividend paying US stocks. I know the dividends are treated differently in Canada, but I wanted stocks that offered weekly call options.

Are there any suggestions you have?

Q: If you believe that the Canadian dollar is going to decline significantly against the U.S. what, in your opinion, is the most cost effective way in which to profit. Exchanging cdn dollars for u.s. dollars and purchasing u.s. stocks with the currency rate balancing out or exceeding any stock losses or simply buying Canadian stocks with high u.s. earnings and please name a couple of stocks if this is the case. Thanks very much.

Q: what does the market expect from savaria this quarter?

Thx

Q: Good buy for someone with 5+ year holding period?
Thanks

Q: I am considering selling Square and replacing with Visa - what do you think? Thanks!

Q: LAC is really taking a beating. Is there something wrong or just the general market malaise not wanting companies with no or little earnings. I want to bulk my lithium holdings since I just have a small position in E3Metals. Thought LAC would be the go to name but this market sell up is making me pause. Is it prudent to wait before starting a position in LAC are could one start to layer in?

Q: I am thinking about buying this Pimco Canada bond fund. Do you know how the high distribution would be taxed (I know you guys aren’t accountants so I won’t hold you to it!). For example is it eligible for the dividend tax credit at all or is it just taxed as regular income?

Q: In December DND announced the transformative acquisition of Link for 3.2B financed with a share issuance at C$53.00 and a large debt facility. The timing could not have been worse. DND shares are now trading at $13 and tech valuations have collapsed. The original terms no longer make any sense. Do you expect the terms to be renegotiated or DND to walk from this deal?

Thanks.

Q: On the previous question about DND you answered "At 6.8x earnings, it is very cheap and we think the risks are more than priced in at this point."

I would agree but how did you come up with 6.8 x earnings? I'm not coming up with this ratio at all TTM or future. Please explain the math behind it.

Dave

Q: At the annual meeting, the board was re-elected with a exceptional "no" votes. What do you suspect is happening here? Might there be conflict coming soon?

John

Q: In your opinion which company would offer the best return over the next 5 years?

Q: I’m short on consumer defensive stocks and can’t help but to think that even during challenging financial times ahead, that alcohol sales will continue to do reasonably well. Would you think that SAM has strong potential as a long term hold? Thanks very much.

Q: Geodrill first q results looked good to me. I was also pleased to see that the company announced that insiders exercised 1,170,000 options at an exercise price of CAD$2.14 for proceeds of approximately CAD$2.5M.
I often find when insiders buy on "the sky is falling days" that it is a good indication that the shares are in the bargain bin.
Likewise, there 2 large inside buys of BAM.A on Monday by Flatt and Cockwell-- both very smart guys.

Q: Hi 5i Team - Could you provide an update on Mission Ready Solutions. How much cash and how much debt does it have. In general what is the state of the balance sheet - can it weather a continued downturn. Could you also comment on insider trading and potential going forward. Thanks.

Q: When do you expect the takeover?

John

Q: Can you explain Depository Receipts?