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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: Hi, 5I
On march 13 William asked you about Enbridge and the possibility of increasing his position. You mentionned ''positive momentum'' as a trigger for adding to the investment.
I am not familiar with what positive momentum entails, so I would like to take the Enbridge situation as a ''REAL'' example.
Enbridge reached a low of 40.38 on march 02, the stock is now at 42.45 (12-03 at 12.43)
Does this increase constitute ''positive momentum'' or would you wait more and particularily at what price would you consider any increase would be a positive momentum.
Thanks
CDJ
Read Answer Asked by claude on March 14, 2018
Q: My question is twofold.
1) I am trying to determine if Spotify will be a good investment. It appears to have a lot of positive momentum; however, it has never made any money, there appear to be lawsuits, everybody in the music business is not happy, and over the years I've read on occasion that their business model is not viable (as the artists and/or studios are not properly compensated and the business model will need to change). I do not think that the music industry will ever revert to its former self but possibly pricing/offerings may need to change. Your thoughts are much appreciated on how you see this company possibly making a sustainable profit if the issues are valid. (On a positive note revenues appear to be increasing nicely, their market share is approx twice as big as it nearest competitor. BTW. I have not read the prospectus other than some articles referencing the doc. Anything else to share if you have read it?)
2) If I do want to acquire some shares, how do you proceed? I have read that this is not going to be an IPO but a DPO. This is what I read "In February 2018, Spotify filed for a direct public offering (DPO) — a type of offering without intermediaries". I have also discovered that they will list on the NYSE on the week of April 2nd but there will not be any opening price but a suggested price range ($90-132/share). This seems like Russian Roulette, so do we take a chance and buy at any price (not an intelligent way to invest) or do you recommend that we see what happens by waiting a few days or weeks after the DPO, once things have calmed down.

We have been paying subscribers of the Spotify service for many years, probably from the initial days it was offered in Canada. It has much improved and we like it a lot.

Thanks again.
Read Answer Asked by Walter on March 14, 2018
Q: John, the Nat Post just came out with a New WATCHLIST. http://business.financialpost.com/markets/watchlist

Austin
Read Answer Asked by Austin on March 14, 2018
Q: Could you tell me if i transferred all of my holdings, eg. Stocks, Etf's from an RSP into a TFSA, if i would take a tax hit? If i did, would it not make sense to do it, thanks?
Read Answer Asked by Pat on March 14, 2018
Q: I notice that the recent US corporate tax reduction is enhancing the earnings of Canadian companies that operate divisions in the US. It appears these tax changes may not have been factored into earning estimates.
One cfo told me that the effective corporate tax rate should decrease 3% going forward.

Equally as important, having an operating company in the US gives a company more flexibility to structure operations/source product more efficiently, leaving more profit in the US without the incremental tax cost.



Read Answer Asked by Murray on March 14, 2018
Q: With regards to John's question on the G&M watchlist feature. The new rollout is terrible. I wasn't aware it was only for subscribers, I am a subscriber and one now considering cancelling. I have changed over to the Financial Times watchlist which meant typing in my stocks again but it was worth it. You can subscribe for free and set up a watchlist, the screener there is not bad too.

https://markets.ft.com/data
Read Answer Asked by Andrew on March 14, 2018
Q: I bought some high flyers ... Now that I have made some quick cash on paper , I am concerned that I might lose if the market decides to go south. Do you have any feelings about these , or do you feel it is "safer" to play the ( broader ) Nasdaq rather than the tech sector as I am doing. Any thoughts are appreciated . I already own all of the Tech Giants , and they have done well too ( except for QCOM grrrrr) .
Read Answer Asked by Thomas on March 14, 2018
Q: Hi!
I'm concerned about the potential for a looming recession in the context of increasing interest rates, especially in the US. As a way to hedge against increasing interest rates and to protect against downside risk, I was wondering if you could recommend some high growth, high dividend paying stocks, US or Canada?
Thanks!
Read Answer Asked by Jason on March 14, 2018
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