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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: Still considering OLY and after reading the report it seems clear what drives earnings as of now, and what can bring them higher or lower quite quickly and that would be, Interest Rates
Olympia noting in the annual report that they are exposed to interest rate risk as the cash portion of the off-balance sheet arrangements ($1.00 billion), from which Olympia Trust earns trust income.

2023 Earnings this year were $21 million... according to the Annual report (pg 26) if rates change +/-1% it is estimated that Olympia’s after-tax earnings for the year increase/decrease $7.69 million (noting prime rate at 7.2%)

So rates drop to 6.2 % and earnings drop over 33%?! Is this not essentially a bet on rates at this point or am I missing something?

I guess reading annual reports could pay off (as knowing this when rates were on the rise with no slowdown coming would have been beneficial)

Thanks for your Input
Read Answer Asked by Michael on March 21, 2024
Q: Am interested in a couple of Cons.Disc. Stocks - SBUX and NKE . Both global brands and lagging in part , I believe , due to China concerns . From previous questions , my impression is that you would be OK with either if one is prepared to be patient as things work out.
Would that be a fair assessment and which would you choose between the two ?
Read Answer Asked by William on March 21, 2024
Q: “Does every disposition of shares during a year have to be reported on your tax return even if you still hold a position in the stock at the end of year-end?”

This is a question asked by Paul on March 21. You answered that all dispositions must be reported. Wouldn’t donations of stocks to registered charities be an exception. The disposition is noted. But, one is exempt from paying capital gains tax on those securities.
Thanks
Read Answer Asked by joseph on March 21, 2024
Q: Where on the 5i web site can I find a sample portfolio(s) pls?
Read Answer Asked by Ron on March 21, 2024
Q: I've asked quite a few questions on these new Hamilton ETF's and thank you for the explanations you have given me thus far . They have been very informative ..... I'll likely have a few more before I make my final decision on whether to purchase .... I have noticed that though 5i generally gives them a nod of approval you fail to recommend them in questions as a covered call option. For example in a question this morning from KIM looking to replace his 11% yield from EIT.UN you give ZWU as an option instead of UMAX which yields better than KIim's target yield. First question is why ? The fact that you are giving the nod to the BMO product is making me pause in my purchase of the Hamilton product .....
Second question is though UMAX has only been around since June 23 please give the both the return without dividends and the return including dividends for both UMAX and ZWU during the available time period ? Thanks for your terrific service .....
Read Answer Asked by Garth on March 21, 2024
Q: I one " strongly believes" that swiss money could be a protection against US or CDN dollars ( for various economical reasons..),would it then make sense to invest in a swiss multinational Cie to obtain benefits from a future growing exchange rate ,if yes what Cies (2-3) listed on US market would be interesting at the présent time?
Read Answer Asked by Jean-Yves on March 21, 2024
Q: MCan Financial is selling 1.6M shares at $15.40 to raise $25M. This is about 5% of their market cap. What is your feeling on this dilution and how do you see it affecting their dividend? I have enjoyed their high dividend for many years and am now wondering if this is a worrisome sign, or is it a cheaper way to raise operating capital? The drop today brings the price to close to the $15.40 mark. Do you expect the price to fall further once the offering is closed and people try and sell their shares?
Read Answer Asked by Gordon on March 21, 2024
Q: Recently, I’ve noticed that Canadian inflation has been more subdued compared to the United States. Given this observation, I’m wondering if it’s reasonable to interpret that Canada might reduce interest rates sooner than the U.S. If this holds true, and considering my intention to purchase more U.S. stocks, would it be advisable for me to start acquiring more U.S. dollars at this time?

Your insights would be greatly appreciated. Thank you in advance for your guidance.
Read Answer Asked by Esther on March 21, 2024
Q: Received a Class Action Notice from XBC..CA regarding a proposed class action settlement, which reads in part:
"SUMMARY OF THE SETTLEMENT:
On October 19, 2023, the Superior Court of Québec (“Court”) approved the settlement of this class action.
Under the Settlement, CAD $5,000,000 (the “Settlement Amount”) has been paid in full and final settlement of all claims against the Defendants, including Class Counsel’s fees, applicable taxes and expenses, and interest, in exchange for a full release and settlement of the class action."
Number of shares purchased was 800 @$10. Would you know the approximate number of shares that were outstanding at the time (Nov 10 2019 to Mar 24 2021) and In your experience, is it worth it to submit a claim?
Many thanks.
Read Answer Asked by Carlos on March 21, 2024
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