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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: I own all three in my RRSP in equal position. Outside of my RRSP, I have large exposure to the US markets (>50%).

I'm thinking on consolidating banks by selling RY & TD to buy BNS. BNS is up from its previous lows but looks to be trading at reasonable multiplies.

Thoughts?
Read Answer Asked by Ian on January 05, 2021
Q: In your view, which will be more profitable (growth +dividend) in 2021: BEP or GSY? Seriously overweight now in BEP and wanting to redirect the surplus to GSY, but BEP just keeps going up. (Not a bad problem to have.) Advice regarding timing of such a switch would also be appreciated. Thank you.
Read Answer Asked by Maureen on January 05, 2021
Q: Hennessy Advisors, Inc (HNNA on NASDAQ)

I've been watching this one for more than a year. Some of its fundamentals look consistently good. But the longer I watch it, the more I feel it's a value trap. Your thoughts? (Also, it doesn't seem to be in your database.)

Best wishes for the new year.

Marc.
Read Answer Asked by Marc on January 04, 2021
Q: Given the Bitcoin surge, is it worth dipping into these? Thanks! MARA/RIOT
Read Answer Asked by Austin on December 31, 2020
Q: I am still very curious about QBTC.U and how exactly they invest capital. I haven’t been able to find out much about it. Is BITCOIN the only asset the fund has? Do they trade bitcoin to gain value or is the value directly tied to the price of bitcoin? If they are holding bitcoin as a static asset, why would the value of the fund drop when they issue new shares if that new capital goes directly into additional bitcoin coins?
Read Answer Asked by Robert on December 30, 2020
Q: Three or four years ago I bought Blackstone as my vehicle for diversification into the area of private equity. I mainly chose it over the others in this area because of the yield it offered.
When we descended into Covid hell last spring I viewed it as a time of opportunity for companies like Blackstone, picking off struggling companies or providing funding. Others might include BAM and Berkshire Hathaway.
Since then I've noticed Blackstone making multiple news announcements of purchases they've made.
What's your opinion here? Am I being biased by my own opinion or do you also think the company is setting up a bright future?
Read Answer Asked by Larry on December 29, 2020
Q: Hello 5i team,
In a recent answer to a question from Tom about conpanies as a possible target to be acquired, you included CXI. I would like to know what characteristics of CXI makes it a potential candidate besides low valuation and cash on the balance sheet? I know the president of CXI has gone through this process before: has he ever mentioned specifically this endgame before for CXI? I would think that selling at this price + premium would be like a failure in the actual venture. And by what type of acquirers? A bank?
Thank you for your collaboration, Eric
Read Answer Asked by Eric on December 23, 2020
Q: I bought a small amount of a company named Fortress Technologies that is involved in Bitcoin. When the BTC price was lower in 2019 they sub-leased their mining equipment in an arrangement that sees them retain 90% of the profit on each coin mined while the sub-lease company (WeHash) does the mining. This has become lucrative. According to a recent filing they have 163.2 Bitcoin on account which combined with cash and cash equivalent assets meant $.158 per share in tangible value. This number would now be higher with BTC having run from 17k to 23k and another month of mining. For the 3 months ending September 30, they mined 14.2 BTC worth $297,000 USD today at a cost of $10,438 per coin.

Unlike QBTC or GBTC which trade at premiums to BTC and only buy or sell, FORT is mining and buying bitcoin which seems to offer more upside. I understand that a super small cap company like this is not for everyone and that coin prices are just as likely to fall as rise but my question is whether it could be a way to profit in a disproportionate way from bitcoin as more investors look for bitcoin exposure that can be held in registered accounts? To put it another way, could this double based on people piling in and outperform increases in the coin value itself or am I dreaming?

Thanks!
Read Answer Asked by Tim on December 22, 2020
Q: I would like your opinion on crypto currency - in particular the one that is available at wealthsimple. I don't know much about it but it was recommended to me as a potential opportunity. Is it something that you would recommend for your portfolio and is it expensive right now?
Read Answer Asked by Mary on December 22, 2020
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