Investment Q&A

Q: Some of the higher risk, more speculative names you've expressed as being interesting have very high short interest:

TMDX: 42%
SOUN: 33%
WULF: 31%

How much would this impact your investment making decision and are there any extra considerations you take into account?

Q: I've been a member since 2013 and used to read all the Questions and Answers. Twelve years later, I cannot read them all - and don't have to thanks to your ranking feature!
Just wondering how many members you have subscribed to 5i...

Q: Hi! I just read that Newmont is delisting from TSX. I own this in a non-registered account. What happens to the shares, and do I need to sell and then rebuy on the US exchange? Thank you!

Q: USA listed companies purchased in CAD.

Is there any merit (or is it even possible) to transfer these stocks to the US side of the ledger?

Thanks,

Q: Zedcore (ZDC) has a share price of just over $4. So, one may have to buy a lot of shares to hold a decent sized position. Is there a maximum number of shares you would hold? Or should one focus on the dollar size of the position only? Thanks.

Q: Just reading the question from Lisa. That is a very interesting point that 95% of all bought call options expire worthless. Can you recommend a one (couple) good books that focus on selling call options and strategies?

Q: Hello 5i,

I'm considering an option's strategy that would allow me to capture the upside to stock ideas (e.g., smaller cap companies) in cases where I would prefer to not purchase the stock, as I already have quite a few stocks especially in the technology sector. For example, I was thinking of buying a few call options for CLBT at a strike price of $20, expiring Jan. 16, 2026 for around $0.65. I would sell to close the options a bit ahead of the expiry date if the stock price is above $20. I have previously sold puts for things like AXON and CLS but then the stock price took off and I was left with a reasonable premium but nothing compared to the price appreciation. I would appreciate any thoughts you have about this idea. Also wondering what your top 5 ideas might be for the US market with a strike price/timeframe for the option.

Thanks so much,
Lisa

Q: Hello 5i,

Our USD funds are fully invested so we are looking at CDR's.

If the CDN dollar declines, will this negatively or positively impact the overall value of the CDR in Canadian funds?

Thank you for your help.

D&J

Q: Do call premiums automatically diminish the closer they get to expiry date, even as low as zero premium. thanks

Q: Will AI make software applications obsolete in the near future?

Q: Can you recommend a website that provides information with respect to the percentage of ROC (Return of Capital) paid to investors for specific companies like REITs ?
Thank you

Q: Hi team,
In one of your answers today regarding scr not getting Meg, you mentioned scr giving shareholders a $10 dividend ??? As in 10/ $38.92= 25.7%?! Does that mean if I buy scr shares tomorrow and this dividend gets paid out it’s a 25.7% instant return? Or , did you have to be a shareholder before the initial takeover offer? This type of special dividend seems like a crazy waste of company resources that compounds nothing for the company long term, but if I can get a special dividend of over 25% why wouldn’t I buy it and sell after the dividend?

Shane

Q: The dynamic of how business operates in the US has continued to change and there are now new creative
few structures being charged for international
business, most notably this week to American chip manufacturers for exporting to China. To what degree do you see potential for Canadian companies to be hamstrung for US operations in new creative ‘pay-to-play’ ways? It seems increasingly possible that anything is possible, especially where it doesn’t directly impact the US voter base.

Q: Hi,

I've been a longtime customer of BMOInvestorline and have been happy. However, I've seen WealthSimple offering to pay customers a 1% bonus to transfer accounts to them. For example, if I transfer an unregistered account in kind with a value of $1M, then I would receive $10K from WealthSimple paid over 10 months.

That seems like a very good ROI for the few hours that it will take me to complete the forms and submit them to WealthSimple to complete the transfer. They also don't charge any commissions on trades, unlike BMO.

I have a friend who transferred $3M and will start collecting $30K over 12 months. Not too shabby.

How do they make money when they are paying customers 1% to transfer accounts and then don't charge commissions?


Robert

Q: In a recent market update you stated that the markets were approaching or beginning to appear a little frothy!!

Given that the markets have continued to reach all time highs (albeit earnings have been very good) do you continue to view the market as somewhat frothy or full on frothy??

How would you position your holdings going into a potentially frothy market?

Thank you
Tim

Q: The situation ..... A U.S. ETF that pays a rather large dividend . I get an email from them with dividend announcements for every month ..... The ex dividend " and " date of record are the same ...... Hypothetical situation ..... I buy the stock today ...... It goes both ex dividend and date of record tomorrow..... The dividend is paid the following day ..... First question is how they would know I bought the stock in enough time to pay me ? The ex dividend and date of record are the same so I think I'm entitled to the dividend . Am I ? If the ex dividend and date of record are the same day I would think the " settlement date " { whenever that is } would be irrelevant ..... Is it ? The reason I ask is I can collect a rather large dividend and trade myself in and out of the ETF in a short period of time limiting my risk ...... If the settlement date does comes into play { It shouldn't according to their own statements } How long is the settlement date ?

Q: Hello 5i
I am starting to move from a strong growth approach to a defensive position. I still want growth but a little less risk. I have a more less balanced portfolio and am in my mid seventies. I don’t need the cash and want to avoid dividends. Capital gains instead. I am thinking about increasing my holdings in the stocks mentioned above. What i am trying to figure out is what percentage of total port can I go up to with these. I already hold about 5 % of each. I keep thinking of your recommendation of holding only 5% in each stock. I would like to have more in these stocks for safety reasons. But, is it a good idea to do so? And up to what levels
Thanks as always for your excellent service
I asked a question earlier about percentages of a portfolio some big, stable companies could take. I neglected to add csu to the list. Possible to add it in ? Also, implicid in the previous question, if not clearly stated, is the question of what happens to the percentages of all the other companies, if these take 10 or more percent each?

Q: During the monday morning strength in the market I trimmed a few high flyers back to +/- 5% positions, now sitting at 12% cash expecting a sale on stocks in the future. RBC portfolio analyzer shows my position in NBIS at 7.5% currently, but if I minus the cash holding its closer to 10 %. To me it makes sense to minus the cash from the total when looking at position sizes, or not?

Q: Greetings,

I am honestly perplexed by the current performance of the S&P 500. I don't understand why the valuations are near all time highs. From my point of view the uncertainty with tariffs (now settling on with alot of baseline tariffs), the revision in the jobs report, the firing of people who report info the president doesn't like, and the pressure mounting on the federal reserve make the current price levels not make sense to me. Is it because the market is pricing in higher inflation or expects the tariffs to help the US economy? I understand the market is complex but would it be possible for you to shed some light so I can better understand why the market is as high as it is?

Thanks in advance,
Aidan

Q: Palantir CEO Alex Karp on Monday characterized his company’s performance using a simple rule that has historically boded well for tech stock returns.

Karp said in a release that the company’s score with the “Rule of 40” was a 94%


Rule of 40 says that the sum of the revenue growth rate and the profit margin should be 40% or higher.

Do you use this?

How can an average investor measure & use it?

Can it be used on all stocks [company's]?

Thank you.