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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: With today's carnage on Bad and last weeks HCG and the fact that it is done from the States makes it obvious that shorting on the Canadian side is a lot easier and as you say without regulatory control. What makes it different in the States and why is it not here?
Read Answer Asked by Jean on May 15, 2017
Q: The stock options announced today seems very generous given the stocks history and current trading price.
Should I be concerned about this?
I currently hold 1% position.
Thanks
John


Calgary, Alberta - May 12, 2017 - FLYHT Aerospace Solutions Ltd. (“FLYHT”) (TSX-V: FLY) (OTCQX: FLYLF) is pleased to announce it has granted incentive stock options for an aggregate 3,660,220 common shares, subject to regulatory approval, to employees, officers and directors under the stock option plan approved at the Annual and Special Meeting held on May 10, 2017.
Read Answer Asked by John on May 12, 2017
Q: My question is on over diversification - or indexing. My personal portfolio is over 8 figures. I currently hold 44 stocks spread accross the various sectors as shown below.

Technology 17%, Consumer Cyclical (Discretionary) 15%, Financial Services 15%, Industrials 11%, Consumer Defensive (Staples) 10%, Basic Materials, Metals, Mining 8%, Healthcare 8%, Communications / Telecom 5%, Energy 5%, Real Estate 3%, Utilities 3%.

The stock choices within are the BE portflio plus some top picks. With a portfolio of this size, my mind is having a hard time dropping the portfolio down to 20 stocks. I guess it is all relative. In your experience as a fund manager how many stocks are about right? I have adopted your style of buying a stock and holding it until the story has changed.

Thank you
Read Answer Asked by Terry on May 12, 2017
Q: Just an observation, wouldn't be better if (at least for the companies covered, and maybe for the ones mostly asked by members) when results are available or something unusual happens to a company to provide an overview of the situation? I think this will cut on the clutter and having many people asking about the same thing and probably more important save you time and for us to have timely information.

Publish at your discretion.

Thanks
M
Read Answer Asked by Marios on May 11, 2017
Q: Hi Peter/Ryan and team:
Two questions if you would be so kind to consider.
I have read numerous times your or members use of the term 'half position' Could you explain in layman's terms what is a half position and what is a full position. Maybe an example would clear it up for me.
Question #2 is about A&W's declared dividend.
"A&W Revenue Royalties Income Fund (the Fund) (TSX symbol AW.UN) today declared a cash distribution of 13.3 cents per trust unit for the period April 1 to April 30, 2017. The distribution will be paid to unitholders of record at the close of business on May 15, 2017, and will be payable on May 31, 2017. This distribution will be taxed as a non-eligible dividend, as the source of funds to pay the distribution is a dividend from A&W Trade Marks Inc." What and why is it they state the distribution will be taxed as a non-eligible dividend. Will this then be taxed like interest? If held in a Non-Registered account will this still be taxed at the preferred dividend rate, assuming a T3 slip is issued? Thanks again for all your answers to the many questions you receive. Ken ... :-)
Read Answer Asked by Ken on May 11, 2017
Q: Hi Team,
I believe the short interest in Shopify is now about 4.77% of the US float. Do you have any guidance on when the short interest can become large enough that the stock could become the victim of a short attack? I also know that SHOP has a fair bit of cash on hand and no debt, which may help protect it. Any thoughts you have about how a short interest in SHOP, or more generally any company, might become debilitating for a stock's price would be appreciated.
Thank you, Michael
Read Answer Asked by Michael on May 11, 2017
Q: Hello Peter, Ryan et al:

A while ago you had shared your experience after reviewing portfolios for the members. I vaguely recall you talking about sector allocation , asset allocation and such.
Is the magical number of 100 k per year income/withdrawal ( that seems to the number most articles seem to suggest that one needs to retire comfortably) realistic in the current climate? To me it looks as though one needs enormous amount of money to generate this kind of steady stream of money.

What type of portfolios you suggest to would be seniors to generate this kind of steady stream with a lot less money!
I know you can only give broad stroke suggestions.

A suggestion: You can also through your blog give your recent experience after reviewing members' portfolios, of course masking the identity etc., That will be useful.
Thanks in advance.
Read Answer Asked by Savalai on May 08, 2017
Q: I must convert my RRSP to a RRIF this year. I want to add about 10 good company stocks that have 1,3,5&10 year compounded returns > 10% to boost the overall annual performance. I have identified the companies and now I want to pick the least volatile ones. I have data regarding beta, return on equity and debt to equity. I'm inclined to do my selection based on the lowest beta, highest ROE and lowest debt to equity in that order. Does this seem effective to accomplish my goal and/or can you suggest a more effective selection process? Thank you.
Read Answer Asked by Richard on May 08, 2017
Q: I have sold 40% of my shopify position to take some profit and am now sitting with 6% cash in my non registered investment account. What options might be available to me to park the cash until I see some exceptional buying opportunities. Second question is that I am seeing several investment articles recommend a larger cash position as there may be a correction given very high valuations that appear to have too much "hype or anticipation" factored in. What percentage would you recommend I maintain in my investment account. I am sitting at approximately 6% in my non registered account and 10 % in my RRSP. Thank you for the great service.
Deborah
Read Answer Asked by Deborah on May 08, 2017
Q: I tried to search the site in the blog section for information on the 5% suggestion for individual stocks. No actual search feature for individual articles. so could I get a reason for the purpose of the suggestion. How it should work ie if you have 7% do go back to 5 or let it ride and wait what would the top percentage when to trim. I have TD up 0ver 200% at 12% of portfolio but it is a good dividen payer and stable stock??
Read Answer Asked by Ross on May 08, 2017
Q: Hi.

Im borrowing funds for investing purposes.Since this is my first time doing this, I want to ask your advice if I use in non registered acct or my TFSA.I know I can get a tax credit for interest payment of the loan but with TFsa everything is tax free except theres no tax credit for my loan.Jist dont exactly known the calculafion.Im in 40% marginal tax bracket.

Appreciate your help. Thanks.
Read Answer Asked by sunday on May 08, 2017