Investment Q&A

Q: Greetings:
You have had several questions concerning drips and the discounts allowed when the shares are purchased. I was advised by my discount brokers that they decide what companies will be put in their list of drips, and furthermore no discounts are provided unless the shares are held in your own name. All other drip programs are synthetic drips. Please elaborate.

Thank you,
BEN

Q: When doing my research, how much validity should I place on Morningstar Analysis Price Target and 3/4/5 start Ratings. If there is a $16.00 price difference to todays price. How valid is that??

Q: Why is this stock classified as Consumer Discretionary as opposed to a staple? There seems to be a disconnect sometimes. For example, Molson Coors is classified as a staple yet PLC is discretionary. Obviously thought is put into these topics by experts but the service offered by PLC seems to be for a pretty non-discretionary matter!

Q: In the event of windup, dissolution, liquidation, where do the various debt instruments rank with respect to each other ie. bank debt, debentures, notes and preferred shares? When there are several debentures, notes and preferred shares outstanding, how do they rank with respect to each other?

Q: While most microcap tech stocks have been trending down for 2 years now, despite some companies showing financial strength, AirIQ's stock price has been trending upward and hitting new highs. What can we learn from AirIQ?

Q: Good Afternoon Peter,

Sorry for the length, but I would appreciate a second opinion please.

A cautionary tale for any other members using BMO Investorline, the new website no longer displays journaled stocks correctly or coherently.

For example: Earlier this year I bought NVEI:US in US dollars, it’s dual listed so I called in and had it journaled to the “Canadian side”. With the old BMO Investorline website the stock’s symbol would update the next day to “NVEI:CA” and display in Canadian dollars. Clear and logical.

With the new website however, the stock’s symbol did not update and remained as NVEI:US.

Thus, I called in again to confirm that the journalling had actually worked. They confirmed that it had & the representative seemed surprised that the symbol was still displaying on my screen as NVEI:US in US dollars, instead of NVEI:CA and in Canadian dollars.

Fast forward a few months: I wanted to sell my NVEI as a tax loss. I clicked the link to sell it and the symbol that automatically showed up on the website’s trading page was NVEI:US and in US dollars.

To my understanding this was incorrect. While NVEI:US is an equivalent and exchangeable with NVEI:CA, they are in fact two entirely separate stocks, listed on two entirely separate markets, in different currencies. I can’t just go ahead and sell one as if it were the other. {Question 1: Do I have this right?}

So I manually changed my sell order to NVEI:CA in Canadian dollars and sent in the order.

When the order filled, everything got more visually confusing on my computer screen with this stock. So I called in again and found out that when I manually changed my sell order from NVEI:US in US dollars to NVEI:CA in Canadian dollars I had failed to notice that the website had automatically switched it to a buy order. (I can only assume the reason was because the website didn’t recognize that I owned NVEI:CA not NVEI:US...) So what happened was that I wound up buying more shares of NVEI:CA instead of selling what I already owned.

To relieve my stress, I then asked the representative on the phone to please sell all of the NVEI:CA I now owned and wipe my hands of it. {Question 2: I think this now voids my tax loss sale?}

My frustration only boiled when the explanation I was given regarding why the stock journalling went awry in the first place was non-sensical. I’m trying to remember the exact wording, but it was along the lines of: “the market you bought the stock on can’t be changed … the dual listed stock will display on the screen based on the primary market that the stock is listed on regardless of which version you own.” It made me wonder if the representative I was speaking to this time didn’t know what journalling a stock actually was, or if it was me.

If you can please confirm or correct my understanding of the two points I highlighted, that would be appreciated.

Thank you.

Q: A big thank you to Peter for sharing his tips on Analyzing Financial Statements the other day. I learned a lot.
Here's the link on youtube for whoever missed it.

https://m.youtube.com/results?sp=mAEA&search_query=how+i+find+investing+opportunities+in+a+company%27s+financial+statements

Q: Is there a website that shows the percentage of institutional investors/funds holding the outstanding stocks of a company ?
Thanks

Q: I’m responding to a question about Quantum AI. Please stay away, as I think it is a fraud. I got sucked in by an ad between Stephen Harper and CTV news where Harper allegedly recommended Quantum AI’s bot investment platform. I filled out the request for information from Quantum AI. But before I could do my due diligence, they called me and convinced me to give my credit card information for the minimum deposit (250USD).. Once I hung up the phone and had some time to do my due diligence and tried to see the original Harper/ CTV news interview. The interview was nowhere to be found and the ad had disappeared. I looked on their website and saw positive comments from Elon Musk, Jeff Bezos and Bill Gates. They were all fake endorsements. That’s when I realized that I had been had. They gave me an email the next day asking for more financial information from me to set up the trading platform. I refused and said I wanted my deposit put back on my Credit Card. Of course they refused. I had a long email chain with them, but they just had a hard sell and got angrier when I wanted out. Since they refused to allow me to back out, I reported them to the police and Canada’s fraud website. There were other red flags such as making exorbitant claims about the money one would make. There was very limited contact info, such as a physical address, phone numbers and email addresses. Also there were their hard sells. So my strong recommendation is to stay far away and not be sucked in. Hope that helps 5i readers not to make the mistake that I made.

Q: Peter,

Excellent presentation on Oct 17th re the things to look for in financial statements!


Paul

Q: Hi, I just missed Peter's webinar. I wish you guys would consider doing these after work like 4 pm so our time is more flexible.

Mid day creates a lot of uncertainty.

Can you please give me a link to here the replay of it.

Thanks


Sheldon

Q: Upcoming Webinar with Peter - Tuesday, October 17th. I see that it appears TD is a sponsor of this webinar, due to their logo appearing on the announcement. As well, the TD colour of green is quite prominent. I find this a bit concerning. 5i sells itself as being totally neutral and independent and not swayed by others in their opinion. How are we customers to view this? How can 5i be fully neutral in their assessment on a company like TD when they are probably receiving something in exchange for the right of TD to have their logo and colour front and central? 5i has always rated TD as a top bank stock along with RY. This sponsorship kind of clouds the authenticity of this opinion. Can you please state what your position is?

Q: Can you tell me of any recent insider buying done by Brookfield Corp.How can I in the future find this myself

Q: i was wondering if your team would be willing to address an issue for people moving assets out of their RIF. Just a generalized response would be of help as most advisors are in the selling business, which is understandable.
Thank you and happy Thanksgiving to everyone at 5i.

Q: Hi, Will there be a recording of Peter's event on Oct 17? I can't make the webinar. thanks

Q: Hello, can you tell me how close the NEO listed CDRs are tracking the US listed companies? Also, is there a no fee site where I can compare the performance of the CDRs against their US equivalents? I don’t see tHis functionality on 5i and it would be nice to have. Thanks.

Q: Thank you for the answer provided today to Guy R. re Structured Notes.
My question is similar but about Principal Protected Notes pushed by advisors as well.
Thank You!

Q: Thanks very much for your quick response .... just a comment - while the dividends are back dated when posted, the funds are not available to the Investor until actually posted. Thus the Investor does lose either through loss of interest, or not making further investments when they might have. Most brokerages pay nothing on cash balances.

Q: Dividend Pay Dates

We all know that dividend pay dates are a matter of record. My question concerns delays in receiving these dividends. For example, some companies make their payable dates on a Saturday, Sunday, Monday or Holiday. TD Bank is a prime example of this & often has a payable date on a Saturday. As a result, you are lucky if the dividend shows up in your account on the Monday, many times later. Also, some companies declare an extra or Special dividend, normally payable on the same date as the regular dividend. INSW is a perfect example of this, with the regular dividend showing up a day after the payable date & the extra won't be in my account for a week??! It is pretty obvious that someone is making money on the FLOAT - don't know if it is the Company issuing the dividend, some sort of middleman or transfer agent, or the Banks? It certainly is not the individual investor!? If you consider the same practice affects dividend income on Mutual Funds & Canada Pension Plan, perhaps millions of Canadians are affected. Would you comment on this practice - anyway this might be avoided? Thank you - Ross Siemms

Q: After the planned split of LAC I see at my TFSA account (with RBC Direct Investment) only the LAC shares but no signs of LAAC (second part of split). At the same time they say that LAAC shares commenced trading on NYSE this morning. Please advise should I undertake something for clarification fo this issue or it is just a transition problems and thigs will be automatically set up soon? Thank you!