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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: Barclay's is predicting the USA will experience a negative CPI in 2015. What would be the best sectors to be invested in should we find ourselves in a deflationary climate? Thank you.
Read Answer Asked by Richard on January 30, 2015
Q: If you don't have American dollars can you justify spending Canadian dollars to buy American stocks. In my cash ACCOUNT AT PRESENT I HAVE 34% American stocks and 66% Canadian stocks
Alan W.
Read Answer Asked by Alan W. on January 29, 2015
Q: Hello, I am new to your membership and this may have previously been asked. As there are many companies out there I would like to know what your criteria is to pick a stock for performing a review on. Are these ones scrutinized from the general lot for having the most potential?
Read Answer Asked by dale on January 29, 2015
Q: For Kelly looking for a US$ Investment Savings Account, this one pays about 0.25%.
Read Answer Asked by Jeff on January 27, 2015
Q: In reply to Kelly, we receive US Social Security and have it sent to our BMO US dollar account. No problem. Then we simply transfer it to pay our US credit cards, or into Canadian funds for use here as required.
Read Answer Asked by Edward on January 27, 2015
Q: Peter and team,
This is a question that i am hoping either you or one of the other members of the site might be able to help me with. I have US holdings in my RRSP but to sell and keep the dollars in US currency, my self directed brokerage requires me to put the proceeds in another us holding same day. In canada, there are many high interest savings accounts to do this with but i have been unable to identify the same type of account in US dollars. Any suggestions? I have used FLOT but would prefer a high interest savings account if possible.

Thanks
Read Answer Asked by kelly on January 27, 2015
Q: Hi 5I
I've tried in vain to understand IRE delisting (ADR's)from NY. I am with a discount broker (BMO) and I hold 1200 shares. I don't know if I can continue to hold the shares in kind at BMO (ADR'S) or do they get converted (or liquidated) and after 1 year can I continue to hold the converted security in the discounted brokerage.Excellent Site.
Thanks Bob
Read Answer Asked by bob on January 27, 2015
Q: I ask your opinion on equity diversification. Does diversification improve returns or merely reduce volatility. If I invest in the same proportions as the TSX make-up (30% financials etc.), will I achieve similar (or better/worse) returns than a well diversified portfolio over time (5 years for example). The equity investments would still have to meet the requirement of being at least satisfactory equities as indicated by 5i.
A second question is - do I need the to invest in other than equities if I believe that I have at least twice the investments to fund a reasonably comfortable retirement and keep sufficient cash on hand for about 2 years expenses. As a sombre/humorous note what is at risk (I think) is our children’s modest inheritance, and they are all in middle aged and in reasonable shape financially.
I understand that there are no perfect answers, but experienced, informed opinion is of high value.
I greatly appreciate the rational unbiased advice on 5i. Thanks.

Cyril
Read Answer Asked by Pat & Cyril on January 27, 2015
Q: Hello Peter and team,

On Feb 2nd deletions from the S&P/TSX Canadian Dividend Aristocrats Index will include Evertz Technologies (ET) (in your income portfolio), and two of your covered companies (CSU and HLF).

As of Jan 23rd the iShares Canadian Dividend Aristocrats Index ETF (CDZ) had $21,797,887 worth of ET shares. My math equates this to 1,371,799 ET shares. This represents 5.2% of the floating shares.

Similarly CDZ had $12,124,809 of HLF shares, which equates to 598,756 HLF shares. That is 5% of the floating shares.

The number of CSU shares held by CDZ would be 0.2% of the floating shares, which is negligible.

How does the ETF go about disposing of such a large quantity of ET and HLF shares? Does the ETF have to sell all of them exactly on Jan 30th, or does the ETF have days or weeks before and after Feb 2nd to gradually dispose of their shares (so as not to flood the market)?

If the ETF has to dispose of all their shares on Jan 30th, do they wait until the last minute of trading? And being that it is 5% of the floating shares in the case of ET and HLF, won’t this have quite a negative impact on the share price (in the short term)?

I may be interested in acquiring some ET and HLF shares. Is it possible to take advantage of this situation? How would I do this? Should I place a low ball order on Jan 30th and see if I get filled?


Paul J.
Read Answer Asked by Paul on January 27, 2015
Q: Where can I find the "Shorts" outstanding for any listed security? Thank you.
Read Answer Asked by Robert on January 26, 2015
Q: What to you think of Amiee Chans move to croos list Norsat on the NYSE.After the consolidation there are only 5 million shares outstanding, doesn't make much sense to me unless you are trying to maybe sell the company? Appreciate your opinion.

thanks Gord
Read Answer Asked by Gordon on January 26, 2015
Q: Which free website do you think offer the best current news on specific stocks. I was always using Globeinvestor in the past but now that they have changed their format I don t seem to get current news (ex: SYZ results). Thank you !
Read Answer Asked by Pierre on January 26, 2015
Q: Given the recent Bank of Canada action, I am trying to put together a strategy to handle bond re-investments as they mature within my portfolio. This would include risk (spread) and maturity (duration). Have you considered entering this arena as a service to clients or is there somewhere you know of that can be of assistance? I am not a bond trader. I invest with the desire for income and hold to maturity.
Read Answer Asked by Greg on January 23, 2015
Q: Hi- I know that when a new closed end fund is started up that the first buyers end up paying for the administrative costs of the fund. Is the same thing true of a new ETF? Horizons has put out an Insider etf which I find interesting, but I want to buy it when it reflects the actual fund's value.
Thanks

Read Answer Asked by Pat on January 22, 2015
Q: I currently own GG:NYSE and have a paper gain. If the ECB does provide stimulus this Thursday would you sell GG:NYSE and buy a European ADR listed on the NYSE. If they do not provide stimulus would you sell GG:NYSE and buy a Swiss ADR traded on the NYSE, thank you for taking the time to read and respond to my question.
Read Answer Asked by Michel on January 21, 2015
Q: There seems to be so much negative news lately: slow growth in China, deflation in Europe, commodity deflation (oil going to zero)and of course the Greek exit.
Can you think of any positives that might happen this year to bring joy to the hearts of us poor old weary investors.
Mike
Read Answer Asked by michael on January 21, 2015
Q: Hello Peter,
Can you please provide a view as to how you would sell stocks? For example, a company like BCE is much easier as it does not go up dramatically and one can compare its fundamentals. We can do the same for PHM or NHC, but the stocks go up 10 - 15 % up in one day, and another day, they may down alot and than bounce back. Is it best to simply trim as they go up? Please advise on the sell strategy, specifically on the smaller names. Thanks very much. Umed
Read Answer Asked by umedali on January 20, 2015
Q: ** Congratulations to 5iResearch on your recent nomination for the Small Business of the Year award (1-10 employees) with the K-W Chamber of Commerce.
Best of Luck on February 19 at the Chamber`s 2015 Business Excellence Awards Gala @ Bingemans!
Read Answer Asked by Robert on January 20, 2015
Q: This question has little to do with this particular VSE stock but it is an example of today of my frustration on these smaller companies and their reporting. My understanding is that TSE and NYSE firms must report their quarterly numbers within 90 days of that date and usually they give you a 10-15 day heads-up of when these numbers will be announced. I believe VSE listed companies are given 120 days to announce results and from what I can see, they are under no obligation to state what day this will be announced. Am I right in my assumptions? Is there any way to know where to look for when these results might be posted or are you supposed to guess?
Read Answer Asked by Barry on January 20, 2015
Q: Re Louisa question today - If by tax reporting she means the T1135 "Foreign Income Verification Statement", it would not be considered foreign content for that purpose and would not have to be reported. Post if you wish.
Read Answer Asked by Christopher on January 20, 2015