Investment Q&A

Q: Where and what is this "5i Report card" a few members have recently mentioned? Have I missed it or does it go by another name?
Thank You

Q: I am wondering if 5I has a mandate to educate readers as to make report cards themselves, or to teach us to start to do some of our own research. Say which websites to use , etc.

Q: Would you mind if I was to email CBC's Marketplace and suggest to them to do a segment on the fantastic service you provide for Canadians in the investment arena. Normally their shows deal with rip-offs and the like but I bet they would like to do a "positive" show once in a while that provides an alternative to what else is out there for investment advice.

Regards

Q: Hi, I also love the new 5i report card that was added; gives great insite into how you are evaluating the company in an easy to see format.

Can you comment on the following: I don't see a "current valuation" row, which is interesting to me. I think it is fairly consistent in you guidance to look for great companies and focus less on day-to-day gyrations; however, do you not look at that at all in these ratings? For example, you recently mentioned that you don't consider CGI (gib.a) a great company but it is very cheap, so may be considered. If you did a report card on CGI, this wouldn't be reflected in the report card, would it? I guess I'm thinking of the situations when the market may be mis-pricing valuation of a company in your view; however I suppose this would mean the scorecard would have to be updated fairly regularily for each company.

Thanks so much for your service.

Q: Feedback on report format enhancement: the new ACQ report has a new 5i report card on the left side of the page. What a terrific addition to provide us folks with a quick snapshot of the company, and your analytical process. All in all a very nice value added piece. Thank you.

If possible, it would still be a big help for sector balancing activity to know exactly which sector you see each company fitting into. Could this be done, for example, in the white bar at the top of the page where you have ACQ all by itself?

I fully expect future MBA programs to be teaching case studies featuring 5i . In your short history thus far, the growth process, the continual fine tuning, new enhancements and high quality customer service are so impressive and should be an inspiration and superb example of "how to grow a new company" to budding entrepreneurs.

Best wishes for your future success.

Q: 5i Report Card - what a great addition!

Q: Hi Peter & team, I always find difficult to remember the company name associated to a symbol. If possible, when answering a question could you please make sure to use the company name in your answer. This would be easier to read, and would avoid the need to search for the company name associated to the symbol used in the question. On the other hand, it would be great if everybody would do the effort of using both the symbol and the company name when asking a question. Thanks, Gervais

Q: Hi Peter,

How come you do not have any US stocks on your recommended list.

Paul

Q: Looking at reallocating some cash in my RRSP to stocks in the Model portfolio. Was wondering if you expect some downward pressure simply due to the "sell in May" phenonema. i know over the long term it probably doesnt matter but short term Would I be better of waiting a month or two for a better entry point.

Q: good morning,
could you clarify joe's april 9 comment regarding having your broker "journal" inter listed stocks from Can. to US listing and then selling to raise us funds? Assuming the stock performs flat over the holding period, does this circumvent the bank charges that your would normally incur if you just bought us funds?

Thanks,
John

Q: Was reading where it says TD is entering overbought territory with a RSI value of 73.5,could you explain this

Q: As long as you have both US & CDN a/c's I just call up TD or CIBC. Let's say I have 1000
ABX in my CDN a/c I just ask them to journal same into my US a/c. Then I sell same
in US a/c. Presto I have $20,000. US. This applies to any interlisted stock.
Joe

Q: Re "SGY" surge energy, good news today, how and where do I get this info, much appreciated.

Q: When selling a stock short and buying it back in a different year. Do I report gain or loss in the year the transaction is closed ? Would the same rule apply when selling put option in one year and buy it back or exercised the year after?

Thanks

Q: Regarding Jacques' question on March 26, 2014 and the response, it is correct that no tax slips would be issued for any TFSA since it is a tax free account. All that happens when dividend withholding taxes are applied is the cash dividend you receive in your TFSA from US holdings is reduced by the withholding tax. This is also true if you hold foreign non-US holdings in an RRSP based in countries in which Canada does not have a tax treaty with in relation to RRSP's. I have seen this in my own RRSP account where I have had withholding taxes taken off my Teva dividends. The main purpose of a T3 tax slip is to distribute income to the taxpayer for a taxable account. They are not going to give you the benefit of any deductions if there is no income to be taxed. Hope this helps.

Q: Hi,

Regarding BYD.DB, can you explain in some detail how this security will behave? Since it is trading well above its conversion price, my understanding is that its delta should be close to 100% of BYD.UN, but it will have 5.75% interest payments instead of the ~1.35% distribution? Does this not make it more attractive than holding BYD.UN? Can you also put into simple language the redemption features?

"On and after December 31, 2015 but prior to December 31, 2016, the Debentures may be redeemed by the Fund, in whole or in part from time to time, at the option of the Fund, at a price equal to the principal amount thereof plus accrued and unpaid interest up to but excluding the Redemption Date (as defined herein), on not more than 60 days' and not less than 30 days' prior written notice, provided that the volume weighted average trading price of the Units on the Toronto Stock Exchange (the “TSX”) for the 20 consecutive trading days ending on the fifth trading day immediately preceding the date on which notice of redemption is given is not less than 125% of the Conversion Price. On and after December 31, 2016 but prior to the Maturity Date, the Debentures may be redeemed by the Fund, in whole or in part from time to time at the option of the Fund, at a price equal to the principal amount thereof plus accrued and unpaid interest up to but excluding the Redemption Date, on not more than 60 days' and not less than 30 days' prior written notice. The Debentures may also be redeemed by the Fund in the event of the satisfaction of certain conditions after a Change of Control (as defined herein) has occurred. See “Description of Securities Being Distributed - Offer Upon Change of Control”.

Thank you.

Q: Wondering if 5i comment and/or any current and 2012 (1st year) subscribers claimed 5i membership as a deduction claim on "carrying charge" on Line 221 -> I'm saying that 5i is financial research not a newsletter magazine. I'm doing it again for 2013. I didn't have any problems for 2012. Peter / 5i staff -> you've done a great job!

Q: PHE is the Tactical Hedged Equity Fund from Purpose ETFs, which Som Seif is now involved with. Assets are now above $50mm, performance has been reasonable since inception last autumn, and management fees are under 1%. Would this qualify as a true hedge fund in the same league as Picton Mahoney and Donneville Kent's as net market exposure seems high around 80%, and how would their mandate for hedging the equity market compare with the others including Venator etc.? Also do you have any opinion on the 5 Purpose ETFs in general, or any experience with Som from his time at Claymore? Thanks, J.

Q: What are your current sector waitings for moderate to aggressive investors? Thank you

Q: Hello Peter....Now with a diversified portfolio, I'm looking to sort the existing holdings and new additions between 3 accounts - new TSFA, adding to non-registered account and managing an existing LIRA account that is can be drawn down beginning in 2107. I'm doing this because of the different income tax rates related to gains, dividends and interest as outline in recent 5iR Q&As. It would be helpful to me to know the holdings in the model portfolio and the income portfolio that you consider to be foremost growth oriented. For those, I would allocate to the TFSA. And I take it for ones like Surge that is growth oriented but with a high yield of about 8%, you would consider assigning it to the non-registered account. And ideally, fixed income and trusts would be held within the LIRA account. Thanks for the guidance......Tom M