Investment Q&A

Q: Any concerns with the CEO selling $70M in shares? When I first saw the announcement, I thought this was the company selling shares, but I believe this is the CEO selling a portion of his personal stake. How normal is this?

Q: Hi All at 5i!! This is perhaps not the right question for this venue, but maybe you or a member could help me with this. My son is looking to buy a small house and take on a renter. He is thinking that he wants to get into the real estate rental market . Does anyone know of a or several good reference books dealing with this topic???
Thanks,
Tamara

Q: Donation of securities to charity.
Last year we reported that Questrade charged $25 per charitable donation we made. After writing the CEO and c.c.ing others, the fee was reversed. Well, they are at it again and although a note will be put on our file that the fee will be waived, it will be posted and immediately reversed. These are donations to registered charities, a university and four well-known charities. We know there is some back office work that needs to be done but ironically shortly after our hassle last year Questrade boasted to their clients of their charitable largess. Perhaps Rob Carrick will add a question about this topic in his annual brokerage review. After all Tim Cestnick named it as one of the year-end tips for saving on taxes last week. I think it is time for another letter to the CEO of Questrade and this time include 5i research as a recipient of our information sharing.

Q: Hi Peter & team,
My question is regarding Notes issued by Canadian big banks like Floating Rate Senior Note or Step Up Extendible Notes. There is not much discussions about using this kind of investment by retail investors for their fixed income portfolio instead of GIC or bonds. The yield on these Notes seems to be higher than GIC of the same maturity. Please comment on the pros and cons of Notes as the main component of the fixed income portfolio. Any disadvantages vs bonds or GIC? What should retail investors watch out for when shopping for these Notes? Thanks

Q: Please provide the pros and cons of investing in "Step Up Extendible Notes." I note that they are not covered by CDIC. Would this be a safe investment? Many thanks for your guidance.

Stella

Q: In response to Dan about buying non TD ETF's at TD brokerage, I had the same problem back in July, and threw in the towel. I moved to National Bank, where all my trades are free, both ways, and I can buy any ETF I want. The only downside with National, is their quotes are delayed by 15 min., so in a fast moving market I would open another window where I have instantaneous quotes, compare, and problem solved. TD sucks!

Q: Taxes on share buybacks..The govt. is proposing to tax buybacks.. which companies do you think will get affected? What are your thoughts on this. Thanks.

Shyam

Q: FORTESCUE METALS GROUP LTD (FSUMF:QXI, US)

What is QXI?

Is it safe to buy on this exchange?

Does the company look okay to you to buy?

Thank you.

Q: If I was to request to have SHOP moved from a US account to a Cdn account - how does it work? If say i had 100 shares in a US account - would they simply add 100 shares to the Canadian account and equivalent cash for exchange or would they add the equivalent shares - say 135 to account for the foreign exchange difference?

Q: More of a general question/comment. I wonder if you've ever experienced this or have suggestions?

I tried to make a purchase today of CASH.TO, the Horizon High Interest Savings Account ETF with my BMO Investorline account and the trade was not allowed, with the notification that only sell transactions are allowed for that security.

When I called the help desk, I was told that their internal policy does not allow investors to purchase any high interest savings account ETFs. Of course, they would be more than happy to open a BMO savings account for me!!

I was able to purchase this security just fine via Scotia iTrade. I am completely at a loss to understand the rationale here, but thought I'd post the question here as to whether this is standard practice in the industry or is there some inherent risk to this security that I'm completely missing that would cause them to blacklist it?

Thanks,

Ryan

Q: Just a note of total frustration in dealing with the big banks (for example TD). For the last couple of weeks, I have been researching high-interest savings ETFs. Some of my recent questions to 5i reflect this. I have been monitoring dividends, and price changes, etc. At the conclusion of my research investigation, I decided to pull the trigger on HSAV. I brewed a strong cup of coffee, did my finger exercises and fired up my trusty laptop with 2 screens glowing brightly in anticipation of a vigorous workout. I signed in to my TD direct investing account and entered all the appropriate data to buy HSAV.

After entering my trading code and proceeding to the next step I was advised in bright red letters that I am not allowed to buy this ETF and I should call TD. In that call, TD advised that I can’t buy that ETF. WHY? Because I can’t and the gentleman advised that even, HE can’t buy it. Why? He doesn’t know. Luckily your November news report on ETFs and Mutual Funds was released yesterday and hope was restored when other slightly similar ETFs including HSAV where provided: CASH, PSA, CSAV. It turns out TD does not allow me to buy those either.

Is this legal? If it is shouldn’t be!!!

Now researching Questrade where a 3 minute call revealed that I can buy any of these with no commission. Now the painful process of moving all my stuff may start.

Q: Most of the time we are coming out of the recession before they even announce that we are in one.

I am currently fully invested, but I wonder whether there will be a drop once announced.

Anecdotally, I have seen a complete slow down in retail customers at my place of business. It is the slowest I have seen in over 10 years. My suppliers have also slowed considerably, so it isn't just me.

I understand it is best to stay invested and diversified and the markets will correct over time.

Questions:

So, will the markets drop if they announce that is the case and we are in a recession, or is that priced in already?

If the markets do drop once announced are there any trades / hedges / or opportunities that I should be investigating or doing some research in?

Thanks.

Q: Wondering if the 5iii team has considered a survey type / sentiment analysis of what your entire membership is in fact holding for their portfolio positions ? This would give us all a perspective as DIY cohort how like minded we actually are !

Q: Currently hold this ETF. Happy with the dividend but expect it may be adjusted down. Where would you see the "bottom" for the dividend rate over the next 12-24 months and what will influence it? What are your thoughts on holding this long term as an income investment. Or is it a "trader" ?

Q: I was going to include this link in my last question as I thought it was a good read and a good reminder for long term investor's, but forgot. Here it is:

https://www.cnbc.com/2022/11/04/op-ed-investor-ron-baron-on-investing-during-periods-of-entropy.html

Q: Could you give some pointers as to what priority's you look for in regard to "how to analyze an earnings report"?

How often are earning reports issued?

Thank you.

Q: Good morning
When a broker recommends a stock a disclosure is made stating that:

"Broker is a market maker or is associated with the specialist that makes a market in the securities of the subject company"

Can you please explain what this means and whether it is significant?
Thank you

Q: My floating rate mortgage is now approaching 5%.

Do you think it is better to invest in some of the strong companies that are currently at good prices, or to pay extra toward the mortgage?

Thanks!

Q: Good morning, what ETF's would you advise for a new portfolio today. Mid age investor, including sector allocations please. TFSA and Non reg'd accounts

Thank you

Q: Could you please comment on the safety of this etf. Would investment in this at this time be ok for income and some future growth?
Thank you.