Investment Q&A

Q: Bloomberg had a segment on recently where structured notes were discussed as a solid way to provide downside protection for a portfolio. Energy was highlighted as a good example given the recent decline in oil and gas prices.

Apparently the banks have these structured notes.

Would you agree with the “ protection “ aspect of these notes and how one can buy them.

Thanks.

Q: Hello friends,

I was wondering if you ever did this exercise to check if any of the three model portfolios sector allocations match the sector allocations proposed/suggested by the Portfolio Analytics.

For example, does the sector allocations for the Balanced Portfolio match the Balanced or Alpha-Balanced allocations suggested by the Portfolio Analytics?

Perhaps this would be a nice subject for a blog article that could also explain the rationale behind the differences (if any).

Q: This is more of a question to understand journaling in general than about the specific situation. However, the situation provides an avenue.

At the beginning of my self-investing career, I accidentally bought ENB (US) instead of ENB.TO. It didn't seem worthwhile to change it. But I do wonder how the currency conversion works if I journal it. Do I lose on the exchange from USD to CAD? Does the share count remain the same?

I feel a bit naïve here but want to clear up this gap in my understanding.

Q: Could you compare and contrast the new Purpose Yield Shares and the CIBC CDR.
What are the pros & cons is one better than the other for exposure to US equities.
Thanks

Q: if the primary objective is to maximize return, with minimal risk, over a 5 or 10 or 15 year time frame why would you consider stock picking over index funds? Personally i do it, using a barbell approach, because I think i can beat the index in some capacity.

But if you believe the general consensus that index funds vastly outperform active funds or stock picking why should we try?

Q: Is the cost of currency exchange something that can be written off on taxes? And if it is, is it captured in the tax statements most brokers provide? And where?

Q: I was just wondering if you could clarify what the 'blackout' rules are for company insiders prior to an earnings report. I have seen this pattern before when a company reports decent earnings, the stock gaps up but sells off on heavy volume. To me, that suggests that some holders were waiting to 'sell the news' on a day that would have heavy volume/liquidity. In your experience, could that be company insiders finally able to sell their stock because they are not allowed to do it prior to earnings? CLS this week is a good example, because usually it is a very low volume trader. Thanks!

Q: I recently heard a podcast which said that buybacks generally benefit insiders and were actually illegal prior to the Clinton administration. I do notice myself that the stock price does not seem to rise much on the announcement of big buybacks and that companies seem to do it when the price is higher rather than times like these when it would seem most worthwhile.

What is your take on this?

Q: Hello Peter et al:

A great question by James today and equally a great answer by you! AAPL wasn't included in James' question and hence the price targets characterized by Good price VS Great price for AAPL wasn't mentioned. I have added AAPL here.
(MSFT: 240/210; GOOG: 95/80: AMZN: 95/80.)

IF I were to request you to wear your Option trader's hat, (after all you manage a fund based on options!) how would you play these stocks. Assume that these are long term holdings and cash covered. Should one simply either buy puts or sell covered calls. Your "great" price targets roughly assume about 15% downside correction.

If indeed these solid stocks are going on sale and if one is determined to hold them for ever, why would one not make any money whilst one waits?
That's the thesis behind my question.

Many thanks in advance.

Mano

Q: in which sector would you classify this stock

Q: So, I made a booboo.

I intended to purchase CTS in my TFSA (CAD) but I made the purchase in my TFSA (USD) account. I didn't think much of it, but turns out I seem to have purchased CTSDF on the OTCQX exchange (Over the counter).

It still reads as 'Converge Technology Solutions' but in USD and with a different ticker.

What did I buy and what should I do to make the switch?

Luckily, I'm up 18% in 40 days.

Q: Please advise what was the yield and price per earnings of the S & P TSX as of dec 31 2022. In the future where would I find this info?
Thank you.

Q: Good day 5i - I would like to know if it is advisable to pay a fee for an ETF Cash Account if you are frequently depositing and withdrawing funds to use to buy stocks, etc. I realize the funds are more liquid. Also, not having used an ETF previously, do you need to be concerned when the ETF is at a higher price when you purchase it. Thank you.

Q: I am having difficulty finding out about fees associated with CDRs. On the one hand I see the answer 'there are no fees'. On the other hand, I see this on CIBC's website: "The notional currency hedge includes a spread earned by CIBC which will on average not exceed 0.60% on an annualized basis." Is this 0.6% paid for by owners of the specific CDR? If so, is there a similar expense at every bank or brokerage through which one might buy a CDR? This would severely hurt the value of buying CDRs would it not? You are still taking all the equity specific risk, you would still be charged the withholding tax, and unlike an ETF, you are not gaining any diversification for your fees. Thank-you.

Q: Hi Folks, about the NCIB. Has there ever been any research done on what affect an NCIB has on the share price and overall financial health of the company. Thanks for considering this.

Q: On Jan 18 Dan asked a question
Your answer indicated a search for your “Watchlist followed by sub category”
How am I able to locate this information
Thanks

Q: Hi Peter and Staff

Yesterday "D" asked a question about websites to find returns of various indexes and you provided a link for S&P, Nasdaq and TSX. The S&P link clearly said the returns quoted included dividends. Perhaps I missed it but did the other two state whether the returns included dividends.

I am not sure if this is a separate question but when the TSX index shows up on the tickers every day and whether it is up or down and yearly tsx indexes are compared , is it reasonable to assume that is a factored mathematical calculation based on size of companies and their prices over a certain period of time? Does it assume price only or that you re invested the dividends into more shares of those companies?
Thanks for all you do

Dennis

Q: For a covered call ETF,the ROC will reduce progressively, year after year ,the initial book value,so what will happen then if you don't sell the ETF after many years : if the book value reaches zero,does this means that the book value could then become negative? If not,it will be interesting to keep the ETF for very long term..

Q: Hi There!

I and family own CDR shares on NEO of several US companies. I thought that, as they are fractional shares of the main shares they would mostly move in same direction of the parent shares. Lately I’ve noticed quite often even though the main shares are up on a day the CDRs are moving lower sometimes significantly. I can understand a few things that may cause this such as USD/CAD FX or perhaps it’s trading volume differences. Can you please explain this further?

Thank you!

Q: What criteria do you use in providing suggestions when you are asked for:
a) top dividend picks, or
b) top growth picks?

Thank you.