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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: Last year Dowdupont spun-off Dow and Corteva. Amounts were allocated to each of the spin-offs as to their immediate value on separation. I received a T5 setting out those valuations as "foreign income". My broker Qtrade left my original cost for the DWDP prior to spin-off as was. Allocating a theoretical cost for the DOW and CTVA shares without reducing the cost of the remaining DWDP shares leaves open an unfair (to Revenue Canada) capital loss upon sale of DWDP. Fair enough, however the response to allocate the DOW and CTVA share values as income seems unfair to the shareholder: as income full tax is payable whereas only 50% of capital gain is fully taxed and has the ability of set-off against losses.
Question Can you advise whether the Qtrade handling is mandatory per Revenue Canada or arbitrary by broker?
Thanks very much.
Read Answer Asked by Mark on April 24, 2020
Q: Dear Peter and Ryan.
Thank you for your help through the volatile market. Though the Economy is not back yet, we may be able to see the light at the end of the tunnel soon. I checked a few stocks. Airlines and Energy have been down a lot. I want to take advantage of the market and consider allocating 10% of my RRSP to these companies (AC, UAL, EXPE, CVX and SU). I like to think about 2-3 years or longer. Currently I don't own any airlines. I own TOU only for oil industry.

Thank you,
Yiwen
Read Answer Asked by Yiwen on April 24, 2020
Q: My small holding in MSG has performed much better than I'd expected considering the recent challenges. With the stock now reorganized into shares representing "sports" or "entertainment", I'm wondering which
of these issues you'd view as more appealing if I wish to expand my interest? Thank you.
Read Answer Asked by Howard on April 23, 2020
Q: My timing in purchasing was terrible, and now I am just watching my investment lose value every day. Should one expect a timely turnaround here ? I fear Tyson’s mega chicken plant in Sioux City will have the same issues as the Waterloo pork facility ... I feel like I am waiting for more bad news to murder my investment ,.. please advise .
Read Answer Asked by Thomas on April 23, 2020
Q: So apparently dog shelters have few if any rescues available and breeders also are without puppies now that folks are homebound and seeking furry companions. What do you think about Zoetis as an investment at this time from a risk reward perspective - would you recommend it as a buy, is its debt a problem - any other cautions. It hasn't dropped very much in this environment so would you average in gradually? Many thanks for the help. Ken
Read Answer Asked by Ken on April 22, 2020
Q: When I go in Florida in the winter I really like this restaurant chain, They have the best steaks for a really good price ! They have over 500 restaurants in all the states and they have no debt and over 100 millions in cash. They cut their dividend and the big bosses have all cut their salaries for this crisis. Do you think it is a good investment at the present price and do you prefer other chains for investments ? Thanks
Read Answer Asked by jean on April 22, 2020
Q: What are your thoughts on SYSCO CORP. In a previous question, 5i's main concerns were with debt level but there appeared to be good growth prospects. The the stock would be OK at a better valuation.

Currently, the price is much lower but I see that more than 60% of its revenues is from restaurants. With potential restaurant closures, is this a concern for the near term and future growth?

Is SYSCO worth buying? Is US Food Holdings a better option. Both have not rebounded as much as other consumer sector companies?

Thank you





Read Answer Asked by J Stephen on April 22, 2020
Q: I would like your help putting together a yield portfolio of between 15 and 20 names.
This would be the entire investments for my wife and I. We are both retired and now live full-time in the U.S. And at some point I expect my Canadian newspaper pension to disappear, so I am looking to replace that money.
I would like your opinion of the above names with regard to safety of the income and overall diversification.
I would also appreciate some additional ideas and would like to know if I`m off base on any or all of these names.
I am currently only invested in CM, BNS and BMO and DIR.UN.
Please take 20 credits (or more).
Thank you in advance for your invaluable assistance.
Read Answer Asked by Kyle on April 21, 2020
Q: I have held IVE for many years and to sell I would have capital gains taxes to consider though not what they would have been a couple of months ago. Are there 3 - 5 dividend stocks that you think are solid bets to out perform the index coming out of the downturn over the medium term? (2-3 years)
Thanks Hugh
Read Answer Asked by Hugh on April 21, 2020
Q: Hi 5i team,

I enjoyed your flash update and the reasons for stock downgrades or holding the line, even though I am largely U.S. focussed these days. AKAM has come to my attention in a couple of analyst reports as being a backbone of the stay-at-home theme in routing traffic through its servers and its traffic levels are soaring. However, I don’t fully trust the theme in medicine and video conferencing as their valuations are extreme. I also note that on bad market days the stay-at-home stocks do well and on good market days, they do poorly, as if the market seems to be skeptical of them. So, does AKAM have some staying power if the stay-at-home trade ultimately wanes?

Thanks again for the insight.
Dave
Read Answer Asked by Dave on April 21, 2020
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