Investment Q&A

Q: Any idea why the Directors' of BYD are not electing to treat the conversion as the Directors' of IPL did? I will have a substantial CG with nominal current CL to offset.

Q: Can you suggest something to add to my RIFF. I am taking a minimum out as I don't need it but have some cash I'd like to invest for at least 5 years.

Q: Hello Team,
My question is that this stock has done well for me but I do not have it in a tfsa or rrsp etc...
With this in mind would it be best to sell, so as to save on the new proposed tax when they change?
Was hoping to hang on to it for some time yet.
John

Q: Would you be kind enough to decipher BYD.UN's information circular on the following key points? It's way too complicated for us simple retail investors.

What are the tax consequences on conversion, if any (assuming it is not a tax free rollover)? What are the conversion rates of units to shares? When will this be effected, if unit holder approval is obtained? Thanks.

Q: Would you consider this to be a good entry point for these 2 names for a long term hold - any preference ?

Q: Hi 5i team,
I want to start a position in Boyd in my non registered account. Given the conversion to corporate structure in Jan, is it better to buy after the conversion? Would there be tax consequence if I buy now? Thanks.

Q: i am assuming the decrease in boyd shares is because of this conversion from trust to corporation .
is this correct? dave

Q: Hello 5i,
I have read through all the related q&a's and just wanted to ask this:

The conversion is slated for Jan. 1, 2020 and it seems likely to pass the shareholders vote in early December. Their press release mentions the change to a stock company will bring improved liquidity, more shareholders, more global investors (institutional) and it removes the limits on foreign ownership. These are all positives (sounds much like an IPO).
It seems fine to start a new position in it now, as opposed to waiting until after the transaction is completed. If it's going into a reg'd account, there's no tax issues with the conversion; and 1 unit now will equal 1 new share. So a fella can buy it now, correct?

Q: Not really a question but a comment on an earlier question that speculates the NDP will demand changes to capital gains inclusion rate in exchange for supporting the pipeline. I would think the Conservatives will support the pipeline so the government doesn't need a deal with the NDP on that.

Q: When IPL converted from a trust they provided the form for an election under 85(1), shareholders filed it out, sent to IPL to be signed by an official from IPL and IPL forwarded it to the CRA. I guess Boyd does not want to do this?

Q: I have been through the conversion from a trust to a corporation with inter pipeline and you are given a choice by the tax authorities to differ the taxes until you actually sell the shares. The're was no automatic capital gain at conversion.
Just a comment on Terry's assumption.

Q: I understand that there will be a capital gains tax generated in 2020 when Boyd converts to a corporation.
I currently have a profit of $57,000 on these shares which are held in a non registered account. I think that I should sell the shares now with a view of buying them back after 30 days as the tax rate could be higher next year
I believe the Liberals will agree with the Ndp to increase the capital gains inclusion rate next year if the Ndp agree not to block the Transmountain Pipe Line.
This will help appease the wexit provinces and generate additional tax revenue.
Should I sell the shares now or after the November 13th earnings report or sell half now and the other half after the report
Thank you for your excellent service and your recommendation on Boyd.







I

Q: Hello 5i, the S&P/TSX30 is based on growth over past three years . Looking forward what would be your top 8 for growth over the next three years?
I realize this is a bit of crystal ball work but I would like to hear your thoughts!!
Regards Dave

Q: Hi group presently I have a $51,000 capital gain against BYD.un also I have a combined $14,,000 loss in WEF and TSGI. These stocks are all in a cash margin account. My dilemma is WEF quarterly results will be reported first week in Nov should I wait before tax loss selling this sock or do it now? additionally with the stars group being sold what I should I do to lock in the tax loss? Thanks

Q: I own dsg and i am thinking of selling and buying byd.un. What do you think of this switch. How do you rate these two stocks for growth.

Q: Boyd Group Income Fund is planning to convert from an income trust to a corporation. The conversion will be on a taxable basis. I am holding Boyd in my Margin, RIF and TSFA
accounts. Presumably there will be no tax consequences for RIF and TSFA holdings.
However, how will my Margin account be affected and what
is your advice. Thanks.
Klaus

Q: Hi, In a Q&A in The Globe and Mail, Friday, John Heinzel explained that BYD.un units conversion to common shares will result in taxable gain (if held in non-regd accounts) as if units are sold at market price by the holders, on the conversion date. Is it true? Thanks to 5i, most of us have owned this remarkable company for years and enjoyed huge price appreciation. Is there any way or means, in your view, to avert or minimize this large capital gains event ? Thanks

Q: GIL is on my add to holdings at next opportunity to align with the 5i portfolio. Is today the day to do it with the drop? I assume this is greatly Trump China trade related so who knows how it will go. CAE and BYD.un are also on my buy at next opportunity list would you prefer one of those...

Q: i often see you use the following phrase :
“it is not a must own in our view”
so in your view give me 7-10 stocks for growth that are a must own in your view,i am assuming the above 5 make the list. dave

Q: This stock has not done much the past couple of years while I hold. Would you see any issue with switching to Boyd for a 2-3 year hold? Thank you. Bill