Investment Q&A

Q: Thinking of moving some shares from a non-registered account to my TFSA. What would be the guiding principles to follow in such a move?

Q: Two part question. 1) What do you make of the company holding their conference call to discuss the (very poor) quarterly results FIVE days after releasing their results? You would think that management would want to get in front of these bad numbers and try to minimize the damage. 2) This company has transitioned into a turn around story with declining sales. Is this not an indication to sell?

Q: Hi 5i,
Regarding the preferred shares of ECN and the proposed sale and $7.50 dividend. This might be to simplistic, but here goes. ECN is selling the First Service division for $2B US. Paying out approximately $1.5B with the $7.50 dividend. Leaves $500M US. The preferred shares outstanding are approximately 7.6 million units of A and C issues. Total redemption value at $25 would be $190M Cdn. Their 5 year anniversaries are coming up on December 31, 2021 and June 30, 2022. With coupon rates of 6.50% and 6.25% on the prefs, I would think there would be redemptions coming using the proceeds of the sale and do any refinancing with cheaper debt.
What are your thoughts on the above scenario?
Thanks for all your professional insight and advice.

Q: Would you recommend continuing to hold Enbridge with OPEC's current stance? Great dividend but if little or not growth, should I look elsewhere? Thanks.

Q: Hi there, I’ve held ECN ever since it was spun off from EFN and added to it along the way. I’ve read your comments that the stock could fall by 7.50 when the special dividend goes ex-div. So if it’s trading at 10.50 approx now and assuming it’s around same level at ex-div it’d fall to 3.00 which is close to my cost. How should proceed ie should I sell it now or buy more? Thanks
I just asked a question on ECN and whether I should buy more or sell due to probability stock may drop at the 7.50 ex-div date. So if I don’t sell and receive the 7.50/share and since I am DRIP’ing would I receive the DRIP shares based on 2.50 per share?

Q: I am considering buying some Brookfield stock BAM-A or BAMR. Do you have a preference on which one would be best?

Q: Hello,
With recent takeovers, and recent numbers which were okay, I would have expected Enthusiast Gaming to have surged . Any idea why this company is taking a hit (down today over 5 percent)? Would you consider this is a long term hold with possibility of takeover or its positioning in the industry? Thanks

Q: Please rank the above listed stocks and an explanation for #1? I am more focussed on growth as I have a significant time horizon. Also, which account is preferred for the following? Tfsa or rrsp?

Also these are currently my holdings in my tfsa. Would you sell one of the following for one of the above listed stock, or wait for new money? Thanks

Nick

AQN
TD
WELL
NVDA
SHOP
BAM
KXS
LSPD
PLTR
PINS

Q: If you were considering a purchase of either Magna or ATS today for a three-year hold, what would be your preference? Thank you!

Q: Hi Guys
Could you enlighten me on the sell off of SLQT, I couldn't find any news. They are suppose to see good earnings growth next year from what i have read.
Thanks !

Q: I seek clarification please to your response dated July 29, 2021 about converting my father’s RRSP to a RRIF. You wrote:

“ #1 Essentially, yes. The tax liability is the same, but the benefit comes from more money in the account left to compound (as less $$ comes out initially).”

However , if securities are left to compound, once funds are withdrawn, the additional capital gains accrued would be taxed in full. But if the capital gains are accrued in a taxable account, only half of such gains would be taxable ( and only 50% of capital losses would be allowed). Is this correct? If yes, the advantage you mentioned of funds left to compound in the RRIF needs to be offset by the fact that incremental net capital gains in the RRIF are fully taxed on withdrawal (or death). Is this not likely to offset the advantage you mentioned? Is it also correct that dividends on a Canadian company do not get the benefit of the dividend tax credit if held in any registered account, including a RRIF?

I apologize if my understanding of your July 29 response is flawed. I trust you will understand why I seek clarification before I make an error on a parent’s savings. Thank you so much.

Q: After reviewing your response to my question on Porsche, I also looked up VW. I understand VW is expected soon to become the world’s largest maker of EVs. I then stumbled into the ETF "CARZ First Trust NASDAQ Global Auto Index Fund" (not in your data base). CARZ includes Japanese, German, and American automakers ( unfortunately not not parts and other suppliers).

I am light on industrials. Would CARZ be an attractive addition? If capital would be better used elsewhere, I would appreciate your alternate suggestions very much.

Q: Morgan Stanley just issued a warning that the “commodity-type” semiconductor companies (DRAM and other) have entered late-cycle. MS adds that earnings going forward for such companies will be challenged. I hold more than a full allocation in semis once I include semiconductor securities held directly.

My question is on SOXX which is held in a taxable account. What components in, and what percent of, SOXX would be considered DRAM and other commodity-type companies? Would I be correct in thinking if the percentage of the said commodity-type companies is higher than 15% , it would be best to trim? (I would not be trimming securities that are held directly).

Q: Hi

i have couple reds ( Xbc - 54%, REAL -46%, BBTV - 30%, ABCL - 25%, GUD - 16%, EGLX - 12%, MX - 11%, SYZ - 10% ) in registered account. Looking for your opinion whether to sell/hold/buy or replace with some other stocks in same sectors or any good replacement you think based on valuation irrespective of sector.

Thanks
sk

Q: EWY iShares MSCI South Korea ETF seems to be losing much ground in the last month. I am wondering if I missed something significant on her economy or the related geopolitics. Would you care to comment on what is going on that affects EWY much more adversely than SPY:US. It does not appear that exchange rate was part of the reason, but I may have miscalculated Forex.

EWY has a heavy concentration in Samsung and Samsung-related entities, companies that one would likely be happy to own— or would you disagree? Would this be a good time to add? If yes , would you add to EWY or buy FLKR instead (and why please). Thanks.

Q: Hi Guys
Fortuna had a great Quarter, what's with the movement down in the stock ?, possibly due to a poor outlook for the price of Silver ?
Thanks gord

Q: I hold ECN and ECN.PR.A in a registered account. After reading recent comments I am considering selling the preferred shares to buy more of the common. Would you endorse this move? I also have a small preferred position in a taxable account with a 55% gain. I expect you would advise holding in this case. Is that correct? Thanks as always for your exceptional service.

Q: In a previous question (Asked by Bonnie on August 05, 2021) you ranked BAMR over BAM.A as "best for growth". In the recent Brookfield letter to share holders (on page 2) it says:

"As a reminder, Brookfield Reinsurance is a paired security with BAM, meaning that it is designed to trade in
tandem with the share price of BAM, while providing investors an alternative way to own BAM shares"

Does this not mean (in theory at least) that the same return should be expected from both or am I missing something here? Do you see an advantage to one over the other?

Thanks!

Q: Hello Team,
Visa has come down a bit in last few weeks. Could you tell us why? and Do you think this is a good time to add?
Thanks!

Q: I have a non-registered stock portfolio of about $150k that I am managing. I have 10 US Stocks and 10 Cdn. How many stocks would you say would be desirable for a portfolio of this $ size. If purchasing a new stock - what would you say is a good $ range when buying into a new stock given the size of the portfolio?