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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: Hi team,

Can I get your thoughts on Workiva (WK)?
(I did a search prior to submitting but could not find any questions asked on this company).
From your Companies page, most of their Profitability Ratios are negative, they have a 3 year/5 year growth of 16% and 18% resp. Their ROE is 385%... which got my attention.
How do they stack up to their peers in the same industry (cloud computing)?
Assuming a well diversified portfolio, would this be a good initial buy at a 1/2 position?
Their 3 month, 52 weeks and YTD has had impressive % gains so it seems like momentum is on their side here.
From their last reporting period, forward guidance seemed quite positive.

Cheers,
Steve
Read Answer Asked by Stephen on April 12, 2019
Q: Good Afternoon,
I have just finished reading the ETF & Mutual Fund Update Newsletter which I really enjoy. I read the article by Moez Mahrez written about Return of Capital (ROC). I think most investors find this whole concept a bit odd and confusing. A direct quote from the article " It is not actual income generated from investments, rather it is cash that is distributed from the cash portion of the fund". If this is a return of cash why pay any tax on this? I know it reduces the ACB and becomes a tax deferral mechanism but this shouldn't be taxable at all? Once again a direct quote " ROC is quite tax-efficient as it turns that cash into a capital gain, which can be deferred". Once again isn't this a bit of a scam? If I and other unit holders buy an EFT and there is an influx of cash and the fund distributes some of this cash back to me, is this not double taxation? That money has never been invested, never earned a return and all of a sudden it's taxable to me? Under the Big Picture portion of the article " realized returns from the past as well as new money from investors", if there is a portion of the cash that are realized returns from the past then shouldn't that portion of those returns be taxed accordingly? If those returns were cap gains, dividends or interest shouldn't they be taxed as such?
Sorry this isn't directed at your organization I understand you are simply describing how the process works and I find the article very helpful. I'm sure this is a CRA issue. It's pretty basic isn't it? If the money is invested and a return is earned than that money should be taxed accordingly. If the fund has a large cash position because of a large influx of new unit holders , this hardly seems fair that when a portion of this money is distributed it shouldn't be taxable at all, this is double taxation in my mind. That is after tax dollars we are investing and a return has never been earned.
What am I missing here?
Thank-you
Read Answer Asked by Chris on April 12, 2019
Q: Hi Guys:
I've re read this article twice since you sent it out, lots of good advice on how to invest for the long haul, for the individual investor who manages there own money. I wish I had found 5i many years ago, so thanks for the service and the information to help make the right choices in my retirement.
Best Regards,
Tom
Read Answer Asked by Thomas on April 12, 2019
Q: I own PHO at 2 % weight and under water on this stock. From your comments it may not do much this year. Should I wait to see if the stock improves on their earnings or it is ok to buy to a 3% weight ? I am also looking at buying at PEO.V even though a different sector, I am putting money in the RRSP each month so could buy PEO now and more of PHO at a later date.
Thanks
Read Answer Asked on April 12, 2019
Q: Hi Team
I am looking for a " swing trade". Do you have a few suggestions? I realize there are no guarantees in the market.
much thanks
PS..I should mention also Canada or US. I have about 2% to 3 % toward the Swing Trade
thanks
Read Answer Asked by El-ann on April 11, 2019
Q: Good afternoon,
The analytics indicated that I needed to increase my international exposure by 31%. I'm sitting on some cash that I hadn't decided what to do with. I assume it makes sense to add international ETF's. The ETF recommendations from analytics included the VEE and VIU. I currently hold a small amount of the VEE and the VXUS. I'll add to the VEE. Which do you prefer the VXUS or VIU or should I just add to both with having so little exposure outside of North America?
Thanks,
Kerri
Read Answer Asked by KERRI on April 11, 2019
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