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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, I am looking at buying minimum rate preferred share trust units in BEP and BIP and similar to the common shares a portion of the distribution is return on capital. I will hold them in an RRSP account. I am trying to better understand what ROC actually is. It almost sounds like it is just returning part of your capital invested back to you. If so, is it a ‘real return’ to the shareholder or just getting part of your money back. If so, what is the attraction? I’m confused. Thanks.
Read Answer Asked by Gary on April 01, 2019
Q: My question is regarding Alcanna and possible private liquor revenue opportunities coming from Ontario. The Ford goverment has made bullish comments on some alcohol sales privatization in the future, the budget is releasing April 11th. Alcanna would clearly be a benefactor in this because of their expertise in the field. From their recent M&D " Should any other jurisdiction in Canada permit the private retailing of alcohol on a basis similar to Alberta which would allow an appropriate return on capital, such as Ontario, we would anticipate opening stores in that jurisdiction" Today there was a bloomberg article quoting regarding Ontario's budgetplans. "Ontario's finance minister says the province will be moving ahead with an expansion of beer and wine sales into corner stores, big box stores and more grocery stores, promising the move will cut prices and prevent any potential privatization of the LCBO." Do you see this benefiting Alcanna at all or would this be a negative in my case if I had been hoping for some potential good news and growth in Ontario for liquor sales? I know you like the company and does this change anything for you?
Read Answer Asked by Michael on April 01, 2019
Q: I currently hold very little gold exposure and would like your recommendation on what to buy to establish a full position. Also are there two or 3 junior mining companies on your radar for a small "exploratory" position? Thanks very much.
Read Answer Asked by Dustin on April 01, 2019
Q: My small cap portfolio currently consists of Macro Enterprise, Sangoma Technologies, and Gran Columbia Gold. I’m looking for 1-2 more niche small cap names to add to that list. Are there a couple others that interest you right now? Thanks.
Read Answer Asked by Scott on April 01, 2019
Q: Could you please explain how falling, 5, 10, & 20 US Treasury Bond Yields indicate a slowing economy and an increase in deflationary pressures?
Thank you.
Read Answer Asked by George on April 01, 2019
Q: Hi, I tend to shy away from companies that have ROC , because I do my own taxes and cannot be bothered with figuring out my capital gain or loss with ROC.
Are a lot more companies relying on ROC to keep investors happy with higher yields? Not sure which companies actually use it, they don’t really tell you. And does my bank broker service (investors edge) calculate my average cost when I sell?
I have no problem doing my own taxes and do not want to pay $250+ because of ROC
Your thoughts, thanks
Read Answer Asked by Brad on April 01, 2019
Q: I'm thinking of investing in this company. Considering the slow down in the economy, consumer high debt in Canada and possible upcoming recession, I think this is one of the few consumer discretionary companies that might not be too affected. Your thoughts on this company, please.
Many thanks for your great service!
Jen
Read Answer Asked by Jennifer on April 01, 2019
Q: Inverted yield curve(US 3mo higher than 10yr interest rate).2 great views by Ryan on BNN on 3/29 & Peter in The Van Sun,3/30. My observations.1)As at 8pm pst 3/31 10yr is higher than 3m (2.439 vs 2.408) 2)A popular yield curve is 2yr & 10yr(2.294 is lower than 2.439).3)This will help the big 6 can banks as pointed out by 5I as they borrow short & lend long(better interest margins.Ryannyou were great on BNN Thanks for u usual great services & views
Read Answer Asked by Peter on April 01, 2019
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