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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 have been investing in small/micro cap value stocks(CAD) for several years because I had a small portfolio size. Now with a larger port I am adding names from the Balanced portfolio but still have a large portion in the small/micro cap value. My small cap value have been fairly flat since a large gain in 2013. I also notice your growth portfolio has been flat so I think this 4 years of poor performance has to do with a market cycle and not a long term change. With your experience in the market is this normal or is the small/micro cap valve out of favor due to the market becoming more efficient. I am willing to stick with my portfolio but I don't want to wait years when I should have made a change. Let me know if this in normal and how long usually do these cycles last. Thank you again.

Derek
Read Answer Asked by Derek on January 30, 2018
Q: When an American equity mutual fund can be purchased in 2 versions namely in Canadian dollars or in US dollars ,is there any advantage to purchase it in US dollars? If so what are the advantages?

In a global equity fund it must involved different currency. Thus is it preferable to buy a fund which trade in Canadian currency or if the one trading in US currency.
Read Answer Asked by Monique on January 30, 2018
Q: Peter: BYL stock seems like its really gaining ground, up 9% today. I seen it was a BNN top pick today. I did a quick look into the company and it seems very interesting, in a hot sector and appear to be ramping up in earnings. Would you consider this company a buy at the current levels or should I try to wait for a pullback, or not at all? I see at one time it was over $7 a share; is it realistic to think its turned the corner and heading back there and beyond? I will wait for your expert opinion. Thanks
Read Answer Asked by Shane on January 30, 2018
Q: Hi Peter, Ryan and Team,
Since I do not have access to a computer or smart phone at work, I do all my buy or sell transactions in the evening from home after the market has closed through TD Direct Investment.
So on Thursday Jan 25, 2018 I decided to buy Intuitive Surgical Inc. symbol ISRG in the U.S. because of its recent momentum. The closing price was 449.81 and the high price for the day was 452.00. Since I was dipping my feet in with a very small position of only 2 shares I placed my order with a limit price of $454.57 i.e. $2.57 per share higher than the high price of the day. I have found that this eliminates missing out if the stock opens higher the next day.
The next morning i.e Friday Jan 26, 2018 on my first break at work approximately 10 am I saw that I had a missed call at 8. 20 AM from TD but there was no voice mail message. So I called them and a TD agent told me that my order for 2 shares was cancelled by TD before the market opened because “ my limit price was too aggressive since ISRG was going to open lower at 437.37 ”
My understanding was that in such a situation my limit order would have changed to a market order at market open at 9.30 AM and should have been filled at the lower price. Because there is no way for most investors to predict that a stock is going to open much lower the next day.
The TD agent was unable to tell me what the threshold is to constitute “a too aggressive bid price”. Since I still wanted to buy the shares he manually put in the order for me and charged me $43.00 for the trade instead of my regular online rate of $9.99.
I would appreciate if you would advise me the reasons for and the ways to avoid such a situation in future without calling in to TD each time I place a buy order. Thank you in advance.
Frank
Read Answer Asked by Francis on January 30, 2018
Q: Hello,
I have owned Starwood Property Trust Inc (STWD) for a while, and it has been flat up to now. It provides a 9% yield.

Is this a buy, sell or hold stock? Especially since interest rates are rising. (I thought higher interest rates would benefit this company.) As I am seeing other stocks with better growth potential, I am wondering if this stock is worth holding onto.

Thank you for your help and for the service. Greatly appreciated.
Read Answer Asked by Marc on January 30, 2018
Q: You have described XDV as a high dividend payer vs a dividend grower. I prefer to take the higher dividend now rather than later. Can you tell me if the etf earns all of the dividend paid or is there a return of capital factor. In addition, you don't like the high financial sector weighting. In a rising interest rate environment could the overweighting be a positive? Thank you 5i.
Read Answer Asked by Richard on January 30, 2018