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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: I used to own XTC and left in disappointment - bought at around and sold at $14.70 and sold at about $15.00. In between I wasted a lot of time waiting and finally left with much gain.

XTC has really fallen on hard times of late and I just want to know if it's a good bottom fishing candidate, or there is no rush to re-enter this sector yet? MG and others are still recovering and I assume it would take XTC (a much small company) to regain its traction.

One positive thing is they did raised their dividend in the past years. Is that dividend sustainable, or it was raised in a vain effort to boost share price?

Thanks.
Read Answer Asked by Victor on December 08, 2016
Q: Hello 5i team,
I hold all the stocks in the balanced portfolio except AEM and SYZ. Regarding my exposure to the tech sector, in addition to CSU, ENGH and KXS, I also hold DSG, GIB.A and OTC; so I do not think that it is necessary to add SYZ to the mix.
There seems to be some momentum in the base metals sector, as per your response to an earlier question; instead of selecting a particular company, as per your suggestions, I decided to gain exposure via either XBM or ZMT.
I look forward to your comments.
Antoine
Read Answer Asked by Antoine on December 08, 2016
Q: My wife recently purchased a pair of glasses on-line. I was skeptical but the process was very easy, the fit turned out to be much better than her last pair that was purchased at a store and the price was a small fraction of the cost of a store bought pair. My concern about BCI is how are they going to counter this trend with some very aggressive players moving into the on-line glasses business? Would this be a concern going forward?
Read Answer Asked by Alex on December 08, 2016
Q: I have 27% in technology with the following investments.
What should I get rid of to bring the percentage down or would you leave the list as is. KXS, ENGH, SYZ, MDA, CSU, OTC.
Thank you.
PB
Read Answer Asked by Peter on December 08, 2016
Q: In response to another subscriber's question you said you "...would be more comfortable with Nestle. It trades at 19X earnings, with a 3.4% dividend. Debt is high, but so is free cash flow. Solid earnings growth is also expected from the company. It does not have a great record of beating earnings estimates, but overall we think it would also be fine as a consumer sector investment."

Nestle trades as NSRGY on the pink sheets. What would be the tax treatment if I bought and held this in my RRIF account? My understanding is that Swiss withholding taxes would be deducted at source and the after tax yield would be much less than 3.4%.
Read Answer Asked by David on December 08, 2016
Q: I have owned AYA for almost 3 years and have sold when when my weighting was more than 7%, so I am just holding my profits now. I think when the stock was trading higher than $35, 5i was recommending the stock. As far as I can tell the fundamentals have not changed and that is why I am still holding some AYA stock. I can understand that external events may have turned some shareholders off and therefore the shares are trading at $19. On a stock like AYA, is it the momentum or in this case the lack of it that drives the price? If the potential was there when the stock was $38, is the potential not there anymore? I have my doubts that the privatization bid will succeed; but in the next two+ years is there not good growth expected?

I think 5i is the best!
Read Answer Asked by stephen on December 08, 2016
Q: Are dividends on Bond ETFs taxable as interest? If so, they would not qualify for the dividend tax credit. Would it be wiser to look for dividend bearing shares such as BCE with a low beta and a good dividend that would qualify for the dividend tax credit?
Read Answer Asked by Donald on December 08, 2016
Q: NYX Gaming continues to trade lower each day and yet there seem to be a number of positives on this company. First of all is there a short position on this company or is this decline due more to tax loss selling. Secondly TDWaterhouse shows a debt to capital ratio of 52%. Should I as a shareholder be concerned about this especially since I am considering buying more. TD also shows the cash flow as $0.31 and the price/cash flow as 5.4. Do you consider these adequate numbers to offset the debt load. Thirdly are these figures from TD reasonably accurate and if not could you please advise. Thanks as always for the excellent service that you provide.
Read Answer Asked by Rob on December 08, 2016