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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: How do you feel about the current valuation of Biosyent? They announced yesterday that they have signed a new agreement for distribution of a cardiovascular drug that they expect will add $20M to annual revenue over time (2015 FY rev was $15.39M). Assuming they can do what they say (which they have done well at in the past) do you think the share price is reasonable? This company seems to operate with great margins and is growing with free cash flow. They have $0 in debt
Read Answer Asked by Michael on May 27, 2016
Q: This is an answer to Paul who had $500K US and wanted to exchange to CAD.

I think your example was great (It would be considered Norberts Gambit?) in the original Norberts Gambit I believe it's suggested to just buy a US Dollar tracking ETF?

That aside - I worked at CIBC as a Financial Service Rep for a while and when I had clients with large sums of US or CAD that needed to be converted I could call our traders and book the best rate possible for clients (I could haggle with them) - usually this would mean I could get as much (or more) as a whole percentage difference as the bank typically charges a two percent fee. I would recommend he calling Cal-Forex or some other trader, getting a quote on the BEST rate, then calling his bank and asking if they can match it (or beat it), or he will go to the other provider (bluff if you want) - the bank should comply...

just my 2 cents, the safest, easiest way would be to just have his bank exchange it - but personally I prefer your suggestion.
Read Answer Asked by Jim on May 27, 2016
Q: I am not sure if this question should be asked in the forum or here.

I have a little more than $500,000 US in a Canadian bank US$ account that I would like to convert to Canadian dollars. What is the cheapest/easiest way to this? I know there are on line brokerages that do this but I am a little queasy about handling a transaction of this size through cyber space. Does one bank have a better reputation for foreign currency transactions than another or are they all priced the same?

Appreciate any advice you can provide.

Paul F.
Read Answer Asked by Paul on May 26, 2016
Q: Greetings

I am presently without any exposure to oil and gas companies. To what extent do you think PKI might be a good place to re-enter the sector? Your most recent review was a tepid "B" so I am completely open to other suggestions you might have.

I am a retired conservative investor who has no need to "shoot out the lights" and realize that diversity is a good thing.

Thanks
Read Answer Asked by Peter on May 26, 2016
Q: Hi Peter and Ryan,

I have a cash account at TD Waterhouse (TDW), and I use their Investment Savings Account (ISA) for the cash portion of my portfolio. Currently, the interest rate for that account is 0.75%, and it has been at that level for a long time. I also have an account at Meridian Credit Union. They have a High Interest Savings Account (HISA) for short term cash that pays double what the TDW ISA pays, and the interest rate they are offering on that account has been at that level or higher for a long time. My question is as follows: How risky would it be to park more than 100K in a Meridian HISA? In other words, how solid is Meridian as a financial institution?

Many thanks for the great service.
Read Answer Asked by Michel L on May 26, 2016
Q: Hello. Since I started investing, I've been told that selling covered call is the safest and easiest way to earn extra income. However, I've found that the cost of buying and selling covered call options in the Canadian stock market is extremely expensive. If the stock is called away, the bank will charge an extra $49 as handling fee per transaction for both sides (no matter the amount of the contract). Do you know if there are any investment institutions that offer no handling fee at the end of the expiry? I've heard that Interactive Broker may be one of them. Are you aware of any others? If I could switch some of my portfolio to a cheaper trading institution, do you think it is worth the hassle to sell covered call? MANY THANKS.
Read Answer Asked by Esther on May 26, 2016
Q: I bought WAJAX Corp 10 years ago at a much higher price and held it since. After a rough ride it seems that this company is turning the corner with some decent earning and a better estimates from analysts. Could I please have your views and if it is worth holding, if not what I can replace it with. It is a small portion of my portfolio and diversification is not an issue. Thanks
Read Answer Asked by Saad on May 26, 2016