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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 5i: some additional thoughts on the CSU debentures. Shouldn't people think first about whether these debentures are really the right kind of investment for them? For starters, maturity is a long way out (2041?), so the fact that you can buy 100 face value for 95 with your CSU rights is not as material as what the debentures will trade for in the meantime. Second, long term corporates may not be a good idea from a risk standpoint. Hank Cunningham I believe suggests that average fixed income investors keep their corporate maturities at 10 years or less, just because the corporate world does not provide sufficient visibility to justify going longer. Let's remember too; this is no utility; this is a tech company with a significant growth by acquisition component, despite successes to date. Third, if these really are the product for you, shouldn't you be thinking about whether you would use market purchases to top up to your regular position size, essentially with the rights just giving you a small potential discount on the whole position? Along those lines Peter, would you consider making CSU debentures an important addition to the Model Income Portfolio and, if so, take us through the analysis of whether to go ahead with the purchase at anticipated prices and what you would sell to do so? Thanks!
Read Answer Asked by Lance on September 01, 2014
Q: In the latest email from 5I, I was reading about ETFs and saw the symbol VTSMX as a suggested Vanguard fund ; however, when I looked it up no results were found .I rechecked and had copied it correctly but once again no results . Could you give your comments on this fund? Thanks, Dave
Read Answer Asked by Dave on September 01, 2014
Q: Hope you don't mind an elementary tax question!
I have some Sino-Forest (unfortunately), which I believe is delisted. Can I report it as a "sale" for NIL value in my capital gains/losses Schedule this year and/or in later years?
Read Answer Asked by Douglas on September 01, 2014
Q: As for Kathy's question on acquiring a small CSU debenture with rights, possibly she ought to check with her broker to see IF a $200 bond could be sold. This quote is from the itrade site "Face value should be in multiples of $1,000.00 as there are no fractional bond units, except for strips where the rule in multiples of $1,000 does not apply." Also it is not possible with them to trade anything less than a $5000 corporate bond online.

Perhaps for most of us small holders of the rights the best course of action is to sell them on the open market; otherwise you might be stuck with an unmarketable security until maturity in 2040. Alternatively if you're really keen on the debentures you could purchase enough rights to get up to the minimum trading levels so you are holding something marketable. Thanks, J.
Read Answer Asked by Jeff on August 30, 2014
Q: Re: ELW......how has this company gone from 19 million shares to 333 million fully diluted shares? Is this a correct number? Thank you
Read Answer Asked by Victor on August 30, 2014
Q: Hi, I have 7 holdings for growth in my TFSA. This is a very small portion of my portfolio and I have a very high risk tolerance. I would like to condense this to 4 positions, what do you suggest? POU, AVO, DSG, RE, SVC, NTB, FLY
Read Answer Asked by Jeff on August 30, 2014
Q: I have 4 half positions in my US account and want to top one of them up to a full position, which would you suggest? NWL,KMP,JPM,CPG
Read Answer Asked by Jeff on August 30, 2014
Q: Mart is looking weak here again, I'm assuming due to the uncertainty of finishing the pipeline and the large shrinkage losses in the existing one.

My question is regarding the new pipeline: I can't seem to find anywhere an agreement with Shell or another party that Mart has signed which will guarantee them a market for all the oil they hope to ship in the new pipeline, and under what terms. I may have missed this, but if not what is the risk that they cannot reach favorable terms with their new pipeline (once operational)? I guess the question is - once the pipeline is finally finished and commissioned, can the upside be quantified, and is it at a valuation well above where the company is now? Or is there also risk of a new pipeline agreement dragging out and not being favorable to Mart?
Read Answer Asked by Kel on August 30, 2014
Q: I have been considering buying a small position in PCLN.US is it a better buy today and in your view has the risks increased with American Arline's pulling out of Orbits. Thanks for the great service.
Read Answer Asked by Cheryl on August 29, 2014
Q: Hello,

You commented on FEN.v early in The year. Have the recent results reported changed your opinion on the company at all?

TIA, Gerald
Read Answer Asked by Gerald on August 29, 2014
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