The Canadian Investor How This Canadian Small Cap Stock Turned Into a Multi-Bagger
Jun 9, 2025
Dive into the ins and outs of Questrade's new securities lending program, highlighting its pros and cons for retail investors. Discover why skepticism towards sell-side analysts is essential, as conflicts of interest can skew their recommendations. Learn about Secure Waste Infrastructure Corp, a promising small-cap stock with strong cash flow and growth potential. The discussion also provides insights on finding hidden gems in the small and mid-cap markets, encouraging listeners to engage and share their thoughts.
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Questrade Securities Lending Basics
- Questrade's securities lending program lets investors earn fees by lending shares, retained in TFSA, cash, or margin accounts.
- It carries low risk due to 100% cash collateral held by Questrade for lent shares, but loses CIPF protection.
Dan's Lending Experience
- Dan Kent tried securities lending at WellSimple and earned small monthly payouts, mostly on volatile small caps.
- He sees no reason not to opt-in since it adds incremental income without major risk.
Sell Side Analyst Bias
- Sell side analysts are influenced by conflicts, like investment banking interests and commissions, leading to mostly bullish ratings.
- This bias reduces objectivity, making price targets and stock ratings unreliable guides for investors.