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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: Interest rates (as reflected in the 10 year U.S. T-bond) are up again today.
Canadian term deposit rates are at the same time starting to make me feel all pink and fuzzy. Over the last while I've started to build a ladder of rate reset preferred shares (5 yr with a floor) mixed with term deposits of varying durations, and at the same time moving slowly out of common stocks except for special situations. Good idea or too short-sighted?
(Full disclosure, I am very much a senior). Thank you.
Read Answer Asked by Howard on September 20, 2018
Q: With the yield over 10% the board must be considering a dividend cut, even if they can afford the current dividend. If the market gives the current dividend no respect cut it in half and the price will probably not move and they can use the money elsewhere. Where would you put the odds of a dividend cut?
Read Answer Asked by Dennis on September 20, 2018
Q: Hi 5i team,

I've FSZ in my trading account. It has not been performing well for a while. I am thinking of switching FSZ to AD. I am looking for growth in share value and growth in dividend. Do you agree with this switch? I would not be having both FSZ and AD as my % of financial stock is high. Thanks.
Read Answer Asked by Willie on September 20, 2018
Q: This was supposed to be a no lose scenario: buy ALA.r get the dividend and if the deal goes through the receipts convert to regular stock, which was supposed to rally because the transaction closed, if not get your the money back and keep the divident

Since then, it's on a free fall, the deal closed but shares continues to drop daily. Can it maintain 10% yield?
Read Answer Asked by Marios on September 19, 2018
Q: hi folks

have we reached capitulation yet?

given the company moves in the past year (ie. ALA.R; WGL purchace; selling of cdn assets) are we now to beleive they have 'figured out the right balance'?

or is this classic case of mgmt being way over thier collective heads?

buy initial position; average down or sell?

thanks kindly

Read Answer Asked by Robert on September 19, 2018
Q: On a research note from RBC this morning, I noticed that the CEO and CFO have the same surnames. Do you know if they are related? (I have asked FTS IR as well).
Pretty unusual if they are - "appearance" of a conflict of interest for a widely held public company? Do you agree?
Read Answer Asked by Gary on September 18, 2018
Q: As I understand it, the ECI buyout by BIP.UN gives ECI shareholders the options of: 1. $29 cash per shares ("cash option"), and 2. BIP.UN units on a prorated basis + balance in cash ("combo option"). ECI shareholders, by default (those making no election), will get the cash option. Simple enough.

Do you know the timing of such election? Some friends of mine claim to have received both the voting and election materials, while I only received the voting info. I couldn't get through to the company for clarification. I don't want to be forced to accept the cash option (due to tax considerations).

Would you by any chance know more about the timing of the voting and election processes in this buyout? Thanks.
Read Answer Asked by Victor on September 18, 2018
Q: There have been no questions about this company in a year.
And the two most recent, elicited more-or-less opposite responses.
Could you provide a current opinion, when the dividend was last cut or increased and what the current short position is.
If you like something better, I would be interested to know.
Thanks,
Kyle
Read Answer Asked by Kyle on September 18, 2018