Investment Q&A

Q: In Leon’s recent comment about CSU.DB he said “So if the rate of inflation is 2% greater then the yr before and is 3.8 % then it is 6.5+ 2 NOT 6.5 plus 3.8”. You agreed with him.

However, the CSU.DB short form prospectus says “at a rate equal to the Cost of LivingcAdjustment (as defined below) (which amount may be positive or negative) plus 6.5% (“Floating Interest ”). Notwithstanding the foregoing, the interest rate applicable to the Debentures will at no time be less than 0%.”

The Cost of Living Adjustment is defined as “the annual average percentage change in the CPI Index during the 12 month period ending on December 31 in the prior year. For the 12 month period ending on December 31, 2014, the Cost of Living Adjustment was 2.0%.”

So in Leon’s example, the rate would be 6.5 plus 3.8.

The correct understanding of this point is of major importance to me, and maybe to others. Please check your answer to Leon carefully once again and let me know whether you stand by your earlier validation of his interpretation and if so, why.

Q: Hi, What is the YTW for CSU.DB, if it is redeemed on Mar. 31, 2023 and given a constant cpi at todays rate - what is the current cpi rate?
Are there any other important terms of the debenture besides its interest rate, 5 year call and final maturity?
Thanks. Peter

Q: Can you please comment on the decline of PZA over the last few months. Is it expensive compare to peers and a good time to start a position ? Thank you.

Q: I believe yesterday you had somewhat indicated that Saputo's future growth may be limited. If this were to be the case, do you see an eventual longterm decline / flattening of the stock price due to a potential decline in P/E ratio? Do you see it becoming more of a dividend paying stock as opposed to growth stock as it matures?

Thanks.

Q: If you had ALA for a five year hold would you keep it or sell and buy Fortis? The difference in yield does not matter. Thanks Bill

Q: For a dividend investor,would you consider this a good and safe investment given the stability of the company and the fact that an increasing interest rate environment should be inflationary?

Q: Hi,
I'd please like your opinion on whether I should swap out CWB and into LB?
Thank you,
Kerri

Q: Could you please assess reson for last 2 days drop in SNC? Seems odd when CIBC raised target to $68 form $65 and they've just gainedsome nice contracts
Is there some news that only a few or some advance notice before the rest of the market is advised?

Q: Has your view and rating of Altagas changed? Please note the 15 January 2018 presentation at the TD Securities London Energy Conference. The Q4 CC is slated for March 1 so you may prefer to delay your response until after March 1.

Q: Your kurt response of the merger having little effect on keg unit holders is not shared by the market place with keg holders losing 3+% of there value.
I would ? the legality of a sharholders company being sold with out shareholder approval
Stan

Q: How do you rate them A, B....?
Should I hold in RESP with 5 years ahead
or a margin acct. . I’ve made money on DF for several years and am now setting up RESPS for G’kids. .
Help
Thanks Sandra

Q: What are the benefits and risks of investing in CPD in the current rising interest rate environment coupled with high stock valuations? I am seeking yield and want to compare CPD with the typical equity income etfs regarding safety of capital. Thank you 5i.

Q: A Seeking Alpha article yesterday summarised KWH.UN as follows:
-Consistently overpays for customer relationships.
-Value destroying acquisitions are financed through dilutive and costly equity issuances.
-Continues to accelerate amortization of intangible assets, as they fail fair value.
What are your thoughts?

Q: Buy, sell or hold Inter Pipeline Ltd? Tx

Q: Hi What does cara offer mean for keg unit holders
Stan

Q: I have visited the Pimco website but am still unable to get a clear understanding of the holdings of the Pimco High Income Fund ( PHK:US). In your opinion, in general, would this fund be suitable for a retired senior? The income is high but does it come at a price to risk?
Thank you for considering my question.

Q: I've held Stantec for about 4 years. I'm up about 5% plus the rather low dividend payout. I've held on because not losing money is important, and I appreciate the portfolio diversification it provides. However, I'm feeling increasingly impatient and have been contemplating switching it for Brookfield Asset Management. Is it worth sticking with Stantec? Also, is Brookfield tax efficient in a cash account? I know some of the Brookfield companies have complicated structures.

Thanks for all your help!

Q: Is there any reason why stock popped yesterday after soft trading for past few weeks ? Thanks

Q: I am retired living off dividend income. I currently own a 1/2 position and just read your summary on hot.un: "Minimal earnings growth is expected in 2018, as most cash flow is paid out as distributions. We would consider it OK as a mid cap income stock."

I was considering filling out my position for income, but based on your lukewarm response, I will hold off. Can you recommend a couple stocks that you are more positive about for a midcap income stock (other than SIS)?
Thanks

Q: This stock was a top pick of Ryan on his recent appearance on BNN. I am considering starting a position. Do you agree that a 2.5% position would be a good staring point. Thanks.