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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,

According to Morningstar, ECI's dividend payout ratio is 184 %. If I am not mistaken, such a high ratio is often a sign that the dividend is unsustainable. According to your latest report and answers, ECI seems to be in good shape financially and well set up for future growth, even after the recent earnings miss. Could you please explain when and why such a high ratio should or should not be a source of worry?

Thank you very much!
Read Answer Asked by Pierre-Charles on May 23, 2017
Q: Further to my questions on Ten Peaks. I still don't understand how the convertible debenture effectively doubles the outstanding share count once exercised at $8.25. This is what is implied in he quarterly financials when calculating EPS on a basic and fully diluted basis. My calculation says a $15 million debenture converted at $8.25 equates to approx 1.8 million shares. The company now has approx 9 million shares outstanding. What am I missing?

Kenn
Read Answer Asked by Kenneth on May 18, 2017
Q: Scanning your latest research summary the 12.3% yield on NAL jumped off the page at me. Your B ranking doesn't put up a red flag but it also isn't in your portfolios. What is your outlook for this company. Will it continue sideways? Chances they will bring back the div? Possible short term buy at the $2 price with expectation it will pop back up to the recent $2.5 range for a short term profit? Or move on to better things realizing the 12% annualized div is gone and was a statistical hangover from better days...Any other yield traps on your list...BDI, ADN, CPX...
Read Answer Asked by Tom on May 17, 2017
Q: After holding on through all the volatility, I now have 9.5% of my portfolio in AYA (an average of 100% gain). Given the news since your update review, do you feel AYA will hold on to its gains and do you still rate this as a B+ ? Although I like the idea of sticking with winners, I suspect it would be prudent to pare back (or eliminate??) my holding. I have many of your BE portfolio picks as well as some from your Growth, but none are at a full position. Currently, I hold AYA shares in TFSA, RSP and Unregistered accounts. Your thoughts/suggestions would be much appreciated on what (if any) % to keep holding and what to do for replacement. Many thanks as always.
Read Answer Asked by Alexandra on May 17, 2017
Q: I have half positions in both of these companies in a cash account. I have a large gain in aya having held since 2013 ( sold 2/3 at or near peak ). With Great Canadian stock , I sit at even from what I paid. Should I keep gc or aya at this time since I am needing cash.
Read Answer Asked by Sally on May 17, 2017
Q: Point North is trying to control the board, a move which cannot be justified by their level of ownership.

I suppose the first question for the shareholders to consider is whether the existing board and management are doing a decent job. Do you have an opinion on this point?

If the incumbents are OK, I think that there would be no reason to give Point North's predatory demand any consideration.
Read Answer Asked by Carl on May 17, 2017
Q: Can you rank the stocks best to worst in your opinion. These are the stock s that are in my healthcare sector which is 8% of my current portfolio. Would you add, swap or remove any of them? I am unsure of CRH. My portfolio holdings/thoughts are very similar to your BE Portfolio. Thank you
Read Answer Asked by Terry on May 16, 2017
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