Investment Q&A

Q: Any thoughts on Transalta Preferred H? Price keeps declining and currently yields over 8.6%. The reset is more than 3 years away! Am I missing something?

Jerry

Q: Hi Team, I'm doing some portfolio clean up and am looking to sell some losers...of the stocks listed, which ones would you sell first in order first to last. Also, could you give me recommendations for where to put the money back to work for the top 3 sells?

Q: GMP Capital is selling to Stifel,& wants to buy remaining 2/3 of RichardsonsGMP that it does not already own.What will happen to GMP.PR.B? In Oct 2016 J Hass on BNN said that the buyer will have to redeem GMP.Pr.B at the $25 par value.You said not necessary so.It is now $12.10 up $1.46 on 19k shares,higher than the 2.6m average,Is it advisable to add to my $15 p/p in 2016? Txs for u usual great services & opinions

Q: I own a substantial amount of Cumulative Redeemable FIXED RATE Reset First Preference Series M Cumulative shares, which I purchased for the initial price of $25.00 per share. I also purchased additional shares at a later date for around $20.00

The Series M shares can be converted into series N Cumulative Redeemable FLOATING RATE First Preference Shares on December 1. 2019 My question is:
Since today's value of the series M shares is around $16.60, What will be the price of the new Series N Shares? Does that mean an instant gain (RECOVERY) of $8.40 (to $25.00) after conversion to the series N shares or how does that work? Do you have any suggestions about how to act at the given time, including what to choose? Do I stay with my FIXED RATE shares, do I convert to the FLOATING RATE shares or what?
Thank you for your prompt and valued reply.

Q: Would this be a better way to play the preferred share space vs CPD?

Thanks

Q: Any ideas why rate reset preferreds aren't rebounding along with other safe stocks given the anticipation of steady or falling interest rates? I own CM.PR.T which was issued with a decent dividend of 5.2% but it has fallen from $25.20 per share to $24.16 in less than a month.

Q: I have $ 50,000 to invest I would like to invest in some preferred shares I do not need the funds anytime soon Could you give me some investing criteria to assess whether the pref shares are good value I know alot depends on interest rates but i want to buy companies that are solid

Thank you
Paul

Q: Hi there,

Just some follow up questions on these two etfs. Neither has done well over the last several years in terms of growth, so i suspect one buys these for income only. If so, wouldn't one just buy the one with highest dividend? if you had to pick only one preferred ETF which one would it be and if not one of these 2 which one and why?

Q: Following up John's question on preferred shares. Can you recommend your top 3 picks for preferred shares. Thanks

Q: I’m going defensive in my portfolio. What is your opinion of these 3 possibilities?

Q: With interest rates stable or downward sloping why would a preferred share fund be decreasing in stock value? This should normally increase the value of the preferred shares in the fund, would it not?

Q: I have been looking for ways of boosting my income investments; last year I doubled my GIC's (still less than 10% of investments). This year I'm thinking of buying some preferred shares. They have been doing abysmally; many of the yearly lows are of prefs!
I recall the 1980's when long term bonds looked like a sure way to lose money. Investment grade credits paid over 10% interest for 30 years! I'm thinking out-of-fashion preferreds might be a great investment today (with less upside than 1980 bonds, of course).

John

Q: Any specific reason for the continued drop in value in ZPR.

Thank you,

Bob

Q: Good afternoon,

Could you please offer your opinion on the new Mullen Group convertible debenture 5.75%, Nov 30/2026, convertible @ $14.00. Given the decline in the stock is this a good way to participate in growth with income?
Thank you

Thank you

Q: Assuming the RY.PR.H rate reset preferred resets today I have made the following new interest rate calculation;
The new interest rate is the GCAN5YR interest rate plus 2.26%. Today the GCAN5YR is 1.368% so 1.368 plus 2.26 equals 3.628%. This is below the initial 5 year interest rate of 3.9%. I calculate the actual Fixed Rate Calculation Date is August 24, 2019 minus 30 days is July 25 2019, which is only a month & a half away. At that time the GCAN5YR rate will probably be the same as today. Would you please confirm that my new interest rate calculation is correct. Today the RY.PR.H on the TSX is trading at a yield of 5.5%. If my calculations are correct, is the price falling because no one wants to own this preferred when the new lower interest rate is determined. Would appreciate your thoughts. Thanks .. Cal

Q: Most of our preferreds have dropped again this week, BAM by far the most (now about half book value). BAM stock seems to be one that's widely recommended. Your thoughts and advice please.

Q: Clarification on Stuart’s question of May 29th. Based on the 2020 reset rate of 2.64% and current 5 year GOC of 1.46% would result in dividend rate of 4.1%. At today’s price of $16.23 would result in estimated reset yield of 6.3% for next 5 years.

Q: Hi guys

I have held this for quite a while and while I have enjoyed collecting about a 6% dividend off my cost basis the preferred price has been falling lately after being up quite a bit at one point.
I am coming up to the end of a 5 year term so the interest rate will be set again by March 2010. ENB.PF.C currently provides an annual dividend of $1.10 and I am wondering given the current interest rates, if it reset today, would that payment go up or down?
This is my only preferred. My thoughts are maybe, if the payment is looking to be going down, then sooner, rather than later, I should sell this preferred and buy a dividend grower stock , like a Fortis, and get both a descent dividend, and some capital appreciation.

I bought the preferred with the idea of stability, but as you know in the last few years this has not been the case.

All the best

Stuart

Q: Good morning,
What is your opinion on this new financing -Alaris Royalty Corp 5.5% 2024 Convertible Debenture - would you purchase for income and possible growth?
Thank you

Q: "Alaris Royalty Corp. Announces A $100 Million Bought Deal Financing."
What does this do to their debt levels? Do you think this is a sign that all is not going so well at Alaris?

Thanks Always