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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: the BNS.PR.C has fallen sharply in the past couple days, is this due to the BOC cut? i was told to also expect share price declines in other rate reset pref's when the US starts to raise their rates...do pref's only move one way? thanks as always...
Read Answer Asked by Curtis on January 22, 2015
Q: Are the dividends on these preferred shares still safe with Bombardier's recent financial problems?
Read Answer Asked by Robert on January 17, 2015
Q: Would you consider the new IPO for NPI convertible debentures 4.75% to be an acceptable investment for aTFSA?
Thanks Guys
Read Answer Asked by Warren on January 14, 2015
Q: I have relatively balanced portfolio and have some GICs coming due soon, which I’m considering replacing with preferred shares. What do think of ENB.PR.B ? It’s down quite a bit recently. Do you know why it’s dropped so much and are there any preferred share that you like better?
Read Answer Asked by RICHARD on January 13, 2015
Q: I currently own some M.PR.A preferred shares in my TFSA (since they are interest-bearing and hence not eligible for the dividend tax credit). They appear to be true perpetual prefs (i.e. no issuer redemption or shareholder retraction provisions) offering $1.00 in annual interest. At their current price of $10.05, this is nearly 10% p.a.

Given their attractive interest rate and "seniority" to the common shares, as well as the seemingly diversified nature of Mosaic's underlying business, I am considering purchasing more. Can you provide me with any indication as to the risks associated with Mosaic and these preferred shares?

Thank you!
Read Answer Asked by Gregory on January 12, 2015
Q: Hi Peter and team

Today, Jan 2, Rob asked for information sources re: preferred stock. I would recommend prefinfo.com published by Hymas Investments It lists all Canadian preferreds by ticker symbol with dividend information, redemption dates, retraction dates (if applicable),type(perpetual, retractable , etc) and misc info such as whether the dividend is cumulative or not. Also in the comments, there is sometimes information on the rating. I hope this helps. Note the symbol is a place holder as your format requires a symbol.

Ross
Read Answer Asked by Ross on January 04, 2015
Q: Happy New Year to All
Would EIF's improved status as a company justify an inclusion of any or all of the E,F,G convertible debentures as this years TFSA contribution?
Thanks
Read Answer Asked by Warren on January 02, 2015
Q: With regards to Rob's question about preferred information, he might consider http://www.prefinfo.com/ by James Hymas as a useful source.
Read Answer Asked by richard on January 02, 2015
Q: Hello,
I am learning about Preferreds and am wondering if you know of any websites or books that are a good starting point. Does anyone compile a lot of real-time data on the features of various issues, brand new issues, etc? Thanks.
Read Answer Asked by Robert on January 02, 2015
Q: I was looking to invest some money for 6 months in our RESP. I was considering Canacol Energy Convertible Debentures maturing June 30, 2015. Do you have any concerns about the solvency of Canacol? Is it likely I would get the face amount back at maturity?
Read Answer Asked by Robert on December 31, 2014
Q: 5-year 7%-coupon debentures from GuestLogix started trading yesterday (GXI.DB). Already they have fallen to nearly 90 cents on the dollar, giving a yield to maturity of roughly 9.5%. Do you think that the risk associated with the creditworthiness of GXI is adequately compensated at 9.5% (+ the chance of much higher gains if the stock moves up significantly in the next 5 years) ? Thanks!
Read Answer Asked by Gregory on December 23, 2014
Q: Convertible question (asked by Kelly)on Dec 22, 2014

The 5i response of Advantage AAV) convertibles being OK
is questionable as the bonds redeem on Jan 31/15 and trade at the redemption price. Publish at your discretion.
Read Answer Asked by Russ on December 23, 2014
Q: Hi, I purchase Longrun Convirtible Debentures 1-2 years ago. The current price on them is well under 100. I don't expect capital gain of course, but how much risk is there to losing capital on these? Could they default or don't I need to worry about it? Along that vein, could some oil company CD's be undervalued right now, and how would you find a bargain versus ones with high risk?
Read Answer Asked by Kel on December 23, 2014
Q: Hi Peter
Was planning to lower my preferred shares end of year and when I glanced at a TD report , five of mine showed a due date of today so I figured I would be looking to buy some as that was more than I wanted to lessen the weight by. None were deposited today...Does perpetual mean they can keep renewing them without notice?
The ones I am talking about are BBD.C , CIBC.G WN.C,WN.D and POW.D . Is there a place to find out what the intentions are and/or which would you expect to be redeemed soon if any.
Thanks for all you do.....best of the season.
Read Answer Asked by Dennis on December 22, 2014
Q: ARN has just announced that it proposes to exchange their debentures for stock at a price of $0.15/share. The company also states that debenture holders holding approximately 40% of the Debentures have executed a support agreement whereby they have agreed, subject to certain terms and conditions, to vote in favour of and support the Exchange (the "Support Agreement"). Under the terms of the Support Agreement, such Debentureholders will receive additional common shares representing approximately 5% of the new common shares in the capital of Arcan upon completion of the Exchange.
This appears to me that a certain group of securities holders are being treated differently than others holding the same security and is therefore unfair. I also wonder whether this is consistent with securities laws which generally are focussed on treating all securities holders on the same basis.
Can you comment on this and also whether you would tender to the offer.
Thanks
Read Answer Asked by angus on December 22, 2014
Q: Hi There
I'm trying to understand this rate reset, of which I hold a modest amount. Current price and yield is $17.6 and 6.7%. Reset date is March 2015. Reset rate is ~4% (2.7+1.3). New dividend will be ~$1 ie 5.7% yield on current price. Is it simply that this is the new yield value the market has put on this perpetual? If so, why the drop in a potential rising interest rate environment? Perhaps the credit risk has reduced.
Thanks as always.
David
Read Answer Asked by David on December 18, 2014
Q: Good Afternoon
Will the following two securities be fine for tax-loss/rebuying purposes?

ta.pr.j and ta.pr.h

Thanks
Read Answer Asked by Terry on December 11, 2014
Q: What do you think about the class-action suit against weq,about quarterly earnings lower than anticipated?I own the deb.
thank you
m.
Read Answer Asked by margit on December 09, 2014
Q: Hi Peter/Team I owen this transcanada pref. shares for some time and i wonder if it is worth holding it or sell it. thanks Jim!!!
Read Answer Asked by Dimitrios on December 08, 2014