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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 Peter & team: Greetings! with reference to Tamara's question regarding who will be next US president, I hold the 3 US stock with total of some 10% gain (that is all I have in US$ and it is about 4% of my portfolio) should I hold or sell? Some money managers still recommend it. SIS I have some 30% gain and it is only less than 2% of my portfolio and you still favour it, should I take some profit? Honestly taking profit is difficult as it increases my total income and I may face a clawback of OAS. Please feel free to take my credit points as I have lots of it! Thank you.
Read Answer Asked by LOUISA on October 04, 2016
Q: Hi Peter and Team, The last question asked was on Dec. 24. Since the Dutch Auction, the shares have steadily declined (surprising?) and I'm beginning to lose patience, as I unfortunately bought it at a peak. Are there any compelling reasons to hang on, or would a switch to something like OTC be a better move to stay in the same space? ABT is held in my RRIF.
Thanks.
Read Answer Asked by Jerry on February 23, 2016
Q: ABT announced a substantial issuer bid to purchase CAD$50 million in value of its common shares for cancellation. The offer is being conducted as a “modified Dutch auction” with a price range from C$7.75 to C$9.00. The offer expires on Oct 20th 2015 (extended from Oct 5th).

The stock closed today at C$7.47. Why would the stock be trading below the minimum auction price? Do you view this as an arbitrage opportunity to purchase the stock in the open market and then tender the shares for auction?
Read Answer Asked by Nawaz on October 07, 2015
Q: I purchased shares of ABT at $9.88. Recently received a Corporate Action Notice for a Voluntary Dutch Purchase Offer of the following:
Option 1: "Auction Tender" whereby I would specify the price I want;
Option 2: "Purchase Price Tender" whereby I accept the price determined by the Company.
-OR-
Do Nothing.
Suggestion? Will these shares see $9.88 or better in future?
And, please explain the taxability of these options. Thanx
Read Answer Asked by Hanna on September 21, 2015
Q: Hi Peter and Team,

In my RRIF,I have 1425 shares of ABT with an average cost of $9.7042. (ABT closed today at $8.33).

In today's mail, I received an "Offer to purchase for cash, up to $50,000,000 in value of its common shares at a purchase price of not less than $7.75 and not more than $9.00 per common share". If I want to accept the tender offer, I need to inform my broker by Sept. 30.

I am confused as to what course of action I should take, or should I do nothing and hope that this share buyback will increase the value of my shares, hopefully above $9.7042? It's obvious that I bought high, and would feel better if I was able to sell at at least for what I paid. Or is ABT's range for this tender too low, and they think that the stock isn't worth any more than $9.00, and I should tender my shares for $9.00 in their "Dutch Auction"? (The other alternative offered by Absolute is to let them determine the price which could be as low as $7.75 or as high as $9.00).

Sorry for such a convoluted question, and as always, await your timely advice.

Read Answer Asked by Jerry on September 01, 2015
Q: Hi Peter and the team, ABT is showing strength today as it's up a bit over 9%. Is this due to the deal signed between Absolute and AMD (the chip maker)? I'm not complaining, as ABT has been quite a laggard lately. What are your thoughts and/or recommendations going forward? Thanks in advance as always for the timely and valuable advice.
Read Answer Asked by Jerry on August 19, 2015
Q: Hello -- Am looking for a technology equity that has good growth over the past 1-3 years and is projected to continue on that path, with an associated dividend. Between the two mentioned, which would be the best choice for my TFSA. Also, it you think these are not worth considering, what would your recommendation within their current value? Thank you for your excellent coverage and support. Much appreciated. Jim Alsop
Read Answer Asked by James on April 13, 2015
Q: Hi 5i Team, Thanks for your expertise. In our TFSA's (we are retired in our 70's & deriving income from portfolios) we hold 10 securities ABT 6.7%, AYA 12.48%, BAD 4.79%, DHX.B 10.5%, ERF 5.1%, XTC 8.37%, IT 8.53%, LNR 14.23%, TOG 0.7%, WCP 10.57%. We have $10M cash available. Only names duplicated in other accounts are AYA and WCP. We are overweight Consumer Cyclical (18%) and Financials (incl REITS) 21% Underweight Materials 5.1% and Telecom 3.0% and Healthcare 3.9 %. We have 54 securities total and 85% equity. We have $10M available to invest in TFSA's. Sorry for the long question, But would like to invest TFSA money as we wait for portfolio review. Thanks in advance.

Ted

Read Answer Asked by Ted on February 20, 2015
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