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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: I hold ALA common shares at a small loss (bought just under $30), and am surprised that it has not been able to get back up near the $31 receipt issue price. I am considering selling ALA and buying back the same number of shares as ALA.r, at a slightly lower price. Is it correct that if the deal does not go through, the receipts are cancelled at $31 per receipt, and if the deal does go through, the receipts become ALA shares on a 1 for 1 basis?

My thinking is that if the deal fails, then I have a capital gain on the receipts (including claiming the current loss on ALA), and if the deal goes through, I am essentially in the same position, whatever the share price. I guess the downside is that if the deal fails and the market really likes that, ALA common shares could go above $31. Am I thinking straight here, and do you have any comment on this plan or the potential market reaction to the deal failing.
Thank-you
Read Answer Asked by grant on January 22, 2018
Q: I am fairly new at this and of the companies mentioned above I want to set up a Dividend portfolio using 3 to 4 of them. Suggestions would be very much appreciated as I am not well schooled in this area.
Thank you
Read Answer Asked by Ron on January 16, 2018
Q: Hello 5i
Happy New Year!

I am looking to move cash from savings into a higher ROI investment yet not add very much market risk. With Savings offering 1.5%, I feel with a small amount of risk uptick an investor should be able to increase return.
An example of one selection as likely candidate, I have been looking at PPL.PR.K - rate reset 2021, minimum 5.75%. current yield @ 5.47%
Would you think BCE, EMA, KBL and/or ALA.R suit this consideration.

Would you please offer a few ideas for this ROI Upgrade that may be suitable for this effort?
While I am aware any desire to increase in return will drive an increase in risk and one needs to be careful to not reach too far for yield, what additional comments or thoughts would you have for this type of investment move?

Thanks for your excellent service.
Dave
Read Answer Asked by Dave on January 05, 2018
Q: These receipts were issued at $31 and are now trading around $29, if the deal with WGL doesn't go close you get your $31 back. If it does close you get a share of ALA 1 for 1 for $31, in the meantime you get the same dividend as ALA which they just increased. What's the downside if any. The deal is supposed to close approx. in Q2 of 2018.
Read Answer Asked by John on January 03, 2018
Q: Happy New Yea 5i, I am looking for income, please rank/rate the above, considering future interest increase influence, perhaps suggesting a better choice. Many thaks,J.A.P., Burlington
Read Answer Asked by Joseph on December 27, 2017
Q: As I understand it, the purchase of WGL Holdings will be paid for with the US$4.95 billion bridge loan provided by the banks with the balance being assumed debt. The intention is to replace the bridge loan with the proceeds from the subscription receipts, the private placement to OMERS and additional debt, preferred shares and hybrid securities. One of the major concerns investors seem to have about ALA is a fear that it might run into the same issues as Kinder Morgan and its purchase of NGPL. In that case the stock price plummeted from $45 to $15 when it had to cut the dividend in the face of Moody's threat to cut their rating. In your assessment is ALA in a similar precarious position or does it have it's financing in place? I have a full position in ALA and I am trying to reasonably assess the risks based on what we know (speculative risks are what they are).
Appreciate your thoughts as always.
Mike
Read Answer Asked by michael on December 21, 2017
Q: I currently own full positions in both these stocks in an unregistered account. In January I will be able to move about $35K of one or the other into my TFSA. I see both as having very good chances of a substantial gain in the next year or two. Which would you move, in considering the impact of a large capital gain for the one I keep in the unregistered account? I do not see either as a long-term keeper at this point, so I foresee the sale of both in 1 to 3 years, moving into something perhaps more conservative .
Thanks!
Paul
Read Answer Asked by Paul on December 18, 2017
Q: Hello Peter,
I hold a balanced total portfolio across my TFSA, RRSP and non-registered accounts. I keep my highest dividend payers in my non-registered and currently have them on DRIPs. Are there any of theese that you don't think should be on DRIP because they are too risky?

ALA, KWH.UN, FTS, BNS, SLF, GS, NWH.UN, ECI, EIF, BCE
Read Answer Asked by Pamela on December 07, 2017
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