Investment Q&A

Q: I don't wish to belabor the points that have been brought up on the ala sub receipts.I bought half a position in ala, I sold some of my Box.un,and my plan was to wait to see what happens with the offer before I sell the rest. Looking at the price difference between the common shares and subs, I am tempted to buy some more of the ala subs now. Just trying to get my head around the pro's and cons. I understand that the shares held in escrow will probably get about 2% interest, creating a shortfall that will need to be paid from escrow funds, maybe around $.10 a share per month.One of the fellows said that if the deal falls through, the sibs will get back $ 31, what if there is not enough money in escrow to pay this, will ala pay out the shortfall.One last thing, someone said that this may not close for over a year, if so, does that mean that the escrow shares will need to pay out the shortfall of the dividends?, if so it could well be over a $ 1.00.Sorry for this being so long winded, but do I have the "facts" right
Thank you in advance for your response.

Q: I was wondering if the States put on a duty or tariff or whatever they might call it, what affect will it have on the pipelines, ala and ipl

Thanks

Q: Hi peter
What your thinking on the long closure on this acquisition June 2018.
The sub receipts are income until then and what about being accretive do we have to wait till next year to see any results from the acquisition and div increase?
This seems to be a very complex scenario wonder if should cut and run.
Kind Regards
Stan

Q: Just a comment to Mike re: TDWaterhouse and the Altagas dividend. TDW rounds off to even cents on its quick quote screen, so ALA's actual dividend rounds up to $0.18 and is reported as such (the dividend received by the investor is accurate). I have also found that sometimes they include a special one-time dividend/distribution in the rolling figure, which can significantly reduce the accuracy of the reported figure. If you find a stock of interest, best to check the company website to confirm the actual dividend payment.

Q: My question is more a general. I am looking at the Tdwaterhouse investments site and I am wondering how they calculate the dividend rate. The company that leads to this question is ALA who's listed dividends are .18 per month or $2.16 /year. The share price was $30.46 and the dividend rate listed is posted as 6.89%.
My calculation would be 2.16/30.46 = 7.09%. Why the difference? Their rate does adjust with the price changes. Does their rate reflect dividends paid in the last year and hence not include dividend increase part way through year or going forward.
As an investor I am interested in the dividend rate going forward. What am I missing. When should dividend increase be reflected.
Thank you again for your excellent service. ps kwh is of to a great start.
mike

Q: Why are these subscription receipts trading below the common shares? They receive the same dividend and if deal doesn't close, you get $31.00 back. Am I missing something?

Q: Hi peter
This morning the common share is trading fine slightly over $31 the new subscription receipt is a dollar .what would cause investors to dump a receipt they just paid $31 for the subsriction is trading today at around $30?
Kind regards
Stan

Q: On valuation ,using P/E ratio co. looks expensive ,using AFFO method the stock looks cheap compared to peers.For this sector which is more appropriate?

Q: Altagas Limited ( ALA ) is selling subscription receipts at a price of $31, and I have committed to a purchase. My prime reason for doing so it to enjoy the relatively generous current dividend of about 6.4%. What is your opinion as to whether the company can continue to pay this dividend and the future stock price outlook?

Q: I hold ALA:T shares. Recently they announced $2.8-bil public offering 2 31/=. Do you thing I should sell the stock and put a buy order for this subscription issue which will participate is dividend also whenever they are on call? How good or accretive is WGL Holding acquisition is and based on this should I acquire more or exit the position now and enter after 6 to 10 months? I have 3% of my portfolio.
Thanks

Q: Peyto and Alta gas have fallen lately for different reasons. How secure is their dividend, and their price ? Which one would you rate better for a 5 -10 year hold ?

Q: In a TFSA, 5+ year hold, if purchasing today, would you buy ALA, BEP.UN, or FTS.

Q: Hi peter
On ala you state the acquisition underpins the dividend increase .What do you mean by underpin?
Kind regards
Stan

Q: Subscription receipt offered for $31.00. Do you see this as a good buy at a slight discount to today's closing of $33.32 or should I wait, as sometimes I note in many instances that the initial reaction to issuance of new shares tends to drive the price bellow the offer price. I already own 200 shares at 40.86 and looking to average down. I also like it for income and wonder if the dividend is safe and do you think that the new merger will contribute to ALA`s ability to grow the dividend.

Thank you.
Joseph

Q: Thoughts on the WGL deal now that we have the specifics?

Q: What is your opinion on this bought deal from Altagas with 7% discount?

Q: If you could purchase only one of ALA, (Altagas) or IPL,( Interpipeline), which would it be and why.

Thanks for the great service, David

Q: are these reasonable buys for income and/or growth?

Q: In response to a question yesterday you indicated that you believe that the ALA dividend is not at risk. I have read that high yield can be a sign of weakness in a stock. Is it your opinion that the current high yield of 6.5% for ALA is sustainable at this level? Do you believe that for stocks in general a high yield is an indicator of weakness in any stock? Thank you.

Q: good morning:
altagas sure seems to be making a lot of news so far this year ]with more news this morning. Do you think they will have to dilute shares to do some of these these deals and would you think since they pay a nice dividend now this could be in jeopardy.