Investment Q&A

Q: Hello , back to the old short debacle. In the previous convo you mentioned DH had been taken over. I would go so far to say that the large hedge funds : drive prices down to take over or a take a large position in otherwise good Canadian companies; or, create unusual volatility so their trading arms can use trading algorithms to profit from this by playing both sides of the trade. Sad, like the Donald. Haha

Q: If you owned DH.DB Debentures...
DH CRP E18 CV RD 6%30SP18 would you be selling ?
Thanks

Q: Hello Peter,
With regards to the question posed to you for HCG by one of your members, i can relate to the frustration and disappointment that your team did not see it coming. However, at the same time, as investors, we have to realize that you can only advise based on the data you have available. Past data can be used as input to determine Future company or sector trends, but cannot guarantee success as no one can predict the future. I think it is best to focus on how we can avoid such stocks in the future given great metrics in the past (HCG had high ROE, decent PE etc ) and all of a sudden we start hearing issues with the company. Can you please shed light on what investors can watch for to avoid such pitfalls? I am using your service, watch BNN, read newspapers and other letters along with placing stop losses to minimize downside. From what i have seen, it is best to stick to decent paying dividend stocks like BCE, SLF, Banks, etc Growth stocks just seem to have too much hidden which comes to surface later or they are targets for short sellers. Thanks for your valuable input.

Q: The pending takeover of DH corp. is expected to close in the third quarter of this year.Can we expect to continue receiving the quarterly dividend of.12 cents ?

Q: Once the purchaser of DH acquires the common shares at $25.50, are the shares rolled into the new company or paid out? If acquired, what do you expect will happen to value of same?

Q: Just an FYI to Kathy's question on DRIP from RBC DI/ DH. I was not aware
of DH discontinuing their DRIP, but I rec'd (synthetic DRIP) from TDDI on
March 31st so I'm sure this is happening at all/most brokerages.

Scot

Q: Hi
I just experienced the following with RBC DI which I would like your comments on.
I put in a sell order on Mar 31st for all of my shares of DH after verifying on the DH website that their DRIP program was suspended as of October 25th 2016 and that all future dividends would be paid in cash. So I assumed that I would receive cash for my March dividend. Then today, one share appears in my DH account as a DRIP.
I contacted RBC Direct Investing, ended up talking to a supervisor who agreed to sell my share with no fee. Then I asked how they could process a DRIP on a company who 6 months earlier suspended their DRIP program. It was explained to me that RBC DI has their own DRIP eligible list and it had not been updated as yet for DH change as there is only one person doing this.
I find this unacceptable as I depend on this brokerage to reflect what is happening in the market place. Is this ethical to issue drips, I assume from their inventory of DH shares?In your experience is this normal ?
Thanks
Kathy

Q: DH Corp.insiders continue to hold their shares. Can they legally sell now or are they committed to tender their shares directly ? I am still holding on to my shares for now in case a better offer comes forward.

Q: I am considering selling DH now rather than wait for closing of the sale. I would like to replace it with 1 of the 3 mentioned. Which of these 3 would you suggest or do you have another good alternative. I am thinking that my replacement would likely make up for the amount lost by not waiting for the closing of the DH sale. It does not have to be a Dividend payer.
Thanks 5i for the great information and advise that you give. It has certainly been very helpful and profitable for me.
John

Q: Good morning Peter and Team,

My wife holds DH in her TFSA and her average purchase price was $28.08 per share (not ideal timing). It's only 0.38% of our overall portfolio. In the Technology sector, across all accounts, we own CSU (4.07%), ENGH (1.02%), KXS (0.68%), and OTEX (1.82%). What stock(s) in the same sector would you recommend to replace DH? I realize that our larger positions in CSU and OTEX probably eliminate further purchases, but would you say that adding to ENGH and KXS would be advisable? Or are there other Tech sector stocks we should consider? (We haven't yet decided to wait until DH is taken over and tender our shares, or to sell now if there are compelling reasons.)

Thanks as always for the valued advice.

Q: Now that the takeover for DH has been announced, is it likely to move any higher after, or not?

Q: This security matures in 2018. I bought it during the DH drop as I thought it would be more secure and it pays 6% as well. Now that the takeover is pending, what happens to this income security?

Q: I own DH which is trading below the buyout price ... Is $25.16 the best I should expect , or should I wait for the ex-dividend date ?
also
I own DH debentures...DH CRP E18 CV RD 6%30SP18... should I stick with those , or sell those as well ?

Q: I own a bunch of the 6% cone. debs. I have read the news. release about 5 times and am still confused . Please help.

Q: Hello 5i,
The $25.50 DH buyout is just short of my $26 April Call (figures!!).
Would you suggest I get out as fast as possible while time is on my side?
Would there be any reason for the stock to trade above $26 between now and the sale (besides a better offer)? Thank you

Q: I have been holding on to DH in anticipation of the takeover at $25.50 just announced. Do you know when the deal will close? Do you know if the next $0.12 dividend (x-div date is Mar. 22nd) will be paid? In short, is it better to sell now or wait to be taken out?

Thanks so much for your much-valued service,

Bob.

Q: Hi Team, you probably have a few of these questions so feel free to delete if it is creating clutter. What are your thoughts on the DH Corp purchase by Vista Equity Partners? Is it a fair price? It seems fairly opportunistic, do you know much about previous deals Vista has done? Do you see any chance of a white knight emerging? If I'm looking to move on from the position, what do you think is a good replacement for it (either tech or finance)? Thanks, Alex

Q: I got into these two at inopportune times and am down nearly 30% on each. Is it worth hanging on to Potash until the merger with Agrium is complete? For DH, is it worth waiting to see if a bid materializes? Or, is it just time to move on?
Len

Q: Buy, sell or hold? I own this stock in a couple of accounts and wondering if I should cut my losses and move on. Thanks.

Q: Please comment on results and expectations moving forward.