For BPY.UN, are all their leases longer in nature and how much in danger are they in cutting they divvy? I would guess some of their tenants might be in danger if this keeps up but the contracts should be solid. Thoughts on risk/return for BPY.un?
Q: Hi Peter & 5i,
These are preferred minimum rate reset shares. Both have a minimum reset at 4.90%. Never to be reset at below this rate.
My questions:
1. If there is a minimum rate reset, investors are not concerned about falling rates (because falling rates don't affect these) but they are concerned about the ability of TC and PPL to pay the future dividends.
2. In your opinion should investors be concerned about the ability to pay the preferred share dividends? (There are lots of common share dividends that would be cut before the preferred share dividends).
Thank you for your answer and calmness during these unforseen times.
As you say, no one rings the bell at the bottom. With this in mind do you put any credence in the theory that it is best to wait for the VIX to quieten down to around the 40 mark before wading back into the market. I am for the most part, an income investor.
Q: Peter and His Wonder Team
I realize Guess was hammered in this downturn. So they come out with a good quarterly report and the stock skyrockets 134%. It seems too good to be true. What am I missing here...Anything on the wire? Your assessment please. Thanks!
Q: Do you think the very high yield of First Financial is simply a case of being dragged down with everything else or is there anything else I should be aware of.
Q: Hello 5i
I have a tax loss that i can claim on bns. But, the problem is that i would like to replace it. Because of its focus on latin america, etc. There is no direct Canadian equivalent. I do hold bac in the US and TD in canada. I do have us cash, if needed. Any suggestions for a place holder, or even a replacement?
Thanks for the good work in these difficult days. It is evident by the comments that it is appreciated.
Q: On March 6th you mentioned in an answer to question from Dave that Chorus Aviation would be ok to hold if you have the correct time frame. Do you still feel that way? What are the chances of a dividend cut?
The following companies have take over proposals in place:
ACI - offer of $33.50 closing price March 19 of $31.93
NVU.un - offer of $36.25 closing price March 19 of $27.08
Questions are:
1 - what are the likelihood of these transaction to close?
2 - are there other potential opportunities in the market that may be attractive?
3 - the Northview transaction looks attractive, given the distribution was never cut in the 2015/2016 oil downturn (although the share price went down to $16).
If we end up in a longer (say 1-2 year recession) can you provide any comments as to which of the following could suffer more from vacancies or unpaid rent based on their tenants ?