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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,
Lets say Enbridge does what a few analysts are thinking and drops from its current 40ish to 33ish. Does this really have an effect on anything besides presenting a great long term buying opportunity? If dividends are covered by cash flow, and cash flow is under contract, does a lower share price change anything besides market cap? What other consequences do you forsee there? Im thinking about buying in now (I have many years to sit on it, so short term drops dont bother me), then watching it and averaging down if the opportunity presents itself. Since dividends are covered almost 3 to 1 by cash flow, even if the share price drops to 33, could they still not afford to continue raising the dividend to encourage more buying and therefore help re raise the share price? Maybe Im oversimplifying this, thanks.
Read Answer Asked by david on March 21, 2018
Q: This is not a question, it is a statement!
As one of your members states ENB is in free fall ! Very reputable Advisers stated as I mentioned that ENB will drop to 33 plus dollars ! But you keep defending this Company for its dividend! The stock has dropped from 58 dollars to 38 dollars now while you maintained a buy rating! How many years of dividends you have to receive to make up for the capital loss if you own 1000 shares at 58 ?
I think that a moving stop at a 5% loss from a new height is a much better choice at the prevailing energy markets!!!
Read Answer Asked by Frank on March 21, 2018
Q: Which stocks in your opinion are undervalue and buy able today
Read Answer Asked by Nizar on March 21, 2018
Q: Can you please comment on the acquisition made today? After lots of acquisitions should this not finally alleviate growth concerns?

Also, from Cardiome's recent investor presentation it looks like they had Canadian tax credits of 190M cad @ 26% = $49M (versus the company's 75M total tax credits). I am assuming that is what "NOL CFWDs" means? From the news release it appears Cipher may get these credits in the transaction. That seems very beneficial for Cipher as they would be in a position to actually use them immediately where Cardiome operating at a loss could not. Is my thinking correct here?

Thanks!
Read Answer Asked by Scott on March 21, 2018
Q: TV entered into an agreement with Puma on March 16 at a cost of $500,000. This is not that much money but is this a beneficial agreement for TV & its shareholders? It appears that the strike price for the shares & warrants is quite low but there may be more positive facts & conditions that have not yet been released.Is TV getting a good deal for this agreement or is so small it is inconsequential? Thanks as always,
Dave
Read Answer Asked by Dave on March 21, 2018
Q: a followup to the results announced by Antibe, Knight (gud/t) has been given a spot of the Board of Directors. How significant is this news and what relationship does Knight have with Antibe,ie: have they previously participated in finance for shares,etc. I thought Knight would move on this news but in the red today. Thanks as usual, JB from beautiful Laurentian Mountains. PS:great spring skiing here
Read Answer Asked by John on March 21, 2018
Q: 5th Estate program on "kickbacks" in generic drugs pretty eye opening. I realize there is a difference between monies paid directly to an individual for favours v's monies going to the company entity for overhead and other costs but appears they plead guilty to a wrong doing. Could this not set them up for class action suits for customers to may have been over charged? The other worrisome part seemed to be the practice is widespread. Talk about a bread scandal. Is there a worry here or do you think 5th Estate may have over exaggerated what is actually going on with generic drug pricing?
Read Answer Asked by Phil on March 21, 2018