Investment Q&A

Q: any reason for the 2% drop today

Q: I hate it when companies do “bought deals” at prices lower that market price. I understand why they do it but it feels like a blindside. Companies do not care for the shareholders.

The little guy always feels the pain and then the stock is dead money for several months until the deal is closed or longer.

5I is just guessing they will buy another company, no one knows for sure.

My questions are:

1. Why would SIS-t have to “clean up the balance sheet” prior to buying another company? It’s such a small deal. Is there something wrong with the balance sheet?
They did not do this for previous purchases. (H.E.S. Elevator or was it Visilift) or did they, I may have missed it? Is there another reason for this deal? Isn’t the issue for more funds normally done at the same time or after a purchase instead of before?

2. SIS-t will be “dead money now”. Do you not believe that when a stock becomes “dead money” it would it not be better to place capital elsewhere until the stock moves up?

3. For bought deals, the little guy can’t participate in these types of issues if managing a self-directed account. How unfair is this?

4. I don’t usually look at financial reports for companies but this looks suspect.

The Annual Balance Sheet for Dec 31, 2017 shows:
“ Intangibles” = $100.49C$Mil. versus less than 12.05 mil in previous years

Why is it much higher than the preceding 3 years? Can you explain what this is? And should we be worried?

Q: Do you think that the significant increase in SHOP on Tuesday was due in whole or in part to AMZN's release of its international shopping app? I own both companies so if this is the case, are SHOP's fortunes so tied to those of AMZN so as to present significant concentration risk?

Appreciate your insight.

Paul F.

Q: In a well diversified portfolio which one of these three companies would you choose for a long-term hold and with a view of an increased probability for a recession by the end of 2019? Can you please comment on your investment rationale?
Thanks

Q: In a reply to Aubrey on Tuesday you recommended crystallizing a loss in SPE and buying VET for the tax benefit. I hold SPE shares at a cost of $9.03, but I totally fail to see any tax benefit in selling SPE and buying VET. Why not just wait for the share conversion a 0.1476 per SPE share? Please explain the tax benefit of selling SPE at a loss.

Q: Is it time to buy Shopify?

Q: As a current holder of SIS(2.5% @ $17.74 p/p),I was not thrilled at all with the $16.60 Bought Deal announced last night,resulting in a loss of 0.66 to $16.83 today.Please advise if I should buy more @ this price.Thanks for u usual great views & services

Q: In view of the relatively poor bid for Spartan, what are the chances the RRX will receive any interest as a takeover

Q: You have mentioned M&A activity WR to MX a couple of times. Are there a reasons why this stock seems in play to you at this point?

Q: Hi
I need to get smarter about regulations. If I were to move $5.5k from a non- Registerred Account to a TFSA could I simply transfer shares? Or must I sell, raise cash, move cash, buy back in TFSA account?
Thx Frank

Q: Want to transition the kids RESP to ETFs from the current mutual funds ( cig11465, mfc2710 and aim5510 33% each). Kids are 13 and 15 so University is 3 and 5 years away respectively. I was thinking 50% CDZ and 50% VIG?

Q: I have a question about 985
If sector is not an issue, would you replace BPY.UN which i’am down 12% with CPX? This would be for a 3+ year hold with income and stability a priority.
Or could you suggest a better alternative to BPY?
Thanks

Q: Do you have any suggestions for stocks that have been unjustly beaten up lately? Thanks

Q: What is your current take on SIM? Is it a Buy, Sell or Hold here? What are its prospects for future growth and profitability?

Q: Please comment on the AQN announcement today.

Q: I was wanting to purchase MX but it keeps rising and I keep thinking all the easy money has been made. Your thoughts please. Thanks.

Q: Any news today regarding Alaris to warrant the +5% pop?

Q: Is there any prospect of a better deal for SPE shareholders, or is this a "done deal" ?

Q: The all stock acquisition of SPE will dilute VET by about 20%, but the VET stock price has dropped only 3%. Would you expect a more significant decline in VET or is the dilution effectively offset by the SPE assets being acquired? Would you purchase either stock now, or wait a bit?

Q: I am wondering if there is any withholding tax, or other tax consequences, to holding BPY.UN in a TFSA. What is your opinion on the company for an income investor seeking income growth.