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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: Peter,your ex firm Sprott is taking over CEF,expected closing in Q1.2018.I have 1000 shs of CEF.A .The proposal is 1 sh of Cef.a for 1 new trust unit.Sprott stated that there is over $300m in value to be realized for Cef.a shareholders relative to 9% pre announcement NAV discount. Please advise of how much cash I will receive & Sprottt's calculation formula.If undervalued,then is it advisable to buy some more shares now?Also will the new trust unit be listed on TSX.I read u response to q on Nov 15--tender offer & select cash option(cash & shs).Thanks for u usual great services & views
Read Answer Asked by Peter on November 20, 2017
Q: Regarding Sprott Asset management inc purchasing CEF.A and common shares. A quick reading of the plan of arrangement seems to indicate that in the default option (do nothing) CEF.A units will be converted to trust units of the new entity (SII ?) on a one to one basis, and that no payment will be made to CEF.A units owners. Is this a correct interpretation ?
Read Answer Asked by Alejandro (Alex) on November 20, 2017
Q: In your opinion if Trump cancelled Nafta, which 6 Canadian Co's would be the most affected in order?
Thanks
Read Answer Asked by eugene on November 20, 2017
Q: A Money Saver Magazine had a interesting article (Richard Morrison, July August 2017) regarding that you should invest in places that you would be willing to live and places with low corruption. Denmark #1, New Zealand, Singapore,Sweden and Switzerland were among countries with the higher scores ahead of Canada #8 and the United States #18. Dividend yields are over 4% on the New Zealand and Switzerland etfs and company holding appear solid.

Are there any countries around the world that you are most bullish on and would you comfortable investing in the above etfs say 10-20% of a portfolio of a 30 something year old?
Read Answer Asked by Thomas on November 20, 2017
Q: Hello Peter and Ryan,
Nice article in the Globe about ENB
https://www.theglobeandmail.com/globe-investor/inside-the-market/bmo-sees-once-in-a-multi-year-buying-opportunity-for-enbridge/article37015852/

I have a question on the last part of the paragraph. The analyst does a good job explaining why the target price would increase in the long run, but the sense is better to do an equity issue than adjusting the dividend. Do you agree with this? Crescent Point kept issuing equity and did not bode well for the stock. I know the stocks are not the same, but would you expect a drop in share price if ENB does an equity issue? I have 7 percent weighting and am down. Is it best to keep that weight for now or take some loss and move it to TransCanada. Thanks very much.

We see strong rationale for ENB to reaffirm the 10-12-per-cent dividend growth guidance. While we found it surprising that management did not reiterate its 10-12-per-cent dividend growth guidance on the Q3/17 call, deferring the details to the December investor day, we believe it is a prudent exercise for ENB to continue to revisit its payout policy in the context of the record-high 5.5-per-cent dividend yield and credit rating overhang. In the end, we believe ENB will reaffirm the current dividend guidance: we believe issuing equity is less value destructive than tempering dividend growth given the material market valuation compression."
Read Answer Asked by umedali on November 20, 2017
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