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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: I hold ALA common shares at a small loss (bought just under $30), and am surprised that it has not been able to get back up near the $31 receipt issue price. I am considering selling ALA and buying back the same number of shares as ALA.r, at a slightly lower price. Is it correct that if the deal does not go through, the receipts are cancelled at $31 per receipt, and if the deal does go through, the receipts become ALA shares on a 1 for 1 basis?

My thinking is that if the deal fails, then I have a capital gain on the receipts (including claiming the current loss on ALA), and if the deal goes through, I am essentially in the same position, whatever the share price. I guess the downside is that if the deal fails and the market really likes that, ALA common shares could go above $31. Am I thinking straight here, and do you have any comment on this plan or the potential market reaction to the deal failing.
Thank-you
Read Answer Asked by grant on January 22, 2018
Q: Hi there,
I have been thinking about hedging my portfolio against a downturn and want to explore ETFs that are bearish on the market. I would appreciate thoughts about any Canadian or International ETFs you might point me to for further research. I would be looking at starting with a small position for now. And, I would also appreciate any other thoughts you might have about insulating a portfolio against the inevitable correction.
Thanks very much, I appreciate the service you provide and just renewed again.
Read Answer Asked by Erna on January 22, 2018
Q: I hold these 3 RIET’s in my investment accounts. I am looking for a replacement for H&R. Would appreciate your suggestions to provide a reasonable return with some growth. The holding will be in a taxable account.
Thank you
Les
Read Answer Asked by Les on January 22, 2018
Q: Hi 5i team,

Enjoy reading the blog on power of dividend growth stocks. I want to invest in US, Europe and Emerging Market. Would investing in ETFs that track dividend growth stocks be better than the overall indexes?
Please provide your ETFs picks, in US$ and in C$, that invest in dividend growth stocks in US, dividend growth stocks in Europe and dividend growth stocks in Emerging Market. Would these etfs be best held in RRSP account? Thanks.

Read Answer Asked by Willie on January 22, 2018
Q: I'm looking for investment vehicles that offer reasonable monthly income with the possiblity of some capital gain. I have chosen PMIF And PLV as possibilities. I would appreciate your opinion regarding the quality of the ETF'S. Safety and professional management being important to me. If there are other possibilities that you favour please indicate them.
Read Answer Asked by Les on January 22, 2018
Q: I have virtually no direct exposure to the US market at the moment and wish to rectify that. My risk tolerance is moderate with a minimum hold of 5+ years.
I am considering adding IWO and MTUM to my RRSP plus 2 or 3 other stocks for diversified exposure. What are your thoughts with this strategy and can you provide a couple stock suggestions, your reasoning behind them, and perhaps how best to allocate the funds?
Thanks for the great service.
Read Answer Asked by Ron on January 22, 2018
Q: Hi 5i, Peyto has long been identified as one of the highest quality and lowest cost Canadian nat gas producers. It was even suggested that before PEY would run into serious trouble some of its competitors would be going broke and selling assets out of bankruptcies. With the shifting of shareholders following the dividend cut and cap ex reduction, any thoughts on where the stock may settle and find some stability? Do you think it is okay to continue to hold it (and continue the DRIP) and wait for a cyclical lift or would it be better just to exit the scene? Also, can you name any Canadian nat gas producers that sell much of what they produce at NYMEX prices(are there any?) ? Thanks.
Read Answer Asked by Lance on January 22, 2018
Q: Medical Facilities Corp says it has an agreement with Kansas-based NueHealth LLC to form a joint venture and acquire seven ambulatory surgical centers from Meridian Surgical Partners of Brentwood, Tenn. The joint venture, will be majority-owned by Medical Facilities. Medical Facilities says its portion of the $46.5-million (U.S.) total purchase price will be funded by cash and a draw on its credit facility.
What do your overview of this purchase by DR and using their cash and credit facility? How soon is it accretive to cash flow, is the dividend safe and does it mitigate some of the concerns in the past regarding competition moving into the areas where they currently have operations?
Thanks
Gordon
Read Answer Asked by Gordon on January 22, 2018
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