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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: Good morning Peter and Team,

My wife holds DH in her TFSA and her average purchase price was $28.08 per share (not ideal timing). It's only 0.38% of our overall portfolio. In the Technology sector, across all accounts, we own CSU (4.07%), ENGH (1.02%), KXS (0.68%), and OTEX (1.82%). What stock(s) in the same sector would you recommend to replace DH? I realize that our larger positions in CSU and OTEX probably eliminate further purchases, but would you say that adding to ENGH and KXS would be advisable? Or are there other Tech sector stocks we should consider? (We haven't yet decided to wait until DH is taken over and tender our shares, or to sell now if there are compelling reasons.)

Thanks as always for the valued advice.
Read Answer Asked by Jerry on March 27, 2017
Q: the alternative finance companies (non Bank lenders) share prices are under performing the markets for quite some time. I understand why HCG is struggling but is there a reason for most of the players in this space not doing well. Margin issues, access to capital, or possibly the improved climate for the USA banks. And if so what is the scenario for possible positive change
Read Answer Asked by Chris on March 27, 2017
Q: Could you provide an updated opinion on DR based on their latest quarterly results. The latest quarter appear to be very good with the dividend payout ratio dropping below 50%.
I am thinking of initiating an initial position in this company for a combination of nice income (over a 5% yield) and hopefully a little growth in the share price over time.How does future growth in their business look?
Your thoughts as always would be greatly appreciated.
Read Answer Asked by Thomas on March 27, 2017
Q: Hello, I was wondering on your thoughts on today's response by Methanex on the 13D filing by M&G.

Do you think this company is moving in the right direction?
What time frame do you think this stocks need to be held for full value to be seen by shareholders?
What do you think M&G will do next?


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The response talked about the investment they want to do in CHILI as well as their plans on share buyback.

March 27 (Reuters) - Methanex Corp:

* Methanex Corp - commented on filing of revised schedule 13D by largest shareholder, M&G Investment Management Limited Of London, U.K.

* Methanex Corp - "We are optimistic that we will be able to secure additional gas to support an investment in restart of our Chile IV plant"

* Methanex Corp - "expect to be in a position to make a decision by mid-2017 to spend approximately $50 million over 12 months"

* Methanex Corp - "We would expect to spend around an additional $50 million approximately in mid-2018 to refurbish Chile I plant"

* Methanex Corp - "However, given our limited near-term cash requirements, we expect to generate significant free cash flow even at methanol prices that are lower than what we are realising in Q1 2017 and plan to allocate the free cash to share repurchases. Assuming we are able to average a realized price of around $400/tonne, in what is proving to be a very volatile methanol market, we estimate that we could generate sufficient cash to complete the NCIB within a period of approximately four months from the start date of March 13, 2017. After completing the current NCIB on the NASDAQ, it would be our intention to extend the NCIB on the Toronto Stock Exchange which would allow us to use excess cash to purchase up to an additional roughly 1.7 million shares."
Read Answer Asked by Ben on March 27, 2017
Q: The superfoods/suppliments/proteins etc seems to be an area dominated by private companies is there anyway to invest in them? The costs of these seems foods seem exorbitant, so the margins must be huge..like pharma but without the risks of trials etc..How does one get into this action? Any companies you would recommend?Thanks.
Read Answer Asked by Shyam on March 27, 2017
Q: Keystone gets go ahead from Trump. Realize line won't be completed until 2019.I expect good for the future for Canadian Companies and Alberta Gov't. What Companies will benefit in Canada, drillers, other pipelines feeding into TRP, tar sand companies SU. What other Canadian Oil Producers and Service Companies. Thanks Bob

Railways will get a hit that transport oil and RR car
manufacturers that produce oil tankers. Will this effect Burlington Northern and Mr. Buffet I understand cost to ship oil from Canada by Rail is $ 15.00 a barrel. Is that correct ? Thanks Bob
Read Answer Asked by bob on March 27, 2017
Q: I often see or hear questions relative to with holding tax on US companies held within an RRSP or RIF.
The reply confirms that they are not taxed however, with no reference to exceptions.
Unfortunately experience tells me to be careful of ADR's and Limited Partnerships as they ARE subject to tax with no way to recover as foreign tax paid. Both of these are not considered US companies in the tax agreement between Revenue Canada and the US Department of Revenue.
Please comment on whether I am wrong and if there are other types of holdings that I am not aware.
Thanks
Read Answer Asked by DAVID on March 27, 2017
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