Investment Q&A

Q: Yesterday, I received an email from my online discount broker Questrade announcing a new service which they described as follows: Securities lending is a strategy used to generate additional income by loaning shares you already own to other financial institutions. Individual investors in Canada can’t do this just yet but Questrade is thinking of offering it to its clients.

Questrade then went into some detail (but not enough to my satisfaction) about how to proceed. Can you shed any light on this practice and what potential problems might arise from participating in it?

Robert

Q: Appreciate your thoughts on Cipher which has been extremely frustrating to hold. Do you think price can appreciate if and when the sector sentiment improves?

Q: I am wondering what you think would have happened to the share price of Concordia had they NOT made the large acquisition of AMCo in September 2015. Do you think CXR would have been better off?

The acquisition of AMCo cost them US$3.5B, and the market liked it initially. They issued 8 million shares at US$65 to help pay for the acquisition. Yet the market cap of CXR is now only US$1.2B, much less than half of what they paid for AMCo, and the share price is now under US$24. Now they put themselves up for sale. Why would they do that?

I know they have been tainted by the problems in the healthcare sector like at VRX, and Hillary’s tweet, but still wasn’t it supposed to be a great acquisition for them, yet the stock has lost almost 75% of its value since then. Yes they have large debt, and that was known when they made the acquisition, and it didn’t seem to matter then. Now everyone cares about it, and the stock is under a short attack.

I want to be a believer in CXR, however, I like to understand what is going on, and at the moment I don’t get it. What lessons can a retail investor learn from this fiasco?

Paul

Q: BDJ: Blackrock Enhanced Equity Dividend Trust
What is your opinion of this fund for retirement income? What are the risks? The yield is 7.25% and pays monthly. I read an article that said it's currently selling at a discount.

Q: I realize the U.S. isn't your area of focus, but do you have any thoughts about WYNN in the shorter term ? Would you expect it to fall off from its current price, stay the same or get stronger ? Many thanks.

Q: Hi 5i,
What are your thoughts on Birchcliff acquisition of the Encana assets and the issuance of new Equity in support of acquiring these assets. Does it make sense and is the stock fully valued at this point given the recent run up since the fall?

Cheers. Antoine

Q: The share price continues to languish, although it is up substantially from its earlier lows (but still down from its highs). Despite this malaise, the stock continues to draw widespread support from several BNN analysts and others. Why is the proposed restructuring not better reflected in share price? Does it suggest there is a greater deal of risk in this happening than first thought or that restructuring will not prove to be that beneficial?

Appreciate your insight?

Paul F.

Q: Hello Peter
I am wanting to replace some bonds with these 4 stocks. (EIF,PKI, SIA, AD ) Could I have your opinion and any concerns.
Thanks for your great service.
Gary

Q: BPF.un. It has up ticked and I am just curious if there is any news?

Q: Hello Peter, I am looking for some bonds to add to my portfolio, I would appreciate your ranking the above for me. Also, your opinion of how would they react to upcoming interest rate increases. Perhaps can suggest a better choice. Many thanks, J.A.P. Burlington

Q: Hi, could you please comment on its results and outlook as announced this morning. Also, does it reaffirm your position to start accumulating at today's levels. Thanks

Q: A reasonable growth strategy is through acquisition, who are their likely targets?

Q: Hi Folks
What do you see as the potential downside in owning this stock over the next year or so
GUY R>

Q: Can you please give me your comments on the ETF

Thanks

Q: Hi guys,
I know the US isn't your area of expertise, but I was hoping for a quick review and what you thought about Duluth Holdings.

Q: What is the leverage of underlying OSB commodity pricing to Norbord's share price and if supply stays constrained through 2016 what EPS acceleration could be expected for BLX?

Q: I'm wondering if you can comment on their latest results. Thanks

Q: I am looking to start a position in Trinity Industries. What is your opinion of this company and its sector? Thank-you.

Q: I'm holding GRT.UN. It has underperformed the XRE substantially YTD. Can you talk about this poor performance, and what do you think of the company going forward. What else do you like in the industrial REIT space?

Q: Hi Ryan and Peter,
My question is of a general nature and concerns a problem many seniors are having with portfolio construction. I'm 70 years old, have a defined benefit pension which, along with my wife's defined plan, covers our monthly commitments. We are underinvested in the fixed income part of our portfolio but because of the lack of returns on bonds and GIC'S, are hesitant to commit a large portion of our savings to this sector.
As with many seniors who have their monthly expenses covered by pensions, we need guidance as to what percentage of our funds should be in fixed income. What percentage do you think is appropriate and could you suggest a few specific investments.
If you believe, as I do, we would be better off investing in Canadian Blue Chip companies that offer relatively safe growing dividends, could you suggest several such companies.

Thank you in advance for your much appreciated guidance.