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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: With reference to Cheryl's question: I too have an iTrade account and I think they convert the US dividends, paid by TSX listed companies, without a (substantial) fee.

I have 20 shares of Constellation Software (CSU) and on April 5, I had $25.96 in Canadian funds deposited in my account (in case you want to do the math and figure out if whatever fee is involved is worth your while or not).

Good luck.

John

I hope this helps
Read Answer Asked by john on May 12, 2016
Q: Hi Team,
I received notice from Economical Insurance, as a policy holder, that it plans to go public (demutualization). Apparently if I choose to participate, I can receive shares (or cash in lieu of shares). I have been informed I am an "eligible non-mutual policyholder." This affects 630,000 policy holders.

I am completely unfamiliar with this process. Do you have any information you can share about what this means and do you have an opinion on the value this may offer?

Many thanks. Michael

Read Answer Asked by Michael on May 12, 2016
Q: I'm afraid I'm a bit like a dog with a bone, I don't let go until I have the correct answer. so I phoned back to Scotia and talked to a very informative person who states that because they don't have $US accounts for registered accounts they have to convert them back to $CA at there FOREX rate with a 2% premium. I am now comfortable with this information and hope it helps others as well. Thank you again!
Read Answer Asked by Cheryl on May 11, 2016
Q: Further to my question re Canadian stocks paying $us dividends in a Canadian account I phoned Scotia itrade to ask about the fees for the conversion. They stated that no fee is charged to convert the dividend. In disbelief I asked well is there a premium charged on the conversion rate. They again said no fee is charged, I double checked. If this is true I don't need to do anything. But somehow I have a hard time believing this...your thoughts and if anyone else has any experience with scotia itrade to confirm this it would be greatly appreciated. thank you
Read Answer Asked by Cheryl on May 11, 2016
Q: Good Afternoon,
I see that you recently answered a question on the $200MM bought deal today, I would just like to expand on this a bit please. I recall when Avigilon did this a few years ago, they already had ample cash on the balance sheet with no debt but took advantage of their high share price to issue shares and raise capital. You had mentioned at the time that they likely had a large acquisition in mind but they never really did deploy that excess cash with one single large takeover that I recall. Of course AVO has unperformed and acting poorly ever since. Any read through on GUD? They now have approximately 75% of their market cap as cash, seems awfully high with now 25% more shares outstanding. Doesn't seem to make much sense? Any further thoughts? Thank-you.
Read Answer Asked by Chris on May 11, 2016
Q: Hi Peter & Ryan,

While the results looked decent at SYZ; I was caught off guard by the following statment in the the dividend release. "Jim Wilson, President & CEO of Sylogist commented "Moving forward, we can foresee that prudent capital allocation may dictate adjusting our dividend downward to allow us to invest directly in business acquisitions where the opportunity to increase our share's intrinsic value exceeds the value of a pre-tax return of cash to shareholders."

It was also noteworthy that they broke their mini streak of raises every two qtrs. Seems to me by my simple analysis that a very large acquisition is in the works that may eat in to the some or all of the cash pile. Am I reading the tea leaves correctly? Would they really cut, instead of just keeping it flat?

Part of the attraction to this company has been the way the add value to shareholders; so I would defer to management to do what they seem fit to add value; but a potential cut seems to send the wrong message.


Thanks,
J.
Read Answer Asked by JAIME on May 11, 2016
Q: Where to go now, NHC has done me wrong, should I just get out. I know you don't really like it, do you have an opinion going forward, where to head.
I feel the U.S. may be better than Canada for a while. I am thinking of buying SHW-COST-GOOGL notwithstanding they are all in different spaces, where would you put your money. I kinda favor SHW because it seems to have good 3rd and 4th quarters, more paint sold no doubt. Now the last last question, I own WSP and it is down somewhat, should I perhaps switch over to SNC. Thank you
Read Answer Asked by Maureen on May 11, 2016