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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: This security's price action continues to disappoint. Comments?
Read Answer Asked by Norman on December 07, 2015
Q: I should increase our health,materials,and energy sectors.Could you give me a few suggestions.I plan to sell Spectra Energy (SE-N) and Power Financial (PWF-T) in the new year to make the purchases.
Thanks.
Read Answer Asked by James on December 07, 2015
Q: Your views as to the growth and outlook of this company. tks
Read Answer Asked by Albert on December 07, 2015
Q: The shock of its disappointing quarter was exacerbated by poor liquidity issues. Can we expect to see this stock, now in the sin box, recover? Any time line on banking license?
Read Answer Asked by Norman on December 07, 2015
Q: Hi Peter & Co.,
I own 3000 shares of BRF.PR.F, preferreds which pay $1.25 each annually, or 5% of the original issue price.
Brookfield has offered a share exchange in which I would receive one new Class A, Series 5 preferred share unit for each of my current shares. The new units would pay 5.59% annually. Sounds good at first glance, but I am wondering why the company would do this, and whether there are other features of the new Class A, Series 5 units that are less desirable. My original cost for my shares is $19.84 each.
Can you comment please? Thanks!
Brian
Read Answer Asked by Brian on December 07, 2015
Q: In your recent Canadian Money Saver article about using call options to enhance income in a US portfolio, you gave a few examples of securities that could be considered for this strategy. As someone who invests only in your BE and Income portfolios, are there any names in these that would be the type of company you would consider for the same strategy in Canada?

Thank you.
Read Answer Asked by Alan on December 07, 2015
Q: I hold a small amount of AVO and SYZ in my TFSA. I've held both for about a year and I'm pretty much flat, up a little if I take into account SYZ dividend. My concern is that while I am happy with my sector weightings I hold 42 stocks and I'd like to start trimming that down to a more manageable level. As part of the downsizing I'd like to sell AVO and SYZ and add some CSU, ESL, or GOOGL which are already existing positions in my TFSA and each is up substantially since when I purchased them. Appreciate your advice.
Read Answer Asked by Richard on December 07, 2015
Q: I like the Brookfield entities and have held them, in various forms, for well over a decade. I want to also like BEP, however, I don't understand something - their cash flow per unit has only increased by about 3% on average over the last three to four years. How can they and the market expect the kind of returns that many are anticipating (e.g. Scotia - 29% including 7.2% distribution) when the multiple isn't that compressed and the free cash flow isn't really growing? Thanks for the great service!
Read Answer Asked by Derek on December 07, 2015
Q: Peter and His Wonder Team
On Nov.16th KGI bought SAS...to close in Jan.2016...if all proceeds well. SAS was valued at $0.47 and would receive .0906 KGI shares for each SAS share.
Currently SAS is trading at $0.44 and KGI is down from it's $5.23 closing on Nov.16th. My question if you please...is there any way SAS can go above $0.47 before the closing date? What happens if KGI went higher than $5.23 before closing...would that effect SAS?
Dr. Ernest Rivait
Read Answer Asked by Ernest on December 07, 2015
Q: I have noticed that in some stocks there is significant exercise by insiders of options. I am wondering if this is because of statements made by the Liberals in the election about taxing options of high income earners. I would appreciate you thoughts.
Read Answer Asked by wendy on December 07, 2015
Q: I notice that AW.UN is currently paying a monthly dividend of .1250 which equates to annual dividend of 1.50. Current EPS, TTM is only 1.32.
Based on this alone, they can't cover the dividend... am I missing something here?
Thanks!
Read Answer Asked by Chad on December 07, 2015
Q: I've been a long-term owner of Allergan. The potential deal with Pfizer indicates that 11.3 shares of PFE will be granted for every 1 share of AGN. Looking at the closing prices of each company on Friday Nov 4th, AGN closed at $316.50 and PFE closed at $32.80. At 11.3 shares of PFE per AGN, this currently values AGN at $360.80.
In your opinion, why are the AGN shares not trading around the value of the deal? Is there significant pessimism about the deal? Are the targets for PFE shares significantly lower over the next year?
Seems to me this is kind of a "back the truck up" opportunity...

Thanks!
Read Answer Asked by Chad on December 07, 2015
Q: I have a 25% gain in costco before currency and love the company but think I should take my profit as it is very expensive at 30X earnings. What do you think?

Doug
Read Answer Asked by Doug on December 07, 2015
Q: I am down 16% on DH and down 20% on TFI. What are your thoughts on averaging down on these stocks? I am thinking stock-loss selling may represent an opportunity. Thank you.
Read Answer Asked by Barrie on December 06, 2015
Q: My Tech sector, which comprises ESL, OTC, & SVC has been doing pretty good lately. Am thinking of adding GIB.A. Would you advise dropping any of the above in favour of GIB.A? Any of them getting a bit tired? Really appreciate your insight.
Read Answer Asked by Arthur on December 06, 2015
Q: Suggest sell the 350 ECI & leave the proceeds inside the RRSP. There is no tax at your marginal rate on the $5600. Keep cash until something diverse comes along.
Borrow funds in your margin a/c to purchase 350 ECI. Interest on this trade would be tax deductible.

Joe
Read Answer Asked by Joseph on December 06, 2015
Q: A comment on Jimmy's question. As probably he might know,the 10% is only withholding tax, transferring securities from his RRSP to his son's account will be subject to taxation at his marginal tax rate on the full value of the transfer. He may have to pay extra or get back some money depending on his tax situation for the year of transfer. He may also consider selling the security in his RRSP take the money and buy the security back in his son't account, that if commission is less than the $ 50 charged to transfer the security, however he has to be aware of price fluctuation which may benefit or cost him extra. Hope that helps.
Read Answer Asked by Saad on December 06, 2015