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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: Orange Capital announced today it is closing down & has mainly cash in its funds to return to investors.It is 10% shareholder of INN.un.which dropped 5.5% today.Please advise if it has liquidate its holdings.Daily volume does not show such a transaction as most likely a private sale.D Warren on BNN opine Kingsett(20% owner) & other wealthy shareholders( eg Westmount,its founder) have the abilities to buy.Please advise situation.Thanks a lot for your usual great services & views
Read Answer Asked by Peter on February 04, 2016
Q: Would you be a seller of the Rona preferred share at this time with the takeover bid?
Thanks
Read Answer Asked on February 04, 2016
Q: Hi,

I have recently thrown in the towel on Goldcorp, and need to replace for gold exposure. I read this morning you have done the same and replaced with AEM. Can you offer some guidance as to why you selected AEM please. Dejardins recently downgraded to a hold with a target lower than yesterday's close, not that I put a lot of stalk in these reviews. Would you get into AEM here? Thanks!

Eric
Read Answer Asked by Erichsen on February 04, 2016
Q: CIT Group is selling at a low P/E and a significant discount to tangible book value. Is this a high risk stock in your opinion?
Read Answer Asked by george on February 04, 2016
Q: I have about 10% of my RRSP portfolio currently in cash earning 0.75%. I plan to invest it in a fixed income vehicle sometime in 2016. I noticed today that Rona is trading at $23.40 about 3% less than the takeover price. Would investing some of this money in Rona at its current price be a smart alternative to a fixed income vehicle?
Read Answer Asked by Robert on February 03, 2016
Q: Capitulating :( (me) .... so expect the market to turn up very soon!

Nonetheless, I am now firmly in the "income camp" and have reviewed the 5i Income portfolio where I already hold all but ADW and IGM of your stocks but none of the ETFS (VCH, XHY, CVD,CPD, ZRE). With the exception of VCH they have all taken it on the chin in the last year - like so much else.

I am building a "sleep at night portfolio" and have set aside an appropriate cash reserve portion. The rest will stay in the market. With "sleep" well and make a few bucks top of mind, would you recommend any of the 4 ETF's or something else like ZWB, ZDV? Thanks for help with this project.
Read Answer Asked by Donald on February 03, 2016
Q: The outlook for Sony (SNE) appears to be improving. Would you consider buying it at the present price?
Read Answer Asked by George on February 03, 2016
Q: Just glanced through the first quarter numbers. The dividend increase was nice, but the way I read the numbers, if you "x" out the currency, sales were only up 1% from last year. Ok, I guess, but not stellar. Please tell me if I am reading the numbers incorrectly. If I'm not, then to the numbers simply reveal a slow growth company taking advantage of the currency (which may or may not be reflected in future quarters).
Thanks as always.
Read Answer Asked by Neil on February 03, 2016
Q: please comment on their q1including consensus estimates for revenue and earnings.

thanks
Read Answer Asked by sandy on February 03, 2016
Q: Hello,
Just wanted to get your opinion on starting a position in TFI at current prices with holding period 5+ years. No doubt a slowing economy doesn't help but lower fuel prices may mitigate that. Also, they have bought back over 2 million shares, have recently sold there waste business which lowers their debt load, growing and well covered dividend. Any insights appreciated and thank you in advance.
Cheers!
Read Answer Asked by KENT on February 03, 2016
Q: Hi Team,

Could you please provide your thoughts on Whirlpool as a three year hold? Is appliance growth expected in India and other developing nations?
Thanks,
Richard
Read Answer Asked by Richard on February 03, 2016
Q: This comp. has blown away the last 4Q incl. the most recent one: low P.E., very high ROE, nice dividend - it is so cheap based on any metric you want to use: P.E. vs growth, P.E. vs ROE - is this all to do with sentiment - ie. the comment H.C made and the fiasco with VRE & CXR?? What gives as this looks like a long-term buy and hold to me.
Read Answer Asked by James on February 03, 2016
Q: Hello again, can you please comment on the impact this may have on AYA shares. Is it possible that the liquidation of this funds stock position could have been the reason there was so much downward pressure as of late? TIA
http://finance.yahoo.com/news/activist-hedge-fund-firm-orange-151914007.html
Read Answer Asked by Gerald on February 03, 2016
Q: I currently own 1250 shares of AYA. I'm down approx 30% from my purchase price.

I feel with what is going on with AYA and all of the recent announcements there is an upside bias to the stock.

If I'm correct and the bias is positive I would like to employ an option strategy on this to try and make some money back on my paper loss.

What option strategy would you employ in this type of situation without perhaps selling a call and cutting off your upside potential?

Thanks

Sheldon
Read Answer Asked by Sheldon on February 03, 2016
Q: impossible question #17

given the current condition of C$ and TSE it is inevitable that many, many more prime cdn companies are on the block

what sectors/industries do you feel would be the most susceptible to a us takeover?

rona was a failed takeover in 2012; are there others that come to mind?

thanks
Read Answer Asked by Robert on February 03, 2016
Q: Hello.
Thanks for great answers....
With regard to Rona Take-over today, I have cut the Rights section from the Preffered.A Prospectus and added here.
Not often in this position, should a holder of ron.pr.a expect to see $25.00 as indicated in the prospectus? Certainly that is what I expect in reviewing the prospectus.
Thanks
Dave

Rights on Liquidation
In the event of the liquidation, dissolution or winding-up of the Company or other distribution of the assets of the Company among its shareholders for the purpose of winding-up its affairs, whether voluntary or involuntary, subject to the prior satisfaction of the claims of all creditors of the Company and of holders of shares of the Company ranking prior to the Series 6 Class A Preferred Shares, the holders of the Series 6 Class A
Preferred Shares shall be entitled to be paid and to receive an amount equal to $25.00 per Series 6 Class A Preferred Share plus accrued and unpaid dividends up to and including the date of distribution (less any tax required to be deducted and withheld by the Company) before any amount shall be paid or any assets of the Company shall be distributed to the holders of common shares or of shares of any other class of the Company ranking junior to the Series 6 Class A Preferred Shares. After payment to the olders of the Series 6 Class A Preferred Shares of the amount so payable to them, they shall not be entitled to share in any further distribution of the property or assets of the Company.
Read Answer Asked by Dave on February 03, 2016
Q: If I own CXI in my non-reg account and TFSA account (both are at a loss) and I sell it in my non-reg to take advantage of a tax loss, does the fact that I still own it in my TFSA make it a superficial loss? I will not be buying it back in the non-reg.
Read Answer Asked by Gregory on February 03, 2016