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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: For money that will be needed in 5 years I am considering investing in some of the new recently issued bank pref shares.

TD.PF.G ,RY.PR.Q, BNS.PR.E

Assuming the shares are all called in 2021 at $25 the current yields would come out to be approximately 4.5%. This would be equivalent to approximately 7.7% on an interest rate.(depending on income levels ) If the banks issued a 5 year GIC at 7.7% the lineup would be long.

With this in mind, is the only realistic risk based on the possibility of interest rates rising?

Also, any thoughts how much these would get hit if interest rates rose , say a full 1%.

Great service & many thanks.

Paul
Read Answer Asked by paul on May 09, 2016
Q: As a follow up to my previous question regarding Concordia's share price drop you mentioned that the drop Friday was likely due to the forecast and results from Endo Pharma (ENDP. Based on your understanding of the two companies how susceptible is Concordia to the same factors and pricing that brought down ENDP? And to what extent does their acquisition and European operations buffer Condordia from tabling similar results? Thx.
Read Answer Asked by John on May 09, 2016
Q: Hello. Enbridge Gas represents a 4% in my total investment. Other than that, my portfolio is low in energy stocks. My questions are (1) Should I count ENB as part of an energy investment? (2) What should be the ideal percentage of energy sector in a balanced portfiolio? (3) Could you suggest several energy stocks or related energy stocks that have the most potential? (4) To your opinion, it is now a good timing to enter the market? THANK YOU IN ADVANCE
Read Answer Asked by Esther on May 09, 2016
Q: Hello,

I've been reading a lot about the CXR takeout possibility. There are a lot of opinions out there but inevitably because this was not a rumour, I'm looking at it more closely as a real possibility and that CXR is in play. Regardless of all the moving parts to CXR, the short players, bad press, debt, etc., and that even without a bid to buy, CXR stands to be worth much more in the future if they can start to pay down debt based on their earnings and reporting this Friday. My question is that it looks like CXR isn't getting an offer they would like to accept and the market seems to be reacting as if there is no belief that a buyout is around the corner. Why wouldn't a viable company just make a hostile bid and get the ball rolling anyway? Could you please provide your insight on this CXR situation and on how this buyout could work here considering CXR is looking?

Thanks for your answer.
Read Answer Asked by Mark on May 09, 2016
Q: Stupid, me, I forgot to put in the company name when I asked a question, lets try it again. I bought this company about 3 weeks ago, and has been on a stswady decline ever since. I don't understand it, they are trading at about cash value and are making money. I didn't know they had done a QT transaction, I typically avoid them like the plague, how do you feel about this one, do you think I should take my lumps or hang on.

Thank you for you time and have a nice day

Auftar
Read Answer Asked by auftar on May 06, 2016
Q: I have TORC (TOG)and Whitecap (WCP) each representing a little over 1% of my portfolio. I am up on TOG and down on WCP.

I was thinking of selling Whitecap to capture the capital loss and to replace that stock with a name of equal (or greater quality) that also pays a monthly dividend. What would your top suggestions be? I was thinking perhaps Cardinal (CJ) or Vermillion (VET) but I'd greatly appreciate your opinion and insight.

Thanks.

John
Read Answer Asked by john on May 06, 2016
Q: Back in March you thought it was early to be buying EMP.A. My screener shows a BV of about $28 vs current price of about $21 and a dividend of 1.9%. It also looks to be forming a bit of a base on the chart. Do you still feel it too early to buy? If so what do you think is a better buy in the consumer space for a value investor? (A 3-5 yr hold is not a problem when there is a reasonable dividend.)

Thanks for your help - my portfolio is a lot more balanced since I started reading to your advice!
Read Answer Asked by Dave on May 06, 2016
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