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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: Hi: In today's Globe and Mail Scott Barlow writes an article that paints a gloomy picture on the future of the Canadian Equity market. I would appreciate your thoughts on this article. Thanks Brian
Read Answer Asked by Brian on August 30, 2013
Q: Can you explain in simpler terms what Aya.wt entitles you to---is it a reasonable way to play Amaya?


Amaya Gaming Group Inc
Symbol C : AYA
Shares Issued 50,205,397
Recent Sedar Documents

View Original Document
Amaya Gaming 28,750-special-warrant private placement


2012-02-17 19:49 ET - Private Placement - Debenture


The TSX Venture Exchange has accepted for filing the documentation with respect to a brokered private placement for Amaya Gaming Group Inc. announced on Dec. 15, 2011, and Jan. 11, 2012:

Number of special warrants: A total of 28,750 special warrants, each automatically convertible, for no additional consideration, into: (i) one unsecured subordinated debenture having a $1,000 par value and convertible into common shares, and (ii) 50 common share purchase warrants, each entitling its holder to acquire one common share at a price of $3 per common share until April 30, 2015. The special warrants will automatically convert upon filing of a final short form prospectus qualifying for distribution the convertible debentures and the warrants within 80 days following the closing date of the private placement. If a final receipt for such prospectus is not obtained on or before March 31, 2012, each special warrant will thereafter entitle the holder thereof to receive, upon conversion, at no additional consideration, 1.1 convertible debentures (instead of one convertible debenture) and 55 warrants (instead of 50 warrants), resulting in the issuance of a total of 31,625 convertible debentures and 1,581,250 warrants.

Purchase price: $1,000 per special warrant

Convertible debenture: $28.75-million (an additional $2,875,000 of debentures could be granted should the receipt for a final short form prospectus not be issued prior to March 31, 2012)

Conversion price: convertible into common shares at a price of $3.25 per common share until April 30, 2014

Maturity date: April 30, 2014

Interest rate: 10.5 per cent per year

Warrants: 1,437,500 warrants to purchase 1,437,500 common shares (an additional 143,750 warrants could be granted should the receipt for a final short form prospectus not be issued prior to March 31, 2012)

Warrants exercise price: $3 until April 30, 2015
Read Answer Asked by Bryon on August 30, 2013
Q: Comment, by another Philip to Philip's tax planning comment. Canada Revenue Agency’s prescribed interest rate for these interfamily loans will only be increasing on Oct. 1, not disappear as suggested in his post. - Cheers.
Read Answer Asked by Philip on August 30, 2013
Q: Good morning team, I have been paging through the income and dividend questions. I am looking to make a substantial purchase in my TFSA and I am looking for your top 3 or 4 dividend paying companies. I would be interested in DRIPS as well but not absolute. Thanks again and have a great long weekend!
Read Answer Asked by Edward on August 30, 2013
Q: Recently, I had asked you about 4 to 6 energy stocks for comparison purposes which you answered. I am still thinking about them and also am considering 2 ETF's. They are ZWU and ZUT. Could you explain the difference and do you have an opinion on them? Thanks again for your good work.
Gary
Read Answer Asked by Gary on August 30, 2013
Q: Hi 5i,
What does the ex dividend date mean? Does it impact the timing of buying or selling a stock? Thanks
KC
Read Answer Asked by Keith on August 30, 2013
Q: I am confused regarding the latest reply to a question regarding BIP.UN. The quote read "effective immediately, the following companies are now deemed eligible for consideration for INCLUSION in S&P/TSX indices". The 5i response discussed REMOVAL from the indices. So my question is: are the stocks discussed being removed or included?
Thank you.
Read Answer Asked by Dennis on August 30, 2013
Q: Hi Peter,



Firstly, thank you for your service. It is much appreciated and quite the bargain.



I was looking at your model portfolio and noticed that 17 of the 20 stocks pay dividends. However, 10 of the 20 the stocks either pay no dividend or pay one below 2.5% per annum.

You may have seen in the papers that an interesting tax planning opportunity(making 1% loans to spouses and family members) is coming to an end after September 30th. The idea behind the planning is to avoid the attribution rules and get income into the hands of related taxpayers who have a lower marginal tax rate then the person making the loan. To do so, the investements made by the family member(or the trust of which they are a beneficiary) must earn more than the 1% charged by the person loaning the funds as it is the spread between the return earned on the borrowed funds and the 1% interest paid that gets taxed in the hands of the family member/trust. Clearly, the higher the dividend yield the better so long as there is limited risk to the loaned capital.

Without wanting to impose an undue burden upon you, can you share 20-25 names of companies that would be appropriate for this planning. i.e. ones that have a good safe dividend while having growth potential? I assume that the 10 companies from your model portfolio which pay 2.5% or more are suitable choices. Can you provide an alternate model portfolio for this income splitting planning that expires in about a month?

Regards,

Philip

Read Answer Asked by Philip on August 29, 2013
Q: I have been holding Legumex Walker for quite some time (at a much higher price than today)and was wondering what your thoughts are on this company. Still waiting for some earnings from the Canola crushing plant. At around $3, is it a good buy and worth holding for the long term. Is there some other company in this sector that would be a better opportunity? Thanks again for the great service and I will be renewing shortly.
Read Answer Asked by Rudy on August 29, 2013
Q: What effect if any do you think today's announcement will have on the effected securities (I own only BIP.UN of the securites mentioned):

Thursday, August 29, 2013

S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices
17:15 EDT Thursday, August 29, 2013
A Refinement of the Definition of Domicile of a Company

TORONTO, Aug. 29, 2013 /CNW/ - S&P Dow Jones Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:

Following extensive consultation with the community of index users in Canada, S&P Dow Jones announces that changes have been made in the methodology of the S&P/TSX Canadian indices that refine the definition of what constitutes a Canadian company for index eligibility purposes. As a result, effective immediately, the following companies are now deemed eligible for consideration for inclusion in S&P/TSX indices. For further detailed information about the specifics of the change, please refer to the methodology documents online at www.spindices.com.

BIP.UN - Brookfield Infrastructure Partners LP
BPY.UN - Brookfield Property Partners LP
BEP.UN - Brookfield Renewable Energy Partners LP
EDV - Endeavour Mining Corporation
CNL - Continental Gold Limited
GTE - Gran Tierra Energy Inc.
TPL - Tethys Petroleum Limited

Read Answer Asked by John on August 29, 2013
Q: CSS Contrans and investing rules and disciplines:
Having hung on to too many stocks over the years as they dropped 10% or more under the "buy" price, I am working on my "sell" disciplines.
I am now down 10% on CSS. Does one hit the sell button, hang on and "hope" or carefully watch for further decreases and buy more?

Thanks for your help and guidance in this tricky market.
Read Answer Asked by Donald on August 29, 2013