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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: Good morning,
I would like to invest in a Mortgage Investment Corporation (MIC)for my TFSA or RESP but do not know whether it would be preferable to invest in a publicly traded MIC such as Atrium Mortgage Investment Corp(AI), Timbercreek(TMC), TREZ (TZZ) or in a non publicly traded MIC such as Magenta, etc where the $$$ are pooled invested in different types of mortgages and where the interest collected is 100% distributed as interest to the investors after management fee? Thank you
Read Answer Asked by Francesco on February 21, 2017
Q: A&W issued a release regarding a private placement this morning which itself isn't out of the ordinary.

However what caught my eye was what will happen with the proceeds. They will be given to 'certain indirect shareholders' for 'their personal financial planning requirements'. So the fund is selling units to Laurentian, and all of the money is being handed out to unknown shareholders. None of the funds will be distributed to other shareholders, nor will the Fund hold the cash.

I'm no expert but this doesn't pass the smell test. Am I missing something?
Read Answer Asked by Chris on February 17, 2017
Q: Hi Peter & Co.,
Fabrice Taylor made an interesting comment on ALA on today's Market Call show. He said his analysis of ALA's cash flow statement suggests that the dividend is being funded through borrowing and equity raises, and not cash flow from operations. This is the first time I've heard a comment like this about ALA's dividend and its implications for the sustainability of the dividend. What's your take on this?
Many thanks,
Brian
Read Answer Asked by Brian on February 17, 2017