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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 the past 4 years or so, DFN fund management has increased the share count via bought deal, two times a year. While it should not matter in DFN's case because of it's business model, each share increase has caused the stock to tumble. It then creeps slowly upwards until the next increase causes it to tumble again. Some months ago DFN announced the "At-The-Market Equity Program" is renewed.

What does "At-The-Market Equity Program" mean? Presumably it also means they can still do large bought deals when the price is high, just that it won't be as predictable as the past years spring and fall issuance..?

Thanks for the ongoing great service.
Read Answer Asked by Mark on March 18, 2022
Q: I am in a quandary, I have no idea what is going on with this split shares. I bought the capital shares at the low of oil stock companies, the shares were $.50. I know that it was highly leveraged and there was no value in the capital shares. I accepted the fact that they could be worthless by 2023, the time that they would be redeemed. I was hoping that the oil stock would recover and the net asset value would go back to $5 as it was in 2018. Well the underlining stocks have mostly hit 5 year highs, but yet the net value of the capital shares are about $ 2.00, so the way I read it the stocks would have to go up another 100 % to get to this value, if my calculations are correct. Rhis is not going to happen, I emailed the company but no response I just do not under stand why the value is so low. Do I have this right if so I blow these shares out. Sorry for the long winded question.
confused

Thanks
auftar
Read Answer Asked by auftar on March 03, 2022
Q: Can you provide an overview of these products that are widely available in the US and not canada. I know they use leverage to generate returns and especially many pay higher dividends. i have tracked them against my other portfolio holdings and they have not done (in general) any worse than my other holdings in a correction. I like the nice dividends for my retirement - For example QYLD. how much more risk am i taking on?
Read Answer Asked by kelly on November 10, 2021
Q: Could you please comment on Closed end Municipal Bond Funds in the U.S.? How are they leveraged, and are they a good safe investments as a hedge against more troubled times next year? Any picks?
Read Answer Asked by Tom on November 09, 2021
Q: Is there a summary of Canadian Closed end funds that is available to view? Years ago, Financial Post carried a daily summary of this sector, but I cannot find that anymore.
Read Answer Asked by Richard on November 02, 2021
Q: I hold riocan for income and some growth and I am up at 45% so far. For more income, do you think it is a good idea to sell and buy the global dividend spit fund ( GDV.to ) that has a dividend of 10% at the moment ? Advise me if you have a better suggestion or simply do nothing and keep riocan. BTW it is in a taxable account so I have to pay taxes on the move. Thanks and have a nice day.
Read Answer Asked by jean on November 01, 2021
Q: I am scratching my head on this one! I bought some very cheaply in the recent market sell off. I am looking at the NAV of $18.10 (Sept. pricing). That seems an extraordinarily steep discount to what it presently sells for. Am I reading it correctly? Further, I noticed it passed up a termination date some time back but has another at 2023 year end. What would convince them to shut it down? Shareholders like me or something else? If something else what could that look like?

TIA
Read Answer Asked by Gerald on October 19, 2021