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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: Peter and His Wonder Team
TA has bounced over 40% off a new low in the past few weeks. Is there any new news to warrant this or is it just a typical bounce off the bottom. Any reason to think it might go higher or would a smart investor sell into the rally and find better odds elsewhere?
Thanks again!
Respectfully...
Dr.Ernest Rivait
Read Answer Asked by Ernest on February 08, 2016
Q: Peter and His Wonder Team
I know you are quite negative about TA because of there past record. Yesterday they cut there dividend and are seeking provincial assistance in transitioning from coal to other forms of energy. What are your thoughts about there prognosis going forward? Do you have any faith in there CEO this time around?
Thanks again for your assistance!
Dr. Ernest Rivait
Read Answer Asked by Ernest on January 18, 2016
Q: Hi all, as background, TA is selling assets to RNW early in the new year (January 2016). RNW miniority shareholders need to approve the transaction, but it is accretive and RNW would boost its dividend by 5% immediately so approval looks probable. Upon completion of the transation, TA will own 64.3% of RNW, which is worth $5.78 per share (based on an RNW market price of around $10.00), plus TA does have other assets (unfortunately coal fired plants in Alberta, but they must be worth something). So I am wondering why you think TA shares are trading at only $4.20, which is a 27% discount to the value of its investment in RNW only?
Read Answer Asked by blaine on December 13, 2015
Q: What is the payout ratio for TA? It's yield is 13.408% and pays out a quarterly amount of 0.18 for a total of 0.72 per year. It earns 0.66 a share per year. Therefore I figure the payout is 109%. Is this how the pay out rate is calculated. If I am correct. how can a company sustain paying out more than it earns, thanks
Read Answer Asked by Ken on December 02, 2015
Q: Peter and His Wonder Team
On April 30th in response to a question you choose CPX over TA and stated TA was expensive. Since then TA has fallen approximately 20%.What do you think has caused this? Is it company related, the sector or fear of the NDP...or all three? If the shares fell another 10% or 15% would you consider it a possible long term contrarian play? Thanks for your thoughts!
Dr. Ernest Rivait
Read Answer Asked by Ernest on June 08, 2015
Q: Hi Peter and Co.

May I have your opinion on this bond...TRANSALTA MTN 6.4% 18NV19? The bond is presently trading at $110.36*, and I do have a nice capital gain. I have no problem holding the bond (in my RSP) until maturity, but am concerned about the safety of the bond considering the price decline in TA's stock price. Your thoughts are appreciated.

Merry Christmas to the staff at 5iResearch.

Arnie
Read Answer Asked by Arnold on December 22, 2014