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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: I wonder if you could comment on an article by Ian McGugan in the Wednesday August 11, 2021 Globe & Mail. Entitled “Investors in CP, CN should make sure they’re ready for a bumpy ride”, his piece points out a potential “nightmare scenario” in the battle for Kansas City Southern (KCS); namely, that if the CN offer is preferred by KCS shareholders, and if CN is granted the voting trust arrangement by the STB (Surface Transportation Board), BUT if ultimately the takeover is rejected by STB, then CN would need to dispose of their KCS shares (which CN paid a lot of money for) at “fire sale” prices. McGugan points out that the market cap of KCS has risen by some US$14 billion during this CP/CN takeover battle (which gives some idea of the potential price deflation); and given that CNR has an (approx.) market cap of US$80 billion, this implies a quite substantial hit to CN’s stock value, if this adverse scenario plays out. As a shareholder in CN (and CP as well), I wonder what your thoughts are on all of this.

Ted
Read Answer Asked by Ted on August 12, 2021
Q: i do not ask many questions, i am a seasoned investor but ecn has me stumped.
hudson did an amazing deal-will close within 4.5 months from now and payout 7.50 a share to shareholders-the stock should be at 15-16, i saw the interview with hudson on bnn -he is a shrewd as they come-he said they will only do tuck in acquisitions for now because prices are to high.the market is valuing ecn like after deal closes the stock is worth 2.50 -is this the greatest opportunity to buy this stock or am i just wrong. dave
Read Answer Asked by david on August 12, 2021
Q: My 36 yr old daughter owns TD and WELL in her TFSA account. Would you recommend holding or selling the WELL? Also, could you please give me five CA ideas for new money in order of preference. THX.
Read Answer Asked by Dona on August 12, 2021
Q: Looking to use 5% of my portfolio for momentum plays. What would you pick today? I prefer Canadian but US is fine too.

Thanks. Nick.
Read Answer Asked by Nicholas on August 12, 2021
Q: People who are very close to the market having connections that I don't have. Here are examples: PINS - in May it was $50 and up until recently it was up as high as $82, then it started selling off and eventually quickly plummeted below $60. AMAZON - this was not doing much most of the year by July it was at $3760, a short time latter it was $3300. PINS started selling off fairly rapidly once it hit the low $80's. I think some people knew that the writing was on the wall for this stock. In the case of Amazon, since it wasn't doing much anyway - it sold off rapidly over a short period of time down to $3300 - again I have the same feeling as I have with PINS. PAY PAL had a massive sell-off and ROKU in July at one time in July was $490 plus and now it is down over $100 and seems to continue to fall I wish I had got out when it reached the $500 value. Would you say these lucky people who got out at the high price are well sophisticated traders or have a lot of connections? Your opinion. Thank you.
Read Answer Asked by Dennis on August 12, 2021
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