Investment Q&A

Q: Hi,
How concerned should we be over the increase in US corporate debt? There seems to be an increase in ratings downgrades and I am wondering about the overall effect of this in time should it continue.
As always, I appreciate your input and enjoy the Q&A regularly.
Dawn

Q: SVI reports on Fri. Could you please give me the estimates for revenue,EPS and EBIDTA. Thank you.

Q: "This will allow more investors (those that can't buy trust units) to buy shares. We view it as a positive move. Shareholders will get one new share for every four held. "

What does this mean for someone like me who was just about to get into the stock , do I wait for this to wash out or do i get in now , also timeline of the "split" ?

I thought splits always went the other way 4 for 1 not 1 for 4 .. ?

For a regular retail investor in TFSA and my RSP the wording on the release is a bit confusing to say the least .

Thanks for any additional info .
Chris N

Q: why is cuf.un rising over the last 2 days?

Q: BEP.UN: just announced a new structure involving the shares such that it becomes Canadian listed vs current structure of a limited partnership and the stock is up a fair bit on the news. We have owned this one for quite a while in a registered account. Can you explain this new proposal and whether this is still a hold?

Q: Hi 5i team,

This is a further question on healthcare and their binary outcomes on drug trials and approvals. I did buy MDT by the way based on its growth prospects and little or no dependence on drug approvals. This question is on AMRN and more generally the FDA approval process. AMRN has an upcoming date with the FDA on November 14th. From a business site, I quote “The Adcom review of the sNDA for Vascepa on its cardioprotective benefit is scheduled for November 14, 2019 with PDUFA planned for December 28, 2019”. What does that mean and how does one go about handicapping the odds of FDA approval or not? If this is largely a coin flip, then I will pass. If it is a progression towards likely approval, I may take a small position. I also understand that AMRN will be subject to a trading halt on Thursday while the review process is underway.

Thanks again for your insight into AMRN and the FDA approval process.
Dave

P.S. I notice that NXTC is down over 50% in the pre-market, a stock you mentioned in the FP for its crazy run last week. I thought tech stocks were volatile. They trade like utilities compared to drug stocks!

Q: Responding to Richard comments of this morning at TDWaterhouse the security has to be in the US account for the dividend to be credited in US. At BMO investorline and Questrade margin accounts dividends are credited in US for US dividends.

Q: Hi,

Can I get your opinion on Activision? The earnings seem to be ok ,
but the stock seems to be going nowhere.

Thanks

Q: In response to Richards inquiry about US dividends. I deal with TD. I have an unregistered account. I opened a US unregistered account and journaled the shares over. I get paid Div’s in US funds for stocks like MG, CSU, MX, BAM and GIl. No fees at all. If I want to sell any sticks I journal the back and sell. Again no fees. I can do it myself or TD will do it for me.

Q: Where 3rd quarter results that fantastic to justify a 35% jump in share price today? Is this stock turning the corner sufficiently to initiate a position?

Thanks so much for your reply.

Q: I am very pleased with the increased value of UTX. What is your opinion on whether to continue to hold it or is it time to take profits.

Thanks.

Q: I note in your reply to Mark today you say that COLD is expensive; the question from an investment standpoint is how expensive are they? It seems that earnings expectations are all over the place for fiscal '19 and '20. First Call seems to expect over $1 in '20, TR 0.67, while PE ratios presented are anything between almost 300 and 130, which doesn't compute, and on top of that should COLD be evaluated as a REIT AFFO or other criteria or as an ordinary industrial equity? I also note that COLD has failed to meet earnings expectations for the past four consecutive quarters.

Taking into account actual earnings and volume growth could you please fill in some of these gaps and provide a basis for reasoned evaluation of this company's share pricing. The price run down in recent days could provide an attractive entry into an enterprise which appears to have significant prospects because of industry needs as well as fragmentation. Thank you.

Q: The company reported 3rd quarter earnings today and they seem to have beaten estimates. They also increased the dividend by 10%. I think if this stock was not in the oil and gas sector it would be trading much higher. It looks like it is worth owning.

Q: Hi there, now that it's been a few days since the Q results, would you take a new position in Badger or would you wait to see how the price continues to settle into next week? Usually how long is a good "cooling off" period between a sell off and when the price settles in?

Thanks!

Q: I have a question about Brookfield Asset Management (on the TSX).

There was an earlier question from another person that suggested keeping BAM.A in Registered Accounts as to avoid some very complicated tax filings on its dividend. Can you shed some light on this: Is the dividend an Eligible Dividend under Canadian Tax rules or is it sometimes a combination of various return of capital or ineligible dividends? Also does it pay the dividends in US dollars? It's not very clear from their website. Thanks

Q: More a comment than a question, I just read your answer to a question asked by David. My understanding of Sangoma current cash and debt position is the following : on July 16, 2019, Sangoma closed a short-form bought deal prospectus offering of 14,846,500 common shares, at a price of $1.55 per common share for aggregate gross proceeds of $23,012,075. As of June 30, 2019, Sangoma had $11,724,000 in cash, therefore, it is fair to say that on July 16 Sangoma had ±$34,700,000 in cash ($23,012,075 + $11,724,000).

Following the acquisition of VoIP Innovations, Sangoma has drawn approximately C$46 million from a credit line provided by BMO and TD. Approximately CDN$22 million will be used to pay off all existing debt and around CDN$24 million to fund this acquisition. Since the acquisition is for US36,000,000 or ±CDN$48,000,000, Sangoma will withdraw CDN$24,000,000 from its cash reserve leaving approximately CDN$10,7000,000 in cash and will be have a debt of CDN$46 million.

Q: Please comment on Carbonite acq.

Q: Hi,

I own both these funds. Both are held in a TFSA, and I am looking for "total return". I was thinking of selling one and adding to the other.

1. Is there a lot of overlap between the 2 ETF's? (I noticed on some trading days, they sometimes have a negative co-relation).

2. If you were sell one and add to the other, which would you sell? Or would you simply keep both "as is".

Thanks,

Craig

Q: My grandson is 21, he has just opened a TD trading account. He will have $12000 to invest now . And he expects to contribute about Seven to two thousand this year. Can you recommend two or three investments to start with. Thank you . Chuck

Q: Hi,
Watching China lately and wondering if it might be a good time to start a position in a related ETF such as those mentioned above. Are these good choices, or are there better ones out there? I believe ASHR is an index sort of ETF, whereas the KWEB is focused on the internet? Maybe there are other, better ETF's? I don't fully understand fundamentals, nor can I suggest I've anything but a rudimentary sort of grasp on the world economic situation - that's your department! I just see some technical signals that might infer these are improving. Looking forward to your comments and as always, much appreciate all your hard work!
Thanks,
Dawn