Investment Q&A

Q: Based on bitter experience, I have concluded that preference shares are generally not suitable for an investor disinterested in gambling on interest rates.

My conclusion is based on the following:
- the only type of preference share which assures the investor of a fixed capital repayment amount is one subject to a mandatory fixed redemption date.

It seems to me (perhaps wrongly) that 1. reset shares will not necessarily trade for face value on the reset date and 2. floating rate shares would never necessarily trade at their face value
- in practice, the mandatory redemption type share is not available to a retail investor, if at all.
- apart from interest rate risk, I wonder whether there is a significant spread between bid and ask, placing the investor at an automatic disadvantage at the time of sale

Am I wrong?

Q: From your experience did you find that, in an upward market, inflow of money into mutual funds increases and therefore accelerates the upward momentum and the opposite is true as well? Today with all these ETFS can this occur with ETFS as well? Is the popularity of ETFS (funds flowing in and out) is adding to the volatility of the market. Would you see a panic scenario causing a major collapse?

Thanks.

Q: I'm doing research on RPI.UN and came across the is on the March 2, 2017 Press release:

"Net income was $7.9 million, or $0.73 per Unit, down $2.6 million from 2015 which mainly reflects higher EBITDA offset by contingent consideration for the Healthmark acquisition and the mark-to-market loss on exchangeable shares due to a $5.61/Unit appreciation."

What are the contigent considerations they are referring to?
Can you explain the mark-to-market loss on exchangeable shares?

Thanks

Q: PNG is positioned in a rapidly growing market. How do you view PNG's long-term prospects in light of the recent funding by the NRC-IRAP and the private placement they announced today?

Q: I already have ENGH, KBL, TCN, AW.UN, CCL.B, CXI and HAC in my TFSA together with about 40% bonds. Can you suggest any of the Canadian stocks you cover which would be most suitable to add here? I guess for a TFSA capital appreciation is paramount.

Q: Is ZCL a company that you would be comfortable in going from a 3% position to full 5% position in. Total portfolio value of 140,000 split between TFSA's and RRSP's.
Thank You again

Q: would you sell ala to buy mx. thanks donald

Q: I Have BEP.UN, and BPY.UN which have gone sideways for me in the last year, I also have BIP.UN which has done very well.
I am thinking of selling BEP and BPY and buying BAM.A with proceeds. Is this a good switch.
Thank You
Hooray for the ethical 5 I

Q: Good morning Peter and Team,

My wife holds DH in her TFSA and her average purchase price was $28.08 per share (not ideal timing). It's only 0.38% of our overall portfolio. In the Technology sector, across all accounts, we own CSU (4.07%), ENGH (1.02%), KXS (0.68%), and OTEX (1.82%). What stock(s) in the same sector would you recommend to replace DH? I realize that our larger positions in CSU and OTEX probably eliminate further purchases, but would you say that adding to ENGH and KXS would be advisable? Or are there other Tech sector stocks we should consider? (We haven't yet decided to wait until DH is taken over and tender our shares, or to sell now if there are compelling reasons.)

Thanks as always for the valued advice.

Q: Would appreciate your latest thoughts on this company.

Q: the alternative finance companies (non Bank lenders) share prices are under performing the markets for quite some time. I understand why HCG is struggling but is there a reason for most of the players in this space not doing well. Margin issues, access to capital, or possibly the improved climate for the USA banks. And if so what is the scenario for possible positive change

Q: Could you provide an updated opinion on DR based on their latest quarterly results. The latest quarter appear to be very good with the dividend payout ratio dropping below 50%.
I am thinking of initiating an initial position in this company for a combination of nice income (over a 5% yield) and hopefully a little growth in the share price over time.How does future growth in their business look?
Your thoughts as always would be greatly appreciated.

Q: I know it is a very small cap, but I was wondering if you could provide your opinion on Difference Capital Financial (management, strategy, etc.). Tks!

Q: Could you please update your thoughts on this company.

Q: Although I find the recent reports on rig activity in Papua New Guinea confusing, it seems to me that drilling activity in PNG is winding down and revenues from that part of the world will be reduced. What is your prognosis for revenues for the next few quarters?

Q: Hi Peter and Team,
What are your thoughts on the strategy and management of this new company as compared to Canopy ?
Thanks so much,
Nancy

Q: Hi Peter and team,

I would like to know your opinion on this US stock and the sector. Is it a growth stock?

Thanks,
Jim

Q: Hello, I was wondering on your thoughts on today's response by Methanex on the 13D filing by M&G.

Do you think this company is moving in the right direction?
What time frame do you think this stocks need to be held for full value to be seen by shareholders?
What do you think M&G will do next?


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The response talked about the investment they want to do in CHILI as well as their plans on share buyback.

March 27 (Reuters) - Methanex Corp:

* Methanex Corp - commented on filing of revised schedule 13D by largest shareholder, M&G Investment Management Limited Of London, U.K.

* Methanex Corp - "We are optimistic that we will be able to secure additional gas to support an investment in restart of our Chile IV plant"

* Methanex Corp - "expect to be in a position to make a decision by mid-2017 to spend approximately $50 million over 12 months"

* Methanex Corp - "We would expect to spend around an additional $50 million approximately in mid-2018 to refurbish Chile I plant"

* Methanex Corp - "However, given our limited near-term cash requirements, we expect to generate significant free cash flow even at methanol prices that are lower than what we are realising in Q1 2017 and plan to allocate the free cash to share repurchases. Assuming we are able to average a realized price of around $400/tonne, in what is proving to be a very volatile methanol market, we estimate that we could generate sufficient cash to complete the NCIB within a period of approximately four months from the start date of March 13, 2017. After completing the current NCIB on the NASDAQ, it would be our intention to extend the NCIB on the Toronto Stock Exchange which would allow us to use excess cash to purchase up to an additional roughly 1.7 million shares."

Q: Would you consider ONEX more financial because its private equity? TMX site it says industrial.

Thanks!

Q: What happens to the Cdn dollar if the US dollar tanks? Is the Cdn $ value based on a basket of foreign currencies of which the US$ is held in abundance?
Thanks