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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: Hi guys,

Just wanted to know your thoughts about EMH and active investing. We all know that fees are a huge drag on performance; but interestingly, an old Globe article by George Athanassakos argues institutional factors like hugging the index are the main factor for underperformance.

http://www.theglobeandmail.com/globe-investor/investor-education/real-active-management-is-worth-the-price/article26874608/

Would there be an advantage in returns (not including fees or commissions) with following a disciplined 100k model portfolio versus investing 100k in a traditional 300mil fund with the same holdings? I suppose inflows and outflows would be a major factor as well.

Thanks for your opinion.
Read Answer Asked by Elliott on February 08, 2017
Q: Hi ,if you can clarify a scenario
- Using the finaning done by CVM.v as an example . They raised $12 million at .33 with a 1/2 warrant (full warrant exercise price .70 for 18 months)
The share price was at around .45 yesterday and gapped up to the .55 area today
What are the most likley reasons the share price goes up on this news?
Is it possible they drive it up to short (covering with their .33 cent shares) or is it just a positive reaction to funding
Thanks and excuse any ignorance
David
Read Answer Asked by David on February 08, 2017
Q: Hello Peter et al.

What is your opinion of the takeover offer by Delek for all the outstanding share of Ithaca @ $1.95 a share? I am totally disappointed with the offer and find that the BOD are very cheeky recommending it. I find it a large undervalue with the potential of Stella in the near future and the 12% premium as a total insult to current shareholders. The stock price would have rose 10-15% alone on first oil from Stella announcement.

I have been reading some interesting things about the rules of the potential takeover. Also there are a lot of current shareholders mad about this low ball offer. Delek needs to get 50% + 1 share of the outstanding shares excluding their 19.7% of the outstanding shares. If Delek get 50% + 1 share they will have more than 50% of the company but if they do not have 90% of the outstanding shares then they can not force people to sell the remaining 10% or more outstanding shares. Is this statement correct by Canadian law? Currently there are two large institutions that hold 8% of the outstanding shares that are voting against the deal. If only 2% of the remaining shareholders vote against the deal can we force Ithaca to remain public so we can get our perceived future value with Stella online or force a higher take-out offer?

Your advice with the legalities would be appreciated.

Regards,

Brendan
Read Answer Asked by Brendan on February 08, 2017
Q: Hi peter
What your thinking on the long closure on this acquisition June 2018.
The sub receipts are income until then and what about being accretive do we have to wait till next year to see any results from the acquisition and div increase?
This seems to be a very complex scenario wonder if should cut and run.
Kind Regards
Stan
Read Answer Asked by Stan on February 08, 2017
Q: Bought this company for the dividend and some growth, also company is trying to go private thus I believe creating quite the swing in s hare price. What is your opinion of the companies valuation,safety of dividend and how to deal with the prospect of the company going private? I know the company is buying shares on the open market so do you have a feeling for how long this process might take and if one day there may be a premium offer for the balance of the outstanding shares?

There are several questions here,please charge my account accordingly.

Keep up your great service and thanks for your answers
Read Answer Asked by James on February 08, 2017
Q: We hold MST.UN in a RRIF and in a non-registered account, and have been advised that the the terms of the proposed takeover may be satisfied by way of dividend in addition to capital gain, thereby affecting the income tax treatment of the disposition. If this is correct would you recommend a sale now, or a hold, and is this the same for the RRIF and the non-registered account?
Read Answer Asked by Harold on February 08, 2017
Q: Peter, I believe you've most recently favoured WSP over STN. STN seems to have behaved much better over the past few months. I'm about ready to pull the purchase-trigger on WSP (as I typically prefer a bargain over 'momentum') but thought I should check. For a long-term hold as of today, which of the two would you favour? Thanks!
Read Answer Asked by James on February 08, 2017
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