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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: 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
Q: In Today's answer to a question by Peter,
5i wrote:
"Certainly AmazonGo is something that needs to be watched, as it reduces costs and time for the customer, thus it could be very popular. But others will follow if the techology works well, and Loblaw has already started a big online push."

Is this the technology that Shopify supplies ? Is there further opportunity to invest in this type of technology .
Read Answer Asked by Leonard on February 08, 2017
Q: Other than currency what is the difference between these two products. I would like some insurance on market volatility but am unsure which product is best. Is there a better way to protect against volatility other than cash. Thanks

Kenn
Read Answer Asked by Kenneth on February 08, 2017
Q: In reference to a question from Peter concerning Enghouse and Boyd, when or how do you determine winners(former?) are no longer winners? I have a few positions in which I have done quite well and despite nothing materially changing in the company, the stock price has stagnated or has been range bound for months.
I am reluctant to change companies just for the sake of change or to try to chase returns but often I am enticed by companies that seem to have momentum But this often throws off sector weighting?
Read Answer Asked by Marty on February 08, 2017
Q: Just a comment to Mike re: TDWaterhouse and the Altagas dividend. TDW rounds off to even cents on its quick quote screen, so ALA's actual dividend rounds up to $0.18 and is reported as such (the dividend received by the investor is accurate). I have also found that sometimes they include a special one-time dividend/distribution in the rolling figure, which can significantly reduce the accuracy of the reported figure. If you find a stock of interest, best to check the company website to confirm the actual dividend payment.
Read Answer Asked by grant on February 07, 2017
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