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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've been a long-term owner of Allergan. The potential deal with Pfizer indicates that 11.3 shares of PFE will be granted for every 1 share of AGN. Looking at the closing prices of each company on Friday Nov 4th, AGN closed at $316.50 and PFE closed at $32.80. At 11.3 shares of PFE per AGN, this currently values AGN at $360.80.
In your opinion, why are the AGN shares not trading around the value of the deal? Is there significant pessimism about the deal? Are the targets for PFE shares significantly lower over the next year?
Seems to me this is kind of a "back the truck up" opportunity...

Thanks!
Read Answer Asked by Chad on December 07, 2015
Q: I have a 25% gain in costco before currency and love the company but think I should take my profit as it is very expensive at 30X earnings. What do you think?

Doug
Read Answer Asked by Doug on December 07, 2015
Q: I am down 16% on DH and down 20% on TFI. What are your thoughts on averaging down on these stocks? I am thinking stock-loss selling may represent an opportunity. Thank you.
Read Answer Asked by Barrie on December 06, 2015
Q: My Tech sector, which comprises ESL, OTC, & SVC has been doing pretty good lately. Am thinking of adding GIB.A. Would you advise dropping any of the above in favour of GIB.A? Any of them getting a bit tired? Really appreciate your insight.
Read Answer Asked by Arthur on December 06, 2015
Q: Suggest sell the 350 ECI & leave the proceeds inside the RRSP. There is no tax at your marginal rate on the $5600. Keep cash until something diverse comes along.
Borrow funds in your margin a/c to purchase 350 ECI. Interest on this trade would be tax deductible.

Joe
Read Answer Asked by Joseph on December 06, 2015
Q: A comment on Jimmy's question. As probably he might know,the 10% is only withholding tax, transferring securities from his RRSP to his son's account will be subject to taxation at his marginal tax rate on the full value of the transfer. He may have to pay extra or get back some money depending on his tax situation for the year of transfer. He may also consider selling the security in his RRSP take the money and buy the security back in his son't account, that if commission is less than the $ 50 charged to transfer the security, however he has to be aware of price fluctuation which may benefit or cost him extra. Hope that helps.
Read Answer Asked by Saad on December 06, 2015
Q: Don't know what rules various brokers have for same day selling & simultaneous
purchase of same security between US & CDN mkts. but it is not illegal.
Some brokers specialize in this area & are happy to make a few pennies on a trade.
It's really a necessary function to keep things balanced.
Joe
Read Answer Asked by Joseph on December 06, 2015
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Because you have a subscriber base to start with you can experience great success by sampling a past issue of the etf newsletter to this base for free.

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A free sample of the newsletter proving its worth to potential subscribers would make it easier to expand your base.

Good luck
Read Answer Asked by Sheldon on December 06, 2015
Q: Hi Team. Roland asked (Dec 3) about capital loss in one account but having the same security in another account creating an above cost ACB. Did he/you mean 2 non registered accounts?? or does this mean that having the same security in a TFSA or RRIF and a non registered will null and void a capital loss (and create a gain) if one of the accounts creates and above cost??? In other words, I have several securities in 2 or even 3 accounts (TFSA, RRIF and Non Reg) that I have shaved for loss or gain throughout the year. Much thanks for all you do!
Read Answer Asked by El-ann on December 06, 2015
Q: I purchased some names to start building the growth portfolio about a year ago.
I started with CXI, DHX, PHM, PUR all are in a position of retreat, I now plan to add another name, is there a particular name you would suggest adding at this time.
Read Answer Asked by Peter on December 06, 2015
Q: Hi Peter & Team: Your answer to Roland Dec.3, does the average ACB apply to cash & register accts? Thank you and wish you all have a wonderful X'mas time!
Read Answer Asked by LOUISA on December 06, 2015
Q: Earlier this week, Frances Horodelski mentioned the large number of short positions which exist on the CAD and few other currencies. Almost unprecedented levels. The suggestion from one of her guests is that, under these conditions, a significant and sudden reversal of the CAD against the USD could happen.

Would you agree with that? i.e. on both the reversal and the magnitude?

If this happened would it likely last for a while or more likely be a pop and drop scenario?

Thanks for your opinion on this.
Read Answer Asked by Donald on December 04, 2015
Q: Can you expect this company to still be in business out 18 months.
Read Answer Asked by Norman on December 04, 2015
Q: Is the game over here? Should I sell and not for tax reasons.
Read Answer Asked by Norman on December 04, 2015
Q: I have held SPDR Health Care E.T.F. XLV-N for some time. At this time, it is a hold or sell? Going forward for a longer term horizon, Is there another US ETF that I should take a position in?
Read Answer Asked by Tom on December 04, 2015
Q: I was thinking of buying this ETF for my RRSP. RRP shares which are laddered - down a lot due to concerns about interest rates I assume - however, these type of preferreds would benefit from a slow increase in interest rates in Canada when that happens - rate reset means increased payouts. I think this would be a better bet than the CPD? Big potential for capital gains and get paid 6% to wait.
Read Answer Asked by James on December 04, 2015
Q: Hi Peter and Ryan, can you provide any commentary on KWH.UN. Why has it dropped so much over the last month ?

Thanks

Dave
Read Answer Asked by David on December 04, 2015
Q: I understand that you don't give tax advice but a general answer would be OK or if any members know the answer. I purchased 350 shares of Enercare at 14.68 Lets assume I would like to move them in kind to my non registered account. There is a $50.00 and I would pay 10% in tax up front of today's value. ECI currently at $16.11 So I would need to have cash of roughly $615.00 in my RRSP and the 350 shares of ECI gets moved to my non registered account. My question is once in the non registered account what is my average cost? Is it $14.68 back when I purchased it or is it $16.11 when I moved it over?

Thanks Jimmy
Read Answer Asked by Jimmy on December 04, 2015
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