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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
Olympia Financial Group just declared a $10 per share special dividend. So now we have to work out what will happen to the stock price right away, and also after the dividend is paid. Does the share price rise now in the expectation of the dividend? Does it stay at the present price after the dividend is paid or does it drop $10 after the dividend? The company may be "dividending" out the profits to the large insider shareholders [and the rest of us]in preparation maybe for selling the company to another bank who might just bid a higher than current price to get it. What current strategy would you advise?
Thank you for the excellent advice. Paul
Read Answer Asked by Paul on December 14, 2013
Q: Assumption: The U.S. equity market continues to remain healthy & positive overall for the next 12 months. The question is what, in your opinion, is the best way to buy the US equity market from a Cdn.registered acct. relative to the current surcharge(incl.fees & exchange)of nearly 7.5%.
Thanks for a great year.
Read Answer Asked by Robert on December 14, 2013
Q: I would appreciate your outlook for KP Tissue (KPT)

Thanks - Ken
Read Answer Asked by ken on December 14, 2013
Q: I would appreciate your input regarding which 3-4 companies in your Model Portfolio represent the best value currently. A brief explanation for your selection would be helpful . Thanks.
Read Answer Asked by John on December 14, 2013
Q: CKI Clark Inc. Have you changed your opinion since last March? 5% div and cheap. Seems like the payout is reasonable but the debt seems high.

I like companies where the Officers take a stake.

Thank you.
Read Answer Asked by Alvyn on December 13, 2013
Q: Further to the earlier question today on DHX Media, I'm curious why it ran up so much on the news. Seems counter intuitive to me. Thanks.
Read Answer Asked by Christopher on December 13, 2013
Q: I would value your opinion on Torex Gold (TXG on the TSX). Given the present climate of gold, I do realize this will be a speculative position, but would nonetheless appreciate knowing if the fundamentals of this company will carry it through to recovery in the gold sector. How would this compare to Mandalay Resources (MND on the TSX), fundamentally speaking? In terms of geo-political risk, is Mexico a better/worse environment than Chile, in which to invest?

I am interested in deploying some speculative cash into this sector and am trying to choose between Mandalay and Torex. Any preferences? Or both?

Thank you, as ever, for this wonderful service!
Read Answer Asked by Sylvia on December 13, 2013
Q: HI 5i,

Now that tapering appears imminent, how badly do you think dividend stocks in my portfolio, like Telus, IPL, Suncor and PBH will be affected?

I sent you this question a couple days ago but haven't heard from you. (Perhaps i sent it to the wrong address?)

Thanks G
Read Answer Asked by Graeme on December 13, 2013
Q: Hi Peter
could you give me your opinion on ZAR why it goes up 10% today
Read Answer Asked by paul on December 13, 2013
Q: TA.pr.D
I read your recent comment on TA common shares, but does the same opinion apply to their reset prefs, this one trading at a very attractive price and yield. More broadly, so many rate reset prefs are off, in particular the past 2 weeks. While part of an income portfolio (the lower current costs seemingly protecting against rate increases), are they possibly still a bit of a value trap, even at these reduced prices? Thank-you as always...
Read Answer Asked by Warren on December 13, 2013
Q: Hi Peter and Team,

Thanks for the on-going terrific insights and stock suggestions.

Given the aging infrastructure issues (pipes,electricity etc) that seems to be facing all governments and in particular the Ontario government can you suggest some ideas (which stocks are best positioned to profit over the next many many years)

Happy Holidays to everybody at 5iresearch and keep up the great work in 2014!
Read Answer Asked by Thomas on December 13, 2013
Q: I am looking for a lower risk income product for short term holding. Hoping for more than 1%. I came across BBO.PR.A which is a closed end Blackrock split corp pref share product holding Big Bank and Oil. Seems to stay just above it's NAV of $10 except back in 2008. Seems like a pretty safe 5% yield holding. Volume is low though. I can't really get a handle on the split corp structure and risks etc. Any guidance or comments would be appreciated. Anything that would be better? I am also considering BMO Covered Call products. Thanks!
Read Answer Asked by Dathan on December 13, 2013
Q: I have held ZEDi for many years.I am now above water a little
Should I sell or hold to see if they find a buyer? What does the
Telus situation mean (if anything)?
Ross Sinclair
Read Answer Asked by Ross on December 13, 2013
Q: Please comment on the conbination of Mercator and Intergeo. Is this a good time to buy? Thanks for your advise.
Read Answer Asked by CONNIE on December 13, 2013