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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: 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?
Read Answer Asked by Carl on March 28, 2017
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.
Read Answer Asked by Saad on March 27, 2017
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
Read Answer Asked by Larry on March 27, 2017
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.
Read Answer Asked by Andrew on March 27, 2017
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
Read Answer Asked by Peter on March 27, 2017
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.
Read Answer Asked by Jerry on March 27, 2017
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
Read Answer Asked by Chris on March 27, 2017
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