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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,

In light of the Donald's proposed 54 billion dollar budget to increase defence spending, including new aircraft carriers,

Would you suggest buying the rumour ?

From what I gather, chances are this will not pass in its current incarnation.

And if you were inclined to beef up defence in your portfolio, what stocks, mid to large caps would be your preference for a basket of stocks ( I prefer to avoid sector ETFs). Can you rank them ?

Thank you,

Karim
Read Answer Asked by Karim on March 16, 2017
Q: Following Donald's announcement of increased defence spending, I'm contemplating half positions in 3 of the above. Your ranking and perhaps other suggestions would be appreciated, as always.

Rob
Read Answer Asked by Rob on February 28, 2017
Q: Hello Folks:
We hold US industrial stocks such as Cummins, GE, UTX, BA, CVX etc.
It appears likely the incoming U.S. administration will prioritize infrastructure spending. Do you feel this will be the case, and if so, have you some large cap stocks I could consider?
Thank You For Everything
brian
Read Answer Asked by Brian on February 06, 2017
Q: A recent Globe & Mail article recommends investing in certain American defence companies, based on the assumption that military spending will increase regardless of who is elected. They cite the high growth areas of “aircraft, shipbuilding, missile defence and precision munitions”. Their recommendations include RTN, GD, LLL, and HRS. They also mention BA, UTX and LMT but don’t rank them quite as highly. I realize you follow Canadian stocks more closely, but I was wondering if you had any preferences among these names, or if an ETF like ITA or PPA would be preferable for diversification and safety. Thanks very much again for your expertise.
Read Answer Asked by Brian on November 02, 2016
Q: Bell Aliant
Provided I can purchase Bell Aliant at $31.00 per share or less, does it make sense to buy BA when BCE is trading greater than $48.66.
Essentially I would be buying BCE at a discount to the trading price (on august 05 BCE was $49). I have ignored commission on the trade, but its pretty minor at $10 per trade.
Read Answer Asked by Stephen on August 06, 2014
Q: Hello:
I have a fair number of shares in Bell Aliant. With the recent announcement that BCE is going to take over complete ownership I do not know how this will affect my investments in Bell Aliant. Should I continue to hold or sell now. BCE has not announced to my knowledge how this would affect Aliant shares owners.
I would appreciate your opinion and knowledge on this matter.
Thank You;
Duane Campbell
Read Answer Asked by Duane on August 05, 2014
Q: Am I correct in assuming that the price of Bell Aliant (BA) continues, and will continue, to fluctuate because of the underlying share price of BCE, since BCE shares are part of the buyout package?

Secondly, as I own BA in a taxable account, is it best to continue to hold BA and wait until the deal closes in order to collect the higher BA dividend as well as get BCE shares on a tax free basis? (I am assuming that the BCE shares coming to me will be tax-free).

Thanks for the continued wonderful service.

Paul F.
Read Answer Asked by Paul on July 29, 2014
Q: I own Bell Aliant (BA) shares but have never been involved with a a company that has been taken over before. BCE is said to be offering $31.00 per share in cash and/or BCE shares but I see that BA is trading above that. How does one go about evaluating an offer such as this? As this is in a taxable account what will the tax consequences be - should I expect BCE or BA to provide any information of guidance on the taxation issue?

Thanks for your invaluable advice.

Paul F.
Read Answer Asked by Paul on July 23, 2014
Q: Hello Peter & Company,
I have opened a TFSA account ($20k) as a quasi savings account, which means that I may need some of the money in short notice.
I invested $5k into BA at $25.50 a share (it has a yield of 6% and fluctuates between $25 and $28); I plan to sell at around $27-$28 and buy back at around $25. Does this make sense?
If it does, are there other securities with similar characteristics? If it does not, what alternatives would you suggest?
Thanks,
Tony
Read Answer Asked by Antoine on February 25, 2014
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