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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: Peter & Staff,
What is your opinion of KWH.UN please ?
Bill.
Read Answer Asked by William on March 16, 2013
Q: STB-T Iwould like your opinion on Student Transportation. Is the debt and payout percentage getting too high? Is their business plan of growth by acquisitions going to drive the stock down, thanks
Read Answer Asked by Ron on March 16, 2013
Q: hello 5i:
please give me your opinion on TGL based on current numbers. It LOOKS very cheap; is there a reason for that? How would it compare to, say CNQ or SU?
thanks
Paul
Read Answer Asked by Paul on March 15, 2013
Q: I have continued to follow CLK (Clublink). The CEO has bought lots of stock in recent months, and there are consistent buybacks. The stock price continues to rise, and it pays about 2.5%. Is this a speculation on a private take-out, is the stock undervalued, or is this a good time to lighten up?

John
Read Answer Asked by John on March 15, 2013
Q: Hi Peter & 5i: Just a comment on your answer to Richard about return of capital and dividends (identified with MMP.UN): you suggested that taxes on capital gains are lower than taxes on dividends. I think that only applies for those in the highest income brackets. For those in the lower brackets and taking the dividend tax credit into account, tax on eligible dividends from Canadian sources is lower (even potentially negative!), significantly better than tax on capital gains. Keeping an eye on this can be important for individuals determining which investments to hold in a TFSA or a taxable investment account. A great site for comparing marginal tax rates for different categories of income at your applicable income bracket is: http://www.taxtips.ca/taxrates/bc.htm
This link is for BC residents but there are links for all provinces and territories down the left side of the screen, so anyone can get the right combination of provincial and federal tax rates. I'm really enjoying my subscription to your service! Thanks.
Read Answer Asked by Lance on March 15, 2013
Q: MCB - McCoy
What do you think of McCoy's earnings today? The drop in mobile unit seems quite drastic, especially in light of increased costs due to expansion. Thoughts? Thanks!!
Read Answer Asked by Kish on March 15, 2013
Q: Peter and staff: Following Sentry Select's distribution cut on Precious Metals and Mining MMP.UN, do you have an opinion on this stock? The stock still has a huge yield after the cut and the impact on the current stock price looks minimal following the shakeout. From Sentry's website: "Sentry believes this distribution decrease is prudent and beneficial for unitholders in the current environment for gold mining equities. In Sentry's view, gold mining equities are at their lowest valuations relative to the gold price in twenty-five years and represent an exceptional investment opportunity. It is Sentry's opinion that this distribution decrease will improve unitholders' potential total return by maintaining the capital invested in the Trust while still respecting the Trust's cash distribution objective." Do you agree with their assessment and what is your outlook on this sector? Thanks for your input.
Read Answer Asked by Chris on March 15, 2013
Q: I'm planning to reduce my RRSP exposure to REITS, now 26% of the account. I hold BOX.UN, CAR.UN, REF.UN, CUF.UN, HR.UN, MRT.UN and plan to switch 2 of the lower quality names for IPL.UN, as I have no holdings in pipelines. Thoughts? Thanks...Jeff
Read Answer Asked by Jeff on March 15, 2013
Q: In response to the question on short information, canada stockwatch at
www.stockwatch.com provides this information and other data for a $5/month basic subscription.
Read Answer Asked by Peter on March 15, 2013
Q: Hi Peter and Team, regarding Primary Metals, PME, would you please comment on their recent release regarding the distribution? Is it safe now to buy for the distribution, and growth of course? Is this a dividend or return of capital or combination? Can you please tell me what the MER is if possible? At 9 cents per month distribution just confirmed, is this one worth jumping into now considerin how hard the unit price has been hit? Thanks!
Read Answer Asked by Hussein on March 15, 2013
Q: I see that mmp.un has reduced their distribution, I read that this distribution is not a dividend but rather a return of capital. Can you explain the difference between dividend and return of capital?
Read Answer Asked by Richard on March 14, 2013