Convertible securities are preferred shares, bonds or debentures that can be exchanged for common shares of an underlying company. The terms of the conversion are detailed with each security. In some cases, companies can initiate the conversion themselves if it is financially advantageous to do so.
When evaluating exchangeable or convertible securities, it’s particularly important to assess the premium-the extra cost of buying the convertible instead of the underlying stocks into which you can convert.
The premium, stated as a percentage, is the current market value of the convertible bond in excess of the current market value of the shares into which it can be converted. The premium reflects the market’s evaluation of the advantages of hanging on to the convertible or exchangeable security, rather than exercising the conversion/exchange privilege.
The size of the premium gives you some idea of how far the underlying shares have to rise before they begin to push up the price of the convertible. When a premium is high, the underlying shares need a big rise to make it likely that they will push up the value of the convertible. (To put it another way, when a premium is high, the underlying shares can move up much more quickly than the exchangeable.) When the premium shrinks down close to zero, the stock and the exchangeable can move more or less in tandem.
We feel investors should be aware of how convertible securities work. But for your common stock portfolio, we recommend using our TSI Network three-part Successful Investor philosophy for investing:
Discover how to identify the strongest Canadian stocks for your portfolio in this free special report, Finding the Real Blue Chip Stocks: The Power and Security of Canada’s Best Dividend Stocks, from TSI Network. And it’s yours FREE!
AGILENT TECHNOLOGIES INC., $143.93, New York symbol A, is still a buy for aggressive investors.
The company makes specialized testing equipment for medical research laboratories and industrial clients. Its equipment includes mass spectrometers, used to analyze substances.
Demand for Agilent’s equipment from pharmaceutical firms, chemical makers and food… Read More
DUN & BRADSTREET HOLDINGS INC. $14 remains a buy. The company (New York symbol DNB; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 433.8 million; Market cap: $6.1 billion; Price-to-sales ratio: 2.7; Dividend yield: 1.4%; TSINetwork Rating: Extra Risk; www.dnb.com) continues to benefit from its January 2021 acquisition of… Read More
Rising prices for corn, wheat and other crops are adding to the costs of these food and ingredient producers. However, the strong position of their leading brands let them pass along these extra costs to their customers. Even so, we feel Archer Daniels and Mondelez… Read More
APPLE INC., $149.70, Nasdaq symbol AAPL, remains a hold.
New COVID-19 lockdowns at the company’s assembly factory in Zhengzhou, China will slow the production of its new iPhone 14 Pro and iPhone 14 Pro Max smartphones. That facility makes roughly 80% of those premium models.
As a result,… Read More
These U.S. consumer giants have raised their annual dividends for decades now. Even so, we feel McDonald’s “asset light” model makes it the better pick for new buying.
MCDONALD’S CORP. $257 is a buy. This company (New York symbol MCD; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding:… Read More
Molson Coors continues to benefit from its purchase of SABMiller’s stake of MillerCoors. At the same time the company is grappling with slowed beer sales as some COVID-19 challenges remain.
MOLSON COORS CANADA INC. (Toronto symbols TPX.A and TPX.B) took its current form in 2005 when… Read More
Both these spinoffs are off to a slow start as they restructure their operations. We feel their moves will ultimately pay off, but it’s better to hold off new buying right now.
VIATRIS INC. $11 is a hold. The company (New York symbol VTRS; Manufacturing & Industry sector;… Read More
YELP INC., $38.23, symbol YELP on New York, lets people rate and review local businesses such as restaurants, retail stores and service providers. They do that by detailing their experiences for other patrons and assigning a business a rating of up to five stars. The… Read More
PFIZER INC., $50.11, New York symbol PFE, is your #1 Income Buy for 2022.
The company is one of the world’s largest makers of prescription drugs. Its top-selling brands include Lyrica (epilepsy), Celebrex and Enbrel (arthritis), and Prevnar (pneumonia).
Pfizer has increased its dividend rate each year… Read More
Owning the best speculative stocks in your diversified portfolio can boost your returns if selected carefully. Learn how in this article now.
A speculative stock is a higher-risk, more aggressive stock with uncertain prospects. Speculative stocks may offer significant returns to investors—but they will also have… Read More
Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' FREE Special Report from The Successful Investor.
How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
The privacy of the site/store visitor is very important to TSI Network, and is respected at all times. The information we receive from customers helps us to personalize and continually improve your online experience at TSI Network.
We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.
We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
Automatic Information: We receive and store certain types of information whenever you interact with us. For example, like many websites, we use "cookies," and we obtain certain types of information when your web browser accesses TSI Network.
Information from Other Sources: For reasons such as improving personalization of our service (for example, providing better product recommendations or special offers that we think will interest you), we might receive information about you from other sources and add it to our account information. We also sometimes receive updated delivery and address information from our shippers or other sources so that we can correct our records and deliver your next purchase or communication more easily.
We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
Although you may be able to access some of our websites without being required to register or provide personal information, certain websites and sections of our websites may require registration. In addition, if you choose to contact us to ask a question, we will collect your personal information so that we can respond to your question.
To make the visitor’s experience on our website easier, we may use per-session “cookies” (session identifiers) to track the state of the visitor session. This “cookie” is destroyed when your session with our website is over.
Cookies are alphanumeric identifiers that we transfer to your computer's hard drive through your web browser to enable our systems to recognize your browser and to provide features like "Remember Me" for our paying subscribers. Cookies are also used during the ordering process to help ensure your order is handled correctly. We do not extract any information about individual users or their computers as a part of this process.
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Internet Protocol (or IP) addresses are collected for all visitors to this site. This information is used for the purposes of traffic analysis.
Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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Agents: We employ other companies and individuals to perform functions on our behalf. Examples include fulfilling orders, delivering packages, sending postal mail and email, removing repetitive information from customer lists, analyzing data, providing marketing assistance, processing credit card payments and providing customer service. They have access to personal information needed to perform their functions, but may not use it for other purposes.
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In addition to these limited disclosures of personal information, TSI Network may provide its affiliates or unaffiliated third parties with aggregate information about visitors to our sites. For example, we might disclose the median ages of visitors to our websites, or the numbers of visitors to our websites that come from different geographic areas. Such aggregate information will not include information of any individual visitors to our websites.
TSI Network may provide personal and other information to a purchaser or successor entity in connection with the sale of TSI Network, a subsidiary or line of business associated with TSI Network, or substantially all of the assets of TSI Network or one of its subsidiaries, affiliates or lines of business.
With Your Consent: Other than as set out above, you will receive notice when information about you might go to third parties, and you will have an opportunity to choose not to share the information.
Except as provided herein, TSI Network will not sell or rent personal information about you to unaffiliated third parties.
We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.
TSI Network requires persons and companies to which it discloses personal information to restrict their use of such information to the purposes for which it has been provided by TSI Network, to adequately protect the information, and not to disclose that information to others. TSI Network cannot be responsible, however, for any damages caused by the failure of unaffiliated third parties to honour their privacy obligations to TSI Network. Similarly, TSI Network is not responsible for the privacy policies and practices of other websites that are linked to our websites.
COMMENTS: TERMS OF USE
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To make sure users get the most out of the site’s comments function, we’ve provided a few guidelines:
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Special Note for Parents
TSI Network does not sell products for purchase by children. If you are under 18, you may use TSI Network's site only with involvement of a parent or guardian
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TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
How do we maintain the integrity of your personal information?
TSI Network has procedures in place to keep your personal information accurate, complete and current for the purposes for which it is collected and used. You may review the information that you have provided to us and where appropriate you may request that it be corrected. If you wish to review your personal information please send a request to: service@tsinetwork.ca.
How do I withdraw my consent to use Personal Information? Access, Correction, Inquiries and Complaints
If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.
If you do not want to receive promotional offers, please notify TSI Network by sending an email to service@tsinetwork.ca.
How can you ask questions about our Privacy Policy and access your personal information?
The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.
What Choices Do I Have?
Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
Legal Notices and Disclaimers
The contents of this web site and our publications are based upon sources of information believed to be reliable, but no warranty or representation, expressed or implied, is given as to their accuracy or completeness. Any opinion reflects the Successful Investor’s judgment at the date of publication and neither the Successful Investor, nor any of its affiliated companies, nor any of their officers, directors or employees, accepts any responsibility in respect of the information or recommendations contained in the publications or on this web site. Moreover, the information or recommendations are subject to change without notice.
Information presented on this web site or contained in our publications is not an offer, nor a solicitation, to buy or sell any securities referred to on the web site or in the publications. The material is general information intended for recipients who understand the risks associated with an investment in any securities referred to in the publications or on this web site. The Successful Investor has made no determination regarding whether an investment, course of action, or associated risks are suitable for the recipient.
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