Tax on Zayo spinoff limits its appeal

LISTEN:  

ZAYO GROUP HOLDINGS INC. $22 (New York symbol ZAYO; Manufacturing & Industry sector; Shares outstanding: 236.6 million; Market cap: $5.2 billion; Takeover Target Rating: Highest; No dividends paid; www.zayo.com) operates a fibre… Read More

Tax on Zayo spinoff limits its appeal

ZAYO GROUP HOLDINGS INC. $22 (New York symbol ZAYO; Manufacturing & Industry sector; Shares outstanding: 236.6 million; Market cap: $5.2 billion; Takeover Target Rating: Highest; No dividends paid; www.zayo.com) operates a fibre network across North America and Europe that stretches more than 209,215 kilometres. It is the largest… Read More

Conservative Investing as an Investment Strategy

Conservative Investing as an Investment Strategy

A conservative investing approach means building a well-balanced portfolio gradually, over time
Conservative investing is an investment strategy that involves a focus on lower-risk, predictable and stable businesses. This strategy typically involves the purchase of blue-chip stocks and other low-risk investments. A conservative investing approach also… Read More

Power gains from IGM

POWER CORP. $29.65 (Toronto symbol POW; Shares o/s: 414.4 million; Market cap: $14.0 billion; TSINetwork Rating: Above Average; Dividend yield: 5.2%; www.powercorporation.com) holds its financial assets through its 65.6%-owned Power Financial. In turn, Power Financial’s holdings include 61.5% of mutual-fund provider IGM Financial (a recommendation of… Read More

Q: Hi, Pat. I recently read that Fairfax has increased its holdings in Torstar up to 40% of non-voting shares. There’s also the suggestion that Fairfax’s plan may be to take the company private. Can you enlighten me on what “taking a company private” entails? Are shareholders bought out? And if they are, at what price and how is the price determined? I appreciate your advice and I look forward to your response.

A: Fairfax Financial (symbol FFH on Toronto), now holds 40.6% of the class B non-voting shares of Torstar Corp., $1.56, symbol TS.B on Toronto (Shares outstanding: 80.8 million; Market cap: $126.9 million; www.torstar.com).

Torstar insiders own 100% of the class A voting stock. Those insiders are… Read More

‘Sin’ stocks keep expanding their markets

They face ever-tightening government restrictions and high taxes, but many so-called “sin stocks”—companies focused on gambling, tobacco and alcohol—continue to deliver steady returns (see graphs).

Recession proof profits

This is no surprise considering that consumer spending on leisure, alcohol and tobacco is one of the least… Read More