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

Pass on this ETF

ISHARES S&P/TSX SMALL CAP ETF $16 (Toronto symbol XCS; TSINetwork ETF Rating: Aggressive; Market cap: $121.1 million) invests in smaller listed Canadian companies.

The ETF holds 197 stocks, with the top 10 comprising only 13% of its assets. This gives it the appearance of a well-diversified… Read More

Q: Hi Pat: Could I get your thoughts on High Liner Foods? Its price has come down substantially and it has a decent dividend. Thank you.

A: High Liner Foods Inc., $14.20, symbol HLF on Toronto (Shares outstanding: 33.3 million; Market cap: $472.3 million, www.highliner.com), processes and markets frozen seafood. The company was called National Sea Products before it changed its name in 1998.

Throughout the U.S., Canada and Mexico, High Liner… Read More

Q: Hi Pat: What would you advise to current holders of Teck Resources: hold, sell or invest? I came across an article recently that said there is now a slow demise for coal use due to policies encouraging cleaner natural gas and renewable energy generation.

A: Teck Resources Ltd., $31.56, symbol TECK.B on Toronto (Shares outstanding: 577.8 million; Market cap: $18.2 billion, www.teck.com), is a recommendation of our Successful Investor newsletter.

Teck made $1.00 a share in the latest quarter, up sharply from just $0.01 a year earlier. That was mainly… Read More