option
An option offers its holder the right to buy or sell a particular security at a specific price within a specific time frame. Two kind of options are put options and call options.
TIM HORTONS $88.70 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 132.8 million; Market cap: $11.8 billion; Dividend yield: 1.4%) has accepted a friendly takeover offer from Burger King Worldwide (New York symbol BKW). Tim Hortons shareholders can opt to receive $88.50 a share in cash or 3.0879 Burger King shares (currently worth $105.54). Burger King will limit the overall cash payout, so most investors will likely receive $65.50 in cash and 0.8025 of a share, for a total value of $90.54....
APPLE INC., $101.66, Nasdaq symbol AAPL, unveiled several upgrades to its hugely popular iPhone smartphone this week. The new model comes in two screen sizes, 4.7 inches (called the iPhone 6) and 5.5 inches (iPhone 6 Plus), both of which are larger than the current 4.0-inch iPhone 5. The bigger screens should help Apple compete with cheaper smartphones powered by Google’s Android software, particularly in emerging markets. The iPhone 6 also includes the company’s new wireless payment system, called Apple Pay. With this service, users add their credit card information to their phones. They can then use them to pay for goods at any tap-and-pay-enabled cash register and for some online purchases. To prevent fraudulent transactions, the phone will scan the user’s fingerprint to confirm their identity....
TIM HORTONS INC. $88 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 132.8 million; Market cap: $11.7 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.5%; TSINetwork Rating: Average; www.timhortons.com) has accepted a friendly takeover offer from Miami-based Burger King Worldwide (New York symbol BKW). Under the deal, Tim Hortons shareholders can opt to receive $88.50 a share in cash or 3.0879 Burger King shares (currently worth $106.05). Burger King will limit the overall cash payout, so most investors will likely receive $65.50 in cash plus 0.8025 of a share, for a total value of $93.06. Investors who hold shares outside RRSPs and other registered accounts will be liable for capital gains taxes....
TIM HORTONS $88.70 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 132.8 million; Market cap: $11.8 billion; Dividend yield: 1.4%) has accepted a friendly takeover offer from Burger King Worldwide (New York symbol BKW).
Tim Hortons shareholders can opt to receive $88.50 a share in cash or 3.0879 Burger King shares (currently worth $105.54).
Burger King will limit the overall cash payout, so most investors will likely receive $65.50 in cash and 0.8025 of a share, for a total value of $90.54.
...
Tim Hortons shareholders can opt to receive $88.50 a share in cash or 3.0879 Burger King shares (currently worth $105.54).
Burger King will limit the overall cash payout, so most investors will likely receive $65.50 in cash and 0.8025 of a share, for a total value of $90.54.
...
BCE INC. $48 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 778.3 million; Market cap: $37.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 5.1%; TSINetwork Rating: Above Average; www.bce.ca) has agreed to pay $3.95 billion in cash and stock for the 56% of BELL ALIANT INC. $31 (Toronto symbol BA; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 227.8 million; Market cap: $7.1 billion; Price-to-sales ratio: 2.6; Dividend yield: 6.1%; TSINetwork Rating: Average; www.bellaliant.ca) that it doesn’t already own.
Bell Aliant investors have three options: $31.00 in cash; 0.6371 of a BCE share; or $7.75 in cash plus 0.4778 of a BCE share. BCE will cap the cash portion at 25% of the total payout.
We recommend the all-stock option. That way, you can defer capital gains taxes on the BCE shares you get. However, if adding more shares would push up your BCE holdings to more than, say, 10% of your portfolio, you should select the all-cash option.
...
Bell Aliant investors have three options: $31.00 in cash; 0.6371 of a BCE share; or $7.75 in cash plus 0.4778 of a BCE share. BCE will cap the cash portion at 25% of the total payout.
We recommend the all-stock option. That way, you can defer capital gains taxes on the BCE shares you get. However, if adding more shares would push up your BCE holdings to more than, say, 10% of your portfolio, you should select the all-cash option.
...
BCE INC. $48.88 (Toronto symbol BCE; Shares outstanding: 777.3 million; Market cap: $38.0 billion; TSINetwork Rating: Above Average; Dividend yield: 5.1%; www.bce.ca) has agreed to pay $3.95 billion in cash and stock for the 56% of BELL ALIANT $30.88 (Toronto symbol BA; Shares outstanding: 227.8 million; Market cap: $7.0 billion; TSINetwork Rating: Average; Dividend yield: 6.2%; www.bellaliant.ca) that it doesn’t already own. The deal should close by November 30, 2014.
Merging the two firms will make it easier for BCE to expand its high-speed wireless and Fibe TV networks in Atlantic Canada.
Bell Aliant shareholders will have three options when they tender their shares: $31.00 in cash; 0.6371 of a BCE share (worth $31.14 at today’s price for BCE); or $7.75 in cash plus 0.4778 of a BCE share ($31.10).
...
Merging the two firms will make it easier for BCE to expand its high-speed wireless and Fibe TV networks in Atlantic Canada.
Bell Aliant shareholders will have three options when they tender their shares: $31.00 in cash; 0.6371 of a BCE share (worth $31.14 at today’s price for BCE); or $7.75 in cash plus 0.4778 of a BCE share ($31.10).
...
BCE INC. $48 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 778.3 million; Market cap: $37.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 5.1%; TSINetwork Rating: Above Average; www.bce.ca) has agreed to pay $3.95 billion in cash and stock for the 56% of BELL ALIANT INC. $31 (Toronto symbol BA; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 227.8 million; Market cap: $7.1 billion; Price-to-sales ratio: 2.6; Dividend yield: 6.1%; TSINetwork Rating: Average; www.bellaliant.ca) that it doesn’t already own. Bell Aliant investors have three options: $31.00 in cash; 0.6371 of a BCE share; or $7.75 in cash plus 0.4778 of a BCE share. BCE will cap the cash portion at 25% of the total payout. We recommend the all-stock option. That way, you can defer capital gains taxes on the BCE shares you get. However, if adding more shares would push up your BCE holdings to more than, say, 10% of your portfolio, you should select the all-cash option....
BCE INC. $48.88 (Toronto symbol BCE; Shares outstanding: 777.3 million; Market cap: $38.0 billion; TSINetwork Rating: Above Average; Dividend yield: 5.1%; www.bce.ca) has agreed to pay $3.95 billion in cash and stock for the 56% of BELL ALIANT $30.88 (Toronto symbol BA; Shares outstanding: 227.8 million; Market cap: $7.0 billion; TSINetwork Rating: Average; Dividend yield: 6.2%; www.bellaliant.ca) that it doesn’t already own. The deal should close by November 30, 2014. Merging the two firms will make it easier for BCE to expand its high-speed wireless and Fibe TV networks in Atlantic Canada. Bell Aliant shareholders will have three options when they tender their shares: $31.00 in cash; 0.6371 of a BCE share (worth $31.14 at today’s price for BCE); or $7.75 in cash plus 0.4778 of a BCE share ($31.10)....
Every Tuesday we bring you “Best Canadian Stocks” as our daily post. In these posts, you get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves that are profiled in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor. “Best Canadian Stocks” is part of our new approach offering you regular buy, hold and sell advice in our daily posts. Every week you get “A Stock to Sell” on Monday, “Our Top U.S. Stocks” on Thursday and on Friday, our advice on one of the stocks our Inner Circle members have asked about in their weekly Question & Answer sessions. A key part of successful investing involves picking stocks with hard-to-replace assets, like popular brand names....
CANADIAN TIRE CORP. $103 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.7 million; Market cap: $8.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.canadiantire.ca) operates 492 Canadian Tire stores, which specialize in automotive, household and sporting goods. It also owns other retail chains, such as Mark’s (casual clothing) and SportChek.
The company is selling 20% of its credit card operations to Bank of Nova Scotia (see page 74) for $500 million. Canadian Tire has an option to sell an additional 29% to the bank over the next 10 years.
Meanwhile, Canadian Tire earned $70.6 million in the quarter ended March 29, 2014, down 3.3% from $73.0 million a year earlier. Earnings per share fell 2.2%, to $0.88 from $0.90, on fewer shares outstanding.
...
The company is selling 20% of its credit card operations to Bank of Nova Scotia (see page 74) for $500 million. Canadian Tire has an option to sell an additional 29% to the bank over the next 10 years.
Meanwhile, Canadian Tire earned $70.6 million in the quarter ended March 29, 2014, down 3.3% from $73.0 million a year earlier. Earnings per share fell 2.2%, to $0.88 from $0.90, on fewer shares outstanding.
...