Q: Have held Sienna for about 4 years, and despite some ups and downs, currently have some decent capital gains on top of the nice dividend. I have been considering selling it, but now notice there is a new issue. Could you comment on the purpose of the new issue and if you consider Sienna a hold or sell. This is in an RSP, so no tax implications.
Thank-you
Thank-you
5i Research Answer:
SIA stock is up 35% this year as investors reacted to lower rates and its outlook. The financing is to pay for a recent small ($15M) acquisition, and help fund the development of new projects currently ongoing. It will also add to overall financial flexibility. While SIA stock is on the expensive side, with good momentum, lower rates ahead and a nice dividend we would consider it a HOLD today.