Q: Hello 5i,
It was mentioned that AW:CA is worth keeping for income. So far I am down $3,000. Is there a reason for this? I know we are not fortune tellers, but after an initial period of indecision would it be expected to go up? Would you suggest an adding to QSR in a U.S. account or another Canadian option? If so what should be considered? Time frame is five years for this 78 year old income investor.
It was mentioned that AW:CA is worth keeping for income. So far I am down $3,000. Is there a reason for this? I know we are not fortune tellers, but after an initial period of indecision would it be expected to go up? Would you suggest an adding to QSR in a U.S. account or another Canadian option? If so what should be considered? Time frame is five years for this 78 year old income investor.
5i Research Answer:
AW is exactly the same price as the merger price. It did spike up after the deal closed and has since settled back. But the high was less than one month ago and we would consider timeframe here. We continue to like it for income first and some growth. QSR we think can be bought for income (3.42%). Both companies have some economic sensitivity so that needs to be considered as well.