Investment Q&A

Q: Thought on recent results? Looking to add to my position.

Q: Good morning. This isn't so much a question as it is to follow up on my question yesterday relating to the tax treatment of 1:1 exchange of share of units of AW.UN to AW.TO for the benefit of other 5i members. My original question, 5i's answer and the answer I received subsequently from AW Investor relations appears below.

Question: My AW.UN shares were exchanged 1:1 for AW Newco. As this was an "exchange" should my broker be showing a capital gain? If there is indeed a capital gain what is the share price that should be used?

5i Answer: The transaction is tax-free, providing unitholders make a Section 85 Election. If new shares were received on a fully 1-for-1 basis (no cash received other than the distribution), the ACB should be the same as it was before. Brokers are inherently bad at these things. One can contact them to change it, but it is better to keep one's own records for CRA purposes.

Following 5i's Answer I reached out to both my broker who referred me to AW Investor Relations.

AW Investor Relations Answer:
"The conversion from units to shares is considered a deemed disposition at a value based on the date of settlement, which varied broker to broker. We have been advised that in the context of the acquisition and disposition of listed securities, the CRA has traditionally taken the position that the acquisition/disposition date for tax purposes is the date of settlement since it is only at that time that taxpayers have the use of the property received (i.e. A&W shares) in consideration for the property they disposed of (i.e., the Fund's units). We are recommending that shareholders with concerns that the delay in settlement caused them to realize a capital gain (on the disposition of their units) that was larger than it would have been had the transaction settled more quickly should consult with their tax advisors as to whether they can reasonably take a different position."

Following AW's response, I sold out of our position in AW "Newco" today for a tax loss at $37.36 to reduce our Capital Gain on AW.UN which had reflected a settlement value of $43.08. We will either reinter in 30 days or move on.

AW's structuring of the sale was, in my opinion, very poorly executed.

Q: Income model portfolio: The list of selected stocks seems quite stable with time, are they considered among the safest choices within TSX , or some other reason ? how to interpret the ratings ? I appreciate the choices but I wish to better understand the guidelines..

Q: 1) Which has the highest & lowest 10-yr total return potential according to 5i’s research & data?

2) What other defensive names in the US & Canada might provide similar (or better) risk-adjusted returns over 10 years, given current valuations?
Thank you.

Q: I have positions in both CP and CNR and need to lessen my position in one of these railways. Which one would you choose to lighten up on and your reasoning. Thank You.

Q: I see that Gibson Energy (GEI) missed estimates. Q3 Revenue of $2,900 million in the third quarter, a $325 million or 10% decrease relative to the third quarter of 2023, What are your thoughts on GEI going forward. Would KEY be a better alternative? Thanks for all that 5i does. Steve

Q: with the amalgamation is it worth keeping?

Q: Shipping companies. I was just doing some research on SBLK and came across a question from Jacques going back to Jan 30/2024. It looks like share prices of all those companies have dropped significantly over the course of this year. Some have low P/E ratios , look oversold and have nice yields. I would appreciate your assessment of the situation and whether or not this is a buying opportunity. My primary interest currently is SBLK but I am open to 5i’s suggestions. Thanks

Q: Wow, what a big bounce on capital Corp after their qtrly release! But, why? I read it and unless I misread, financial metrics were down over prior compare..other than a big growth in actual power generation. But earnings, revenue, all down, affo a bit up (still down over 9 months)..... What has got everyone so excited?

Q: Hi 5i Team,
Pls comment on Parkland Corp. earning report.
Buy , hold or sell?

Q: Both PPL and KEY are recieving positive recommendations form analysts. PPl looks cheaper on valuation. Both have similar dividends. If investing new money, which would you choose?

Q: Could I get your current view of BPF.UN. Your report in late 2023 indicated some caution.

Q: Portfolio analytics is not allowing me to enter the new AW into the edit portfolio section since the changeover from AW.UN. Am I missing something?
Thanks.
Debrah

Q: Is this a good entry point for 3-5 yr hold in a registered account? Can I get at least a 10%/yr ROI?
What is risk level compared to others and would you prefer others in this space?
Is dividend safe?
Thx

Q: Still a hold?? Thx

Q: Hi,

What entry point would you be comfortable with as it relates to the new A&W food services company. And would you expect pressure on the SP once the hold period on insiders expires?

Q: Thoughts on Mcdonalds after the recent bad news?

Q: I enjoyed the steady income stream from A&W together with the relative share price stability in my registered account. Now that A&W has converted and is no longer a royality fund, can you provide 2 or 3 top income fund recommendations to replace it? They can be any sector and Canadian or US.

Q: BIPC has had a good run lately, do you see much more near term upside with the dividend tax credit changes? I’m thinking to switch into PEY for the greater yield and more upside once we get a change in federal gov. Also I like the ability to write some covered calls.

What are your thoughts on this trade, and do you have any insights on timing?

Q: Considering taking a 12% hit on TELLUS for tax loss and considering I also own BELL so am considering NTR as a replacement for hopfully more growth all bet less income. Or would you consider buying back after 30 be fine? Any thought on a better alternative .Retirement portfolio including HDIF,CIG447,PMIF,WCP,and ENB.BCE. Thanks Larry