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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi Peter and Ryan,
Your last update was Oct 28th. Given their (over-subscribed) U.S. financing last night, and their recent solid share performance, do you still see this one as a hold, or would you buy into it? The cross-selling synergies from their 2014 acquisition seems to be what has made the difference for future growth, from what I read.

Thanks for your thoughts on this one.
Read Answer Asked by Warren on March 03, 2016
Q: Hi 5i: This is really two questions, so please charge accordingly.
(1) I want to add a renewable energy company to my portfolio, and have been looking at BEP.UN, INE and Boralex. BEP is much larger than the others and more geographically diversified, but RBC Direct gives its P/E as 126.9. This may be because of low earnings, of course, the other two seem to have negative earnings currently. I'm interested in total returns and stability. Of these three, which would you recommend? Or do you have a better suggestion?
(2) I also want to add another (more traditional) power company and would appreciate your opinion on the pros and cons of ALA versus Emera.

Many thanks.
Read Answer Asked by Roland on March 03, 2016
Q: I am interested in the explanation of Royalties. What is the model for companies and brands like A&W and others. What are the structures for payments to shareholders? Are they a percentage of sales or what are the Royalties payments based on.
Read Answer Asked by Herbert on March 02, 2016
Q: Impressions of their operational update released Feb 24th. I would have liked to have seen margin statistics, but other than that, I thought it looked positive. Your thoughts?

Thanks,

Robert
Read Answer Asked by Robert on March 01, 2016
Q: Just further to Eric's question, from the bought deal prospectus:
"At the option of holders and provided that payment of the final instalment has been made, each Debenture will be convertible into common shares of APUC ("Common Shares") at any time on or after the Final Instalment Date, but prior to the earlier of maturity or redemption by the Company, at a conversion price of C$10.60 per Common Share. " As the stock is currently trading below the conversion price, hopefully the "overhang" is mostly priced in already, as 5i suggested in its answer. Recall that the stock was trading at about $11.50 prior to the announcement of the deal.
John
Read Answer Asked by john on March 01, 2016
Q: I'm interested in taking a position in aqn. Is there any financing overhang? I don't want to buy the stock at 10.50 and then find out they are going to the market for financing at $10. Thank you.
Read Answer Asked by Eric on March 01, 2016
Q: Hello 5i, Can I get your analysis on Richards. One thing I noticed going thru the financials is that the distribution is a return of capital and not a dividend. Could you clarify that as well and the implications on my investment as I understood it to be them simply returning my money as opposed to getting a dividend from profits. Thanks
Read Answer Asked by pietro on March 01, 2016
Q: For fixed income, 5i often recommends CBO but rarely CLF. For example, there have been 6 questions this February for CBO but none since last November for CLF. And yet, it strikes me that CLF is a better value. Over the last year, when you consider the decline in NAVs and average the distribution yields, CBO has returned about 0.6% to CLF's 1.4%. When you consider the better quality holdings (only AAA in CLF), isn't CLF a better choice for fixed income?
Read Answer Asked by richard on March 01, 2016
Q: I do not understand-to buy Enbridge now or wait? Thank you.
Read Answer Asked by M Anne on March 01, 2016
Q: I am thinking about switching out of DR to RNW for a little more potential growth while still receiving a good dividend. Would you consider RNW more conservative as well? Sector weighting I not n issue. Thanks, Bill
Read Answer Asked by Bill on February 29, 2016
Q: I own both CBO and CBH bond funds. They have not performed well, and I was wondering if these are something that I should hang on to for the future. Are they a safety net when the world is dealing with a low interest rate environment?
Together they are about 7% of my portfolio.

As always thanks..
Read Answer Asked by John on February 29, 2016
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