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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: Regarding today's decrease in the price of CCL.B you responded to a question "CCL has done a secondary bought deal of $333 million at a discount". I must admit that I do not understand the answer, nor do I understand why this would cause a significant drop in the price of a stock. I would greatly appreciate clarification of your answer. Thank you.
Read Answer Asked by Dennis on June 16, 2017
Q: As a conservative investor/retiree with a diversified portfolio looking for income and some growth, I am considering Enbridge (now own TRP). Sources mention Enbridge's pipeline of growth opportunities and anticipated 10% - 12% annual dividend increases through 2024. These projections "feel" optimistic, given the large debt taken on to acquire Spectra? Does 5i feel the debt/equity mix was appropriate on the Spectra purchase? Does 5i see any reason to be concerned about "culture clash" between the management groups or other integration risk? Thank you for your comments. Edward
Read Answer Asked by Edward on June 16, 2017
Q: Hello 5i,
I've held finning for a long time and recently sold it and wish to replace with byd.un.
I think I read that byd.un raised financing in may 2017. Does that mean it will NOT need to raise more to close its' recent purchase?
If byd does need more financing:
Who would do this deal? Who did the financing for byd in the past?
Where would you expect the share price to adjust on the announcement of such a deal (provide a typical range or 5is best guess based on past deals)
Would more debt suppress the share price for the next 12 months?
In a volitile market would byd bonds be worth holding ?
Many thanks
Read Answer Asked by Kat on June 16, 2017
Q: Hello Your A rating and recent report on Cineplex using the word "Monopoly" got me interested in the Sector. Would purchasing shares in AMC Entertainment be worse, equal to, or better than buying Cineplex given the lower valuation of AMC and scale that AMC has? ceteris paribus on the dividends and exchange risk aside. Thanks very much
Read Answer Asked by Michael on June 16, 2017
Q: Hi,
I looked at the Thomson Reuters Report dated for today's date - 2017-06-15. On page 3 of the report it shows the 12 month Price Target mean price as $10.10 with a a Target vs Current upside of +15.4%.
The problem is TCN is currently already at $11.55 as I write this. How can they put a report out with todays date calling for 15.4% upside when the price is already beyond their highest 12 month target price?
I thought the Thomson Reuters Reports were a nice "confirmation" tool as they rate Tricon a "10" but now I don't know if these reports are even worth looking at. I have noticed other similar anomalies in other stock reports with them. Can you clarify what is going on here?
Thanks.
Read Answer Asked by Alan on June 16, 2017
Q: adding to the pile of questions on ENB that you have been getting lately :) I gather the stock is down almost 12% YTD excl dividends due to lower oil prices and also being a sort of bond proxy so as rates rise people look elsewhere for equivalent risk free yield. The current yield, based on a full year at the current quarterly payment rate, is close to 5% and the company has stated a clear path to raising the dividend in the future. While short term rates are rising it doesn't look like long term rates are moving in the same direction. Given the spread between ENB dividend and long term bond rates do you feel investors are getting enough of a premium to invest in ENB and would you be a buyer here for a 5-10 year hold?
Read Answer Asked by Richard on June 15, 2017
Q: Good afternoon 5i,
I recently sold AW.UN in my RRIF as I am trying to limit the non-portfolio holdings. Could you recommend a replacement from the income portfolio or should I just buy it back? Already hold most of the Income Portfolio holdings but willing to sell in other accounts to insert in RRIF.Thanks for the always helpful advice.

Ted
Read Answer Asked by Ted on June 15, 2017
Q: I am putting together a portfolio for my daughter who is somewhat risk averse. The portfolio will include a TFSA, RRSP and open account. A recurring question I know but does the drop in STN make it a more compelling long-term buy now than WSP or does WSP's momentum win out? Since the stock could go in any of the accounts, I am wondering if WSP's dividend in the open account is just enough to win the day? Income is not the prime pre-requisite here but it wouldn't hurt either.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on June 14, 2017
Q: At the beginning of the year I had to liquidate 30% of a taxable portfolio. I managed to sell stocks that minimized my income taxes, however, as a result I sold all of my Financials, Materials, Utilities and Energy stocks. I now have 10% to add back and will be contributing another 20% sometime later this year. I do not think I will be needing these funds anytime in the next 5+ years. I am looking at taking half positions in PKI; GSY; BEP.UN and AEM. Your comments about my stock selections would be appreciated.
Read Answer Asked by stephen on June 13, 2017
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