Investment Q&A

Q: If you have been this today do not bother answering this question. The rights issued by CSU as a special dividend. Why is CSU bothering with financial engineering rather than just running the company. This appears to be a wasteful cost and use of company brain power for no fundamental gain.

Q: It appears from the news release that the rights dividend allows a holder to purchase a debenture. There is no indication of allowing and existing debenture holder to switch issues to a non redemptive issue.
This is exactly the way csu sold its original tranche of debentures.
It also states that this issues is an additional to the previously issued debs,ie no series 1 and 2
Am I missing something

Under the rights offering, the company will issue the rights in satisfaction of the rights dividend that will entitle the shareholders to buy up to $700 million of unsecured subordinated floating rate debentures, Series 1 of the company.
The Series 1 debentures will be issued as an additional tranche of, and will form a single series with, the outstanding $282.2 million of unsecured subordinated floating rate debentures, Series 1 of the company. There is no minimum principal amount of debentures that must be issuable upon the exercise of rights.
The company plans to use the net proceeds of the rights offering to pay down debt under its existing credit facility and use any remaining proceeds for future acquisitions.
The rights will be issued in satisfaction of the rights dividend in the amount of one right per common share.
The rights will be exercisable until 4:30 pm Toronto time on Sept. 29 at $133 per $100 principal amount of Series 1 debentures purchased, plus accrued interest in the amount of $0.217 per $100 principal amount of Series 1 debentures purchased on account of interest accrued on the Series 1 debentures from, and including, Sept. 30 to, but excluding the issue date.

Q: Any good news for the big surge today ( Friday ) ? Thanks a lot.

Q: Hi could you give the latest short positions on the US and Canadian sides
Thanks

Q: Is having a nice year. How cheap or expensive is it compared to historical #s

Thx

Q: A number of the companies in your growth Portfolio have seen significant recent pullbacks. Specifically, DND, NVEI, TSU, TVE, TIXT and CTS. Would you consider these companies as Buy/Hold/Sell at current pricing?

Thanks
Tim

Q: hello 5i:
would Operating Cash Flow be the best metric to use when valuing this company? If so, I see that historically, they've traded for long stretches of time for a ratio of under 6.0. Would you then agree that something under this ratio would present good value? If Adusted (Operating) Earnings is the best metric, would a PE of 20 or less be a good value to buy into?
thanks
Paul L

Q: Lots of insider buying by CEO and others. Can you see this as well?

Thx

Q: Hi 5i,
AJG's GICS Sub-Industry classification is "Insurance Brokers".
Can you help suggest some Canadian listed Insurance Brokers stock that might be worth looking at for a TFSA and or NonReg account.

Q: WELL is trading at 4.25 today. What would be a fair price on evaluation and which one would be the preferred metric for a ballpark price that I can use for this and others.

Q: Good Morning, I have some BNS which I purchased at $70.00. I'd like to add to it with the div rate being so attractive. I'm looking at a 3 year time horizon.

Has BNS ever cut its dividend? It did not appear to be the case when I looked over the past 40 years but please confirm if this is the case. Do you see any potential catalyst for it doing so? Thanks!

Q: Hi Team,
For an 18 year old who just opened their TFSA and starting with $6500, what stocks or ETFs (CDN and/or US) would you start with? There are no trading fees so there is no worry to buy 10 names if that is the best way forward.
Thanks

Q: Bought EIF a couple of months ago and it has been declining ever since. I'm now down 13%. Other than the general state of the economy, is there anything in particular driving this downward trend? When would you anticipate the stock might start to regain value? Thank you.

Q: With diesel prices trending up, are you concerned about TFII?

Q: Hi
Wondering if these two companies are moving along on much the same pathway as CSU was in its infancy, wrt valuation metrics, trading volumes, share price, market cap etc?
Also why is LMN trading twice as many shares per day then TOI given TOI market cap is 8x LMN? Is it more well known even this early? Why is the volume so low?

Thanks
Jeff

Q: hi,
who are this companies direct competitors? how much debt does Nuvei have, and do you feel comfortable that it can service this debt with their current earnings? also, do you think it could be a take over target now?
cheers, chris

Q: Hi, Do you have any idea why ATS has lost 15% of its value, within less than a month ($55 from the high of $64) ? Despite company posting solid results, stock has failed to gain any traction. This company, we know, is one of your favourites in the group. Is there any change in your thesis ? If not, should it be a great buying opportunity to add ? Thank You

Q: Hi 5i, surprised no one has inquired about their quarterly results last week, so here goes. Pls provide comments and any information gleaned from their forward guidance. Also, do you feel this Dutch auction is providing a temporary floor to price, and once gone the downward action will resume? Thx.

Q: In a recent answer from 5i, it was said that BN was "sitting on a lot of capital waiting for attractive buyout opportunities".

A few questions I have are:
Do we know how much capital or cash that BN has to buy attractively valued opportunities? If they were to deploy this capital, would it move the stock positively? Historically, does BN buy slowly or do they make large purchases?

Q: hi,
can I get your current thoughts on Lumine group as a long term investment-management-debt-earnings etc.... IPO was 16$, now trades higher? usually price goes to at least half IPO price? can you explain this price action? also, I think you have mentioned you like management, can you elaborate a bit, im having trouble understanding why by reading the company website.
cheers, chris