Investment Q&A

Q: Hi Team,

I have a few SJR.B shares that I have held for a number of years now and am taking of switching them for Telus for growth. Do you see any problems with that?
Also for a two to three year time frame who do you think offer the best outlook for growth/returns between STN and WSP?

Thanks and good luck for the remainder of the ride.

BK

Q: Hello 5i team,
How do you explain the steady drop in share value despite a good quarterly report and a good order backlog that would suggest a good next quarter?
Greetings,
Tony

Q: Hi Peter. I've been reading that the US has been steadily reducing its foreign oil imports from most countries except Canada. I'm sure Canada's turn will come. Oil prices are dropping. Do you see the cost of production in Canada too high and thus reducing profits for Canadian companies. I have done well with Surge and Suncor thus far. Would you recommend reducing my position in these companies. (taking some profits)
Thanks for your great advice over the last year.
Cam

Q: Is there any problem buying WSP Global in our US RSP portfolio? Will the stock's performance basically match the CAN version?

Q: Would you consider BCE a hold or sell at this time. Tx.

Q: was there a reason why you chose CPD instead of PPS?

Q: I hope Peter is doing well on the ride.
I am 61 and need to get more conservative. What are your thoughts on iShares XHY, CBO, CPD and XBB. I see XHY is in your income portfolio but it pays about 6% yet it price varies more than that over 52 weeks.

Should my full service broker charge me fees to buy iShares?

Q: Peter and Team--Looking at your Model Portfolio and the outstanding return --but there is 4 stocks that are negative since inception and 5 negative YTD--Since you are still holding them then you obviously still believe in them--would it not be a good idea for us to give serious consideration to buying them?

Q: I have some SPB and I am considering buying more. However, I have a general bias against companies which have diversified divisions. I think that companies should stick to their core business. I could expand on this bias. Do you agree with this bias and, if so, is it a concern in the case of SPB?

Q: Hi,

Your comments on ET results and future prospects from here.

Q: Hi 5i Team: In the last couple of days, WSP Global (WSP) and Sylogist (SYZ) has announced bought deals.

WSP Global: The Acquisition and other related transaction costs are being financed through a combination of:
•$502 million bought deal public offering (the "Offering") of subscription receipts of the Corporation (the "Subscription Receipts") at a price of $35.85 per Subscription Receipt (the "Offer Price") and up to additional gross proceeds of $75 million pursuant to an Over-Allotment Option (as defined below);

Is this interpreted as: $502M / $35.85 = approx. 14M additional shares (not including over-allotment)?

•$400 million private placement (the "Concurrent Private Placement") of subscription receipts of the Corporation (the "Placement Subscription Receipts") at a price of $35.85 per Placement Subscription Receipt to two existing shareholders, (i) Canada Pension Plan Investment Board ("CPPIB") and (ii) la Caisse de dépôt et placement du Québec ("La Caisse") and up to additional gross proceeds of $60 million pursuant to the Additional Subscription Option.

Is this interpreted as: $400M / $35.85 = approx. 11M additional shares (not including over-allotment) purchased by CPPIB and La Cassie?

WSP Shares Outstanding before announcement is: 61.6M

If the above is correct, future WSP Shares outstanding would be approximately: 61.6M + 14M + 11M = 86.6M, therefore a 40.5% increase in shares outstanding. Is this correct?


Sylogist Ltd. ("Sylogist" or the "Company") (TSX VENTURE:SYZ) is pleased to announce that it has entered into an agreement with Acumen Capital Finance Partners Limited ("Acumen"), pursuant to which Sylogist has agreed to issue, and Acumen has agreed to purchase on a "bought deal" basis, an aggregate of 1,820,000 common shares of the Company ("Common Shares") at a price of $11.00 per Common Share for total gross proceeds of $20,020,000 (the "Offering").

SYZ Shares Outstanding before announcement is: 22.4M

Therefore, the future SYZ Shares outstanding would be approximately: 22.4M + 1.82M = 24.2M, therefore an 8% increase in shares outstanding?

If my interpretation is incorrect for both companies, please advise. Thank you.

Q: I have held Telus in my RRSP account for decades and it has grown to be a huge part of my portfolio. I feel that I should trim it back substantially, although I'm having a difficult time trying to figure out what to replace it with. I have always liked its stability and have taken advantage of the DRIP.
My question is, when trimming should it be done all at one time or over a period of time and also, could you recommend 4 or 5 quality stocks to replace it with without regard for sectors.

Thanks so much

Q: Question about model portfolios:

Is it possible for a subscriber to see what date each security was added or suggested? The original “acquisition” date would help a lot and I sense it’s in here somewhere.
Thank you
Adam

Q: Good luck Peter ... happy cranking... Ryan I am about to add a rather substantial amount of pension $$ into my account. I am completely covered in the Model Portfolio with existing RRSP's ...should I just step into purchasing Income Portfolio at the 5% allotment giving me 39 stocks in my total portfolio. Can you give me some direction please. TY.

Q: Good afternoon, I was wondering your thoughts on the recently announced equity issue by WSP Global as well as the acquisition? Deal appears accretive and the last big deal they went through was well recieved by the market (earlier this spring).

Thanks in advance.

Kevin

Q: Hi - good luck on the ride Peter. Any thoughts on the WSP acquisition and financing. Seems like a very large deal for them.

Q: Hello Team. Thank you for the updated reports. I am trying to figure out how you come up with the month % returns (not incl dividends)?? Some work out exactly and some not! EG: VNR bang on but WSP not so. (as well as others across both PFs) Please clear this up for me. Good luck Peter on your brave ride across our wonderful Canada!

Q: I am over 50 and am looking for income. I was thinking of the following names: ET (yield: 3.659), VNR (yield: 6.211) and SPB (yield:4.043). However, it seems to me that ET and VNR are not very liquid (Volume: 42,429 and 32,812 respectively). Would you regard it as an issue? Which of the 3 names would your recommend? In your view, has SPB got room for growth too?
Thanks.

Q: I have set aside funds specifically for the purpose of establishing an income portfolio. While I understand your reservations in trying to time the market, could you recommend a strategy for deploying the funds giving consideration to the weak seasonal period for equities we are entering, the imminent elimination of QE, and the potential for incremental increases in interest rates starting within the next six months. Would it be wise to place the funds in money market, or even a short term bond etf like VSB or VSC, and wait till later in the year to begin the investing process? What ideas in the 5i income portfolio are buy-able currently? Many thanks.

Q: Model PF I am reviewing my weightings in various sectors and it is proving to be an equivocal process. I turned towards your PF to get some ideas and couldn't find anything relating to it. Is there somewhere to find this and if not, have you thought of doing so or, is there a reason that you don't.

TIA