Investment Q&A

Q: You are advising people that it is time to unload Raging River. I see it is still in the Growth Portfolio. Do you plan on selling it soon, I am interested in what you will replace it with. Thanks.

Q: With RRX dropping so much in the past week would you recommend selling all or part of my 3000 shares before the vote?

Q: Why do you think it is now very likely that the deal will be approved?

Thanks!

Q: Hi,
I have just reviewed your answers to recent questions concerning this company and there is very little doubt about your very negative views. Can you be more forthright about your reasons? Should I still sell?
Thanks, Bryn

Q: I own 3000 shares of RRX . Is it too late to sell now? Thanks

Q: Hi

I see I can sell the October calls 6's on RRX for 35 cents. If I did so covered with my long position, how will the takeover affect the options?

Thanks

Sheldon

Q: I have a 2.5% position on Raging River and undecided to hold/sell now or wait for the shareholders vote results in a few days. Assuming I sell , what are the top 3 companies in each growth and balanced portfolios that I could replace it with good momentum for the next 2/4 years?
Thank you as always!

Q: When is the merger expected to be voted on? The initial press release suggested the deal would close in August. I have hung on for this long so I figured I might as well wait in case the deal is voted down. In your opinion, is this the best course of action at this point?

Appreciate your insight.

Paul F.

Q: Frustrated and selling it. Please advise replacement ( does not have to be in the same sector). Which stocks from the balanced portfolio look more attractive.
Thanks

Q: Hi team, I have 90 shares of RRX and I'v broken even at today's price would you sell here get your money back and reinvest in another company or hold on for the final vote and I assume pick up BTE shares at that point right. Thanks, Nick

Q: I follow your growth portfolio (with a long term horizon) and own some RRX shares (very small position). So obviously we are both down on this one. Unless there is another offer, am I correct in assuming that you will wait for the best price you feel you can get for RRX to minimize overall impact to the growth portfolio? If so, I'm thinking that selling my RRX shares when you do (i.e. after you issue a change to the growth portfolio) is probably the best course of action. Essentially, I'm looking for clarification on how to use 5i's service effectively now and in the future. Thank you.

Q: I had hopes that oil would claw its way back up with the sentiment turning positive over the last few weeks but it seems like this latest push higher has reversed. I'm down big on RRX and PEY - should I hold them until after earnings or get out now before they get dragged lower? What is your opinion on oil over the next year? Thanks!

Q: Raging River has recovered somewhat from its low caused by the announcement of the merger with Baytex. Is this perhaps a good time to sell, considering questionable management, and if so could you name three or four similar names in the sector that might have better potential. Thank you.

Q: Am just wondering, if the deal with Baytex did not go through do you think there is enough value in Raging River alone to justify it returning to its price before the announcement of the deal. Also, again on its own, does Raging River have decent fundamentals: P/E, cash flow, debt level, growth potential, etc.
Further to this, could you explain how the deal with Baytex, assuming it goes through, would subtract from those fundamentals. Thanks.

Q: Hi Peter and Team - After the recent deal, what is your opinion of management. You have clearly stated your thoughts on this deal (and thank you for that) but are there any positives left on the state of the management of this company. My feeling is that if management has deteriorated to such a low level in its ability to make smart decisions then the stock is no longer worth holding. Having said that are there any fundamentals that might make this a stock to hold on to in spite of the turmoil. Thanks.

Also are any fundamentals

Q: I hold a position in Raging River at a 20% loss and would like to know what options are available to shareholders regarding the Baytex deal. As this was a 5i recommendation other members are likely in a similar position. What would you recommend shareholders do. Will there be an opportunity for shareholders to vote against the merger?
thanks for your sage advice as always,
Bob

Q: Would you sell RRX now and if not now what indicators would you be watching to sell? Or would you continue to hold for the longer term?

Q: Strikes me mgt placed own interests above those of shareholders in violation of fiduciary obligation. Your thoughts please? How does an invester protect themself from this practice, especially in the small Canadian market?

Q: Hi 5i,
The Baytex/Raging River transaction reminds me a little of the attempted merger of Dennison Mining and Fission Uranium, although there are some obvious differences too. In the latter, the FCU shareholders stepped up, voted against the merger, and the deal died, despite Fission management’s apparently supporting it. How likely is a similar scenario to play out with RRX? It may not always work this way but one might have thought that, if the proposed deal is so terrible for RRX shareholders, then it is really good for BTE shareholders. Yet BTE’s share price actually dropped more percentagewise than RRX’s did on the day. Were BTE shareholders really that enamored of the leverage that comes with a lousy balance sheet, and quarter after quarter of losses, that they didn’t want to accept the burden of higher quality, profitable assets? Finally, is it possible that this bad deal for good assets is being presented in order to force the hands of other potential buyers? And, in any event, how likely is someone else to look at it and say: Well, we can do better than that and still have it be accretive on an earnings and cash flow per share basis. (?) Thanks!

Q: I have always considered RRX to be good value and getting better as the price has declined from the $11 range in late 2016 to just over $6 last week. So I can understand why Baytex would want to pick it up. But I don't understand why RRX management would want to sell - essentially at the bottom of the market, and at a time when oil prices seem to be rising. Is there some other consideration these sellers are getting ? Can you explain the rationale ?