skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: In response to an earlier question on Boyd, which I hold, you stated ," BYD is starting to look pricey but is actually cheap on a historical basis..." What particular measures are you using to make this judgement as it seems trailing PE is about 28X and Book about $5? My charts only go back to 2003 but I note it traded under $4 a share for 4 of those years so it's come a very long way to here. Thanks, J.
Read Answer Asked by Jeff on June 09, 2014
Q: Hi,

Regarding BYD.DB, can you explain in some detail how this security will behave? Since it is trading well above its conversion price, my understanding is that its delta should be close to 100% of BYD.UN, but it will have 5.75% interest payments instead of the ~1.35% distribution? Does this not make it more attractive than holding BYD.UN? Can you also put into simple language the redemption features?

"On and after December 31, 2015 but prior to December 31, 2016, the Debentures may be redeemed by the Fund, in whole or in part from time to time, at the option of the Fund, at a price equal to the principal amount thereof plus accrued and unpaid interest up to but excluding the Redemption Date (as defined herein), on not more than 60 days' and not less than 30 days' prior written notice, provided that the volume weighted average trading price of the Units on the Toronto Stock Exchange (the “TSX”) for the 20 consecutive trading days ending on the fifth trading day immediately preceding the date on which notice of redemption is given is not less than 125% of the Conversion Price. On and after December 31, 2016 but prior to the Maturity Date, the Debentures may be redeemed by the Fund, in whole or in part from time to time at the option of the Fund, at a price equal to the principal amount thereof plus accrued and unpaid interest up to but excluding the Redemption Date, on not more than 60 days' and not less than 30 days' prior written notice. The Debentures may also be redeemed by the Fund in the event of the satisfaction of certain conditions after a Change of Control (as defined herein) has occurred. See “Description of Securities Being Distributed - Offer Upon Change of Control”.

Thank you.
Read Answer Asked by Adam on April 08, 2014
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!