Investment Q&A

Q: Is the GC deal now complete?

Details please.


Sheldon

Q: Hi team, any update on Great Canadian? The deal was supposed to close in Q2 and here we are heading into September and no news since June 30th that I can find.
Thanks
Rob

Q: Where are we with IPL and GC takeovers now? I thought these deals or takeovers were closing out or going through by the end of June 2021.

Q: What is the status of The Great Canadian Gaming offer?

Q: Hi 5i team, any word on when the GC deal will close? I am holding shares as a cash proxy and I see a 2% discount to deal price with approximately a month to go. Any need for concern?
Thanks
Rob

Q: When will Great canadian gaming be sold. Will money go into my account. Did Badger report? Do you still like it. Do you still see solid growth from Atz over the next year?
T as always

Q: Could you please recommend a couple of replacement(s) for Great Cdn Gaming? It can be US or CDN and I'd like the replacement companies to have great management teams and be in the same sector. Companies in the leisure and entertainment space you think will come out of this crisis bigger and better. It doesn't necessarily have to be a casino company. Thanks a lot.

Q: The discount to the deal price is now in excess of 5%. Is it possible Apollo could be caught up in the short squeeze and not be able to close the deal? Do you think Baker may be selling shares in panic mode? Could the regulators quash the deal OR is this just some investors deciding to take some money off the table due to the stench created by Baker and Epstein crony Leon Black?

Q: With the moron CEO resigning for skipping the line (can you believe?) does this add any jeopardy to this deal being successfully completed, or does it make no difference?

Thanks

Sheldon

Q: I have a substantial position in GC. My gain is excellent.
What may be the chance Apollo backs out of this deal in the next 2 months?
Should I cash out now to secure the price? I wouldn't mind picking up the additional $1.50 +- on closing but dont want to risk my gain.

Q: Hi,

The last answer on GC wrt holding or selling was "We would suggest keeping this at least into the new year, as a relatively low risk cash proxy. If in a gain position this will also defer taxes a year. "
I had accumulated 2800 shares over the last several years which today equates to $121,800 @ a current stock price of $43.50. A gain of approx. 6% in an RRSP account.
Given the buyout transaction will not officially close until Q2 (when in Q2 I am not sure, do you know the specific date?), at max I can only make another 3.3% (another $1.50/share), ie at buy out price of $45.00 it equates to $126,000, assuming nothing changes wrt another bid. I assume Brookfield will not counter-offer?
If I hold until Q2 and accept the $45/share, this money is basically not working for me for another 3-6 months! Does it not make more sense to sell at the current market price (at a reduced offering price) and purchase some of your more recent top recommendations/suggestions?
This may sound like FOMO but is it not better to have your invested money working for you?

Cheers,
Steve

Q: With the news of a higher bid. Would you sell your shares into the market or just wait till the end.

And why?

Thanks

Sheldon

Q: Hi 5i team,
Looks like you guys were right (again) on GC. They negotiated a new price of $45 over the weekend. The original proxy was due today. I did not vote as at the time the major shareholders opposed the deal. They now all support it as I read the news release, so I would support it as the game is over. Proxy voting is extended to Wednesday. I just want to confirm that whether or not I vote has no bearing on my disposition of the shares. If I get lucky with a takeover, I tend to let it run a bit but sell before the closing date, which I think is 2nd Q, 2021.
Thanks again.
Dave

Q: Hello Peter and team,
Echoing the comments of so many others, I would like to extend great thanks for the wonderful service 5i provides and wish everyone a wonderful holiday season.

I currently own GC, but as part of a portfolio re-balancing, was planning on selling it when adding new money at the start of January. It appears the current offer will be voted down. Having never owned a stock that has had a tender offer fail, I am a little unsure as to how this might play out. I would hate to lose some (most?) of my gains by holding onto the stock too long.
You have already expressed the opinion that Apollo will likely increase their offer rather than walk away. If that were to happen, would Apollo make their intentions known before or after the vote happens? If comfortable sharing, what is your best guess as to how the stock price will react over the next few days.
Thanks in advance,
Rory

Q: Enjoyed your article on year end tax selling,i picked the 9 stocks with the greatest estimated revenue growth for 2021 of these 9 could you pick your top 5 which have the best chance of a turnaround for 2021, could you rank them for growth and risk, thank you use extra credits if needed

Q: I'm planning to enter a position to buy GC. I figure that even if Apollo's buyout deal falls through, GC is still likely to be a good hold for the next few years. Apollo's offer of $39/stock in the middle of the pandemic is a low-offer - I think that after the COVID vaccine has been distributed, GC's income will normalize and the stock price will be worth more than the offer price. I'd like your thoughts as to whether my logic is sound and without too much emotion. Thanks

Q: Hello Team, the price of Canadian Gaming (GC) has been dropping a bit lately.

1) What do you think is the probability of the deal falling through? High or low?
2) I saw a news release titled "BloombergSen Inc. Files Early Warning Report in Respect of Great Canadian Gaming Corporation". What does the release mean?

Please comment on where you think this stock will go.

Thanks

Q: The takeover date is fast approaching and based on the current stock price, it doesn't look like the market is anticipating a higher offer in spite of minority shareholder opposition. Question -- Shares of GC are being held in a registered Employee Share Plan. In addition to receiving the proxy to vote for/against the deal, there is also a form included with the proxy to tender shares at the $39 price that is date sensitive. If shares are tended at the $39 price and then a higher price is later offered, will the shareholder that tendered the shares at $39 still receive the higher offer? The employee would prefer to vote against the $39 in anticipation of a higher offer but would not want to be in the position of being stuck with the shares by not tendering them on the form sent with the proxy. Than you.

Q: Can you help to explain the news yesterday of "BloombergSen Inc. Files Early Warning Report in Respect of Great Canadian Gaming Corporation" , How will it impact the acquisition of GC and to the stock price overall?

Thanks,

Q: With a takeover offer on the table, and some large share holders against the deal at the current price, do you think its likely that a) the pot gets sweetened, or b) the deal falls apart......or c) they except, but that's a boring option :-)

Thanks as always

Dave