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Investment Q&A

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

Q: I have been following A&W and Boyd for years and years.
I finally bought A&W recently. Now I would like to switch
the A&W for Boyd. I have more stocks than i really need ,
and not enough spare cash to hold meaningful positions in both. I think that I would prefer the growth that
Boyd might offer over the income from A&W,since although
the position is 2% , the income really isn't meaningful


Would his switch be a reasonable one ?

Thanks in advance for considering this question.
Read Answer Asked by Leonard on June 12, 2017
Q: This company was the focus of a recent positive write-up in ROB magazine:

https://www.theglobeandmail.com/report-on-business/rob-magazine/rogmaghow-aw-is-remaking-itself-into-a-hipsterhaven/article35099606/

With plans to open 40 new locations over the next year I don't believe the growth story is over, just paused. It seems to me that SSSG as a measure of growth is somewhat flawed for this type of business as locations have to be open for 2 years, or as a minimum 5 quarters, to be meaningful, correct? And they treat their franchisees a whole lot better than Tim's where a rebellion is happening.

It may be out of the 5i portfolio but it's still in mine where it's been since 2013. I note the distribution has been upped several times to the point it yields 6% on my original investment so I'd be more inclined to add to the position on its recent weakness.


Read Answer Asked by Jeff on June 05, 2017
Q: I do not know why a loss on A&W psychologically hurts more than the joy derived by seeing most of my other 5i equities that have increased by more than three times the loss. Also I find it hard to sell my losers when I should(there is always hope)and the need to keep my winners when they should be trimmed. Selling my winning and paying bank stocks (too much over indulged in) and putting the funds into XGD (which I should and did) is contrary to all my instincts but is rationally correct. Boy, his is tough!!

Thank you for the appropriate, timely advise and guidance, without which things would surely go awry.
Stanley
Read Answer Asked by STANLEY on June 02, 2017
Q: Based on your Jan. 15, 2017 research report - when AW.UN was trading at $38.20 and your continuing good comments on AW.UN. I bought the stock on what I thought was recent weakness at $36.28.
So I feel blindsided by your email on June 1 removing AW.UN from your income portfolio. Also as a buy and hold investor I found your rational for selling somewhat weak and surprised a replacement was not recommended. Please comment. Thanks.
Read Answer Asked by Peter on June 01, 2017
Q: Premier Wynn announced today minimum wage goes to $ 14.00 an hour Jan. 1st 2018 and then to & 15.00 Jan 1st 2019. Alberta is similar $ 15.00 in 2019. B C will have a NDP government soon and they may follow. Not good for Service Industry like A & W, Tim's, Cara etc. What other Industries will be effected ? Part Time workers to get same benefits. Corporate Leaders are concerned. Good for Workers.

Your comments please.
Read Answer Asked by bob on May 31, 2017
Q: Hi Peter, Ryan, and Team,

Sorry for another A&W question, but do you think the Ontario government's plan to raise the minimum wage to $15.00 will hurt this stock (as well as others in this space)? I suppose that A&W could raise their prices, but they already seem to be at the high end pricing of the quick-service-restaurant space.

Thanks as always for the pertinent advice.
Read Answer Asked by Jerry on May 31, 2017
Q: I assume that the price of AW is declining in response to the perceived slower growth of the company. If this is the case, would it then be viewed as similar to that of Boston Pizza? If that is the case, what might we expect the share price to be when a multiple similar to that of Boston Pizza is applied?

Appreciate the insight.

Paul F.
Read Answer Asked by Paul on May 30, 2017
Q: Hi Peter, Ryan, and Team,

As a long-term investor, I've been happy with A&W's performance, but note that John Heinzl in his Globe & Mail column "Stars and Dogs" is now referring to it as a "dog" due to the first decline in same-store sales in four years. Would you stay the course with this stock or look for greener pastures elsewhere? As always, thanks for the valued advice.
Read Answer Asked by Jerry on May 26, 2017
Q: Hi Peter/Ryan and team:
Two questions if you would be so kind to consider.
I have read numerous times your or members use of the term 'half position' Could you explain in layman's terms what is a half position and what is a full position. Maybe an example would clear it up for me.
Question #2 is about A&W's declared dividend.
"A&W Revenue Royalties Income Fund (the Fund) (TSX symbol AW.UN) today declared a cash distribution of 13.3 cents per trust unit for the period April 1 to April 30, 2017. The distribution will be paid to unitholders of record at the close of business on May 15, 2017, and will be payable on May 31, 2017. This distribution will be taxed as a non-eligible dividend, as the source of funds to pay the distribution is a dividend from A&W Trade Marks Inc." What and why is it they state the distribution will be taxed as a non-eligible dividend. Will this then be taxed like interest? If held in a Non-Registered account will this still be taxed at the preferred dividend rate, assuming a T3 slip is issued? Thanks again for all your answers to the many questions you receive. Ken ... :-)
Read Answer Asked by Ken on May 11, 2017
Q: The stock appears to be acting negatively to the recent slow down in same-store growth. But AW has announced plans to grow aggressively so I am wondering if going forward, this new found growth would alone be enough to continue seeing the stock value increase? Or if same store sales do continue to remain flat would you expect this stock to become more of an income stock with little growth?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on May 03, 2017
Q: Please advice best stocks to buy today in consumer sector and healthcare?.
Read Answer Asked by Nizar on May 01, 2017
Q: Can you please help me prioritize these stocks I'm considering for my income account. I understand that some are higher risk. Thanks.
Read Answer Asked by EVAN on April 07, 2017
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