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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: Would appreciate your comments regarding Globe and Mail article on EIF which raises the criticism that when you take the company's cash flow and capital expenses, as calculated and reported according to International Financial Reporting Standards, the company has never consistently made enough money to pay its dividend. EIF response was that the company's capital expenditures represent "investing in growth.
Read Answer Asked by richard on July 07, 2017
Q: It's frustrating to own a stock like EIS that is infested by the short sellers who have no scruples about the interests of other investors in order to get their loots.

Have there been prior class action suits of the shareholders taken the short sellers to court for compensation if their basis of shorting the company happens to be false or pure fabrications? Are there lawyers who specializes in these type of suits?

Just curious. After all the door should be able to swing both ways.
Read Answer Asked by Victor on July 06, 2017
Q: Not too long ago I had about a 3% position in EIF, with similar amounts in 2 accounts (cash and RRSP) and nice profits. Today, not so pretty. Do you have any explanation for the almost daily drop in price, or today when it fell off a cliff? After today I have small gains in the cash account and a loss in the RSP. A few weeks ago I sold about a third from each account (at around $36). Would you recommend selling everything, holding, or adding back the one-third sold? Has there been any insider activity or guidance and do you know what their payout percentage is?
Thank-you
Read Answer Asked by grant on June 19, 2017
Q: Since beginning of June EIF has been buying back shares as well as insiders buying according to TD website. Does 5i sources verify this.I would like to increase my position to 5% as being from MB I am familar with the company. I bought HCG when the company did the Dutch Auction but when the CEO was selling around the same time this should have been a red flag for me.
Read Answer Asked by blake on June 15, 2017
Q: 5i ...was wondering if you could explain a little about a company being shorted. Once the stocks value has reached a certain level is the 'heat' then taken off that company or do they continue to hammer it with a 'told you so' attitude. I have made some money on EIF and enjoy the dividend but do not want to watch all evaporate. TY for explaining.
Read Answer Asked by Alan on May 16, 2017
Q: Further to Andrew's question re EIF, I attended their annual meeting in Winnipeg this morning. Part of the earning miss is that the company serviced 12 aircraft over the winter, when business is slower, rather than space the work throughout the year. This impacted the last quarter's earnings, but the company predicts earnings will improve in the next two quarters.
Read Answer Asked by Patricia on May 11, 2017
Q: Hi 5i,

Love your service.

Generally the Q&A answer my questions to my satisfaction.

I have about an 8% holding of EIF in my TSFA and a long term holding horizon. I have held it for a long time and it has been good to me. Given the current pullback and "short" concerns, I am thinking of reducing my risk by selling 1/2 position. Is this something you would recommend, or would you be in the "ride it out" category.

Thanks !
Read Answer Asked by Jim on May 04, 2017
Q: Your Q&A refers to potential dividend and cash flow concerns raised by short sellers. I cannot find any discussion of this issue in your notes so I wonder if you could follow up and indicate whether these concerns have any merit and if so what basis they have. The price is down to a level which otherwise could be an attractive entry point. Thank you.
Read Answer Asked by Mike on May 03, 2017
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