Investment Q&A

Q: At this stage, with the WGL acquisition likely to go through, is it better to switch from the subscription receipts to the common shares? Specially since the common is trading at a discount to the receipts. Thx

Q: Hello
Just wondering how close we are to cashing in the receipts for $31.00?
Thanks
Rick

Q: In an announcement on apr4 altagas mentioned that they might sell minority interests in their northern bc hydro assets as part of wgl financing. Do you think this might be considered negative by the market?

Q: Hi do you have any comments on the Birchcliff deal with ala?
Regards
Stan

Q: I am down 50% in ALA and 17% for ENB in my TFSA.
Does it make any sense to hold or should I just sell. If sell, what should I replace them with for a long-term hold?

Q: At what point does 5i acknowledge the severity of the problems at these companies, including reducing their 5i stock ratings? Both of these companies have been severely punished for very good reasons. Too much debt. Cant get the prices they wanted for asset sales. Cant sell shares into the market for a decent price. Interest rates are rising. They have backed themselves into a corner and have really damaged themselves, ENB more so then ALA. ENB future dividend increases are a fantasy, a cut is more likely. Yet still rated an A- ?

Q: Hello 5i team - you have/had a great long weekend!

My question is about Alta gas and their receipts for the WGL deal. The receipts are trading at 24.65 and the stock is at 23.84. If I understand this correctly if the deal goes through the receipts turn into stock so at 24.65 that would still be 8.88% dividend. And if the deal falls it gets paid at $31 per that would be a 25%+ gain ... what am I missing here - why shouldn't I purchase these receipts?

Thanks,
Sean.

Q: you seem to get an awful lot of questions on altagas which i do not own, if i did buy it, i would only buy the receipts and not for the yield but for the capital appreciation if the deal fails.
my question is what are the chances the deal does not go thru. i think the chances of no deal are close to zero but value your opinion. dave

Q: I'm interested in buying more ALA for a long term hold, primarily for income. I have a couple of questions:
1) It seems the market is pretty negative on the acquisition. What do you think the main concerns are?
2) Normally, when a dividend yield gets this high the market is saying it is not sustainable. What's your opinion?
Thanks
Peter

Q: From your original background provided by 5i, am I correct that even if the WGL Holdings merger does not go through that holders of these subscription receipts will be guaranteed the issue price of $31?
I understand the last hurdles are expected to be resolved in Q2 of 2018 yet the ALAr almost hit its 52-wk low of $24.61 today, a 20.6% discount. Are investors concerned Alta Gas will default on their financial commitment?

Q: I have owned stocks in above companies for a while. I want to make additional investments in quality dividend stocks.
I also own stocks in KO, GE, MSFT and SYY. Total portfolio about Cnd $ 300K and US $ 120K
1st question, In your opinion, should I sell any of the above stocks, if so which ones.
Which additional stocks would you recommend for me to purchase
Thanks for your guidance. John

Q: In view of the large drop in market value of Altagas , is this a good time to buy the receipts, or the stock, or neither?

Q: We hold ALA - SPB and CGX...we are thinking of selling SPB and CGX to buy ALA...we would be doing this in a cash account so would be o.k. on tax ....the thinking being that when altagas completes its deal for WLG the stock should do very well plus we would increase our dividend yield on this account...can you please give us you take on this trade and thanks again for a great service....gene

Q: I know you are not a fan of averaging down but would you consider averaging down on ALA and/or CBL for the next year. do you consider their dividends relatively safe. CBL has had a lot of insider buying in the past year , mostly at prices over $10. thanks

Q: Buy, hold or sell? I have about five years to retirement and I reinvest all dividends. Thanks, Bill

Q: I have a 1/2 of a position of ALA and a full position in VET and PEY in my Oil and Gas part of my portfolio. I'm above water on both VET and PEY but down 15% on ALA. Should I buy more ALA or start another position with another company. If starting another position can you make a suggestion? This will bring me to about 15% Oil and Gas.

Thanks Greg

Q: What are the odds of the transaction closing? WGL has not traded at the offering purchase price of US$88.25 since the offer was made by ALA. WGL is currently trading at 81.39. What am I missing?

Q: Hi Ryan ala has been dropping every day I see a parallel to the baytex I am currently under 25%.Do you think one should take his lumps and move on also the same with KHW.un
Kind Regards
Stan

Q: In the utility space I own FTS, ALA and KWH.UN. I'm starting to worry that ALA and KWH.UN are too risky. What do you think? Should I replace ALA and KWH.UN with other larger utility stocks and if so what would you suggest?

Q: Hi, In case the WGL deal fails, holders of subscription receipts will receive full amount of $31 ( Not $31 less the dividend equivalents already received, as mentioned in your recent response). Could you please clarify. Thanks
Here is the January 25, 2017 press release:
" In the event such notice has not been delivered prior to September 4, 2018 or if the Acquisition is terminated prior to such time, or AltaGas advises the underwriters or discloses to the public that it does not intend to proceed with the Acquisition, then the Escrow Agent and AltaGas will return to each holder of Subscription Receipts an amount equal to the aggregate issue price of such holder's Subscription Receipts, plus any unpaid Dividend Equivalent Payments owing to such holders of Subscription Receipts (the "Termination Payment"). The Termination Payment will be made from the balance of the Escrowed Funds at the Termination Time, including from any remaining interest on the Escrowed Funds. If the balance of the Escrowed Funds, together with any such interest, is insufficient to cover the full amount of the Termination Payment, AltaGas will pay to the holders of Subscription Receipts any difference."