Investment Q&A

Q: Hi Team,
Can you, from your experience, comment on the credit risk of buying Enercare 5 year bonds as part of a ladder of BBB or better corporates?
Many thanks, Michael

Q: Hi Peter, Ryan, and Staff,
Even though I 'thought' I had elected to receive some BIP shares with the sale of ECI, I notice today that all of my ECI shares were sold. Thanks again to 5i.:)
ECI was held in my TFSA, and my only Industrial holdings in this account are SIS and TFII. If I want to stay in the same sector, would you suggest deploying the new cash by adding to either or both stocks, or investing in a new Industrial stock or even an ETF like ZIN? Thanks as always for your valued advice.

Q: Yes, this morning in iTrade account, there was the cash received on the disposition from ECI shares. Yahooooo
And a big shout out to 5iR for including ECI in the Income Portfolio..........Tom

Q: I received my shares yesterday, still waiting for cash

Q: Enercare Solutions (subsidiary of Brookfield Infrastructure) have a bond outstanding rated at BBB- Stable. About a six year bond. Would this be a bond worth holding?

Q: In response to the query re: ECI. I, too, have received cash, though I attempted to choose BIP.UN. Thanks. to my broker getting my option to me too late, I missed that opportunity. They supposedly tried a best effort, but obviously it didn't work.

Q: Hi Peter, Ryan, and Team,
Not a question, but a response to Mike who asked earlier about ECI's status in his account. I looked at my Scotia iTrade account and assume that, in the interim, they are using another "ticker" for ECI; in my case it's E012247. No BIP shares are shown yet.

Q: Hello 5i,
This is a question more for the membership than for yourselves. This morning Jack mentioned that he had received his disposition from his ECI shares so I thought I would have a look, but we have received nothing yet. Now, we elected to receive the BIP.UN shares as well rather than take all cash, so maybe that makes a difference. Have others received their proceeds yet?
I understand that an interim vehicle will be set up to facilitate the share portion so obviously it might take longer than a pure cash option. Just curious........
Cheers,
Mike

Q: Hello,

Why would ECI trade above the $29 offer price so close to closing?

Robert

Q: In my husbands lif account we are going to need to replace enercare with safe dividend stocks. Sectors are not important. Current holdings are : A and W, BGI.un, Crius, Gamehost, RNW. Current dividends are greater than the withdrawal. We would be looking to add stocks whose dividends would be reasonable safe in an economic slow down.
How do you feel about the following strategy and please feel free to offer other suggestions or comments:
Bip.un, Bce, Alta gas, Bns-
Either fortis or Aqn
And then something with growth potential such as a corby ( as it has no debt) or transcontinental ?
We are also open to other suggestions.
Thank you.

Q: Further to the ECI takeover, I have a general question as to how these things get handled, having never been involved in one before. Should I expect my broker (Questrade in this case) to provide me with all the details and provide me with instructions or does the acquiree mail me directly? There have been comments on TDs handling of this but I have received nothing from Questrade to date which didn't surprise me as I was expecting Brookfield to contact me.

Appreciate your help.

Paul F.

Q: There seems to be some confusion regarding the Brookfield offer to Enercare. Here’s is my experience. The vote for the offer is due September 20th before the meeting four days later.
On the other hand, the instruction for choosing the option 1 (having BIP.UN shares for ECI) or option 2 (the default, receiving cash) had to be given to TD Waterhouse before September 14th at 11h59am. Like some customers I received the notice dated on September 6th just this Monday. According to Kingsdale Advisors all instructions should have been registered by them this Monday September 17th at 5pm.
So according to my experience, TD Waterhouse did a lousy job of making sure their customers receive the timely information. Moreover, on Monday morning, I had to wait two hours on the phone before talking to a TD agent regarding this transaction.
I hope this helps clarifying some of the confusion. May be someone should open a forum for discussing possible recourses against brokers in those cases because this it is a recurring theme, in my experience.

Q: There was a recent questionnaire from a member concerning the tendering of ECI shares. Has this deal closed? I have not received any information from my broker and it is my intention to tender and take back some shares.

Appreciate your help.

Paul F.

Q: Hello,

In an otherwise diversified portfolio, how would you feel about taking proceeds from disposition of ECI and investing in KBL for continued industrial exposure?

Cheers,

Robert

Q: As I understand it, the ECI buyout by BIP.UN gives ECI shareholders the options of: 1. $29 cash per shares ("cash option"), and 2. BIP.UN units on a prorated basis + balance in cash ("combo option"). ECI shareholders, by default (those making no election), will get the cash option. Simple enough.

Do you know the timing of such election? Some friends of mine claim to have received both the voting and election materials, while I only received the voting info. I couldn't get through to the company for clarification. I don't want to be forced to accept the cash option (due to tax considerations).

Would you by any chance know more about the timing of the voting and election processes in this buyout? Thanks.

Q: Am i right in thinking that if i don't tender my ECI (Enercare) shares capital gains on all the shares will be triggered?

TD direct investment got my notification to me by mail today after the deadline for tendering and I then spent over an hour waiting to get through to them by phone. A broker I was finally connected to is putting a best effort offer, but cheerfully noted that the worst case scenario is the units would be sold for $29! Not happy with TD direct investing!

Q: With ECI being bought out, are there similar companies (in terms of yield and maybe a bit of growth) that I can consider moving the money to?

Q: Hi, I sold Enercare and was wondering how I should replace it.
My portfolio is built with mostly large caps and some titles from your BE and Income portfolios. I am retired and depend partly on dividend. Here is the portfolio breakdown:
Consumer defensive 10,31 %
Energy 13,16 %
Utilities 11,05 %
Telecom 11,56%
Reit 0,76%
Financial 24,38%
Healthcare US 3,53%
Industrial 6,85%
Consumer-non cyclical 0,44%
Consumer cyclical 2,67%
Tech US 4,20%
Diversified 0,42%
Basic materials 1,84%
Fixed income 3,44%
Equity Canada(ETF) 1,80%

CASH 3,59 %
Total 100,00

Q: I have a large position in ECI in a registered fund. Is Brookfield Infrastucture a good replacement for Enercare. I plan to vote in favour of the purchase and take 25% in their stock.

Q: Hi Peter, Ryan, and Team,
Across all accounts, our Industrial holdings consist of BAD, ECI, NFI, SIS, and STN,
If I sell my Enercare shares held in my TFSA, would TFII be a suitable complementary industrial stock, or do you think that any of the above industrials should be let go or added to? All are up (especially ECI for which I thank you immensely) except for NFI in my wife's TFSA, although we have two other accounts that hold NFI which are up.
As always, thanks for your insight.