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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: Good morning 5i team
The 2018 audited statements say VET recorded a $128 million "Gain on business combinations", which were 1/3 of the co's. net earning for the year. $68 m gain came from assets acquired in Wyoming, and $59 m from acquiring Shell E&P Ireland Ltd. Notes to the statements say the gains came from ... changes in values from when the purchase agreements were entered into, compared with when the transactions closed, in the following two areas:
- recognition of additional reserve value (in Wyoming), and
- increases in the fair value of capital assets (in Ireland)
These gains do not impact 2018 operating cash flow numbers, but to someone without industry experience, they raise questions. That said, please advise,
- How unusual in 5i's experience are these types of gains in energy company acquisition transactions?
- Does this raise any red flags in considering an investment in VET?
Thank you.
Edward
Read Answer Asked by Edward on April 26, 2019
Q: I asked you about the earnings on xlnx yesterday and I see the questions and answers today on this company.

I have a somewhat significant loss after today as I’m into it around $130 per share on 3,000 shares but fortunately I have gains in Veev and Five that outweigh the loss on xlnx. I tend to hate owing anything at a loss as I lack patience and I worry about a turning of momentum. I don’t know whether to do nothing or sell one or more of my other holdings and go home with a profit and my tail between my legs. May I please get your advice? Thanks I’m advance.
Read Answer Asked by Jason on April 26, 2019
Q: Hi. I'm looking for some 'safe', high yield income for the next 2 years. Do you like any of these split-share corps. for my purposes? If you could please explain you answer. Thank you.
Read Answer Asked by Toge on April 26, 2019
Q: Hi - just a clarification re the Revera law suit and ads. SIA is not the
same company is it? My understanding Revera is a private co. unrelated to Sienna
Read Answer Asked by Scott on April 25, 2019
Q: Could I please have a few of your top Smart Beta ETFs recommendations. I was hoping to get a few ETF ideas that cover USA, global and international only. A few that trade on the TSX and in the USA would be great. Thanks
Read Answer Asked by Aaron on April 25, 2019
Q: You mentioned that Sangoma Technologies got upgraded by Acumen Capital. What is their new target price? With a current market cap about $90 million do think the stock price and multiples will jump when the market cap exceeds $100 million? For example based on last quarter's revenue run rate the stock trades only 0.75 X sales despite its strong growth rate, profitability and good balance sheet.
Read Answer Asked by Charles on April 25, 2019
Q: 5i,
Question: Which of these three companies are preferred going forward for 2019? Should we hold all?
5I RESEARCH ANSWER:
We think GOOG looks best here, though we will give credit to MSFT for adjusting well to technology changes (the cloud).
FB we think will be a longer recovery, and we don't think is a must-own. We would be fine holding the other two.
DO you still feel the same ?
Thanks
Read Answer Asked by Fernando on April 25, 2019
Q: I have taken over all my parent's finances due to health issues. It has taken quite a while to sort through things (2 years), but I am almost done. They are both over 80, and in 'ok' health. They are thinking of 20% exposure to the market, so I have come up with the following as a plan. Do you think this is reasonable?

HISA and Cash - 100% of their past year's expenses

Percent based on the remaining funds:
57% GIC
20% Bonds
6% Preferred Shares
13% Dividend bearing stocks
4% Growth stocks


Also, any suggestions for other categories not mentioned, like trusts (eg BEP.UN)?

Thanks for your great service over the past year!

Fed
Read Answer Asked by Federico on April 25, 2019
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