Investment Q&A

Q: I've owned this fund for quite some time. It trades consistently at around 30% below it's NAV. The yield is decent and appears safe/reliable. I was thinking about adding to my position for the yield and "hopefully" some share appreciation or at least limited downside. The price to NAV seems long overdue to improve and the company continues to buy back units. What are your thoughts about this investment going forward and buying at today's valuation?

Thank you

Q: Can you comment on equity raise- how does bal sheet look with this , and what will payout ratio be. Decent for the next year or so?

Q: Can the terms of the recently announced debenture be seen to suggest good things are in store for this company? The deal has a conversion option that is 30% - 40% higher than the current stock price. Given that this stock has shown very little growth over the past five years and you have suggested previously that you feel it is primarily an income stock it seems like a high bar to reach to convert. Since this is a bought deal, I would assume that this means the underwriters think this conversion price is quite attractive. Why would the conversion have been set at such a price? Does this strongly suggest something is in the works from a growth/acquisition point of view? And is the interest rate being paid expensive/cheap?

On a secondary note, is the debt from the previous takeover declining at a reasonable rate?

As always, appreciate your insight. I would also like to add that the changes you instituted several months ago are really working well. I am a long time subscriber and I keep learning more and more every day, so thanks.

Paul F.

Q: Can you comment on the potential takeover news and the impact to ATD and its debt level and the potential to do more acquisitions in the future? What premium do you think will be paid to the current share price of CST? Thanks.

Q: The following is an excerpt from High Liner's website that probably contributed to the steep increase in share price yesterday:

"On August 16, 2016, High Liner Foods entered into a purchase and sale agreement ( the "Agreement") with Blue Harvest Fisheries, whereby Blue Harvest will acquire the assets of High Liner's scallop business, along with its facility in New Bedford, Massachusetts. Under the Agreement, High Liner will receive cash proceeds of $8 million for the business and facility, plus additional amounts for High Liner scallop inventories. Following completion of the transaction, High Liner will continue to offer scallops to its customers through an ongoing supply agreement with Blue Harvest. The transaction is expected to close within the next several weeks. The scallop processing facility was fully operational at the time the Agreement was entered into, but value-added fish operations had ceased at this facility in mid-July 2016, following the transfer of this production to the Company's other manufacturing facilities."

Q: Hi Peter, Ryan, and Team, In today's question from Albert, where would ZLB fit into the mix? I realize that it has a lower yield than PDC, but a better long-term record than it or CDZ. Your thoughts? As always, the advice I receive from 5i is invaluable!

Q: I currently hold LIF for the high yield and am thinking of replacing it with EIF - again for the high yield. A good idea??
Thanks

Q: Hello team, Your analysis please on HLF results.
Thank you!

Q: I appreciate your answer to Brian on the results today. It seems to me they were very strong, but the stock has been down 1 to 2 % this morning. My question is, that on any given day, (on average) would a rise in the Canadian dollar have an inverse effect on the price of this equity? I seem to notice that the dollar fluctuation often seems to affect the valuation of stocks that trade of more than one exchange quite markedly.

Q: Peter and Co., may I please have your response to the following quote from HWO's website? The drop in the stock appears to imply that there are significant problems. Only a few days notice was given before the departure.
"High Arctic also announces that Darren Greer is resigning from the position of President, International Operations in order to pursue another senior executive opportunity in an Australian exploration and production company effective August 19, 2016."

Q: Regarding my question earlier about 2 REIT's to diversify existing position in AX.un, I probably should have pointed out preference for market cap and mimimum current yield. I like (and anticipated) your recommendation of Chartwell however IIP.un sacrifices too much current yield and market cap security to make up for potential growth for me. Would CAR.un fit nicely given my desire for a larger market cap? Is H&R too much like AX.un? thx!

Q: Why the big increase on High Liner Foods today Aug.16 of over .12 percent, and on Stella-Jones is the decrease done or what is a good entry point to buy, thus is HLF overdone on the up side and is SJ overdone on the down size, thank you in advance.

Q: It seems that in my question asking you to rank DH, Disney and Cal-Maine, CALM was somehow dropped from what you received. In any event, if you could kindly address CALM in your response. Thank you!

Q: Is today's drop of concern or is it normal course of a correction? And what's your opinion of the company?

Q: I would like to commend Peter, and poster Robert and his post.

Right ON!!!

98% of people need a diversified portfolio and no one gets every investment to work out. No one.

Even though I am one who prefers a more concentrated portfolio with more effort and patience put towards my selections I never get everyone to work out as I had hoped and predicted. However, patience even mends the bad ones over time to some degree if they have good management.

During my continuing education in this investing in businesses thing (25 years) I have learned that even the big guys/girls that manage $1/2 billion and more routinely have an investment go the way of the DoDo bird or at least they end up selling after 2 years for a smallish loss (lottery win size for most people).

We all have to take ownership when we plunk our money down. 5i gives their opinion which is what we pay for. We may not agree always but ultimately it is our choice. 5i cannot get into more detailed explanations and analysis because many members do not want that nor would they understand it. This is just they way it is.

And I agree the markets are at all time highs which is scary. My finger is on the Shorting button, LOL. And am waiting for good companies to go on sale to buy.

The Shiller PE on the U.S. market, an often watched indicator, is at 27.0 today which is considered explosive, unsafe and dangerous area. Anything above 23 is unsafe territory historically. 15 is normal.

So be careful out there. Diversify and have some cash (amo, ammunition) sitting on the sidelines for good buy opportunities as they present themselves. PATIENCE is always rewarded.

Incoming dividends is lower our cost base, ACB, on many of our stocks (at least for me) so my at risk $ is getting lower as time passes.

Heck, even the road from Toronto to Calgary is not a straight ride. It goes up and down, and left and right but it gets one to the destination with some patience. And think of all the things one gets to see and learn along the way.

Have a great day.

Q: I sold my shares in AVO today and intend to replace them within my TFSA with either Shopify or any other that you may recommend. The ones that I do not have from the growth portfolio are GUD PEO QHR RRX and SH.
Is there a defined price for the recent share offering that would define the trading price range?
If your recommendation would be to go with SH over the others mentioned above, do you suggest I wait for now till the price settles - say around the anticipated offer price? Do you have an opinion on what that might be? The price was quite volatile today.

Q: New President and CFO formerly from Palladin who worked with Goodman and was instrumental in selling Palladin to endo has been hired at Knight. Once acquisitions are announced as she will surely make acquisitions this should kickstart the stock. Am I right in that Knight is sitting on a lot of cash?

Q: Hello 5i team,

Not sure why my question does not reach you as I've tried twice in the past 2 weeks.......hope it gets through to you in this 3rd attempt.

I am 61 years old and about 16% of my overall portfolio is in bonds. The rest is in income stocks and growth stocks similar to 5i portfolio. The yield return of fixed income instruments is so low currently and I am rather comfortable owning income stocks. Now, I have $60,000 in cash in RRSP and I have the following options. Please comment on each option and your preference and recommendations.
1. To buy several corporate bonds with maturity of 3 to 5 years and to hold till maturity.
2. To buy more income stocks like AW.UN or EIF.un
3. To buy ETF of inflation bonds
4. To buy ETF of high yield bonds
5. To buy ETF of US corporate bonds

Please advise preferred ETF for option 3, 4 and 5.
Many thanks.

Q: Hi, My question is about Canadian solar/wind energy companies. I saw some information on a small company, symbol EHT which got me interested.
i would appreciate your thoughts on the sector and any companies to consider.
Thank you, Bob

Q: Hi, I am a value investor and note that Auto parts makers are trading at historically low multiples even though earnings growth appears intact. Can I have your favorite of MG, LNR and MRE with respect to the best 18 month to 3 year return.