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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: In a recent answer from 5i, it was said that BN was "sitting on a lot of capital waiting for attractive buyout opportunities".

A few questions I have are:
Do we know how much capital or cash that BN has to buy attractively valued opportunities? If they were to deploy this capital, would it move the stock positively? Historically, does BN buy slowly or do they make large purchases?
Read Answer Asked by Mike on August 18, 2023
Q: Upon reading and re-reading the announcement by CSU of the “warrant dividend”, I am still confused and have several questions. I like to understand what I am buying and/or being given, and I don’t fully understand that in this case.

1. Do these warrant dividends cost me anything? I am fairly confident the answer is NO, but please confirm.
2. Is there anything that I need to do, or will the warrant dividends magically show up in my account one day?
3. Once I get the warrants how will they appear in my (RBC) investment account. They won’t be listed on the TSX or any other exchange until the “Company Redemption Right” is exercised so I am not sure what to expect to see.
4. If the warrant dividends are not trading, what value can you ascribe to them? Just use the nominal fair market value of C$0.0001?
5. When the dividend warrants can be traded, will they be traded like a regular stock?
6. When I sell a dividend warrant in a non-registered account, are the proceeds from the sale considered a dividend, interest, or a capital gain? I guess since it is a type of dividend, I speculate it would be treated as dividend income.
7. Is this something that is good, bad, or indifferent for a CSU shareholder?
8. Is it possible to give an example of how this would work from the point of view of a CSU shareholder and the debenture holder. Assume today’s price of CSU and CSU.DB
9. Based on your experience with this type of situation if I could sell my warrants today, what price range would you speculate they are worth?
10. Have you seen this done with other companies? If yes, which ones, and how successful was it for the warrant dividend holder.

A lot of questions, but take as long as you need to answer them.

Thanks,
Paul
Read Answer Asked by Paul on August 17, 2023
Q: I am holding 200 units and 130 units in registered and cash accounts respectively. Recently a special warrant dividend will be given to each unit of CSU share holders. I do not own the series 1 debenture and have difficulty to comprehend the debenture matters.
Please advise what are the appropriate actions to be taken for unit holders. Thank you for your great service. Bill.
Read Answer Asked by Bill on August 17, 2023
Q: Do you know where you can consistently find "shareholder yield". Is there a company or service that shows this metric when analysing securities?
Read Answer Asked by Michael on August 17, 2023
Q: Hello 5i Team

I currently hold in my US$ denominated RRSP Brookfield Renewable Partners L.P. (BEP) to avoid complications with taxation of BEP.UN in a taxable account.

I want to proceed with buying Brookfield Renewable Corporation (BEPC) in my taxable account to receive Canadian Eligible Dividends. I would then sell my BEP holdings in the RRSP.

Could you please provide your top 5 ideas in the US market (i.e. NYSE or NASDAQ listed) for electrical utility and or renewable electrical generation to replace the BEP units in my RRSP.

Thank you

Read Answer Asked by Stephen on August 17, 2023
Q: hi,
can I get your current thoughts on Lumine group as a long term investment-management-debt-earnings etc.... IPO was 16$, now trades higher? usually price goes to at least half IPO price? can you explain this price action? also, I think you have mentioned you like management, can you elaborate a bit, im having trouble understanding why by reading the company website.
cheers, chris
Read Answer Asked by chris on August 17, 2023
Q: Hello 5i,
This message from RBC Direct Investing has just come through. I thought it might be of some interest to the broader 5i community. My guess is that soon the other large banks may follow suit if they have not already done so. Worth keeping an eye on.....

Effective October 31 2023, RBC Direct Investing Inc. is amending the ‘Conflicts of Interest Disclosure’, section 3 to delete the following sentence:

“RBC Direct Investing does not currently offer high interest savings account ETFs.”

Access to high interest savings account Exchange Traded Funds (ETFs) is now available on the platform.

Cheers,
Mike
Read Answer Asked by Mike on August 17, 2023
Q: Is the news from yesterday of a large stockholder selling out completely a reflection of the company's future outlook? Do you think the stock remains in the doghouse for the next quarter? This year? Does it make sense to book a loss now and rethink in the future? How do you view its prospects and valuation after today's price change?
Regards
Read Answer Asked by Rajiv on August 17, 2023
Q: I believeI that this rate reset will reset on February 28 2024 at the five year Government of Canada rate +3.96% with a minimum reset of 5.85% . If that happened today it would be approximately 8.1%.. Is that correct? Assuming the 8.1% at the reset what would the probability be that these preferreds are redeemed at $25 per share (currently 22.2)?
Read Answer Asked by Irwin on August 17, 2023
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