Investment Q&A

Q: Hi 5i
I see Mitek has taken a significant drop today.
Any news that you’re aware of ?
Thx
Gerry

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

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.

Q: Do you know where you can consistently find "shareholder yield". Is there a company or service that shows this metric when analysing securities?

Q: May we please have your updated analysis on this company and its future growth prospects. Any explanation for the recent plunge in share price? Any concerns about the balance sheet? Would you continue to hold?

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

Q: Hi,

Could you tell me why Stone is dropping like a ''stone'' given that the quaterly results seemed pretty good ?

Thanks

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

Q: With the expected downturn in profits and the problems on social media should I take my 300% increase and run or wait it out? Meanwhile it has been going up $4.00, $2.00 etc almost daily and I hesitate to let it go.

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

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

Q: Further yesterdays and todays continued drop on Goeasy would you see this as opportune to add to the name?

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)?

Q: Is the weakness in ENB and other pipeline stocks because of interest rates and the large debts the companies carry?

Thx

Q: In hindsight do you think the strategic review special committee and board should have sold the company. Apparently everyone thinks highly of Shaun Maine and staying the course.

Q: Is this company oversold based on current events? Would you feel comfortable taking a position in this?

Q: Hi,
Answer to Peter’s question on Aug16:
“ For example, last year BN shareholders got 0.25 BAM shares for each BN share, and that is worth $11.50+ per share. “ What? My BAM shares were split Dec22 in “new-BAM” and BN . I'm confused ...

Q: ZWU recently dropped its distribution from $.08 to $.07 per month. What makes an etf like this cut its payout and do you think it's vulnerable to more cuts?

Q: how does costco's valuation today compare with in the past? I always feel like it's expensive but maybe it's time to get in. Thoughts?

Q: Re your answer on the warrants. High finance seems as clear as mud. If csu wants a deb until 2040 it just needs to never redeem it.
It seems as I only have 30 shares of csu and $40,000 in debs I have to buy 370 warrants. Thus add to my cost base of 105.
On the surface it seems the best course of action is to sell my debs now for the cap gain ( rrif) as I prefer not to add to the cost basis .
I assume csu plans a redemption, why else go through with this exchange.
Thoughts ?