Investment Q&A

Q: Hi 5I: How do you think Shaw carry on over the long term if the takeover does not go forward now that there position is stated by the CEO in his takeover announcement that Shaw needed financial help to meet the huge cost of 5G installation in order to to keep up with the much larger media companies. Thank you for your opinion. Regards John

Q: Hello 5i Team
Referencing the proposed takeover of Shaw Communications by Rogers Communications, I have the following questions:

1 – No mention of the Shaw Communications preferred shares (SJR.PR.A and SJR.PR.B) was made in the news release or presentation. Do you think they will be assumed by Rogers (i.e. similar to Cenovus takeover of Husky) or would Shaw/Rogers redeem the shares at par value at the next redemption date of June 30, 2021?

2 – Rogers will be exchanging 60 % of the SJR.A / SJR.B shares (owned by the Shaw family) into RCI.B shares, however, Rogers will not be extending this exchange to public shareholders of SJR.B. Do you think activist investors could pressure Rogers to modify their offer to allow public shareholders of SJR.B to exchange their shares of SJR.B for RCI.B [given the Shaw family controls the voting rights for Shaw Communications, I don’t see any support from Shaw family for this change otherwise it would have been part of the deal from the outset]?

3 – The exchange ratio of RCI.B to SJR shares will be 0.70. Given the cash offer price of $40.50 for SJR.B shares this would result in an equivalent RCI.B price of $40.50/0.70 = $57.85. Given RCI.B is trading 6 % higher than the conversion price [$61.57 March 15 close], would it make sense to sell my Rogers shares this week, buy additional shares of SJR and then when the transaction closes, re-purchase my desired holding of Rogers shares? I currently hold equal weight amounts of Rogers and Shaw.

4 – Could the regulators (Federal Government) require Rogers to divest its equity holding in Cogeco Communications as a condition of the deal?

Thank you

Q: Good morning,

Just wondering your take on Empire in light of news re Longo’s takeover. Relatedly, how would you rank L, EMP.A and MRU for a TFSA investment of likely five years or so?

Thanks,

Steven

Q: Ignoring risk, please rank these companies based on 5 year hold -potential for returns.

Q: This morning I learned that Rogers is in the process of acquiring Shaw. I am not sure what this means as the main reason I purchased SJR.B is for their monthly dividend. In your opinion once Rogers acquires Shaw does this mean that Shaw dividend will disappear and is there any point to me holding onto the stock?

Q: As time starts to approach the deadline put on enbridges line 5 I'm starting to get a little nervous as to the outcome of shutting down the line. How much of the price of the stock is already baked into the possibility of the line being shut down?
Thanks
Steve

Q: What do you think of their latest quarter and their out look going forward.

Q: Can you comment on DR's latest quarter. I am looking for an exit time but I thought it had enough momentum to reach $9. Now I am not so sure. Appreciate you comments.

Q: good day 5i
Thinking about selling emera, which I will have high capital gains on and buying a renewable energy stock. I already own a full compliment of icln and wondering whether I should buy another renewable? If so, which one? I am selling emera because I suspect the government may impose higher capital gains taxes soon. And also because I think there will be more growth, with of course stability, with renewables. I thought I would pass this idea through your radar to see whether you see it as a worthy idea
Thanks

Q: Hi
Have 100K cash in a RRSP.
Looking for dividends and growth in stocks. Also have several ETF's US and foreign
Already have BCE, FTS, ,MG SLF and T in stocks.
Any suggestions ideas would be great.
Thank you
Mike

Q: In a RESP account for a one year old I have both BEP.UN and BEPC. Which one would you suggest I sell & why. Thanks … Cal

Q: What are your thoughts on this deal?
Thanks

Q: Hi : I recently sold my TD shares, I do not think there is anything wrong with TD, but I noticed that some stocks like TD are above the value they had before the pandemics hit. Noticed that beta for TD is 0.86. It is hard to believe that the economy is in better shape today than before the pandemics. I see quite a number of empty stores at my local mall. BCE has a beta of 0.31 with a good yield and a low price/cash flow ratio. Would you agree that BCE is safer than TD if the market has a correction ?, I am retired and safety and income are more important than growth . I have no exposure to telecoms now, and still some small exposure to banks through BNS. If BCE is not super safe , could you suggest another one ?

Q: please provide me your best 4 income plays in both
Canada and USA, thanks, retired seniors mid 70's.

Q: Hello 5i team,
On the 5i website, for EIF's company description, it says that they focus on 2 sectors namely aerospace/aviation services and equipment/manufacturing.

As the pandemic wanes, will this company's fortunes improve or is this already factored into the share price(since the share price is close to an all time high)?

Is equipment and manufacturing still in the aerospace/aviation sector, or is it generally in sectors entirely different?

Thank You,
Andrew

Q: Hi Folks,
I am looking to update my RRSP - I currently hold PG, TD, BNS, MFC, ABBV, PFE, T, BCE, AQN, BIP.UN, ENB - I am thinking of swapping PG with Verizon ( or can you suggest another with a dividend ) to add some "torque".
Thanks

Q: Greetings 5i Team,
I have noticed on occasion that you will respond that a particular security represents 'higher risk income'. This occurred earlier today when a question was posed concerning EIF.
When you say this, do you mean that the income itself is at a higher risk than say that of BCE or do you mean that the company itself tends to be a higher risk security as compared to others within its sector?
Thank you as always
SP

Q: Hi Folks,

Need an income producing industrial for balance.
Is EIF still a top pick or would you suggest others ahead of it?

Thanks,

Q: I understand that Amazon has bought a minority stake (19%) of Air Transport Services Group an air cargo operator. It is also leasing some of it's own planes. There has also been some insider selling this year. I am thinking the good times may be over for Cargojet. Your thoughts please. Thanks

Q: Further to Arnold’s question of March 9th. Enbridge’s stock is holding in quite well? Is this likely a result that investors believe there is a significant likelihood a positive resolution or compromise will be reached regarding Line 5? What is your best guess? Thanks.