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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: Hi 5i, I’m trying to understand the price setting dynamics when expressions of interest are sought for an IPO and a price range is indicated instead of a fixed price. E.g. the current Freshii offering indicates a price in the range of $8.50-10.00. What determines the actual price? Why wouldn’t the company and the bankers just pick the top end every time if that is in their best interest? Thanks!
Read Answer Asked by Lance on January 11, 2017
Q: Hi 5i,

Do you have any data on Aritzia such as EPS, yearly revenue, debt, cash on hand, etc. Since IPO's tend to be very volatile, which means they sometimes go from very expensive to ridiculously cheap. If it does become cheap due to plain old volatility and not because of deteriorating fundamentals, I just might be tempted to buy in!
Read Answer Asked by SHANE on October 07, 2016
Q: In Constellation Software Annual Meeting voting instructions, we are asked for vote for:

A SPECIAL RESOLUTION AUTHORIZING AND APPROVING AN AMENDMENT TO THE ARTICLES IN ORDER TO (I) CREATE A NEW CLASS OF COMMON SHARES TO BE DESIGNATED AS DE COMMON SHARES, TO BE ISSUABLE AT ANY TIME OR FROM TIME TO TIME AT THE DISCRETION OF THE BOARD OF DIRECTORS OF THE CORPORATION, (II) AMEND AND RESTATE THE RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS ATTACHING TO THE COMMON SHARES OF THE CORPORATION, AS APPLICABLE, TO REFLECT THE CREATION OF THE DE COMMON SHARES, AND (III) CHANGE THE BASIS UPON WHICH THE MAXIMUM NUMBER OF CLASS A PREFERRED SHARES WHICH MAY BE ISSUED BY THE CORPORATION IS CALCULATED TO REFLECT THE NUMBER OF ISSUED AND OUTSTANDING COMMON SHARES ON A FULLY DILUTED BASIS, ALL AS MORE PARTICULARLY DESCRIBED IN THE ACCOMPANYING MANAGEMENT INFORMATION CIRCULAR.

I have read the Management Information Circular. My understanding: one can convert common shares to DE common shares and must be held for one year from the date of issue. Holders of DE common shares are not expected to be paid regular dividends. DE Common shares will not be listed on any stock exchange. DE common shareholders will be able to reinvest dividends (DRIP) in a more tax efficient manner. If any point is incorrectly, please advise.

My questions are:
1) How would you recommend voting for this resolution?

2) If this resolution was passed and DE Common Shares are made available, what investment criteria would one choose convert to DE Common Share versus keeping Common Shares?

3) Is creation of DE common stocks a common practice in public listed companies (either in Canada or US)? If yes, what other listed Canadian companies have issue this type of stocks?

Thank you.
Read Answer Asked by Karen on April 15, 2016
Q: It is my understanding that as of January 2016 the "private equity market" will now be available to all investors not just "high" wealth investors.
Could you comment of this change and whether or not ordinary investor's should pursue this opportunity?
Read Answer Asked by shirley on January 04, 2016
Q: 8:14 AM 11/4/2015

Hello Peter
There seems to be something strange going on with the Hydro One IPO. I wanted the shares for steady reliable income. I got half of the shares I asked for at TD Waterhouse but neither my Scotia McLeod with whom I had expressed a strong interest [and Scotia McLeod were co-underwriters so they should have been able to get some easily] nor my National Bank brokers had any and both said their offices didn't even ask for any shares. Yesterday John Zechner on BNN was at best lukewarm on the issue and suggested waiting a few days before buying any shares in the market.
We know one or more of the large pension funds wanted to take the entire offering but the Ontario Government were committed to a public IPO.
Do you have any idea what is going on. Will the pension funds drive the price down so they can buy up most of the shares on the open market? Am I missing something important? Your thoughts most appreciated
Paul K
Read Answer Asked by Paul on November 04, 2015
Q: I am interested in buying some of this issue and would like to have your opinion of this deal. Thank you. H.
Read Answer Asked by Harry on October 29, 2015
Q: Would you recommend subscribing for these IPO shares for a well-diversified income (and hopefully capital gain)portfolio, and if not, are other other utilities you would recommend instead?
Thank you
Read Answer Asked by Harold on October 15, 2015
Q: What is your opinion on the IPO of Hydro One closing on November 02-2015 the yield look decent at 4.20%?
Read Answer Asked by OSCAR on October 14, 2015
Q: The IPO for Hydro One was announced. Any reason not to go for an Indication of Interest to try for some shares? Thanks.
Read Answer Asked by Ann on October 13, 2015
Q: Could you please comment on the pending Hydro One IPO issue. How might it stack up against other utilities such as EMA, FTS, BEP, VNR etc in terms of safety, growth and potential dividend yield? When might the issue come to market? Thanks
Read Answer Asked by Gary on September 21, 2015
Q: Hi peter, with the upcoming IPO of hydro-one, would you participate into the issue or just wait it out, theres already alot of utilities we can buy in Canada,EMA.TO,FTS.TO,CU.TO, , Its a big IPO, but I dont see the point of participating into this. thanks for the clarification.
Read Answer Asked by samuel on September 21, 2015
Q: Who is underwriting the IPO for exactearth?
Thanks
Read Answer Asked by Robert on August 05, 2015