Investment Q&A

Q: Both USA and Canada anti-trust organizations have supplied opposing recommendations as far as the merger goes. How do you interpret this information going forward?

Q: If no one else has asked yet, what do you think of SPB's update on the status of the Canexus deal?

Q: I have the following 4 companies in a conservative, "steady-eddy" portfolio: T, SPB, SLF, and BNS.

I have cash to add two more Canadian companies. What would you recommend in order to add some diversification to the above 4 but to maintain a conservative portfolio?

Thanks,

Q: Do you have an update on the approval process of SPB acquiring CUS? The last news on it was this will be known before Q2 of 2016. Can I assume that the decision will be handed down on or before June 30, 2016?

By the way, thank you for your blog on this merger that led me to take a position in these two companies (60% SPB, 40% CUS). This combo is currently up 24% in about 3 months time. Not bad. Since I have unusual high risk tolerance when it comes to investing, do you see the combined company (if approved) will be a viable long term hold?

My own investing philosophy is that you have to have commitment in a stock (you're either in, or out, and no sell half and wait and see). If I don't see it as a long term hold possibility I really should cash out now since I'm sitting on a good size gain for such a short time.

Your advice is much appreciated.

Q: Good Morning Peter, Ryan, and Team,
Presently I have a full weighting of Parkland Fuel (PKI-TSX) in an income oriented retirement account. Most of the other equity holdings in this account mirror your 5i Income Portfolio. I have been watching Superior Plus (SPB-TSX) for awhile and it appears to have bottomed with energy prices firming a bit. SPB looks to be a cheap stock even with the recent upward move in share price. Do you think owning PKI and SPB in the same income account makes any sense ??? Also if you were to assign a grade to SPB what would it be ??? PKI is presently a "B". Thank you for your sage insights. DL

Q: I couldn't find any announcements on my brokerage website, why the big spike in price? With CUS as well?

Q: Is SPB considered a Industrial stock or does it fall under Utilities?

Thanks
Dolores

Q: I've read your last two "short term " trade thoughts on CUS, indicating that the easy money has been made.
I too thank you for this trade and have done well with it. I still hold both stocks, having put in 2/3 in CUS and the other1/3 in SPB. My question is the market seems to be still discounting the takeover for if it was to happen at today's closing price CUS could be worth $1.65. If you still like SPB why should I sell CUS? It would seem to me that they tend to follow each other.
Many Thanks for your excellent research.

Q: Can you comment on the SPB just released results? Also, can you comment on the SPB/CUS merger? There is no much in the NR on it. Is it progressing as planned? Thanks.

Q: I followed your advice a few weeks back, that these two were mis-priced, and have a 20% paper profit so far, so thank you! I have no other reason to include them in my portfolio. My question is when to sell them? Thx.
Alan

Q: Would this be a safe investment for my income portfolio. SPB.DB
Thanks Phil.

Q: Happy St. Patrick's Day
For yield and safety would you recommend a holding in Superior? Is the dividend safe? If yes, would you choose the common or convertable preferred?

Thanks Guys

Q: HI Folks, I have been following SPB and CUS for some time and own both at a considerably higher price than current. CUS has obtained court approval and voted for the merger but we are awaiting regularity approval. Could you explain what is the process that they are going through. Do they have to apply to a government agency in Canada and does this have to be done in the US as well? Thanks.

Ross

Q: Thank you for the analysis of CUS and SPB. One option you did not discuss is a purchase solely of SPB. I would appreciate your opinion on the option of purchasing only SPB at this time.

Q: SPB shows an 8% yield with a chart that indicates the stock price is moving ever downward. Do you think the dividend is sustainable and is there a possibility that SPB will not survive in your Income Portfolio? I would very much like to buy this stock but the high yield and scary chart are keeping me away.

Q: Reviewed you comprehensive reply today, however why are volumes up 1,771504 compared to much lower volumes.
Is this the shorts, or something else.
I hold this in my RRSP at a much higher price, and considering leveraging down, or even buying a call option.

Can you please help me out.

Many thanks for your help

Q: Good morning 5i, any comments on SPB's report? Still comfortable with it in the income portfolio? Thank you

Q: When does the deal close buying CUS? Will they be able to get and cost saving synergies with this acquisition? When I look at my data supplied by CIBC this company looks like a stay away from stock; however, when I read your analysis from Dec. 11 it looks like it is o.k. to buy -I was thinking for my TFSA?

Q: Hi Peter and Team,

SPB hasn't been performing too well lately, and I'm wondering if their recent announcement "Superior Plus Announces December 2015 Cash Dividend and Reestablishment of Dividend Reinvestment Program" will help the stock going forward. The DRIP will apparently have a 4% discount. Should I hang on to my position in SPB in an otherwise balanced portfolio, and enroll in their DRIP? SPB is held in my RRIF but their are other dividend payers that cover my mandatory withdrawals.

Thanks as always for your valuable advice.

Q: Yesterday TD was wildly enthusiastic about the proposed merger of SPB and
CUS. The market seems lukewarm about the deal. What is your opinion about SPB's future, and its dividend? Thanks.