Investment Q&A

Q: Please comment on the latest earnings...buying opportunity for an income account?

Q: Just to clarify, my question below is about CUS.DB.D

Just wondering what your thoughts are on the offer to redeem the 3 Canexus debentures. As an income seeking investor, should one accept the cash offer or keep the 6.5% debentures until the end of term? Pros and cons? I was also wondering if one doesn't accept the cash offer, will there be a secondary market for these debentures? Will the convertible feature remain in place? Thanks for all your help.

Q: Please give me your thoughts on this company.

Q: What is your analysis of the recent results? How is the company doing in terms of debt reduction?

Paul f.

Q: Hello, 5i team! Thinking about additional investment in material sector + dividend part. Already own about 500 shares of POT in RRSP, now thinking is it good time to add say 100 shares of AGU before merger? I consider potash as a reliable area of long-term investment but would be glad to think about the alternatives as well... Your comments are highly appreciated! Thank you!

Q: Hello 5i team,
I hold in the materials sector Chemtrade Logistics, Methanex and Stella Jones; I'm thinking of selling CHE to buy a position in base metals
1. Is there any momentum left after the huge run up?
2. Nevsun has not participated in the run-up; wonder why
3. What 3 would you recommend, in order of preference
4. How about an ETF such as XBM or ZMT?
Thanks
Antoine

Q: I've read comments on this comp. based on buy-out of CUS; however, when I look at the data I have, this co. is a dog: last 4 qts made no money, negative ROE, high debt levels and business is subject to the price of the commodities it sells. As well, it is selling at a very high value. Comments please.

Q: Hello 5i team,
I own a full position of CHE since 2012 and my total return of over 10% compound annual is mostly yield. As of recently, I also own half a position in MX. The other player in the field is SPB which I do not own.
(1) If you had to select only one, would it be MX?
(2) Is there a case to be made owning a position in all 3?
Thanks,
Antoine

Q: A $400MM bought deal at $18.35 was just announced and trading is temporarily halted. If the share price drops to near this level, would you view it a a good entry point? How would you rate Chemtrade for income and possibly some growth? Are there better alternatives? Thinking of 1/2 position.

Q: It is mentioned that Reits will be affected by rising interest rate ,are income funs like Che.un,Bpf.un similarly affected ?

Q: Is $1.65 a fair price for the Canexus shares if Chemtrade is successful? Also, would an acquisition at this price be accretive? Thank you.

Q: Could you comment on results ?

Q: I am concerned about Chemtrade based on poor quarterly results, closing risk of Canexus takeover, high distribution ratio, lack of dividend growth. Subject to your comments on Chemtrade, I would look to replace it with Telus (T) or a consumer defensive stock. In the latter case, I would be looking for a dividend yield of at least 4%.

Q: I noticed in the Globe this morning an article about Chemtrade making a hostile takeover bid for Canexus. I own Chemtrade only and would like your opinion on the pros and cons of this action for Chemtrade. Also, any idea as to whether or not this would be a good acquisition for them? Many thanks, Don

Q: I hold small positions in AD and CHE.UN and have some cash to invest to generate income as I am a retired investor. Which of these two companies would be the best or do you have another company with similar yield that you like better? Is this a good time to put extra cash to work or should one wait? I am not a fan of trying to "time" the market but do like to try to preserve my capital.
Thank you.

Q: I am currently sitting with a 14% loss in this equity - would you continue to hold or would you sell.

Q: Can the terms of the recently announced debenture be seen to suggest good things are in store for this company? The deal has a conversion option that is 30% - 40% higher than the current stock price. Given that this stock has shown very little growth over the past five years and you have suggested previously that you feel it is primarily an income stock it seems like a high bar to reach to convert. Since this is a bought deal, I would assume that this means the underwriters think this conversion price is quite attractive. Why would the conversion have been set at such a price? Does this strongly suggest something is in the works from a growth/acquisition point of view? And is the interest rate being paid expensive/cheap?

On a secondary note, is the debt from the previous takeover declining at a reasonable rate?

As always, appreciate your insight. I would also like to add that the changes you instituted several months ago are really working well. I am a long time subscriber and I keep learning more and more every day, so thanks.

Paul F.

Q: Chemtrade Logistics is issuing $125 million 5 year convertible bond at 5% with a conversion prices of 24.85 or 40% premium? Although the conversion premium is too high I do like the coupon how is the company financially?

Q: Any concerns regarding recent earnings miss? Is this still a reasonable income choice?
Thanks for your insight.

Q: I have been trying to decide between SPB and CHE. My own thinking concerns an improving outlook for the chemicals industry. Do you agree that CHE would benefit more than SPB in this regard? Or do you think I should just look elsewhere entirely for growth in the chemicals sector? And can you comment on how SPB looks post-earnings? Thank-you very much.