Investment Q&A

Q: I have held TFI for the past 2 years or so and watched it go from above $30 to below $20 and now back to above $26. Despite its recent substantial rise, I am thinking it should be expected to level off until the economy in general improves. I am therefore considering a switch here to EIF to take advantage of the higher dividend and perhaps a better growth profile. Would you view this as a reasonable switch or would it be best to stay with TFI or is there another company in the Industrials you would consider switching to (I already own NFI).

Appreciate your insight.

Paul F.

Q: Well I foolishly falls for the shorts' tree shaking con game of driving down EIF to create a panic and allowed my EIF to be stopped out $32.41 (yes, I kept a bit of profit at this level). I now contemplate about buying it back at around $34! Sell low and buy high, is it not what investing is all about? What more can you say about small retail jittery!

Anyway I would like your opinion on buying EIF back at this price level, and it is wise to do so.

sign - "too embarrassed".

Q: I currently hold LIF for the high yield and am thinking of replacing it with EIF - again for the high yield. A good idea??
Thanks

Q: Maybe its me, but can you verify what EIF's consensus 2016 and 2017 current eps estimates are?

Prior to their earnings report, Investor's Edge showed 2016 estimates at $2.49 and 2017 estimates at $2.66. Post earnings report, Investor's Edge is now showing $2.29 and $2.46 as 2016 and 2017 estimates. A little puzzling considering EIF's recent report was pretty good, in my opinion.

Thanks for your thoughts.

John

Q: Hi Peter and Staff,
I see EFI is down again today. Earnings seemed ok so is there something else that is taking this stock down?
Thanks Bob

Q: I have a question about EIF. The stock has been dropping hard on very high volume. I have been stopped out on over half my position now. Is there a new short report out? I have learned there are no percentages being on the opposite side of a convinced shorter.

Q: EIF made a small gain yesterday, fell 5%, and is in the red today. DR fell from being 27% in the green 2 days ago to 18% today. Can you tell me what happened to these two? Is it time to dump EIF? Should I take the profit in DR before it falls further? - Thanks, Ted

Q: Hello Peter,

Can you breathe any logic into today`s market reaction to what seemed a great Quarterly report? currently down 4%. No biggy in terms of the big picture, but I would have thought the results would have garnered a 5% swing to the positive. Weak hands on deck?

Q: Could we have your thoughts on their earnings report and future prospects.

Cheers

Q: Could you please decipher EIF's report on Monday and whether you think there is more potential upside in the aviation industry.TY.

Q: Great service.TY. Does Exchange report on Aug 8th and would it be fair to predict that they would beat because of the price of aviation fuel or am I way off base here? Also is there any particular reason a little 'eye' (or something) appears beside its name when a question is asked about it??

Q: We are elderly and fully invested in 23 dividend paying stocks now, and have full positions in TRP, IPL and PPL. I am considering selling IPL and PPL down to a 1/2 position, adding to my VET and AAR.UN to bring each of them to 2/3 pos'n and taking a 2/3 pos'n in EIF. I should add that our present portfolio is 28% in the green with nothing in the red and I manage it daily. Do my changes sound reasonable to you given the present environment? Thanks, Ted

Q: Hello, Since eif and ad have both been ranked about even do you see eif facing the same demise as ad. I bought alaris the day before earnings release and took a serious haircut. As I write this am wondering if there is any relation to ex dividend and earnings release for Alaris. Thanks lots

Q: Would you consider EIF a buy today or is it too expensive at these levels?
What is their payout ratio? Do you expect the dividend increases to follow their historical pattern?

Q: Hello I am wondering that if and when EIF reaches a billion dollar market cap that money managers may be obligated to purchase EIF shares? What are the requirements required where fund managers are required to hold certain stocks? Al

Q: Hello Peter
I am wanting to replace some bonds with these 4 stocks. (EIF,PKI, SIA, AD ) Could I have your opinion and any concerns.
Thanks for your great service.
Gary

Q: Looks like a great div (6%), is the div./investment safe? would you be able give me the conversion details( price and date etc.). I would appreciate having your assessment of it, perhaps can suggest another alike investment. Many thanks. J.A.P., Burlington

Q: Please provide your current views concerning EIF, what items might cause pause concerning the monthly dist? -thks

Q: I would like to know if the new debenture issue being offered is safe for capital preservation and if there is anything about this offer such as the conversion of the debentures to equity and its other terms such as early redemption rights after the first 3 years, that would have a major impact on the debentures value and liquidity for a 5 year hold. What would these debenture rate as? Is there a fair possibility of future capital gains based on the conversion price of $44.75 per Share. I presently own 100 shares of EIF and am thinking of buying these debentures for an RRSP and or TFSA for a minimum 5 years or longer. Are there better and safer fixed income opportunities at the present time, that pay a 5.25% dividend that one could invest in?

Thank you for your answer.

Joseph

Q: Hi 5i,
I have some Exchange Income series G debentures, which were purchased at a discount to par and are now trading above par. Also, the EIF share price has just nudged up through the debentures’ conversion price. The issue does not mature until 2021 and the 6% coupon is still yielding over 5.5% at the debentures’ recent trading price, a better yield than any fixed income alternatives I have in mind right now. I purchased the debentures primarily to increase my overall fixed income yield and secondarily because I thought they also had some capital appreciation upside. They are held within my RSP so, whatever I do with them, there would be no immediate tax consequence. What I am looking for is a little help with the thought process on whether the unrealized capital gain and the move up through the conversion price suggests that I ought to be taking any action, or whether I should just continue to hold them for their bond qualities. Are there any rules of thumb in these circumstances with this kind of investment vehicle? The increase in value of the debentures is not enough to have substantially altered the balance between fixed income and equities within the RSP. So I wouldn’t need to trim them based on rebalancing the fixed income/equities mix alone. My overall investment time horizon extends well beyond their maturity date. Thanks for any thoughts.