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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: We have a lot of STB, our favorite dividend payer, and are loosing it to the buy out. When is the last xdiv date and the last div payment date? We have held DR for a long time as well and thinking of adding to it with the proceeds. Your thoughts? Any other suggestions? Thanks for your excellent advice. It is much appreciated.
Dick
Read Answer Asked by Richard on April 09, 2018
Q: Hi 5i,
I have some STB.DB.A debentures, which have popped up to around $25 above face value on the news of the takeover bid. How would you suggest I handle the position in the current circumstances? Ultimately I would like to put the proceeds into a convertible debenture from another issuer but I’d like to do as well as I can in disposing of the STB debentures first. Do you have any suggestions to consider as possible replacement debentures? I would prefer a maturity of 2022 or later. I would be using them primarily as a fixed income position and I view the possibility of a premium to purchase value at some point along the way as just a bonus. Thanks for considering.
Read Answer Asked by Lance on March 09, 2018
Q: Announced earlier today:
"Student Transportation Inc. (TSX:STB) (NASDAQ:STB) today announced that it entered into a definitive agreement with a company sponsored by Caisse de dépôt et placement du Québec (“CDPQ”) and Ullico Inc. “Ullico”, and CDPQ will acquire all of the Company’s outstanding common shares under the Business Corporations Act (Ontario). Shareholders of STI will receive US$7.50 per common share in cash, representing a 27% premium to the 20-day volume weighted average price per common share on the Toronto Stock Exchange for the period ending February 27, 2018, based on an exchange rate of $1.2776 Canadian dollars per U.S. dollars as of February 27, 2018."

It appears two public service pension funds (CDN and US) are joining forces to go into the schoolbus business. Would appreciate your comments on this development. Thanks.
Read Answer Asked by RANDALL on February 28, 2018
Q: I have held these two stocks for several years, primarily for the dividend. The recent 'coup' which replaced the LIQ board, has nothing for the stock. And STB, as you have noted, is mostly doing nothing.Can you suggest two growth stocks that I might consider as replacements? My timeline is up to 10 years. Thanks
Read Answer Asked by RANDALL on October 12, 2017
Q: Hi Peter as a holder of Stb on the US side of my cash account and my TSFA,s I do have considerable cap app.as well as US cash flow which we need .
It saddens my when I see people beat on this stock that I held since 2007 and served my family well I feel they are not looking at the full picture.The current payout ratio is 60% very acceptable.
Todays results were ok
Stan
Read Answer Asked by Stan on September 21, 2017
Q: I, like a few others at 5i is fully aware of your position on STB and I completely agree based on it's financial condition. On any metric, it certainly does not meet the basic criteria for any solid investment.
Nevertheless, I made a second investment in January 2016 for my wife's cash acct simply to augment her monthly dividend income. As of today, we are up 70% - go figure! The only rational I can see is whether the previous very large shareholder in France has made a change in thinking after selling its very substantial holdings or else another 3rd party has recognized the attraction of STB's growing fleet of national school bus operations as leverage for a much larger merger.?? Thank you.
Read Answer Asked by Robert on April 11, 2017
Q: just a comment re your comments on student transportation, i have owned stb for almost 2 years paying just over 5.00 a shares, it has been a huge winner, furthermore the 8 per cent u,s. dividend worksout to over 10 per cent cdn.it now represents 8 per cent of my portfolio and i am happy to hold it, i also really like the management team, they keep getting huge wins . dave
Read Answer Asked by david on March 22, 2017
Q: I need help with my TFSA. I should be at $51,000 as I added this year's amount. I am sitting at $39,500 with the following stocks - FCF, HCG, NA and STB. Could you make any recommendations to help this account get back on it's feet? To other investors, my biggest loss was from ABX, where I lost $8000. Be careful with Gold products.
Read Answer Asked by Ken on January 09, 2017
Q: Hi 5i: I own some of Student Transportation’s US$ convertible debentures (STB.DB.U: 6.25%, 30 June 2018). The company has just announced they are redeeming them as of September 19, 2016. Is there any downside to waiting for them to be redeemed and being paid out by the company, as opposed to selling them into the market in the meantime? If it is all cash I’d be inclined to wait and accumulate as much of the interest as I can and save the transaction fee. But I wouldn’t want to wait if there is any potential for the company to pay up the debentures in STB common shares instead of cash. Thanks!
Read Answer Asked by Lance on August 25, 2016
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