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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: Hello Peter & team,

Listened to Money Talks this morn. They discussed preferred shares and the higher dividends they can provide while protecting capital. Have to be honest in saying I am not well versed with this investment vehicle and would like to be more educated as a viable option for an income investor. I understand there are 3 types of structures for Preferred Shares - Perpetual Preferred Shares, the slightly more risky Rate Reset Preferred Shares, and the Floating Rate Preferred Share with coupons that renew every quarter. With Bond rates so low and the inevitable inflation we should expect in coming years my question is...

Am I right in thinking the Floating Rate Preferred Shares should be the most attractive over the coming years for income related investors based on rates eventually increasing? Does the Dividend tax credit still apply to the Floating? And which Preferred Shares would you recommend for an investor seeking income and $200,000 to invest?

Thanks for all you do

gm
Read Answer Asked by Gord on December 14, 2020
Q: Hi 5iR,
Cannabis advertising platform Weedmaps going public with $1.5 billion valuation with blank-check acquisition firm Silver Spike Acquisition Corp. I do realize that SPAC merger companies are usually future growth potential companies. What interests me here is a company that is claiming to be profitable since every year in its operation,
has grown revenue at a CAGR of 40% over the last five years and is on track to deliver $160 million in revenue and $35 million in EBITDA for 2020.
https://mjbizdaily.com/cannabis-advertising-platform-weedmaps-going-public-with-1-5-billion-valuation/.
Can you give your guidance on this. Thanks in advance.
Read Answer Asked by Vinod on December 14, 2020
Q: Hi gang,

With all the talk about ESG I was wondering if it could be added to your stock info page? I realize it may not factor high in your evaluation of a company, but a lot of fund managers are referencing in their answers to questions about stocks.

For example today's guest on Market Call used it in her response to a Q on ATD, stating that because they sell cigarettes in their convenience store, she would not invest in the company.

Thx again for all your great work!
Read Answer Asked by Christopher on December 14, 2020
Q: I've owned both OSB and WFT since mid April, was very lucky with my timing. I had planned to hold both for a couple years due to the strong housing and retro markets. A month or so ago, as we all know, WFT (trading at +/- $72.00 at the time) took out OSB (trading at the time +/- $43.00) in an all stock offer which seemed at the time to be acceptable by large institutional shareholders (Pattison/Brookfield) as well as the two boards in general. The take out price for OSB was +/- $49.00. Being an all stock offer, I believe OSB shareholders were to get +/- 0.6 WFT shares for their OSB shares. In the time since the announcement, both WFT and OSB have continued to rise in value. As of late last week, WFT closed at $82.68 and OSB closed at $55.36. Can you please help me understand how this structured all stock take over might now pan out???? Will OSB shareholders only get the $49.00 offer upon closing or was the structured all stock take out offer based on a %, ie, will OSB shareholder still receive +/- 0.6 WFT shares. I need to decide what's best for my family accounts. I like $55 a lot more than $49, but it's a wash if it's 0.6 shares of WFT
Read Answer Asked by jeff on December 14, 2020
Q: According to a recent report by Statistics Canada, household debt has been on a steady rise since 1990. What effect, if any, do you think this could have on the markets long term? What needs to happen for household debt levels to flatline or reverse? Curious to hear your opinion.
Thanks
Read Answer Asked by Curtis on December 14, 2020
Q: Hi guys, I have 80 WORK stocks and 25 CRM stocks and was wondering if I should sell my WORK stocks or keep them. With the Slack acquisition from Salesforce, I am not sure what the implications are. Can you please explain and what is beneficial in either keeping or selling my WORK shares. Thank you so much for your service. Keep up the good work! No pun intended.
Dan
Read Answer Asked by Daniel on December 14, 2020
Q: I know it’s a good problem to have but my listed tech stocks have done really well thanks in part to recommendations from 5i. So much so that I now have 41% in the tech sector. Since selling my mutual funds and establishing my own portfolio, your guidance and suggestions have been so much appreciated. It seems that other sectors may be the place to be as we come out of the pandemic. The issue is that these are for the most part proven quality stocks. I’m not keen on selling any of these. Does one bite the bullet and sell some ? If so suggestions are appreciated? Or does one just trim profit and migrate into other sectors and buy more of companies like DOO GSY and WELL? Thanks
Read Answer Asked by Dennis on December 14, 2020
Q: Nice to see the acquisition news of PEO. What do you think is best to do now with my current shares? Should I sell now and buy/top up another industrial or wait until Q1 2021 for the deal to close(if any benefit)? What would be your top 3 industrials in your model portfolios to add to? Currently holding WSP, XBC, ATA, SIS, GDI, and AC. Thanks!
Read Answer Asked by Keith on December 14, 2020
Q: I am interested in investing in solar with the thinking it has room to grow significantly. I see from previous questions you have mentioned FSLR and TAN. I would value your opinion on preferred US solar stock(s) and which would recommend now i.e. , FSLR, Tan or other in US? Thanks so much.
Read Answer Asked by Danny-boy on December 14, 2020
Q: Hi, I know that Chinese stocks are not your focus but I'd appreciate your comments if you have any thoughts.

In October, Huya, a gaming company announced that it would buy out Doyu at 0.73 of its own share early next year. From my understanding, once the buyout ratio is confirmed publicly, the price of the bought company (Doyu) should trade very closely to the bought ratio (0.73). However, Doyu is now trading at 20% less than the closed out price.

As of Dec 11, Huya closed at $20.35 USD and Doyu is at $11.71 USD. 73% of $20.35 should be $14.85. There is a big gap between the proposed buyout price and the market price. Do you know why this is the case? The gap doesn't make sense. Thanks.
Read Answer Asked by Esther on December 14, 2020
Q: Hi 5I,
Have been looking at XEC.CA to diversify my portfolio from mainly US and Canadian Stocks. What is your opinion of XEC for a long term hold? Do you have other suggestions?
Thanks,
Earl
Read Answer Asked by earl on December 14, 2020
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