Investment Q&A

Q: I initially purchased these preferred shares when they were yielding over 7% for income in my RRSP. Today they are yielding over 9% as the price has fallen considerably. Normally I would be concerned with an investment yielding 9%, but ECN.PR.A have a minimum dividend (6.5% for $25 face value). Do I have reason to be concerned or do you see this as a buying opportunity especially since they have the minimum dividend guarantee (as long as the dividend is being paid)?

Q: Seasons greeting to the 5i team. I hold the C series preferred shares of ECN. Like many others my cost for this rate reset preferred is much higher. I understand the company has the option to redeem these shares at a specific price at different times in the future. I am wondering if at some point in the future (if held until then) the company is obligated to buy them back at par value? In other words as a shareholder can I force the company to take them back at some point and receive the $25 par value? Thanks.

Mario.

Q: I have a question about ECN auction.
At some point today on Dec 24, ECN was trading below 3.35$ which is the lower price of the band of the auction. Can ECN modified the auction price band if the price keep going down bellow 3.35$?

Thanks,
Stef

Q: You recently published a list of companies being subjected to tax loss selling. I would be interested in your opinion of the top 3-4 companies that might be appropriate for a TFSA (some growth and a bit of income) come January 2. Thanks.

Q: You answered a question on ECN.PR.C I would like to ask a similar question about ECN.PR.A. It has dropped a further $3 since last Thursday. Do you see any particular weakness other than the general conditions you have answered on previous preferred reset questions? Is the share buyback of ECN common shares weakening the company's position of paying interest? Most of my resets have been called back at reset date and new stock issued at lower rates so I have not replaced them. Is that a possibility here and with the C's? (deduct what you feel appropriate)
Thank you and Best wishes for the Christmas Season

Q: Based on your experience , what would be the more effective way to increase the value of the ECN shares, buy back and cancellation as they are trying, or, put the money into dividend increases or special dividends ?
Thank You

Q: Recently, I asked about adding to ECN.PR.C at $21 and you replied it was fine to hold but not to add (thanks). Now it's $17 and paying 9%. It is a rate reset preferred and I thought the guaranteed floor was 6.25% upon reset but you recently said otherwise in another reply.
Should I buy it now and what is the reset minimum?
Thanks.

Q: Hi Peter,
Please deduct as many credits as you see fit. I have some losers (some big) as per below:

Margin account
CLIQ down 52%
PHO down 37%
MX down 20%
TFII down 23%
ECN down 13%
NFI down 11%

TFSA
GUD down 17%
CLS down 20%
DOL down 38%
TSGI down 47%

RRSP
DOO down 43%
COV down 26%

Here are my questions.
1- Should I claim the capital loss with CLIQ and PHO and repurchase in 30 days?
2- Are there any names there that I should just sell and move on to something else? What would be your top 3 replacements for the removed names in that case?
3- My initial thought was to inject new money in CLIQ, PHO, DOL, TSGI, DOO and COV to bring these names back to my initial weight. Would this be a good move in your opinion?
These names are part of a diversified portfolio and don’t need the funds for another 10 years minimum.
Much appreciate your service. Your responses to this market volatility have kept me from panicking as I did in 2008. I thank you for that.

Q: I would like to have some clarity on the buy back of share. Just received an offer to buy back from 3.35 to 3.75
Why they want to back back? and is it a good move...should I do it?
I know that you have recommended this share before and would like to know what are you going to do if you still have it.
thanks for your help
Diane

Q: I am considering purchasing ECN preferred for the great yield. Can you explain the difference between ECN.PR.A and ECN.PR.C. I can see the yield from a stock quote but can't figure how the dividend is calculated or when the rate resets on either of these. Which of the two if any would you recommend?
Thanks

Q: how is it that only days and weeks before announcing a Dutch auction, management and the company were buying large amounts of shares on the tsx? Is the not a prime example of insider trading before the puclic announcement? No wonder so many will not invest as it is not a level playing field!!!!

Q: I'm not likely to tender my shares into the Dutch auction, would you??

Q: Please comment on ECN's earnings. Thank you.

Q: Most small caps are down in this market and continue to fall.Of the above stocks,would you consider all as holds? The average retail investor like me doesn’t want to buy these stocks until prices stabilize, but must accept lower prices to sell them.Selling just contributes to the declines,especially on stocks with lower volume.
Can you rate these in order of preference?

Q: Hi 5i
I sold the above for a tax loss. 6 of the 8 are down since with FTS and ECN slightly up.
The 30 day period is almost up. How many of these would you consider buying back in the hopes that their share price will increase. I have a longer time horizon.
Thanks
Jeff

Q: I purchased ECN.PR.C at $25 because it paid 6.25% and, as a rate reset in a rising interest rate environment, with a guaranteed 6.25% minimum(!), it sounded great.
It has gone down from day one and has little interest. Should I pick up a few more shares at $21 with a juicier dividend or let it go and look elsewhere? If it doesn't go up with increased rates, when will it?
Thanks.

Q: My question relates to the latest type of prefs , the minimum rate test preferred. As a broker who has been retired some time.i am knowable about the rise and fall of prefs as they relate to rising or falling interest rates. But I struggle with understanding the minimum rate reset prefs. For example ECN.PR.A pays a 6.50 % div based on issue price. Given the current 5 yr rate the reset would be above the minimum rate. No matter what you would get 6.5%.
I know that other factors influence the trading price eg quality and the market itself etc.
Is this type of investment , all other things being equal that you would buy for the short as well as long term. I’m a very senior senior.

Q: Not sure this is for this Q & A but as i started looking at my capital gains and losses for tax loss selling, I am not sure how stock splits are handled. For example, can you walk through how 100 shares of EFN split with ECN how to calculate my adjust cost base. My trading platform shows the adjusted cost base but for the life of me i cannot figure out how they came up with the number.

Q: In my TFSA my strategy was to anchor this portfolio with blue chip positions which had worked to achieve my initial goal of making a steady foothold in the market. I then decided to add a few growth positions to see if I could improve the return on the portfolio. The only one in positive territory is PHO up 10%, do you think as a strategy this has the potential to work or not,also do you feel that ECN & TGSI have the potential to thrive in the future I'm down 10% on ECN & 36% on TGSI. I do not intend to draw down from this TFSA so I can wait. I know the answer on RHT

Q: Hi team,

Do you still see any upside and why the lack of interest in the stock? ECN has been dead money for over a year. Insiders have been buying agressively and almost 20% buyback. I am in at 3.63 and considering selling if the price remain flat after Q3.

Tx