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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: 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: This is a new entry into Canadian etf space,but has been a private fund for a few years. Could you please look at the funds history and performance as a private fund and evaluate? I realize that it is small as it is new,but could you recommend a small position for a long term hold? Thanx.
Read Answer Asked by Steve on February 27, 2018
Q: It looks like electric powered vehicles are an inevitable winner as we continue to struggle with climate change. The need for better batteries to power these vehicles also seems inevitable. It seems like an investment in this trend is a winner. My question is, how would 5i suggest we as members take advantage of this opportunity? Please suggest some areas to focus on and what you consider to be the best companies in each area to invest in. Again, thank-you for your considered opinions.
Read Answer Asked by Les on February 27, 2018
Q: This is a follow up on my earlier question on tax loss selling for Enbridge:
1) Aqn. I like it but is it really an equivalent of Enbridge? I can see how Trans canada could be, because it is pipe lines. But, I don't think Algonquin has pipelines. So, I imagine you are saying that it is not an exact replacement but close enough. Am I correct?
2) I am not great with calculations and would like to know how you calculate the 21 per cent that you mention. You speak about a high tax rate. What do you consider a high tax rate. It looks like 20 per cent here. Is that right?

thanks again
Read Answer Asked by joseph on February 27, 2018
Q: I hold this prefferred stock for years, bought by my then financial adviser. Is 5% of my RRSP portofolio with return -6.89%. It looks like dead money, I think it may be better holding TRP or other income stock. Not sure how this stock works, can I sell it or is better to hold until expires (not sure when?)
Read Answer Asked by Svetlana on February 27, 2018
Q: I currently hold Loblaw (3% position) and Saputo (2% position). Which of these two companies have better growth prospects? Following Loblaw's earnings and given their considerable 'headwinds' (competition, minimum wage, bread price fixing fallout) I am considering shifting some funds from L to SAP. What do you think?....Glenn
Read Answer Asked by Glenn on February 27, 2018
Q: On Feb 20 ENB filed for a potential mixed shelf offering;If it is selling shares @ this low price(think lowest for the last 3yrs) it will be dilution. & negative.It has $10b of non-core assets for sale of which $3/4 mil may be sold in 2018.What is going on.At one time almost all of guests on BNN recommend ENB,but more & more are not doing soBought @ $49.Txs for u usual great views & services
Read Answer Asked by Peter on February 27, 2018
Q: Does the information below have any affect on shares of AW.UN or the future outlook for the company?
CNW Group - Fri Feb 23, 8:00AM CST
A&W Food Services of Canada Inc. ("Food Services") and A&W Revenue Royalties Income Fund (the "Fund") (TSX: AW.UN), announced today that A&W of Canada Inc. ("A&W Canada"), the parent company of Food Services, has completed a reorganization (the "Reorganization") to provide liquidity for, and accommodate the individual estate planning purposes of, some of its long standing shareholders. As part of the Reorganization, several shareholders of A&W Canada have collectively sold a significant minority, indirect ownership interest in Food Services to funds managed by TorQuest Partners. A&W Canada will retain a 100% interest in all the securities exchangeable into units of the Fund (the "Royalty Securities") currently owned by Food Services and any additional Royalty Securities acquired by Food Services as a result of the addition of new stores to the royalty pool in respect of which royalties are paid by Food Services to the Fund until December 31, 2022.
Read Answer Asked by S on February 27, 2018
Q: Hello 5i Team.
I own these stocks for the dividend, in sectors that are currently getting hit due to rising interest rates (I assume). From your point of view, is it best, if one needs the income, to not be concerned with losing equity value and just continue collecting the dividend and hope that over time, these stocks will recover? Or is it best to sell and research other options. (I am 66 years young). Please also rate these stocks from best to least in terms of dividend safety and growth potential. Thank you for your wise advice.
Read Answer Asked by Jocelyne on February 27, 2018
Q: Hello. In a letter dated Feb 26, you stated that HXQ had a better growth potential than ZQQ. Why would that be as both etf’s follow the Nasdaq 100? In addition all funds that follow the same index should perform equally ( ignoring expenses) should they not?
Read Answer Asked by Valdis on February 27, 2018
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