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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 5I Team,
I will be retiring within the next 2 years and plan to supplement my overall fixed income with dividend income to be drawn from my portfolio. I currently hold a mix of growth and income positions but will be transitioning to more of an income base. I have a good core of diversified Dividend stocks held through most of the sectors, but do not currently hold anything in REITs. I am familiar with your favourite REITS, but am looking to focus on higher yield, understanding the risks associated with this. Could I have your feedback on the following considerations, particularly towards the stability of dividend payout? As well, could you please share your thoughts towards the impact that upcoming interest rate increases may have to REITS in general? My considerations would be: Dream Global ( DRG.UN), Cominar ( CUF.UN) and Artis ( AX.UN). Thank you kindly,
Rick
Read Answer Asked by Rick on February 21, 2017
Q: Would you please clarify your answer to Chris. It looks like A&W is offering up new shares for sale. This dilutes the value of existing shares. But the money from the sale of those shares is going to 'indirect shareholders' (the people who own Food Services) rather than to something like reducing debt for A&W or doing something else that will eventually improve shareholder value.
Read Answer Asked by John on February 19, 2017
Q: A&W issued a release regarding a private placement this morning which itself isn't out of the ordinary.

However what caught my eye was what will happen with the proceeds. They will be given to 'certain indirect shareholders' for 'their personal financial planning requirements'. So the fund is selling units to Laurentian, and all of the money is being handed out to unknown shareholders. None of the funds will be distributed to other shareholders, nor will the Fund hold the cash.

I'm no expert but this doesn't pass the smell test. Am I missing something?
Read Answer Asked by Chris on February 17, 2017
Q: Could you comment on the private placement, is this why the shares are down ~$1 this morning? will this put a ceiling on the share price until the placement closes?

'VANCOUVER, Feb. 17, 2017 /CNW/ - A&W Food Services of Canada Inc. ("Food Services") announced today that it has entered into an agreement with Laurentian Bank Securities Inc. ("LBS") to complete a secondary offering of 373,300 units of A&W Revenue Royalties Income Fund (the "Fund") (TSX: AW.UN) in a private placement on a bought deal basis. Under the agreement, LBS has agreed to purchase 373,300 units of the Fund (the "Units") from Food Services at a price of $39.25 per Unit, for gross proceeds of $14,652,025. The transaction is expected to close on or about February 28, 2017, but not later than March 8, 2017.'
Read Answer Asked by Kuldar on February 17, 2017
Q: Dear 5i,
I reviewed the Intrinsyc technology website to gain a better understanding of their products. ITC has a lot of innovative products/ideas with many future applications. I don't have a lot of knowedge in this area. What is there competitive advantage? Who are their main competitors? I assume there are many major tech companies developing similar products. ITC has a tiny market cap creating more risk/growth. What makes them a better company?
Thank you,
Kerri
Read Answer Asked by KERRI on February 17, 2017
Q: I know this is a bit of a crytal ball question. But do you expect the Bayer deal to go through? Any idea how long it would take?

I have held this for a couple of years and am wondering if the funds could be put to better use with a company like NVDA, ULTA or FB .... even though they are all in different industries?

Thanks for any guidance you can provide.
Read Answer Asked by Donald on February 17, 2017
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