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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: Cominar REIT (CUF.UN)

Hi Team,

This is a follow up question after your reply today about Cominar's purchase of new assets yesterday. I see this morning CUF.UN is down ~1.23% suggesting the market doesn't like the deal so much. I was wondering if it's because the cap rate for the new properties is 6.5% but CUF.UN's dividend is 7.64%, suggesting the payout ratio of 74.81% would have to rise or the dividend would have to decrease all other things being equal. Is this a correct interpretation or am I off base? Your advice and knowledge is greatly appreciated and is helping me to learn so much. Cheers. Michael
Read Answer Asked by Michael on August 27, 2014
Q: When will the next report on Capstone(CSE) be available as I notice the last one was in March 2013? Would the rating still be a C?
Read Answer Asked on August 27, 2014
Q: The revenue numbers for BKW reported in the Financial Post don't make sense: only $1.1bb vs 3 times that for THI which has one third of Burger King's location numbers. If the combined company is going to be #3 worldwide, revenues would have to be a lot closer to the SBUX level of $16bb. Is it possible the revenue numbers are small because they reflect only franchise fees and not total sales? I note also that 2013 net earnings for THI are twice those of BKW which doesn't appear right for an acquirer; what is the potential for the new company in generating growth here? Thanks, J.
Read Answer Asked by Jeff on August 27, 2014
Q: What percentage do you recommend for small cap in a portfolio? There was a comment from someone who asked if they should trim DHX in which they had a 4 % weight and you recommend that they should trim.
Thanks
Dolores
Read Answer Asked on August 27, 2014
Q: I noticed your aug 12 bloomberg article on AVO posted. I am under water on AVO & wonder if you are bot into the presidents strategy of short term pain for long term gain or is he over optimistic & have it wrong. In other words, is this a good time to buy into a real growth story a year or 2 from now or is there any chance they will see competition by then? On a side note, I believe there is a huge demand for more survelience and an acceptance from the public.
You also posted a list of 90 charts, first one being the SSEC-I which has already passed the marker the auther suggests will mark a breakout. Can you elaborate on your feeling of whether his assumptions are correct & what sectors this would impact, IE; commodities-base metals, oil, etc??
Read Answer Asked by LJ on August 27, 2014
Q: Hello Peter,
I am not clear as to why the market is paying 89 per share(current share price) for Tims when the overall deal will provide an investor more than 89 per share. Can you please comment? From the various answers provided, it appears you are in favour of holding onto the Tims shares. Am i correct in my understanding? Also, what is your view on DHX at this point as it has gone up alot in my portfolio. It does not represent more than 4 percent of my weighting. Should i trim or hang in there? Much appreciate it. umed
Read Answer Asked by umedali on August 27, 2014
Q: Hi, there. I currently own Temple REIT (TPH) and am thinking of selling it. Can you suggest another Canadian REIT. Thank you.
Read Answer Asked by Kim on August 27, 2014
Q: THI represents 3% of my overall portfolio, and it happens to be in my TFSA. I am up 44%. There are various options available to THI shareholders , in addition to selling the stock now.

From tmx.com
Under the terms of the transaction, which has been unanimously approved by the Board of Directors of both companies, Tim Hortons shareholders will receive C$65.50 in cash and 0.8025 common shares of the new company per Tim Hortons share. Based on Burger King's unaffected closing stock price as of August 22, 2014, this represents total value per Tim Hortons share of C$89.32 and based on Burger King's closing stock price as of August 25, 2014, this represents total value per Tim Hortons share of C$94.05. As an alternative to the default mixed transaction consideration described above, each Tim Hortons shareholder will have the ability to elect to instead receive, for each Tim Hortons share held, either (i) C$88.50 in cash; or (ii) 3.0879 common shares of the new company, in each case subject to pro ration.


THI stock is trading around $89.32 now, but if you take the cash and stock option based on yesterday's closing price of BKW it is supposedly worth $94.05. And if you take shares in the new company it is supposedly worth $100 (according to BNN).

What option is best for an investor in THI? Should I wait for the deal to close later this year, or sell now?

Paul J.
Read Answer Asked by Paul on August 27, 2014
Q: I am looking for a higher dividend paying Financial equity for my income portfolio and would appreciate your comments on FN, MTG, MKP, AGF.B, and CFN. Which one would you prefer for a long-term hold and why? Thanks!
Read Answer Asked by Paul W on August 27, 2014
Q: BKW.US: Should I buy this stock now in anticipation of the deal going thru and the new company making big bucks in the years ahead?
Read Answer Asked by Donald on August 27, 2014
Q: Espial group (ESP) Any reason for the big drop in ESP today? Would it have anything to do with the Rogers and Shaw deal? Thanks
Read Answer Asked by Bruce on August 27, 2014
Q: EQI.New shareholder,Smoothwater been buying some $322k shares @ $9.45 to $9.50 from Aug 19 to Aug 25 according to Canadian Insider.Please provide your expert advice on whether it is an entry point now CSS.Really confused & disturbed by the instructions In my humble opinion,the instructions should be FOR or AGAINST.Are the brokers biased as there maybe equity financing coming by TFI for the purchase of CSS BNS.The market today reacted unfavourably to its results.Did it make a loss provision for its operations in the Carriben It s bigger than that of CIBC($500k provision in the last Qtr) & Royal(sold its operations at a loss at beginning of the year)Both BNS & TD are the favourities of fund managers.I am waiting for an entry point Thanks a lo
Read Answer Asked by Peter on August 27, 2014
Q: Please give me your medium term outlook on Cargojet (CJT-T)and in particular, the capital cost for the new infrastructure at the Hamilton, ON distribution centre that is proposed. I am somewhat concerned that the company has only a few clients and may not have the diversified client base that a FEDEX has.
Read Answer Asked by Peter on August 27, 2014
Q: AIF reported on August 6th. Were you happy with the results? Given AIF is more than 10% off it's high for the year, would this be a good entry point?

Don
Read Answer Asked by Donald on August 27, 2014
Q: Hi Peter & team, I have shares of Tim Hortons (Canadian dollars) that I bought few years ago for my non-registered account. Should I understand that Tim Hortons will no longer be listed on the TSX? Will it be replaced by shares of Burger King (US dollars)in my account? If so, when will that happen? I prefer to keep US listed companies in my RRSP account. Thanks, Gervais
Read Answer Asked by Gervais on August 27, 2014
Q: If the company is familiar to i5research, can you comment on Gogo Inc. (GOGO), as a 5-10 year investment.
Read Answer Asked by Loren on August 27, 2014
Q: Why has ahf.to gone up so much, about 30% in the last two weeks? Time to buy some more shares or wait till it settles a little? I have a 2% position right now. Thanks
Read Answer Asked by Jeremy on August 27, 2014
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