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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: I have a number of CBL shares and have received a must respond letter from my online brokerage. The offer is for CBL shares at $16.50 but the current price is above $18. The literature is slightly confusing in that it implies unless I tender the shares I might miss this opportunity and generally the company may become private. The tone is my shares would then be worthless. Can you comment? I really have no intention of surrendering my shares for below what the stock trades at currently. Thanks so much. Dave T.
Read Answer Asked by David on November 23, 2016
Q: Just couple of points as an FYI to 5i Members who hold Enercare (ECI):

1) Evelyn Sutherland (CFO) has just been named as an WXN (Women"s Executive Network) 2016 Canada's Most Powerful Women: Top 100 Award Winner.

2) A new DRIP program will be instituted (with a 5% discount) effective with dividend payable on December 30th, 2016....

TORONTO, ON--(Marketwired - November 18, 2016) - Enercare Inc. ("Enercare") (TSX: ECI) today announced that it has adopted a Dividend Reinvestment Plan (the "Plan"). Canadian resident shareholders will be entitled to register for the Plan effective with Enercare's monthly dividend expected to be paid on or about December 30, 2016.

The Plan will give Canadian resident shareholders a convenient means of increasing their investment in Enercare by electing to receive common shares ("Shares") instead of cash dividends on some or all of their Shares. Plan participants will benefit from acquiring Shares at a discount to the prevailing market price, and without having to pay any commissions, service charges or brokerage fees. Under the Plan, Participants will be issued Shares from treasury at a 5% discount to the then prevailing market price, unless Enercare notifies shareholders that it will satisfy the issuance through open market purchases, in which case Shares would be issued at prevailing market prices. Shares acquired under the Plan will be automatically enrolled in the Plan.

Enrollment in the Plan is optional and will not affect a shareholder's cash dividends unless they choose to participate in the Plan. Further information on the Plan is available on the investor relations section of Enercare's website at http://www.enercare.ca. Shareholders who hold their Shares through a broker or financial institution and wish to enroll for the Plan should contact their broker or financial institution directly to learn more about the specific procedures and deadlines for enrollment in the Plan applicable to them. Registered shareholders may enroll in the Plan online through Computershare's self-service web portal, Investor Centre, at www.investorcentre.com.

Enercare also announced today that, in connection with the Plan, it will change its policy of determining the record date for shareholders eligible to receive a dividend such that the dividend record date will be on or about the 15th day of the month in which the associated dividend payment is made. This change is being made to facilitate the administration of the Plan and will be effective with its dividend payable on December 30, 2016. It will not affect Enercare's previously announced dividend payable on November 30, 2016 to shareholders of record on October 31, 2016.

I assume the savings to the company will be used to pay down debt?

Scot
Read Answer Asked by Scot on November 23, 2016
Q: Could you please comment on the latest quarter results from UNS.
Apparently consumers are hanging on to the vehicles longer and longer each year. Based on the latest data it is almost up to 12 years. If not UNS do you have any other preferred names in the replacement auto parts market which would be a better place to initiate a position.
Thanks
Read Answer Asked by Thomas on November 23, 2016
Q: Hello 5i,

I'd like to add some financial exposure to my holdings on the assumption of longer term rising interest rates and new political realities in America. Which of the three noted companies would be your preference for both growth and income.

Thanks
Read Answer Asked by Greg on November 23, 2016
Q: I own ZRE for my real estate exposure, and I note that you hold ZRE in your income portfolio. Would it not be preferable to hold 2-3 actual REITS and skip the MER of 0.61? Do you think this is significantly riskier than just holding ZRE? If I were to switch from ZRE to individual REITs, how many should I switch into, and which ones would you recommend? I am looking to hold longterm. Thank you.
Read Answer Asked by Walter on November 23, 2016
Q: Hi, I would appreciate a current update on these two funds.Also will they benefit much from government investment in Canada and the U.S.? Do their distributions seem secure? Thank you, Bob
Read Answer Asked by Bob on November 23, 2016
Q: Hi Peter, I'm wondering about your latest insight on CJT? I've had it since the income trust days which is great. I don't ever plan to sell CJT. I realize their barriers to entry are massive but they have negative income. How is that possible? But they have positive CFO, their assets are growing more than doubling from last year but it looks like their debt is engulfing its equity. I find that SHOP, although totally different sector of course has the same scenarios but has a lower debt/equity ratio. What do you think and is it a concern for both companies? How should I evaluate these companies better because I view them as good companies still because of their competitive edge. Thanks.
Read Answer Asked by Michael on November 23, 2016
Q: TIME OF REPORT RELEASE
Do you have a policy on the time of day reports are issued? Specifically, are reports ever issued during the trading day? I noticed mid afternoon yesterday there was a report on QST. The report stated coverage was being terminated and the final rating was 'C'. The stock declined yesterday. If not done already, can I suggest that all reports be released 'off hours' so all members have an equal chance to review their contents and decide what they want to do with their holdings. When reports are issued during a trading day, it's a crap shoot whether you just happened to scan the reports section and if you were inclined to sell the stock, got lucky and beat the rush. If there was a policy, all members would feel they were on an equal footing.

If there already is a policy and I'm unaware of it, please re-state what it is.

thank you
Read Answer Asked on November 23, 2016
Q: I hold xlk in my RRIF as part of technology. However I am unhappy with the larger weighting given to "giants" as is the case with iyw I could accept the minimally higher cost of ryt for it's equal weighting and better performance. liquidity seems good. Do you think this a reasonable switch. I prefer to keep a US dollar ETF. Thanks for your advice
Read Answer Asked by Tom on November 23, 2016
Q: Hi,

I am holding RBC Life Science and Tech mutual fund (RBF1030)which is a nice mix of U.S. technology and health care stocks.
What would be a good ETF to replace it or, alternatively, which stocks combination would replace it advantageously ?

Thanks again for your exceptional service,

Jacques
Read Answer Asked by Jacques on November 23, 2016
Q: Hi Peter and Team,

I'm in the process of doing a sector analysis in all our family accounts to determine overweight and underweight sectors. I see that we are very underweight in US stocks and healthcare. In my wife's RRSP, she owns ZLB which I'm planning to sell, as its return has seemed to stall lately when compared to other Canadian ETFs such as CDZ and VDY, realizing that they're all different 'animals'. A more appropriate sector balance would occur with CLU.C or CLU, with the added caveat that these two ETFs are available commission-free from iTrade. Should I choose CLU.C or CLU to round out our US exposure, and what ETF product do you recommend for healthcare? As always, thanks in advance for your timely advice.
Read Answer Asked by Jerry on November 23, 2016
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