Investment Q&A

Q: Andrew McCreath had a banker on his Friday show that made a good case for buy outs coming this year in US banking industry just not the very large banks. The large banks would not be allowed to merge/takeover more banks because of regulatory concerns.
Could you meanttion some of the stronger mid size US banks that would be good candidates for take over and their related dividend as he mentioned that big dividend increases are on the way.
Mike

Q: I own WPC but am considering selling and replacing with IRM for its better dividend growth. I'd appreciate your views on both companies.

Q: Any thoughts on this company?

Q: Hello 5i team, Walter Capital and management are taking ERG private. While this offer allows shareholders an exit, it seems like a lowball offer (growth will be renewed as they are starting to roll store into superclinics in Quebec, operations have been mostly but marginally profitable over the last few years, cash is about 10¢ per share), and management negotiated to keep their job and shares. (#1) No liquidity in the stock market => low offer?
Even if I think the probability of a competing bid is close to zero, (#2) I would like your opinion on the probability of a competing bid. As ERG is a micro cap and management do not sell (and stays), and the closing ability of the buyer is very good. The deal has been announced few days ago, , and the special meeting of shareholders will be held in the first quarter (after the circular will be mailed). (#2) From the press release, what month (April?) do you think it could close? I am trying to determine whether to hold until closing or sell immediately. 1/2 ¢ = 1,7% return over 4 months? Even if 5i Research is providing great investment ideas, I am in no hurry to reinvest the cash, as I have been building firepower (reducing leverage) during the past year (RDM, TNC, PJC, AF) in order to prepare for a future market wide buying opportunity.
Thank you for your collaboration, Eric

Q: Which 3-5 small to midcap US traded companies would you consider the best "Capital Compounders", i.e. with long-term competitive advantages, growing EPS, ROIC and FCF?
Thanks for your invaluable service!

Yvonne

Q: I have long watched CGI Group as an investment based on the advice of Jason Donville on BNN. He was always hyping to ROE being so high and seemed to have good results until he disappeared from the air in the wake of the Valeant and Concordia falls. CGI Group though seems to get lots of "Top Pick" calls on the shows but hasn't really done much. The RSI is down in the 30 range and I'm wondering if company fundamentals combined with the shares being oversold make this a good "trade" or a good opportunity to buy and hold?

Q: Can you please explain the recent downward trend of this stock? Is it just taking a breather or is there something more fundamental.?
Great service ! Thank you !!!!

Q: I realize that AIF stock price has risen about 16% in the last 12 months but since early Jan of this year it’s been on a continuing decline. Can’t find any reason - maybe large shopping malls suddenly out of favour? Or is it sector rotation? What is your thinking on this stock?

Q: Could you give me your view on Victoria Gold. Gold has moved up but this stock is not moving with it.
Thanks John

Q: Preliminary financial results announced today. Any surprises or insights? If others are in the process of asking similar question...don't waste your time on answering my email too.

Cheers, Stephen S

Q: Looking to add two of these names to my TFSA. Which two do you think offers the best growth over a 5-7 year period?
Thanks

Q: Seems like a barrage of questions on Cineplex, in a week, but will ask, anyway. What is its current/ forward PE and is the present valuation justified (even after the steep decline) ? Do you expect Cineplex to continue to generate strong cash flow to pay down its very high debt load ( $600 mln ? ) and support 4.5 - 5% dividend ? How are the results of Cineplex capital investments in new initiatives like Rec rooms and VIP Cinemas ? Cineplex was removed/sold from 5iPortfolios, last year, in what looks like a smart move. But added back to Income portfolio, after some time, at a much lower price ($36.50, I think). With the recent drop in price, do you still have conviction that it's a good income stock to own and would you add ? Also, any change to A- Rating, with all recent developments and outlook ? Thanks

Q: I joined 5i about 2 years ago and I started moving my investments from mutual funds to a mix of the balanced and growth portfolios. I have returns significantly higher than I had before I joined 5i so thank you for the great service.
In non registered accounts I currently have full positions in CAE, CLS, L, MG, NFI, PBH + WSP. In registered accounts I have full positions in GC, KXS, SHOP, PHO, AW.UN, SIS, TD + AEM. I have 1/2 positions in registered accounts in AVO, GUD, SGY, + TV .
Would you recommend adding to any of the 1/2 positions or buying 1/2 or full positions in different names. Risk profile isn't a problem and I have at least a 5 year outlook. Thanks.

Q: Could you comment on todays results? Still a good holding for small cap growth? Is it still expensive? Thanks.

Q: I have room in my RRSP to add one of the above. It's a five to ten year window and I'm looking for both growth and consistent dividends. The sector is irrelevant for this portfolio. Thanks

Q: I'm confused! All of the US Big Banks are way up today, yet ZUB, which I thought followed all large cap US Big Banks is way down? Any idea why this happens?

Q: I have not made use of DRIPS in the past but am considering the conversion for some stocks like banks. I have been appreciative of the extra cash for more buying in the past but locking in the dividends may be a better way to go. Thoughts?

Q: Morning 5i
Which of FDX or UPS is the better company to invest in over the next few years or would a half position in each be the way to go ?
Thanks
Bill C

Q: My question is about Purpose energy credit opportunities income fund PCF.UN, is it converting to a ETF. If it is when? Would this be a suitable buy now before the conversion in a TFSA for a 79 year older would you wait to buy at all.Your opinion of this as a fund and as a ETF would be appreciated. This would be in a managed account with a fee of 1% plus the fund fee.
M

Q: Constellation Software announced this morning of a nice acquisition of Acceo Solutions for a price of $250 mln.
Q1: Seems like a good size acquisition, after some time. With annual proforma revenue of $116 mln, how significant is this transaction ?
Q2 : What is your understanding of the proposed financing ?
" Constellation expects to finance the Acceo acquisition on a stand-alone basis. This is a continuation of Constellation’s use of leveraged capital structures to compete more effectively for larger vertical market software businesses. "
Thanks