Investment Q&A

Q: Investors edge (cibc brokerage) has been unable to update stock prices throughout the day this week(they've had other issues in the past). Have any other brokerages had similar issues or problems? I'm thinking of switching to TD. Do all brokerages have problems, and what might they be?

Thanks to those who can provide insight.

Mark

Q: are they aligned with shareholders what is the insider ownership

Q: Hi Peter and 5i,
Thank you for all the valuable advice and insight over the years. It is much appreciated.
I’ve been slowly buying a few convertible debentures as a small part of my fixed income portfolio. Mainly interested in the enhanced coupon rate the convertible debentures pay with the potential of the conversion into common shares.
I just have a few questions to ensure that I am understanding all the terms associated with the convertible debentures. Most of the issues seem to have relatively all the same terms regarding Conversion, Maturity Date Structure and Share Payment Option on Redemption or Maturity.
I’ll use the November 16th issue from EIF as an example.
Maturity Date – January 15, 2029
Coupon Rate – 5.25%
Conversion - The Debentures will be convertible at the holder’s option into fully-paid common shares of the Company (“Shares”) at any time prior to the earlier of 5:00pm (ET) on January 15, 2029 and the business day immediately preceding the date fixed for redemption at a conversion price of $60.00 per Share (the “Conversion Price”), representing a 30% premium, being a ratio of 16.6667 Shares per $1,000 principal amount of Debentures.
Redemption Scenarios:
1. The debentures will not be redeemable by the Co. at any time on or before January 12, 2025.
2. After January 15, 2025 and prior to January 15, 2027, the debentures will be redeemable by the company on not more than 60 days and not less then 30 days prior notice at a price payable equal to $1,000 per debenture plus accrued and unpaid interest, provided that the Current Market Price (CMP is defined as the volume weighted average trading price of the shares on the TSX for the 20 consecutive trading days ending 5 trading days prior to the applicable date) of the shares on the date on which the notice of redemption is given exceeds 125% of the Conversion price.
3. On or after January 15, 2027, and prior to the Maturity date, the debentures will be redeemable by the company on not more than 60 days and not less than 30 days prior notice at par value plus accrued and unpaid interest.
Share Payment Option on Redemption or Maturity – Payment will be satisfied by delivering for each $1,000 due, that number of freely tradeable shares obtained by dividing $1,000 by 95% of the Current Market Price (CMP)
Questions:
1. Do you see any downsides to have a % of fixed income portion of a portfolio in convertible debentures?
2. Redemption Scenario #2. This seems like the critical 2 years.
a. Am I understanding it correctly in that the Company can only redeem during these two years if the price of the common stock is above $75 (Conversion Price $60 x 1.25)?
b. If the company gives a Notice of Redemption during this period, you better take it (provided my understanding of a. was correct). It seems they would really want to pay in shares versus cash.
c. Do the discount brokerages (in this case iTRADE) normally notify you of a Notice of Redemption?
3. Redemption Scenario #3. If you get a Notice of Redemption in the last two years, does the holder have the option to convert into common shares (say the shares were trading at $80) before the redemption date.
4. Is there a general rule as to when you should convert?
5. Is it common for companies to use the Share Payment Option on redemption or maturity?
6. Have I missed anything that you would suggest to watch for?
Thank you so much for helping me understand my small adventure into convertible debentures.

Q: Today on Yahoo Financial there was about fifteen class action lawsuits news releases brought up against LSPD. I know that these law suits do not usually go to far but with this many, is there a serious problem with the stock, Is it a buy, hold or sell. I have done very well with it thanks to 5I but it looks like it has lost it's glimmer.

Q: STC cancelled its US IPO tonight. Please comment especially its impact on stock. Thanks for u usual great services & views

Q: At the current price level of under $18, is AQN a good "bottom fishing" candidate? How secure is the dividend payout? What's the likelihood of it being slashed? Are there anything on the horizon to resuscitate its stale SP? Thanks.

Q: Any thoughts on the steep drop in stock price over the last week-month? Any news or could this be profit taking -- as this stock has soared in the last year.

Q: What do you think about VGCX as a goldplay?its been mentioned as a take over candidate.
My question.
1 Is VGCX balance sheet fine and what is the insider position
2 does the mine has a long life and where do you see this going in the future?
3 what is the relationship with Banyan and Alexco ,what are your thoughts?
4would you rather buy Alexco or Banyan?

why do you never mention any of those companies as your favorite goldplay?

Q: Hi 5i Team - My apologies if this question on ECN overlaps some of the others. I hold shares in both a TFSA and non-registered account and am considering moving the non-registered shares into the TFSA. I have capital losses to declare against the capital gains. First of all what do you think of this strategy. Secondly by what date would I need to do this in order not to lose the dividend since the move will trigger a sale in the non-registered account and a purchase in the TFSA both on the same day.
Thanks.

Q: Hi,

Food dropped over 30% at some point this morning. Is there any reason behind it? Would it be a good opportunity to initiate a half position?

Best,
Matt

Q: 5i I have owned this company and received dividends for a long time. Recently they announced they were splitting their real estate Douglas Elliman division. Will shareholders receive addtional shares. How those this work. Take has many credits. Should I just sell when they split. Tks 51

Q: Hi,

How would you allocate a 20% and a 30% position to the income portion of a portfolio? If one dumps it all into a well diversified bond fund like ZAG be too much in a single ETF?

Thanks

Q: Poor Visa! What are your thoughts? Will other big companies or Amazon North America etc start rejecting visa too? I have been eyeing Visa and Mastercard for a while now. Is this a good time to buy Visa or wait and see if it falls through $190/200? Buy visa or mastercard, or both, or neither?

Q: With Canada Nickel's recent acquisitions, what do you see short & long term for the company? Always appreciate your comments ? hard work
Dave

Q: I’d like to hear your thoughts on these 2 companys.
One may be popular with the Biden infrastructure bill and the other is involved with the semi conductor industry.

Thnx for your excellent service 5i!

Q: Hi 5i
REAL reported today and stock continues to slide...How were the earnings and what do you think this companys future looks like going forward?

At a -60% loss would you continue to hold or sell and move on?

If sell what would suggest for replacement in similar space with better expected upside.

Thx
Jim

Q: Hi team,

Can you provide your opinion on the quarter?

Thanks!

Q: Hello 5i,

I would like your thoughts on this company. After the big drop would you start a position for the long term ?
As always, thank you very much for your insight.

Q: Following up on the question earlier Tuesday, please comment on the announced acquisition of Yew Grove REIT by Slate. Quite large (75% of SOT's market cap) and SOT describes it as transformative. I would imagine significant debt and/or an equity offering will be needed. Challenges of managing an offshore entity versus sticking closer to home?

Q: Hello 5i team, I am a patient investor, but exclusively if, 5i and I, we both have a strong conviction that a company situation will be much improved in say, 24 months from now. Because of the 2021 trading range and risks involved, I am trying to get the best possible entry point (suggestion?). I know it is short term trading, but I am trying to understand if EGLX is bottoming after going down -60% since mid-April 2021. Volumes are sky high versus history since quarterly publication. There has been only one trade of above 40k shares since quarterly publication. What are moving averages, RSI and MACD telling you? What is your understanding of the seesaw trading of the past 4 days? What would you suggest as a good entry price (I do not mind that much if my order is not executed, as I know there will be other opportunities somewhere at some point in the future). From analysts forecast, EGLX will not make a quarterly profit in 2022: will EGLX be EBITDA positive in any of 2022 quarters? Do you know when EGLX is expected to generate a quarterly profit? From daily reading of 5i Q&A, I know you like EGLX and NVEI (which I group in the same sub-sector): how much more do you like one over the other for long term return? Thank you for your collaboration, Eric