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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: Peter & Team, I took a half position in advance of the quarter report in light of chart strength and 5i's B+ rating. From the conference call, I can see a mis-step or two that are quarter specific, but I liked the positive growth. Would you add the other half here on this 8% pull back or have I missed this growth story and best to sell and move on? Is this still B+ rated and is the growth story still intact?
Thank you. Keith
Read Answer Asked by Keith on July 31, 2015
Q: Do you buy more comdev at 5.15 where it is right now, i think some revenue is in u. s. Dollars which helps, backlog is good, ipo postponed.i own 20000 shares but love to overweight in these kinds of situations. Dave
Read Answer Asked by david on July 31, 2015
Q: Thank you for your quick reply and opinion today. The question concerned ZRE but the answer refers to XRE so I am wondering if you would consider XRE ( Market cap 1.24B) a 'better' purchase than ZRE at this time? Perhaps XRE is a typo in the answer?

If the ETf was closed out what would happen re: payment to share holders?

Zre only has a market cap of 364.5M - If XRE was a typo then I expect that you consider the size of ZRE is not a concern?

As a relatively new investor I appreciate the education you provide.

Again, thank you so much


July 31, 2015 (asked by Len)

Question: I have been adding to my holdings in the Income Portfolio and with the cost/share down I was considering ZRE at this time. In looking at the BMO site (http://www.etfs.bmo.com/bmo-etfs/distribution?fundId=80001 ) I note the following statement under 'distributions' -

" The distributions will either be paid in cash or reinvested in the BMO ETF at the discretion of the manager."

I am wondering your thoughts on how likely it might be that one would not get a cash distribution? If owning individual REITs could this be the case as well? Do you recommend buying ZRE at this time? We are looking for income.

Thank you ever so much for your insights.

5i Research Answer:
Each REIT would be different, but generally for non-ETFs shareholder approval would be required to get paid in units. ETFs do not require a unitholder vote on many items (including closing a fund). We would not consider it very likely that XRE would pay distributions in more units, and has not to date. Dividends coming in are fairly secure and the fund is large enough to avoid most cash liquidity issues. For diversied REIT exposure and income we would still consider it a decent buy.
Read Answer Asked by Len on July 31, 2015
Q: Hi, could you please comment on CCL earnings released this morning. Looks like a nice beat with Adj EPS $2.12 ( Consensus $1.83). Is revenue $721 mln, a little lighter than expected? How is the Forex impacting their sales/margins? Is it a buy at current levels? Thanks
Read Answer Asked by rajeev on July 31, 2015
Q: I just took a position in BEI.UN, based on a BNN report showing a return of almost 6%, distributed monthly. When it showed up in my BMO account the actual amount of the dividend is $2.04 annually, or 3.55%. I sold an 8% reit to buy this so, is there any 'bonus' that would raise it to 6%, or should I dump it now?
Read Answer Asked by Edward on July 31, 2015
Q: What impact is FX gain having on AVO's revenue growth? Also, is any portion of revenue recurring?

Does the board approve of a strategy that solely focuses on revenue growth with no regard for profit because the market (common shareholders)appears to not be on side? My understanding is that the CEO has stated that revenue growth will be the primary motive WHILE still maintaining profitability. He seems to be ignoring one half of his commitment.

Carl
Read Answer Asked by Carl on July 31, 2015
Q: I have been adding to my holdings in the Income Portfolio and with the cost/share down I was considering ZRE at this time. In looking at the BMO site (http://www.etfs.bmo.com/bmo-etfs/distribution?fundId=80001 ) I note the following statement under 'distributions' -

" The distributions will either be paid in cash or reinvested in the BMO ETF at the discretion of the manager."

I am wondering your thoughts on how likely it might be that one would not get a cash distribution? If owning individual REITs could this be the case as well? Do you recommend buying ZRE at this time? We are looking for income.

Thank you ever so much for your insights.





Read Answer Asked by Len on July 31, 2015
Q: Are you planning an update on KBro in the near future? Does it still look good to you and would your concerns still be the same as last year?
Thanks
Read Answer Asked by steve on July 31, 2015
Q: Having a little correction, think it's a buy with its postponing of the ExactEarth ipo?
Read Answer Asked by Marie on July 31, 2015
Q: I had planned to add to my holdings of MDA, I would like to move it from 3% to 5% of my portfolio. However I see it has dropped significantly today, and the recent chart looks like a waterfall. I would appreciate your recommendation - should I buy now on this dip or should I wait to see where it goes from here. Do you have any information regarding today's drop?
Thank you.
Read Answer Asked by Dennis on July 31, 2015
Q: I am very happy with my suscription and have been since 5i was started. I am sure you are very busy with the questions, updates, portfolio analysis and all but was wondering if we can expect more reports on new compagnies and new ideas in the coming months/ year. I often find new ideas in the question section but usually prefer your summary analysis including rating and detailed comments. Just my 2 cents. Thank you again for your great work.
Read Answer Asked by Pierre on July 31, 2015
Q: CDV postpones exactEarth IPO and stock plunges. Management needs to learn that market doesn't like uncertainly. What's your view on this and is it presenting good entry point? Thanks for your unbiased advise!
Read Answer Asked by Rebecca on July 31, 2015
Q: Good Morning 5i,

I hold 5% of each of MDA and GIB.a. On MDA I am down approx. 10% today but On GIB.a I'm up 41%. Both of those holdings have missed expectation in this quarter. Should I sell or Hold?

Thank You

Paul
Read Answer Asked by Paul on July 31, 2015
Q: Today Paul asked a question in which he included the following statement: [Plus I have PPL, ENB and IPL which you consider as utilities; all in very positive territory.]
Could you please confirm that you do in fact consider PPL, ENB and IPL to be utilities? Even if they are, I notice that their price tends to have close correlation to the price of oil.
Thank you.
Read Answer Asked by Dennis on July 31, 2015
Q: Dream Office REIT continues to get punished. Office real estate is clearly an out of favour asset class and it seems to me could remain that way for a few years (not to mention the weakness in Alberta). At the current attractive valuation, is this a reasonable holding for a patient investor content to collect the 9.60% distribution yield?
Read Answer Asked by Greg on July 31, 2015
Q: After the recent results, the share price has gone way up. What are your current thoughts on going forward for a long term hold? Would you recommend buying at these levels? Thanks
Read Answer Asked by Janice on July 31, 2015
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