Investment Q&A

Q: call options are being sold today on efn. how is this possible if the stock is to be split on oct 4th into two new stocks. I was interested in selling covered calls for apr 2017.

Q: 'ECN' is trading today; is this the same ECN as is being created out of Element Financial? How is it that it can trade ahead of the split?

Q: If I sold a covered call for EFN e.g. $16 strike for 10/21 expiry, what happens vis-à-vis the proposed split if it occurs before the expiry date? How would the combined strike price be arrived at? Would you recommend avoiding the unknown and not selling the covered call?
thx; Mike

Q: Hi : what is your opinion now that shareholders approved the split in two, Element Fleet and ECN Capital. The shareholders also approved the issue of ECN shares to buy Infor. how do you see the future of these companies. I own EFN and will receive shares of both. Should I keep both ?, sell one, if so which one, or should I sell both ?
thanks !!

Q: Hi 5i team,

I am diversified in my portfolio but I need one more stock to round out my TFSA. From the companies listed can you please rank in order based on your highest conviction in the company to be able to execute shareholder value over the next 5 years.

Thanks as always,

Jon

Q: I wish to sell EFN to raise some cash over the next month. In your opinion is it best to do this before the split in early Oct. or to wait until after the split and see if the stock get a bounce post split.

Thank you for your advice

Q: Preferred Shares - A & C
Which company will they be part of and will the capital structure change?
Will they adequately serviced?

Thanks

Q: Following Efn split, do you feel that this is a good time to add this stock to my portfolio?

Q: I hold EFN in a TD Waterhouse SDRRSP account. What do I do with the current EFN shares I hold? Do I have to sell and decide which spin-off I want? If I choose to do nothing what would happen to my shares?

Q: Recently I've sold some non performing stocks as well as stocks that were a very small portion of my portfolio in an effort to concentrate my portfolio on some higher quality, better performing stocks and I've come up with these 6. Wondering if you could rank these based on risk from less risky to most risky. I'm fairly conservative, tend to hold good quality companies for long periods (5-10 years) and I don't like a lot of volatility - I'd rather get a 5% return and sleep at night than a 10% return and stress about it.

Q: i bought efn because it was financial operating in a different niche than the banks or lifeco's. i'm looking to add some more and bring it up to 1/2 position in my portfolio. add now or wait for the split? if wait for the split, stick to the leasing business?

Q: Hi 5i team,

From the growth stocks listed above what would be your top 5 for expected stock performance over the next 3 - 5 years.

Feel free to take as many question credits as you feel necessary.

Much appreciated,

Jon

Q: I read Element Financials conference call transcript for Q2 and this what I got from it.

They have been winding down 2 portions of their businesses which intern has,
1) Reduced originations and lowered EPS
2) Returned capital to make them M&A ready
3) Short term from "30,000 ft view" makes them look like they are falling apart
4) But, closing these business books will allow them to redeploy the capital to much higher ROE investments to grow earnings faster

The split of the company has put some of it's business activity on hold,
1) M&A has been stopped until the split so no big growth in Q2 and Q3
2) 3 immediate acquisition targets will be pursued when split happens
3) New funds will be launched for income growth and to free up capital for M&A
4) Expect some major accretive acquisition(s) to happen and possible surprise earnings either in Q4 or Q1.

So in conclusion they are setting themselves up for greater growth and shareholder value. To do this they have to sacrifice income in the short term to strengthen their capital, plus delay growth until the split occurs.

Is my simplified summary similar to 5i's consensus on this company?

Thanks, Shane

Q: 5i team, can you comment on latest Special Meeting (Tues Sept 20, 2016 9 am EDT), RE: Element Arrangement Resolution; ECN Capital Equity Plans Resolution; and Share Issuance Resolution? thank you

Q: Please give your advice on EFN going forward: buy, sell or hold.

Thank you.

Cathy

Q: Now that you have finally removed Concordia from your portfolio, it is time to consider also removing Dh and Efn as they are also cheap for a reason.

Q: Hey team

Your opinion on earnings report. Thanks Chris

Q: ave 5% in each corp and have losses of 25% and 35% respectively. I have been patient but wonder if I should sell one half of each and buy more ZZZ and KXS, in their place.
Thanks for your assistance..
Alex

Q: In the past I have just held a few stocks (PHM was one of them) but am now planning to take a much larger position in the Canadian market and would very much welcome your opinion, comments and suggestions on the list of stocks I have chosen. They were chosen largely based on their current price and the apparent opportunity for capital gain. What do you think.

Bob

Q: Presently, I own 5000 shares of Element Financial. When the split is completed, will I then own a predetermined portion of each new entity? Thanks.