Investment Q&A

Q: WSP Global Inc. (WSP) has closed the public offering of subscription receipts at a price of $35.85. Today they are trading at $35.45 (WSP.R) and the common shares are trading at $35.53 (WSP). Does this indicate the subscription receipts were not that well received? Do you see any problems with this issue?
Thank you.
Nadine

Q: Hi Team,

I have a few SJR.B shares that I have held for a number of years now and am taking of switching them for Telus for growth. Do you see any problems with that?
Also for a two to three year time frame who do you think offer the best outlook for growth/returns between STN and WSP?

Thanks and good luck for the remainder of the ride.

BK

Q: Is there any problem buying WSP Global in our US RSP portfolio? Will the stock's performance basically match the CAN version?

Q: Hi 5i Team: In the last couple of days, WSP Global (WSP) and Sylogist (SYZ) has announced bought deals.

WSP Global: The Acquisition and other related transaction costs are being financed through a combination of:
•$502 million bought deal public offering (the "Offering") of subscription receipts of the Corporation (the "Subscription Receipts") at a price of $35.85 per Subscription Receipt (the "Offer Price") and up to additional gross proceeds of $75 million pursuant to an Over-Allotment Option (as defined below);

Is this interpreted as: $502M / $35.85 = approx. 14M additional shares (not including over-allotment)?

•$400 million private placement (the "Concurrent Private Placement") of subscription receipts of the Corporation (the "Placement Subscription Receipts") at a price of $35.85 per Placement Subscription Receipt to two existing shareholders, (i) Canada Pension Plan Investment Board ("CPPIB") and (ii) la Caisse de dépôt et placement du Québec ("La Caisse") and up to additional gross proceeds of $60 million pursuant to the Additional Subscription Option.

Is this interpreted as: $400M / $35.85 = approx. 11M additional shares (not including over-allotment) purchased by CPPIB and La Cassie?

WSP Shares Outstanding before announcement is: 61.6M

If the above is correct, future WSP Shares outstanding would be approximately: 61.6M + 14M + 11M = 86.6M, therefore a 40.5% increase in shares outstanding. Is this correct?


Sylogist Ltd. ("Sylogist" or the "Company") (TSX VENTURE:SYZ) is pleased to announce that it has entered into an agreement with Acumen Capital Finance Partners Limited ("Acumen"), pursuant to which Sylogist has agreed to issue, and Acumen has agreed to purchase on a "bought deal" basis, an aggregate of 1,820,000 common shares of the Company ("Common Shares") at a price of $11.00 per Common Share for total gross proceeds of $20,020,000 (the "Offering").

SYZ Shares Outstanding before announcement is: 22.4M

Therefore, the future SYZ Shares outstanding would be approximately: 22.4M + 1.82M = 24.2M, therefore an 8% increase in shares outstanding?

If my interpretation is incorrect for both companies, please advise. Thank you.

Q: Good afternoon, I was wondering your thoughts on the recently announced equity issue by WSP Global as well as the acquisition? Deal appears accretive and the last big deal they went through was well recieved by the market (earlier this spring).

Thanks in advance.

Kevin

Q: Hi - good luck on the ride Peter. Any thoughts on the WSP acquisition and financing. Seems like a very large deal for them.

Q: Hello Team. Thank you for the updated reports. I am trying to figure out how you come up with the month % returns (not incl dividends)?? Some work out exactly and some not! EG: VNR bang on but WSP not so. (as well as others across both PFs) Please clear this up for me. Good luck Peter on your brave ride across our wonderful Canada!

Q: Hi guys ... I'm in the process of culling the last bit of crap from my portfolio (FLY and AET.UN) with the idea of replacing them with something much better. I'm looking for a couple of solid stocks that offer a realistic chance at 15-20% growth in the next year or so while also providing a dividend of at least 3%. I got lucky with PKI on a big dip a few weeks ago ... now I'm hoping to find a couple more. Any help would be appreciated. One caveat ... I'm already overweight in energy so I'd like to avoid that sector.

Thanks for the great service.

Q: Upon reviewing my portfolio, I am interested in your thoughts (Buy,Hold, Sell) on the following:
ET, CAE, AVO, and WSP.
Much appreciated.

Q: Hi 5i,

Can you provide any comment on WSP's earnings? Still a good buy for dividend and growth at this level?

Thanks!
Wayne

Q: I currently have $20,000 cash in my TFSA, presently I hold RY and ESL. I would like your recommendations for a long term hold please.

Q: I am looking for info on WSP GLOBAL concerning the payout ratio and the amount of debt they carry at this time.Thank you for your help.

Q: Any reason for drop in the price of WSP over the past month?

Q: In my Income Portfolio I have half positions in AD,ET and WSP , looking to add to one , at todays levels which would you add to?

Many thanks for the education I receive on your site.

Q: I would like to take a position in two companies within the infrastructure space. I am considering WSP, ARE, SNC and STN. I would appreciate your opinion on which two of these companies would be a good long term investment and if they are currently at a good entry price. Thank you

Q: I am looking to add a consulting company to my portfolio and was wondering which would you recommend. As you have two in your portfolios, STN & WSP which one would you recommend for capital appreciation and best in class.

Thanks for your assistance.

Q: Hi 5i team,
Please give some background in building your income portfolio with regard to
a) WSP....an interesting choice considering your favorite is STN
b) SGY selection over so many good oil companies
c) FLOT with 0.4% yield as oppose to GIC

SPB, VNR and ET are excellent surprises we do not read regularly

I will gradually adopt to your income portfolio. Great work as usual, thanks

Q: Good day 5i.
I am looking to buy some shares in an engineering/environmental/architectural firm. I know that you like STN, but it's a bit pricey for me. I've held SNC in the past, and while I know they are attempting to clean up their act, I'm still nervous about their ethics. Recently I had WSP Global suggested to me. I know nothing about them. Can you provide me with some insight and a buy or not recommendation for WSP.

Thanks for your help.
Brian

Q: what is your opinion now of wsp after this deal and subsequent share offer and it's dilution to fund the deal.
thanks

Q: WSP Global
In the news today: WSP Global is acquiring Focus, a Canadian engineering & geomatics company. WSP is also doing a bought deal of commons (~$180 million value) - shares offered at $33.75. The offering closed very quickly. I missed it.

What do you think of this acquisition? Do you think their intent is to grow by acquisition? I would like to see solid evidence of organic growth as well. Their earnings, also out today, were okay.

Do you think the price will drop to $33.75 (or a bit lower) with the stock issuance? I would like to add to my position (got in at $30.51).

Any plans by I to do a WSP report?

I'm really enjoying my 5i membership - your dedication to responding to questions is awesome!

Thanks,
Heather