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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: Please enlighten me on how bought deals work, using the most recent EIF bought deal as an example.

EIF floated new common shares at $42.45 per share recently and it was a bought deal so the underwriters bought the entire issue (plus the over subscription shares) for $42.45 per share. Thereby EIF received $42.45 per share (less the underwriter fees), while the underwriters assumed the risk in case if they cannot sell those shares at $42.45 or more. Am I correct so far?

In that case, with the EIF SP lingering under $42 a share, can I assume the underwriters will suffer a loss? After all why would you buy the new shares from the underwriter at $42.45 if I can get them cheaper in the open market?

Also if I were the underwriter, would I not be trying to drive up the EIF SP to over $42.25 to protect my deal?

Kindly shed some light on this type of transactions. Much appreciated.
Read Answer Asked by Victor on January 05, 2017
Q: Hi Peter and gang,
EIF's EPS(TTM) is $1.82 and it pays a monthly dividend of $0.1750 which translates into an annual didvidend of $2.01. If my calculations are correction, EIF's payout ratio is then 110%. Would you please comment on the sustainability of EIF's current dividend payout. Also please provide comment on this company going forward.
As always, good works fellas. Regards!
Read Answer Asked by Harry on December 20, 2016
Q: Hi Peter,My guess on RNW which I have owned since inception is that it will eventually be part of bep.un they already own a substantial position.all so if 5i followed EIF what letter grade rating would you give this co.I took a full position in eif the day after TD downgraded it.
Kind Regards
Stan
Read Answer Asked by Stan on November 25, 2016
Q: Good morning. Did you see Wednesday's Market call and specifically the guests review of his past pick's ? I thought his review of Exchange income which was up 41% on the year was lame. He claimed it was some obscure company in the restaurant business. He seemed totally unprepared and not in a position to review the company at all.
Read Answer Asked by Alan on October 06, 2016
Q: I am concerned about EIF's debt to equity ratio and the potential of aviation fuel increasing with the price of oil stabilizing and potentially rising. On that note, was the decline in fuel price a key contributor to their recent past profits? I do like the depth of directors and management. I'm inclined to think that their FAR NORTH aviation markets are a barrier to entry in and of itself and they have the market captured. Don't know if I should continue to hold or liquidate? Can you help me decide?

Carl

Carl
Read Answer Asked by Carl on October 06, 2016
Q: Hi,

Within an overall balanced portfolio, I am looking to add one "high yielder" to supplement dividend income. Which of the four listed would you prefer and feel the dividend is the "most" secure going forward? Is their a different equity that you would recommend other than the four listed?

Regards,

Robert
Read Answer Asked by Robert on September 26, 2016
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