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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: AX.UN dropped around $1.50 after 3rd quarter results and a release from the company on Nov 1 which stated it will be cutting its payout ratio by about 53%. A part of that release stated under the heading "Overview of New Initiatives:
...The REIT will immediately focus on repurchasing its units through its existing normal course issuer bid (the NCIB) to capitalize on the current trading price, which is presently at a significant discount to its NAV. The REIT has sufficient liquidity to execute the NCIB and intends to continue with the repurchase of units in the future to the extent that the REIT's significant discount to NAV persists...further on it says as a result of the improved balance sheet and the increase in retained cash flow from the revised distribution, the REIT will have the ability to repurchase units...

To me this feels a bit shady in that it announces an initiative that will result in the stock taking a hit and then they are going to buy back the stock at the lower price.

A couple of questions:
1. Will the shareholders have the option to keep their stocks and not sell in a buyback?
2. If you owned a fair amount of stocks in this REIT, would you hold or sell?

Thanks,

Paul
Read Answer Asked by Paul on November 05, 2018
Q: Is there any news/reason for the harsh drop in today’s price on FTNT? Is this an opportunity to buy?
Read Answer Asked by Terry on November 02, 2018
Q: Hi,
thanks to 5i, my portfolio is fairly well diversified and overall doing quite well. The equities listed in this question are the ones I'm down on the most, some are near 25-50% losses. What general guidelines help determine whether to sell these 'losers' and move the remaining funds to other stocks or whether to continue to hold? Can you list each of these with a buy/sell/hold on a longer term (20 yr) view, these are all 1-5% each of the total portfolio. Deduct as many credits as needed since there are really two questions here.
Read Answer Asked by S on November 02, 2018
Q: Hello 5i Team,
I was curious on your thoughts about Fairfax India and Africa Holdings and why are both these positions down significantly (below BV). I hold both a 5% position in my account and wondered if I should add a bit on the premise that the USD is near its all-time high as well as benefiting from tax-loss selling.
These appear to be well managed holding companies that are invested in the growth of emerging markets.

I appreciate your response and thank you for the great service you offer.

Massimo
Read Answer Asked by Massimo on November 02, 2018
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