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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: WRT your recent DHX report, I think it leaves out some significant assets: Cash, short term investments, and the Peanuts sale cash. Can you check these numbers:

1) Net debt = $760M - $246M Cash/short term investments - $237M Peanuts sale = $277M
2) I think Current median EV/sales multiples for the media content assets is around 1.8x (confirm?). I believe peanuts sold to Sony closer to 3x (confirm?). I'm not sure the exact net revenue Peanuts brings to DHX?
3) If we assume the 49% sold peanuts stake contributed ~$100M in revenue, the DHX projected revenue would drop to say around $350M. So we are looking at $350M x 1.8 = $630M of content assets.
4) Margin of safety: $630M = $277M net debt + Equity;
Equity = $353M, compared to under $200M current market cap.

This company is certainly a cigar butt, which I picked up close to $1. Seems to have a couple puffs left?
Read Answer Asked by Wayne on September 25, 2018
Q: Listened to micron CEO today explain effect of tariffs on his business, micron has some production facilities in China whose products when imported to USA will be subject to new tariffs. Net effect was margin decline of .5 to 1 %. Also they are looking to move production out of China to mitigate tariff effects. Would Photon potentially get some of this this shifting of production, not only by micron but by other semi manufactures? Does photon have excess capacity to go after hew clients? Greg A.
Read Answer Asked by Greg on September 25, 2018
Q: Hi 5i team,
Brookfield equities (BAM, BEP and BIP) represent 8% of our portfolio. I am down 8% on BEP but am wondering whether the current dip down to $38.87 per share represents a good buying opportunity, especially given it's dividend yield at around 5.5%. So, my questions are: 1) is an 8% total Brookfield weighting too much in general, and 2) what about buying more BEP or do you think that it's likely to slide further given their broad holdings in emerging markets. Thanks for your help.
Read Answer Asked by Martha on September 24, 2018
Q: Hello, SIS announced a couple of days ago it is increasing the dividend by 17% and provided its update on 2018 and 2019 guidance. The market welcomed the announcement with an upswing of 5%. But today again, it is down by 3%. The volatility is not matching with the market movement. Yes , the shares are up compared to a year ago. But still the movement of the stock is becoming un predictable to large extent. Is there any other news that I have missed on this counter. Thanks for your advice always.
Read Answer Asked by Sriram on September 21, 2018
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