Investment Q&A

Q: I have a 2.9% weighting in WSP should I add to make it a full 5% position.

Thanks

Peter

Q: Further comment about press releases sent directly to investors from Covalon CEO Jeffrey Mandel: I own that stock. If memory serves, the stock hit a high of 9.15 on August 6 and then appears (in my naive understanding) to have become the victim of a short attack. Trading was halted and IIROC then asked the CEO what material change(s) -- if any -- might account for the abrupt drop -- which hit a low of 6.26 (nearly 40%). As an investor, I took Mandel's first direct emails (which began at that time) as reassurance to investors not to panic and dump the stock. COV has recovered somewhat since then, but I'm assuming that Mandel might be sensitive to the potential of another assault against his company (e.g., SHOP) and may want to inform investors directly of positive progress being made -- which include the last couple of messages that just arrived in my inbox.

Q: I am considering buying CGX. The main concern I have is the debt. Does it seem manageable to you? Thank-you.

Q: Do you have any updates on Maxar? I heard someone mention accounting irregularities on BNN (perhaps the person is shorting the stock?). The stock price doesn't seem to want to stop going down. However, with my luck, once I sell MAXR the stock price will jump higher.

Q: Since buying COV, I've started receiving regular emails such as these 2 yesterday:
"Covalon Announces Another Milestone Quarterly Profit on Excellent Third Quarter Financial Results"

"Covalon's excellent earnings listed on Globe and Mail small cap movers list"

I have never received these types of emails on this regular of a basis from other companies that I own. Should I be concerned about the promotional nature here?

Q: when should tender papers arrive , what happens if I dont get them ? If I do nothing will I still get the Brookfield shares and cash. thx Jack

Q: Please comment on earnings. Thanks

Q: Just a comment to add to your comments about NFI in a previous question.
While the 40 electric busses ordered by Montreal & Laval may not be significant as compared to the 4,000 they have sold in the last 12 months,
the more important thing is breaking into the Quebec market (probably the
2nd largest market in Canada next to Toronto/Ontario). Lets face it Quebec is notorious for paying whatever price to support Quebec companies. Should these buses perform well it could be very beneficial to NFI.

Q: Covalon has spent just over $700K on R&D for the six months recently reported according to my reading of the financials. This is a small number for a company looking to grow significantly. How can they develop new products with such a low ongoing investment? How do you see this?

Q: Own NFI and CIX. Looking to diversify with a high growth stock - PBH? I know you are bullish on it. What's caused the recent drop?

Q: FYI The UK gov has posted Oct 18 as deadline for phase one decision of competition review of TSGI/Sky deal. See link below.
https://www.gov.uk/cma-cases/stars-uk-sky-betting-and-gaming-merger-inquiry

Any Thoughts on the outcome?

Q: Would you please provide your assessment of the announcement by NFI.......'Montréal and Laval award Canada's largest ever battery-electric bus contract to New Flyer' Any idea of the financial impact to NFI....Thanks

Q: I see technical analysis indicates this is a good time to be buying BEP.UN. You have indicated that you prefer fundamental analyis as to determing buy/sell decisions. So is it also time to take a position in this company fundamentally? Thanks for you opinion?

Q: Hi Team,
I am currently down about 30% on MAXR, your advice please on if I should sell and use the money else where, or hold.
Thanks

Q: Hi Ryan
Rpi.un has through appreciation has become my largest holding next to my cash position .i am up 1000% in one account and 600%in the two TFSA,s
What would your advise be as these are in tax sheltered accounts .
What do you feel the reason for this stock to continue to make new highs almost daily
Kind regards
Stan

Q: Your thoughts of the cie's response about short selling. Tks

Q: What are your thoughts on on the acquisition of Spectra? Is it just sort of tidying things up or is it noteworthy in some way? Thank-you.

Q: Hi 5i,
I know that speculating on takeovers is not something you advocate but do you think Covalon may be heading for a buyout? The recently announced licensing agreement with “a large global medical company” reminds me of the deal that Pure signed with Xylem, leading to the takeout of Pure less than a year (I think) later. It looks like a ‘test drive’ of marketing COV’s product and services suite. If the larger company becomes convinced it can sell the product, preserve the margins, and scale that across a larger market, a buyout is a likely next step, isn’t it? Plus, the described global medical company is presumably not Canada-based. For a non-Canadian acquirer, the perceived Saudi-Canada relations risk would likely be a non-issue. Thanks!

Q: Hello 5i Team,
What do you think about the short report on Stars Group? The Co. seems to have countered most of the negative points raised. Also, is the short position big and/or still growing?
Thanks for your usual help.

Q: Hello 5i Team. My understanding is that there are 2 significant issues here. US tariffs, and recent miss on performance. I've just recently started managing my own rsp, I'm finding mg to be the toughest decision I've had to make so far. I read that the stock could drop by as much as 30% if the tariffs go through. I've read mostly positive feedback from 5i on MG. Can you help quantify the risk over the next 2 months to a year?
Thanks