Investment Q&A

Q: what are your thoughts on the recent news and were would this be a table pounding buy . thank you .

Q: Is there a problem with pure? After hitting almost $5
It is down to $4.30 in a relatively short time. I don't see any negative news?

Q: Hi

I am looking at Home Capital. The market cap is ± $1.5 billion dollars. The balance sheet indicates that Home capital has $1.2 billion in cash, $535 million available for sale securities and $2.6 billion in senior debt. I calculate the enterprise value at ± $2.365 billion.

The net income for the past twelve months stands at $247 million. The net income for the quarter ending December 31st was $50 million or $200 on an annual basis. Income and cash flow provided by operating activities for the year ending in 2016 were respectively $789 and $561 million. The cash flow looks unreasonably high. Is Home capital really generating that much cash ? If Home capital can earn $200 million in net income and $500 in cash flow for the current fiscal year, would you say that the company is selling at a discount?

Also, I am aware there is a cloud over the unexplained departure of the CEO, the alleged mortgage fraud and the mortgage rles have changed. Why is it that a publicly traded company do not have the obligation to explain why the CEO was fired?

Q: One report I read stated that to finance the acquisition PKI would issue 24 million shares to raise $660 million. That works out to $27.50 per share and the shares are currently trading near $31. In one of your earlier responses you also mentioned that shares would be issues at a discount. It would almost make sense for anyone like me who holds PKI to sell now into the market and buy back at the new issue price. Your thoughts?

Q: For a 3-5 year hold, which stock do you think will perform better? Thank you.

Q: Please give me your comments on the purchase by PKI, and how significant of an acquisition this is.

Q: Any idea why it is recovering so nicely? i thought this years outlook wasn't great.

Q: AYA finally seems to be feeling the love. Could you give a brief breakdown of its metrics and how it compares to other companies in the space? I am trying to get an idea of what kind of catchup (if at all) it can achieve.

Q: I have held this for a couple of years, and it has been good, past 6 months it has not done a lot,is the growth slowing down and what should we expect from it in the next year?
Thanks again

Q: Mr. Hodson, why do your feel so confident of the future for GUD ?

Q: I bought half a position in GSY recently and am already up 17%. Is this a stock that should be kept at half a position or can go to a full? if a full, should i wait for a pullback to buy the rest? Is it too expensive now?

Q: AFN has been extremely volatile of late, especially today, down mid day approx 3.5% despite a good market day. They just recently announced what appears to be a good acquisition, and they pay a good dividend. Do you know what is the cause for such negative volatility, and the setting back of the share price over the past few weeks?

Q: Hi, I am glad that I did n't panick during the recent softness in Altus Group share price and stuck to my initial purchase when it was added to Balanced Portfolio. Ryan, on BNN talked about it's 14% stake in "Real Matters" (estimated $ 1 bln software co.) Real Matters filed for an IPO on April 11 and expected to go public some time in May, 2017. What will be the benefit to AIF and shareholders, in near and long term ? Also, what are your views on this IPO- is it worth participating ? Thanks

Q: Hello 5i team,
I'm basically a balanced equity 74 year old guy; but I also hold the following growth companies CRH,ECN,GUD,KXS,OTEX,PLI and SHOP. I'm thinking of adding GPS or PHO or ZCL; how would you rank them ?
Thanks,
Antoine

Q: I don't know GSY at all and I am reluctant to invest in their wonderfully performing shares. OTOH , I hate to miss out on a great growth situation .Why do I think of them as a Usury business managing to barely operate within the consumer act ... Perhaps I am wrong . Are they no different than any bank or trust company ... ( except that they rent furniture ???? ) .

Q: Question on shares outstanding vs. the share float. You mention in a previous answer that GSY has 60% inside ownership, is there a site that gives this number or are you getting outstanding shares from google and the inside ownership from the annual meeting report? This report would show how many shares the directors currently have. I'm trying to calculate how to buy break a larger buy into pieces and have been using the average daily number of shares traded.
Thank you and Happy Easter.

Q: Hello;
I have full position of ZCL. I would like to take full positions in CCL.B and RPI.UN for 2 to 3 year horizon.

However, all of the above are in packaging industry. Is it advisable to put so much in one industry? Thanks.

Q: I bought in November around $30. Should I Hold or Sell? Thanks!

Q: Been holding GSY, have had a super run, thanks for the advice. I am however gettign concerned about an end to canadas debt binge

What are the risks to GSY from
1. Deflation of the housing bubble
2. BOC signalling and (potentially) raising rates

Would it cause more or less customers to need the type of financing GSY offers? will GSY yield spreads on financing increase/decrease?

Thanks

Kuldar

Q: Hi Peter, can you please provide your views and long term prospects for this co. Are the div safe.thanks. Alnoor