Investment Q&A

Q: Nice calls on these two...I bot them last week with your research and have now covered my next 10 years worth of subscriptions..Thank you very much..learning more and more with your coverage..

Q: The market does not seem to like the prospect of MDA acquiring DigitalGlobe with the stock down close to 4% since news of the possible deal was released on Friday. This would be a huge acquisition for MDA. What is 5i’s opinion of the deal and the reaction of MDA shareholders?

Q: With regards to reports of a large acquisition possible for MDA; my question is, would a deal of this possible size require a very large amount of dilution? I don't believe MDA could fund strictly through debt?
Any thoughts on the target beyond how they could structure the deal? Seems like a logical space to go after?

Thanks in advance

Q: BCI is about the only B+ or better stock in your coverage universe that I do not own.

Currently it appears to be quite oversold .... and does carry a small but respectable dividend.

Do you still like the company & would this be a good entry point?

Thanks.

Q: Hello Team,
Which of these two companies would you prefer for ongoing, consistent growth?
Thank You,
Barry

Q: Would you please clarify your answer to Chris. It looks like A&W is offering up new shares for sale. This dilutes the value of existing shares. But the money from the sale of those shares is going to 'indirect shareholders' (the people who own Food Services) rather than to something like reducing debt for A&W or doing something else that will eventually improve shareholder value.

Q: A&W issued a release regarding a private placement this morning which itself isn't out of the ordinary.

However what caught my eye was what will happen with the proceeds. They will be given to 'certain indirect shareholders' for 'their personal financial planning requirements'. So the fund is selling units to Laurentian, and all of the money is being handed out to unknown shareholders. None of the funds will be distributed to other shareholders, nor will the Fund hold the cash.

I'm no expert but this doesn't pass the smell test. Am I missing something?

Q: AW.un just issued at private placement with the stock price being $39.25. Currently the stock is trading at about just less than $41.00. Should I expect the current price to decrease to be closer to the private placement price, today or over the next few days?

Q: Could you comment on the private placement, is this why the shares are down ~$1 this morning? will this put a ceiling on the share price until the placement closes?

'VANCOUVER, Feb. 17, 2017 /CNW/ - A&W Food Services of Canada Inc. ("Food Services") announced today that it has entered into an agreement with Laurentian Bank Securities Inc. ("LBS") to complete a secondary offering of 373,300 units of A&W Revenue Royalties Income Fund (the "Fund") (TSX: AW.UN) in a private placement on a bought deal basis. Under the agreement, LBS has agreed to purchase 373,300 units of the Fund (the "Units") from Food Services at a price of $39.25 per Unit, for gross proceeds of $14,652,025. The transaction is expected to close on or about February 28, 2017, but not later than March 8, 2017.'

Q: The fundamentals I get from CIBC on the company look awful: FPE 26x, ROE is terrible, debt is high at 1.5x Equity or so, P.R. is 4 digits - how can they sustain the very nice dividend and grow it over time? They must have a heck of a lot of non-cash write offs like depreciation, maybe goodwill etc.. Comments please. I'd like a company like this for diversification; but, this one looks like it is way ahead of itself based on positive sentiment NOT fundamentals.

Q: Your opinion regarding the recent q4 report. Many thanks.

Q: Can you please comment on its recent earnings.

Q: A National Bank analyst was concerned about threat of a class-action lawsuit...

Are you concerned? iS THE treat real? What do you imagine the likely impact would be?

Q: Please comment on their recent quarterly reports and highlight concerns if any.

Thanks

Q: KXS is enjoying a good run of late.. Wondering how you feel about it for a 5 - 7 year hold?

Q: Good morning Peter and Staff
I have Dhx.b in my RRSP. It's about a 2% weighting.
Please provide some stocks that you would replace it with?
Thank you

Q: Can you please comment on bpf.un recent earnings and valuation (and recent share drop)

Q: I am looking for a predominantly oil focused mid cap producer with good growth prospects. Would RRX fit the bill or do you have another suggestion I can investigate further. Thanks

Kenn

Q: I bought TOY mid-November and it has been on a steady decline since. I do understand the "issues" with the hatchimals but would have figured it to at least steady itself or even start to bounce back. Should i consider taking my lumps and sell at this point?

Q: Hello 5I Team
Do you recommend buying Gsy after todays earnings report ?
Thank you for the TIO recommendation .
Thanks