Investment Q&A

Q: Savaria is steady. Hanging around 10.75-10.99
No Big Movement.
Any thoughts whats going on or next step.

Q: Last night's guest on Market Call Tonight said Savaria was a great company, and he met with them last month and likes them. But he said the stock was way overpriced. He said he would not buy and if he owned it he would sell it. He said if they continued to perform the stock is going to move sideways at best for the rest of the year. I take it you have a different opinion.

Q: Is now a good time to increase my position in Spin Master, or wait until earnings are announced on March 13, as you mentioned in another answer?

Q: What are the consensus revenue and earnings for Spin Master for their March reporting? Do you have an inkling on the impact of record Xmas sales vs. some returns for Hatchimals on the earnings? It's a 3% holding so I'm trying to gauge the present risk vs. Reward.

Q: I just got rid of HCG from my TFSA after watching it go down 20, 30, 40, finally almost 50% from when i bought it. MDA, also in my TFSA, seems to be embarking on the same course. Is there hope for it, or should I bite the bullet and abandon it as well?

Q: Hi,

I see on your coverage summary that you have CCL listed as basic materials, however TSX lists it as consumer cyclical. Can you confirm which category it falls into? Could it be somewhat industrial as well?

Thanks!

Q: Considering the fundamentals, cash flow. P/E ratio, balance sheet and general business practices and opportunities what are your predictions for this company in the short term (1 year). The stock has been trading around $52 for a while. At what price would you consider selling it??

Q: Hi Team,

Premium Brands' shares have not been doing well in the new year. I would appreciate your thoughts on possible reasons for this and whether you think they might re-gain their momentum in the near term.

Thank you,

John

Q: what happened to aw.un its under 40.00 is this going to recover?

Q: Good day,
Perhaps I need to be clearer in what I'm asking with regard to the secondary offering announced by A&W. From your earlier answers this is a non-news story that has zero affect on the company and its stock value and does not even really involve the company so much as certain shareholders selling their stock to someone else. So why did A&W announce it? The market seems to think this was a significant event, as the stock has fallen precipitously since the announcement.

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.