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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: Good Afternoon,
I see that you recently answered a question on the $200MM bought deal today, I would just like to expand on this a bit please. I recall when Avigilon did this a few years ago, they already had ample cash on the balance sheet with no debt but took advantage of their high share price to issue shares and raise capital. You had mentioned at the time that they likely had a large acquisition in mind but they never really did deploy that excess cash with one single large takeover that I recall. Of course AVO has unperformed and acting poorly ever since. Any read through on GUD? They now have approximately 75% of their market cap as cash, seems awfully high with now 25% more shares outstanding. Doesn't seem to make much sense? Any further thoughts? Thank-you.
Read Answer Asked by Chris on May 11, 2016
Q: Hi Peter & Ryan,

While the results looked decent at SYZ; I was caught off guard by the following statment in the the dividend release. "Jim Wilson, President & CEO of Sylogist commented "Moving forward, we can foresee that prudent capital allocation may dictate adjusting our dividend downward to allow us to invest directly in business acquisitions where the opportunity to increase our share's intrinsic value exceeds the value of a pre-tax return of cash to shareholders."

It was also noteworthy that they broke their mini streak of raises every two qtrs. Seems to me by my simple analysis that a very large acquisition is in the works that may eat in to the some or all of the cash pile. Am I reading the tea leaves correctly? Would they really cut, instead of just keeping it flat?

Part of the attraction to this company has been the way the add value to shareholders; so I would defer to management to do what they seem fit to add value; but a potential cut seems to send the wrong message.


Thanks,
J.
Read Answer Asked by JAIME on May 11, 2016
Q: Thinking of buying TCN,but there are a number of negative factors,which hope You can explain.Majority of fund managers on BNN fancy it.Note your comment on BNN on May6 & your report in Mar/15.1)Is there further share dilution since 2014?2)Majority of assets in USA,so this Qtr 1 can be negatively affected as Can$ was strong.3)Is thepresident Gary son of the Chairman?got the job because of nepotism or deserving?Was he the young guy(late thirties) who appeared on BNN some 18mos ago promoting TCN.4)It beat estimates every Q since Q3,2014,but chart is negative($7.40in Oct/14,reached a $12 high in 7/15 & then tumbled till Feb 9/16 to $7.93.5) why price dropped?Please advise if I can buy it now.Always appreciate your great services & voews
Read Answer Asked by Peter on May 11, 2016
Q: Hi there,
The share price of auto Canada is acting better and the street seemed to like their earnings/dividend cut. Would auto Canada see increased business with the tragedy in Fort McMurray? When looking photo's of the damage I see a lot of destroyed cars. With roughly half there dealerships in Alberta do you think there will be a meaningful benefit for acq? Do you think it is a buy at this time or has it gotten ahead of itself?
Thank you,
Kerri
Read Answer Asked by KERRI on May 10, 2016
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