Investment Q&A

Q: Hi, I bought sylogist in early fall and am up twenty percent. With the recent management buys and news on this pilot they are running things look really good at the company. Do you agree? What is your outlook on the stock for 2016?

I have a 2 percent weighting and was thinking of increasing it to 4 percent now that the stock is doing well. Is this an approach you would agree with or should I just stick with the 2% I currently own?

Best,

Carla

Q: Hi, I just noticed that Pembroke Management Ltd, started a new position in Sylogist with 2,459,800 shares as at Nov/30/2015, per Morningstar. Is it possible to verify this information and who did they acquire this large block from/price and when? This will place them as the 2nd largest institutional owner (9.84%) of the company after CI Group and Mawer being 3rd. I find this really interesting as , after a steep decline, from a high of $12 and a financing at $11, last year, the stock appears to be showing some traction lately and company is has been buying back its stock aggressively. Thanks

Q: I am trying to understand dividend payouts and their implications.
A fund manager on BNN who is shorting Enbridge claims that they don't cover their dividend adequately using profit parameters. He also assumes that they will need to raise cash to cover the capex needs that might prove difficult to raise from the market.
In an article by Tim Mc Aleenan ( http://seekingalpha.com/analysis/investing-income/all) he talks about BP having enough PROFIT to cover the divide: " unlike many peers BP still has enough Profit to cover the dividend"

Questions :

1.Please explain payout ratio's as to different parameters and how they can be evaluated.
2.BP: is it a wise investment if you feel oil will recover reasonably in a year or two ?
3.comments on Enbridge, its div., balance sheet and Capex.?
4. ( BNN person claims that cash flow can be interpreted in many ways while Enbridge claims their payout ratio is 50% of cash flow ??? ) what say you ????

I understand that it is a long question and may be answered briefly here. You may use it as a subject for a wider presentation (webcast ?) as many seniors like me seeking income, depend on Dividends and may have been burned ( like me) running after yield without knowing the dangers.
thanks
Yossi

Q: Merry festive season! I am pleased with BIN, and am wondering if you know of 4-5 Stable Canadian companies who have European exposure with dividends and growth as a long term investment.
Thank you

Q: Accordindg to morningstar, fund companies and institutions own 66% of stock of SYZ and insiders own 11%. This does not leave much of a trading float. maybe 5 million shares or so. Is this good for a company usually. Most larger INVESTORS cant buy SYZ in size. Would a stock offering be advisable by the company again if they can put the funds to good use.

Thx

Q: Which companies have CDN expenses but get mostly paid in US funds that you like?

Q: If Oldford group is the last in line as to responsibility and there is already $ 300 million in escrow it would seem to me that Amaya should come out of this whole. They are required to lead the fight for Oldford and then collect from them. Does it follow that the market needs to determine if there is a collection issue with Oldford and discount that risk and not be discounting against the size of the lawsuit. Do you agree and is there any information as to the risk of collecting in full from Olford if the costs exceed the amount in escrow.

Q: The Financial Post recently ran a complimentary piece on DHX and their latest activities:
http://business.financialpost.com/executive/halifax-based-dhx-media-grows-up-and-takes-things-to-the-next-global-level

It's good to know they're not standing still in terms of dealmaking; perhaps it's the time of year but the market doesn't seem to be paying attention and we'll have to wait for analysts to come back from vacation for the stock to move or do you think the stalled equity raise is creating an overhang?

Your Sept. report states rating maintained at B implying there is an earlier report but I show this as the only one. What am I missing? Thanks, J.

Q: Your last question on DHX was in March 2015. Would you please provide your current assessment. Would you recommend oit as a buy at present time?
Many thanks
Guy R

Q: I no longer have a position in Amaya as of now; but today's news makes it an interesting consideration. From the highs of $35 it is now trading at $17. The business seems to be growing nicely but there will be an overhang as well; maybe even for a couple of years. I was wondering if it is prudent to step in right now, wait until the market settles down January or wait to see what the next quarter results look like.
A merry christmas to you and the team at 5I.
Regards

Q: Based on your answer to the question about the lawsuit, do you feel the market has over corrected the stock? Would you buy more

Q: Please comment on the lawsuit

Q: Hi Team. I hold both WPK and CCL. Is one better than the other for a long term hold? Want to replace two 1/2 positions with one whole. Thanks!

Q: I have 2% position in non-RRSP portfolio. Bought it 2 years ago at around $35, it is at the same price now. Considering low dividend and "lost" 2 years, do you suggest keeping it or changing to something with more growth potential? I also hold 2% positions each in XLI.US, SJ and WSP - unfortunately, I bough these just recently... If you were to rate STN today, would you still rate it as "A"?

Q: Could you please comment on $HLF. What is the short, long term benefits, risks in buying a 1.5% position.


Thanks Walter

Q: I'm down 34% on game Host and I wonder if I should sell, hold on. or should I buy more.
Is the dividend safe?

Q: Yesterday it was reported on BNN that Credit Suisse had downgraded BIN to a "conviction sell". The market seems to have shrugged it off, but should I be concerned?

Q: I'm confused by the latest report. CXI has had pending approval for a Schedule 1 Bank since before your first report Dec.1, 2014. If OSFI is doing the approving and now with a new Federal Govt. the process could take longer are you saying that this is somehow a political decision and not a bureaucratic one? What is the normal length of time for approval and if it has stretched on this long does that increase prospects for denial? It seems to me the takeover of CFF Bank by HCG in Oct. has been a huge ho-hum with stock down 20% since, so just how much upside has CXI vs. the potential further downside? Thanks, J.

Q: Hi,I have a position in Dh at $42 but could add some more for a 7% weight.
Would you add to bring down my average cost?This stock looks like it could have a good bounce.Also I have not heard much more on the short seller last month,is that finished?
Thanks,have a good holiday

Q: I am thinking of buying ( what i hope) are a few bargain stocks before the end of the year. Was wondering whether you thought home capital would qualify. I notice that it didn't come up on your blog post on tax loss buys. Would you still see the companies in the blog as the most compelling today? How about possibilities for large cap stable compaies, like CP? I am sure there is at least more than one question here, so please deduct as required. Thanks and have a great holiday 5i team