Investment Q&A

Q: 5i Research Company Updates of April 4, 2016:
Well, we will get the bad news out first. As most Members know, the CEO of Amaya Inc. (AYA, Rated B+) has been charged with insider trading and has stepped aside from his duties. The issue has been well discussed in our Q&A section. We still consider the stock 'buyable'. Stepping aside was the right thing to do, but we are taking AYA out of our Model Balanced Equity Portfolio. There is still potential, but we think we can do better for the portfolio. We certainly see it as a 'high maintenance' name, and portfolio stocks we think need to be less volatile than AYA. Plus, if there is indeed a $21 bid mounted by the ex-CEO, the upside from current prices is limited.

Notwithstanding the ex-CEO is presumed innocent, taking AYA out of the Model Balanced Equity Portfolio is meaningful.
Would you now advise staying clear from Amaya for the time being, even with a rating B+ ?

In comparison, would you view Cineplex (CGX), recently maintained at A-, as a clearly better choice ?

Q: Hi, I watched this co. for past few years since it was mentioned by Jason Donville 2/3 yrs ago when it was trading around $15-$16, but failed to act. It has been rated highly for some time by your team, so despite its sharp price rise over past 6 months, I decided to finally act and bought half position, after stock was added to your Balanced portfolio, this week. My dilemma is whether I should wait for a pull back to add to full 5% position. Interestingly, stock is already trading above most analyst' 12 months price targets, the only exception being TD with $60 target ( pre C&C acquisition). Thanks

Q: I have about $5000, market value of BAD in a TFSA would it be better to sell and use the proceeds to buy SIS or something more likely to increase in the shorter term, or just hang in. The current loss is 20%. Thanks.

Q: In your reply to Andrew (today April 8) you mentioned considering replacing CNR with SIS. Just curious why in that SIS is thinly traded and is at a all time high today. I have been burned by several small cap stocks lately (eg. PHM) and want to learn from my mistakes (i.e. stop buying small caps at their highs). I have owned CNR for some time and it has been good to me. I like SIS but with its large upward movement recently do you think the risk level has increased significantly? Thanks.

Q: Hi team, I've held Exco for a year and am just a smudge above water with it... I wonder if you have any sense of its future upside? The dividend alone is not enough to keep me in the game... Your thoughts? Thanks! Kate

Q: What did you think of their recent letter to shareholders? Im wondering if this stock is getting overbought? Thoughts?

Q: Please rank the following consumer discretionary stocks for a long-term hold in order of preference..... A&W (AW.UN), Boston Pizza (BPF.UN), The Keg (KEG.UN), and Pizza Pizza (PZA). I am a retired, fairly conservative, investor looking for steady dividend income with minimal risk to loss of capital. Thanks!

Q: If Bazov doesn't bid what are the implications for the stock price? Thank-you.

Q: Peter:

Today RDM's market cap exceeded $100 million. As a former fund manager will this bring in more institutional investors into this stock and allow it to trade higher multiples?

Q: AYA stopped offering forward earnings guidance with Mr. Bassov's bid in works. Now that he is no longer with the Co. shouldn't guidance be reinstated?

Q: I am trying to decide where your sentiments really lie on Ten Peaks coffee. I'm thinking of a possible switch from TPK to BOS, given BOS's recent decline, and its high rating.

In your recent report on Ten Peaks, you gave it a C +. By 5 I standards, a C+ rating denotes "Companies we do not expect much growth from. May pay a dividend we would view as sustainable. Would own for income, needs to be watched."

This doesn't sound very hopeful for TPK.

Is it then, in 5 I terms, on the low end of probability as a growth stock? All along I've been reading this as one which has good potential, but your recent rating makes me think twice.

I've had my eye on BOS for some time, and wondered if now might not be a good time to switch, notwithstanding the very diverse industries in which they lie.

Thank you!

Q: Is it time to buy in to this one

Q: Just wondering why you are selling this from your growth portfolio? thanks Clare

Q: From a technical standpoint as per IE,if SYZ breaks out from $9($9.35 high today & also 52 week high),the next resistance is $11.Note your recent positive comments( including its repurchase of 1.4 shares @ av.cost of $6.94 since 7/15 & suggestion that it can be a multi-bagger when probed by National Post in early march-was $8.34 on 3/4 ).Is this a good point to add to my small holdings?Thanks for your usual great services & views.

Q: I noticed Sylogist has a strange looking chart where there is a distinct upward trend from early October. You can almost draw a support line from the lows of about $6. It also hit a new 52 week high today. I'm not sure if this is significant from a technical analysis point of view, or if your team even thinks technicals are worth looking at. Any comments?

Q: I bought BOS in August 2015 and as of today I am down 40%. What's your view on BOS going forward (3 to 5 year time frame)?

Q: 5i mentioned that DSG could be a takeover candidate. What kind of premium could DSG fetch and I know it got tossed from the model portfolio but is it still a good hold for tech ?

Q: Is this stock still worth holding? I have it in my cash and RRSP accounts. I can hold it for 2 - 5 years. Please advise!

Q: For those of us still invested in Amaya, there's a link between the Panama papers and Bazoov's brother and sister. Another reason to doubt the CEO ethics. Even rich as he is, he risked letting his siblings hide money. The man lacks common sense: http://calvinayre.com/2016/04/05/business/panama-papers-link-amaya-gaming-insider-trading-investigation/

Q: How does the Shoppers deal alter the outlook for SIS? Can you see the stock approaching $8 in the next 18 months assuming slow growth?
Thanks and have a good day.