Investment Q&A

Q: In response to the previous question, K-Bro was downgraded by Scotia, referencing a few new contracts they lost out on to competitors. Scotia also mentioned an M&A transaction that K-Bro lost out on and was interested in.

Q: Hello,
Whats happening with K-Bro today? I don't see any news.
Thanks
Luke

Q: In Amaya’s press release this morning they stated that they will not be providing 2016 guidance “in view of the potential offer that may be forthcoming from Mr. Baazov”. I cannot make sense of this or understand why this would be a reason to withhold future guidance. Surely the due diligence that any potential acquirer would undertake will far outweigh any “guidance” provided to shareholders. It sounds to me like an excuse to not disclose what would otherwise be underwhelming future guidance. Could this be why it is trading significantly lower this morning? How would common shareholders like me even begin to evaluate the merits of any bid to take the company private if they won’t even provide guidance? Do you see anything “fishy” with this move?

Q: Hello,

Another weekly market report letter I received says "do not let little losses turn into big losses" (cut your losses after 10%). DIRT and ENTERTAIN I've had for quite some time and are down 35%-40%. Since you know these stocks well, if it took them 8 or 9 months to fall that far, will they recover in 8 or 9 months? One month ago, I took a position in TNC, and it is down over 10%. Should I hit the sell button? You know that stock better than I do. In your email, you recommended some plays in AYA, CUS, and I believe SPB. I am thinking of trying to recover some of my money with one of these email recommendations. Out of the three, which one do you think going long on will be the least risky?

Thanks,
Dennis

Q: Hi,

I am not sure whether you want to use one or two question credits, or none, as there companies are in the portfolios.

AW.Un has a B+ rating and was one of Mr. Hodson's top picks. I read the report on AW.UN. Can you please clarify on the 5 year EPS growth, which
is strongly negative. What is behind it? Does that not detract from your assessment of AW.UN? Do you think that AW.UN has a strong possibility for share price appreciation in the next few years?

Also, a few weeks ago you identified CXR as one of the companies with the largest potential for share price appreciation in the next few
years. Is that still the case?


Thanks,
IF

Q: I am not in any rush and have a five year plus horizon but am concerned with the considerable losses with this holding. I still maintain a full position.
Buy. sell or hold?
Thanks for the great service and love the blogs!

Q: I am interested in the explanation of Royalties. What is the model for companies and brands like A&W and others. What are the structures for payments to shareholders? Are they a percentage of sales or what are the Royalties payments based on.

Q: Hi - Does CSU have to keep acquiring more companies to be sucesful or can they grow and prosper with their current lineup of businesses? Thanks

Q: Dear 5i
I read that PBH is one of your favourite companies . I`m seeing however that their ROE and ROA are quite low and the total debt relative to net income is quite high. The high debt to me would add a lot of risk unless the expected growth rate is quite high . Is this the case ?
Thanks
Bill C.

Q: Dear 5i,
I continue to watch ACQ and debate on initiating a position. Do you think this stock has found a floor and most of the risk is already priced in? I find it odd that approx 50% of it's dealerships are outside of Alberta and the stock has not participated in the recent rally and continues to decline. In previous answers you have said to give it 3 years. Excuse my lack of understanding. In three years do you expect ACQ to have recovered to it's previous prices/growth valuation or that the Alberta will have simply recovered and the stock price will start to move up in 3 years? Is it a buy at this time?
Thank you,
Kerri

Q: Wondering what you think of the latest report. They beat rev and eps but net income was down due to the US plant and USD debt. Their 2016 projections are consistent or above estimates for the year when you convert them back to CAD, since they are going to report in USD from now on apparently. Anyways, what do you guys think? Could it actually go up for once?

Q: On BNN 2/25,guest V Hirsch said that SJ,whose business is utility poles & railway ties,has great management.SJ is starting to get major orders to replace poles as its average live is coming to an end.CNR stated that it is expediting replacement of railway ties because of slower volume when it is easier to do it. 5I,any other news & is it reporting on. March 14.Appreciate your normal great services & views.

Q: Can you please give me your opinion on the latest news today for 4th quarter and year end. Thanks
Garry

Q: Hi Team,

Was hoping you could let me know what the expectations were for AVO's earnings and if you can comment on their qtr, once released?

Thanks,
J.

Q: Hello 5i, Can I get your analysis on Richards. One thing I noticed going thru the financials is that the distribution is a return of capital and not a dividend. Could you clarify that as well and the implications on my investment as I understood it to be them simply returning my money as opposed to getting a dividend from profits. Thanks

Q: Hello,could you please explain the amplitude of the 125 high P.E on BEP.UN this is the case in few of your picks.
Thank You
Dan

Q: I do not understand-to buy Enbridge now or wait? Thank you.

Q: I noticed CSU has bounced back from the recent sell off while ESL is languishing. Does that place a question mark over ESL? Is it the time to lighten up?

Q: In a response to a recent question, you said that you could see Cannacord increasing by 50% or more in value with better capital markets. My question is this. Do capital markets usually improve before the price of oil increases (as I assume CF is largely dependent on activity in the oil patch) or after an increase or could a continued lower price also stimulate activity as the strong take out the weak? Guess I am wondering what type of catalysts to look for when deciding whether to continue to hold this.

Appreciate your insight.

Paul F.

Q: Your thoughts on the recent purchase.