Investment Q&A

Q: How do you view the situation for PKI now that the acquisition of Pioneer has closed? Seems they have to semi divest much of the Pioneer retail outlets in eastern Canada. The price just dropped 2% today so some of the market is not happy with the outcome of the Competition Tribunal order. Do you feel that the 4% dividend is still relatively secure with the limitations applied by order?

Q: this company looks to good to be true
what do you think
sam

Q: FYI BNS was punished because of their exposure to Puerto Rico's financial crisis, huge debt load. Is that bankruptcy - for Puerto Rico, not BNS?

Q: An article in today's Globe highlighted that a few of the top analysts and execs seem to have done quite well for themselves in 2014, with their top investment banker making more money than just a couple of bank CEO's. Unfortunately for me, and I am sure many others, the stock price has not been as rewarding to me.

I understand that that industry can pay well and aside from my initial knee-jerk negative reaction, are these types of bonuses in-line with industry norms? Or is this a reflection on management paying themselves first and not giving a lot or thought about shareholders (which maybe is the industry norm)?

Thanks for the insight.

Paul F.

Q: Good Afternoon
Would you now consider a purchase of either of the two above issues. They would be
held to maturity in a RRIF.

Thanks Guys

Q: There is a report out that a CIBC advisor, Murray Bockhold in a letter to the Chairman of the Board of Extendicare Inc is asking the company to payout a special one time dividend of C$100 Million following the disposition of their US business, shrink the board to 7 directors from 9 and for the company to buy back C$100 million in shares. Do you think there is a possibility for any or all of these to occur? Thanks

Q: Hi Peter
With the current downer caused by Greece why would BNS get punished the most ?
Regards Stan

Q: WiLAN today announced that James Skippen has advised the Board that he intends to retire.
What are your views on this announcement.
Thanks
John

Q: Would appreciate your comments on the speculation of Frederic Blondeau with Dundee Capital Markets that Sienna Senior Living Inc and Extendicare Inc are most likely takeout candidates now that Regal Lifestyle Communities Inc has a buyer.

Q: Do you feel Stantec is a good buying opportunity at the moment? Thank you

Q: Good Morning Peter, Team
Is MG [Industrial sector] Large, Mid or Small Cap? Thank you. sarah

Q: Hi Team,

I know you mostly comment on stocks, and I have read your previous commentary on MRC.

I have a hole to plug in my five-year bond ladder which serves as the low risk side of my portfolio. I was thinking of buying an MRC bond maturing 12/10/18, CUSIP 617577AA9, as a small fraction of my bond holdings. Do you think this is a reasonably "safe" investment even though it carry's a BBB low rating? I plan to hold to maturity.

Thank you. Michael

Q: Hello Peter and company. I am interested in your views on Sylogist Ltd. This company looks to be very similar to a micro CSU. How do you rate the balance sheet and future growth. Do you see the possibility of others in the space seeing this company as a interesting small roll up.

I was also wondering if I might pose this question to you. Given the current environment with Obama Care being extended,Canadian companies looking to acquire and interest rates very low around the world. If you where going to invest in 3 companies with high growth and good balance sheets what would they be. Thank you as always and keep up the great work. Jason

Q: Is this a buying opportunity in Enercare, the stock erased all is gain of 2015 and yield around 6.3%. Seem a bit overdone here, whats your thought.
thanks.

Q: RBC came out with a research note on CSU this morning and a $475 target price (well below market price).

Do you agree, and can you comment on their observations I'm quoting below plse:

"In light of the divergence between Constellation’s current pace of acquisitions and valuation, RBC CM wanted to outline the conditions necessary and scenario for re-acceleration in acquisitions. The analyst believes a reduction in Constellation’s hurdle rate is needed to counter the elevated pricing environment and drive material re-acceleration in acquisitions. In the meantime, RBC CM sees acquisitions below FCF and Constellation deleveraging. RBC CM believes Constellation’s long-term fundamentals remain attractive. However, valuation multiples near the high end of Constellation’s historical range have diverged from its slower pace of M&A. RBC CM’s C$475 target equates to 16x CY16E EV/EBITDA on $519MM CY16E adj. EBITDA."

Thanks

Q: Hi Peter and team, Any reason (other than the expected interest rate hike) for the under performance of FCR? If you still like FCR, what % of portfolio would you recommend?
Thank you very much for all you do to help us.
Silvia

Q: Wonderful company. Reading their financial statements, however, they are starting to 'speak' less about growth and more about profits, cash flow, dividends. Is there any reasonable work that indicates their market share? Without getting into related/adjacent industries/products do they have any real opportunity to grow left? Thanks for the A+ service!

Q: According to the charts in TD Broker, the PE multiple on this stock has doubled over the last 5 years(give or take) and the stock price has moved from $40 to $500. Do you think the value is too high even with the probability of more acquisitions? Do you find PE an important component to consider in a growth stock like this one? If so how important? Thank you
Jeremy

Q: Do you think AHF is worth holding at this time? Is there any light at the end of the tunnel? Thanx Robbie

Q: Peter; CXI sold a block of insider shares ( 159,000) to a institutional entity. Obviously because of the thin trading history - but would this indicate that somtime they will have to do a equity issue to put some liquidity in the stock. Do you have any idea who the buyer might be? Thanks.Rod