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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: Re DHX
ScotiaMacLeod has downgraded this stock and reaction to it is driving stock down (it has been drifting lower prior to this). Should one react to this, and do you have any comments. Thanks
Read Answer Asked by Phyllis on July 28, 2014
Q: WPK (winpak) - your thoughts on results please. Thanks much!
Read Answer Asked by Hussein on July 28, 2014
Q: Hi Team:
I can't remember the exact date but I do recall your research giving Carfinco (CFN) a "B" rating. The stock has not been performing well lately. Have you changed your
rating & or opinion on the Co.
Thanks: Jerry


Read Answer Asked by Jerry on July 28, 2014
Q: Hi 5i: Previous governance issues aside, it seems to me that Enercare’s management is looking like a combination of clever and lucky. Presumably they were working on the details of the announced business acquisition from Direct Energy for the past few months, while watching the ECI share price working its way above the $12 level. They get to a deal they like the look of: immediately accretive to earnings and growing the business in a reasonably logical way. While all that is going on they get an overture from TSSP with a low-end valuation of $13.50 and when that news is released their currency for the Direct Energy business purchase (i.e. their share price) jumps up above 13.50 and they immediately sell out a $310mm financing at $13 per share to fund it. Now that Direct Energy deal is looking just that much more affordable and hence that much better; they have a bunch of new shareholders in at $13 and expecting a profit from that level; and they just made ECI into an even more valuable entity to sell to TSSP or whoever else may be interested. Initially they had responded to TSSP by saying we aren’t even interested in talking to you at $15 per share (which appears to have been a number TSSP put into the conversation). So where does it go from here? Would you consider it to be a good idea to add to a partial position (about 3%) at the current market price? To balance out my little sketch, can you please highlight the main risks for investors? Thanks!
Read Answer Asked by Lance on July 26, 2014
Q: Dhx has received approval from the Crtc. Have they got the cash to buy the family channel or do you foresee another financing?
Read Answer Asked by Helen on July 25, 2014
Q: I awoke this morning to find our CSS was being sold. I jumped on line to see the increase in share price. Wow talk about lunch bag let down 5% premium on the recent share price seems extremely light. Like other 5i members I am concerned. ps who cares about a 52 weeks avg share price. It seems the executive of CSS have sold out and abandoned the shareholders. Listening on line to the Transforce call they seem very happy with the deal of course. The commentators on BNN were positive from a Transforce perspective. Where is the voice of the CSS shareholders? Sorry for the rant, am I off base? Is there a trend for light buy out prices the BA price seemed a little light and CSS's price seems very light. Is this because there is not enough competition in Canada for these companies. mike
Read Answer Asked by Mike on July 25, 2014
Q: Good morning 5i team,
Re: DHX In response to Rod L.'s question of July 23, the following NR came out at the end of the day, yesterday.

DHX Media receives CRTC approval on $170M acquisition of Family Channel and three other children's channels.
24 Jul 2014 - ACQUIREMEDIA
Read Answer Asked by Kathy on July 25, 2014
Q: Re: CSS.to

Don't understand why the board approve unanimously on a deal just around average recent price. What's going on?
Read Answer Asked by Dong Sheng on July 25, 2014
Q: Just announced that Transforce (TFI) has offered to take over Contrans (CSS). Board of Contrans supports the deal at approximately $15 per share. Seems low as Contrans closed on Thursday at $14.74.

Who wins: Transforce or Contrans shareholders?
Read Answer Asked on July 25, 2014
Q: What is your current opinion on Exco Technologies(XTC), and what did you think of the recent 3rd quarter (i.e. did it meet or exceed your expectations)? It currently is about a 10% wieghting in my portfolio (I like to keep a concentrated portfolio of small to mid cap names 10-12 stocks) and is the only exposure I have to the auto sector. Should I continue to hold? Thanks
Read Answer Asked by Scott on July 24, 2014
Q: Would appreciates your thoughts on Exco Technologies Limited XTC financials just released and prospects going forward.
Thanks
John
Read Answer Asked by John on July 24, 2014
Q: Hi Peter and Group
How do you view the $50 million increase in credit recently obrained by Badger. I think company quarter reporting is not too far off. I am down considerably on the stock and wonder if this will be material to their quarterly report Thanks for all your good work. I have learned a lot since taking up membership, I think.
Read Answer Asked by Phyllis on July 24, 2014
Q: Peter

I have $55,000 in Bell Alliant(BA), $80,000 in B.C.E. and $30,000 in Telus which is approximately 8.5% of the equity portion of my portfolio . I will incur approximately a $10,000 capital gain if I sell Bell Alliant as opposed to exchanging shares for B.C.E. as per recent proposal. Alternatively, if I sold Bell Alliant, I could put the funds into Telus to provide more balance. What are your thoughts on this? Is 8.5% too high a concentration in telecommunications, given our present government's continuous threat to shakeup or shakedown the industry?
Read Answer Asked by James on July 23, 2014
Q: A&W Royalties Income Fund (AW.UN) reported results today. Overall, results appear positive. Payout ratio continues to be greater than 100%, although is moving down. Your thoughts please.
Read Answer Asked by Brian on July 23, 2014
Q: I have owned Enghouse (ESL) for several months and while it has not shown any price growth I know that you are quite high on the stock. However, you seem to equally like Evertz (ET) for many of the same reasons you like ESL but given that ET pays a healthy dividend , I was wondering if I should switching from ESL to ET.

Looking forward to your insight.

Paul F.
Read Answer Asked by Paul on July 23, 2014