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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: Liquor Store. I am just wondering from a valuation perspective - it's starting to look like a good value play, and new management is in place to improve fundamentals. They are shifting towards products that sell faster/more common. Cf ratio < 10. P/S < 0.5, price to book ~0.8. Used a dcf valuation and I'm getting values in the range of $14-18 using different growth values (negative and positive) based on management targets. CF can cover the dividend but i wish they would cut it. What is your thoughts on this value play? I read the past comments and I've steered away from this stock!
Read Answer Asked by Michael on May 19, 2014
Q: Peter and all,

A pointed question on AVO: I took a small position at the end of 2013 and between the curious equity raise, the poorly handled executive exits and the rotation out of growth stocks I am down 36 per cent. But I still like the company's technology, and its most recent numbers were solid. The question: I am considering doubling down to cost average around $25. Would you do it if you were in my shoes? Or is there more rotation downside and/or taint to the stock from the various blunders?

Thank you!
Read Answer Asked by Kim on May 18, 2014
Q: Re avigilon, i was told they started to capitalize the r&d , according to new accounting rules, did not tell the market, some people got spooked and some hedge funds were shorting the stock.
As for new purchases with all their cash, i am also told there is not much out there except small add ons.
I totally get that this stock is way kversold on fear etc, but could you comment on the above. Dave
Read Answer Asked by david on May 16, 2014
Q: I also have a BAD question. Could you please comment on the recent organizational changes. It looks like someone internally is upset with the bottom line not reflecting the growth. Maybe the incentives are to big if they affect the financial statements that significantly. Maybe it's time to throw the shareholders a bone with a dividend increase. Mike
Read Answer Asked by Mike on May 16, 2014
Q: Hi,

As many growth stocks are taking it on the chin, AVO and CSU, for example, why is it that ACQ isn't following suit?

Would you still recommend it at these levels?
Read Answer Asked by Graeme on May 16, 2014
Q: Do you see any further capital gains in FSZ, Scotiabank has a 12 month target at the current price, perhaps another stock in either of the portfolios has more potential.
Great service and it has been very helpful, made money
cheers, cacook
Read Answer Asked by Cyril on May 15, 2014
Q: Please comment on GH's record Q1 earnings and payout ratio. Thank-you
Read Answer Asked by malcolm on May 15, 2014
Q: BAD - I have two problems. First, the $7.4M charge represents 33% of cash flow. Second, the DU liability is valued at another $21M as a current liability on the B/S. How do I estimate the cash flow impact of the plan as it continues to vest? Rewarding mgmt for stock performance is great and aligns their interests with mine, but when 33% of the operating cash flow disappears I become a little concerned. Plus I cannot get a handle on the future liability this plan represents.
Read Answer Asked by Greg on May 15, 2014
Q: Hi 5i Team,

With WiLan's strategic review completed and the dividend increased, what would you recommend one do with the stock?
Continue to hold, or sell now and move on?

Thanks.
Read Answer Asked by Sarj on May 14, 2014
Q: Hi 5i,
Just looking for your insight into CFN's earnings. I have held since $5.00 - enjoy the yield on my cost, but I really want to make sure the capital is safe. Is it time to move on from this story?

Thanks in advance,

Jaime
Read Answer Asked by JAIME on May 14, 2014
Q: CFN Carfinco came out with earnings, Trading down on the news. Would you sum up your view of them for me?

Thank you!
Read Answer Asked by Gerald on May 14, 2014
Q: 5i team,

A follow up on the previous question about BAD's earnings. The discussion around the deferred unit costs affecting the results so much seems bizarre to me. Is this something to be concerned about... something "bad"? Considering the past 90 days, it looks like the story is still well in tact going forward, long term. Do you have any concerns for the future given the developments in the earnings today? It seems like the reduction in margins should have been passed on to the customer... again, is this bad? Does this mean they will experience margin errosion?
Read Answer Asked by Marc on May 14, 2014