Investment Q&A

Q: CGX
I hold Cineplex in my RRSP. I don't quite understand why the stock is down so much based on its recent quarterly report. Report doesn't look bad to me but perhaps I'm missing something. I like the yield on this stock and don't mind holding it for the long term but don't want to get caught in a long term yield trap. Should I be concerned with its lagtest quarterly report?

Q: Hello,

What do you think of Easyhome's q1reslts they just released? Looks to me that it was a nice quarter.

Greg

Q: Would you buy Tim Hortons now ? Thank you

Q: Avigilon AVO
I recall the same comments being said about another fantastic growth stock, Poseidon Concepts.
-market leading technology
-high multiple growth stock
-huge earnings growth

The timing is way too coincidental having the CFO resign right before releasing earnings. Unless he`s dead, health reasons is a bunch of BS.

Peter, is your team able to dig deeper and recognize any red flags for accounting irregularities? I noticed inventories have increased and they also recently did a share issue. Could the share issue have been one final grasp for cash?

The market is rarely wrong, over the longer term. CFO departures alone should not drop a stock 20% after the announcement.

Q: Are AVO and HYG a hold, sell, or average down? In the case of AVO, how did they hide what appears to me to be ongoing problem? The stock was highly talked about and recommended in the media. In the case of HYG, I had a stop limit in at 4.12 - 4.06, which went through and continued down May 7th.
Your thoughts.
Dennis

Q: Maybe management at AVO are not so naive at all. Maybe they wanted the stock to go down such that insiders could buy at cheaper prices. Just thinking.

Q: AVIGILON - AVIGILON - go figure!! But, look at the fantastic 1st quarter to March 31/2014. Records & even better!!!???
Peter, maybe you could tutor them for a little while on corporate governance, shareholder relations, etc. Do you think this was planned with a rollover of nearly 2.5 million shares?

Q: DD
DD wireless. there is an offer on the table for 2.25 from the majority owner. Looks good if not opportunistic. their quaterly result show a 10 cent profit per share, if we annualise this it makes for a very low P/E. is there any hope of better offer, or can keep my marbles in a good company. do the owner has a lot weight to bulldoze the minotity shareholders out at a good valuation for himself?
Thanks

Q: Newalta (NAL) earnings out on May 05 and they look OK and they raised the dividend. Could I please get your opinion on their earnings report.
Thanks

Q: Hi,
As per below from Globe Investor, have you heard anything on why other executives have been leaving the company in the past?

Analysts - and certainly investors - are sounding the alarm over Avigilon Corp. after it announced late Tuesday the third senior executive departure in the last six months. Shares are down 17 per cent in early TSX trading today.

The security solutions provider said chief financial officer Bradley Bardua left the company because of health concerns and that Wan Jung, a director, has been named interim CFO.

"We think the timing of Mr. Bardua's departure (one day before the fiscal first quarter 2014 earnings report, could not hold on for another day) is too coincidental for comfort," said Raymond James analyst Steven Li. "We believe Bardua was well thought of by the Street – and so this will be seen as a loss."

His "outperform" rating and $35 (Canadian) price target were both placed under review.

Chris Ross, executive vice-presdent of global operations, left in March of this year and Keith Marett, an executive in charge of marketing and product strategy, resigned in November 2013.

The company is expected to release its latest earnings after market close today. The consensus is for earnings per share of 14 cents, on revenues of $56.3-million.

Thanks.

Q: AVO

LOL... Guess the Market didn't like that very much.

Comment Only... AVO is a quality company and if the CFO was sick, I am sure he could have waited a day or two to make an announcement considering the timing. Obviously, there has been some catalyst for him being dismissed.

I am going to assume it may take 2 or 3 quarters but we will see AVO once again thriving... Am I wrong? Or should I kiss my $2 Grand goodbye? Highly unlikely.

Q: I'm interested in your opinion about what is going on with CGX. I had purchased it at $42 in Jan, in my kids' RESP, thinking it was a solid stock, and now am having regrets.

Q: Hi Peter and Team, regarding Avigilion, AVO, you just wrote 'so its experience with these sort of issues is limited' - come on, you really don't believe that d you! Any bafoon would know that letting your CFO go (which is how we all read it - fired) the day before releasing results is going to hit the stock price hard! They really should have halted the stock before announcing the CFO is gone considering the results come out today! Even if nothing is wrong, they should have halted the stock knowing the stock would get hit hard. This is not a limited experience issue in my opinion, it's either mis-management, manipulation for the stock to fall or a message of bad things to come, which should have been relayed much sooner then now! I have lost trust in how they have done this. Just my two cents worth. Thanks.

Q: With the continuing market correction and the sudden departure of the CFO is it time to take the loss on AVO (Avigilon)? Or is this over reaction? Thanks

Q: Hi guys,

For Avigilon (AVO), if the CFO was fired because of accounting "irregularities" that affected or misrepresented earnings, wouldn't the company want to halt the stock and provide the accurate information rather than say its for health reasons and then 24 hours later risk losing accountability and have the market potentially discover the real reason for the firing in the financial report?

Q: Peter et al,
I am up from 21% to 27% in the energy sector (BTE, CPG,SGY) with the recent increases of Baytex and Cres Point. I am considering selling some CPG to invest in another sector. I have no industrials, pharma or biotech. I have been looking at Badger and Black Diamond. Reading previous answers you seem to favour both. Which would you recommend for growth with a little income? Thanks in advance.
Gary

Q: Avigilon (AVO) CFO has suddenly left for "health reasons". Sounds rather worrisome in front of earnings today!

Q: I have a follow up to my last question on Imris. I am almost ready to pull the trigger on this one. Your last answer to my question put you in the not buy camp, however I have a 3-5 year time frame and these prices just seem like a great time to get in. My hesitation is around their cash levels. I was looking at their annual report and cash is very low plus they borrowed 25M that has to start repayment in 2015. So I guess to summarize what would you peg the percentage chance of this company going to 0? i'm okay if it drops from here as i have a long time frame but if they can't survive well that's another story. is the downside risk that high? thank you for the great service you provide.

Q: BDI. What are your thoughts on BDI in front of earnings report tomorrow? I realize the company's long term position looks favorable given expected LNG development in BC, but can you comment on any short term impacts such as long winter, etc? The share price seems to have plateaued of late. Can you also provide any insight on management's investment in the company? Thanks for your help...

Q: I have been watching Magna (which I own) over the past few day go on a tear to the downside. It is rather unsettling. As their earnings come out this week, does this mean that some people know bad news is forthcoming. Or is there some other likely reason.
Thank you Peter and staff for all your good work.