Investment Q&A

Q: Hi 5i Research team,
Please comments on AF Q4 results released on Thursday. Also, I would like to have your comments on those specific topics :
1. Higher management turnover over the past two years.
2. Do you know the president : Graham Badun?
3. Is the litigation with the founder settled? Are those legal fees and settlements related?
4. The realignment of the growth strategy more on Canada, and to neglect some USA markets? Probably means negative growth in the USA? Seems like bad timing when looking at the economic environment on both sides of the borders. What can we expect in terms of subscriber net growth?
5. Was the 2015 $3.7 million non-recurring expenses (numerous items) some house cleaning by the new president at his arrival?
6. Is this reassessment of the collectability of such an amount of accounts receivable changes your perception of the quality of the organization (obtaining new subscribers or managing accounts)?
7. “2016 promises to be a productive year as we prepare the company for accelerated growth.": Does it mean an increase in expenses?
8. Based on your expectation (former Q&A) of AF being subject to an acquisition in a reasonable time frame (what time frame can be expected?): is it worth owning while receiving the dividends (+ a future premium on the stock price), or sell and buy something else that went down recently (MAD, KXS, DH, CSU, LGT.B, PLI, OTC, XTC, SJ, ESL)? If your answer is positive, which ones would you prioritize in terms of expected return potential? Please disregard sector allocation for this question.
Thank you, Eric

Q: Hi Team
I am watching BIN increasing in value even though the market is going down. Is this a good buy at this time.
Is it right time to buy ATD and SYZ or too late. What is your idea of growth this year?
I am also looking at Canadian Tire. Is this a good time to buy and what do you think of growth this year.
As always, thank you for your support.
Margita

Q: Hi Guys, and Thanks for the awesome service.
Why are p/e on companies of this nature so high- Kinaxis 74x,dsg80x's
Thanks

Q: Good Afternoon,
Do you guys have some very defensive portfolio suggestions in case once this bounce runs its course we agressively fall once again? Would you build a portfolio with some bonds, gold, and defensive stocks like Telecom, utilities, health care etc.. or just hold lots of cash? What defensive stocks do you like currently?
Thanks

Q: Is BDT a good place to put money?
The dividend looks good but is it a true div. or a distribution? (they call it a div)
Thank you
Lillian

Q: Hello, thank you for great service! I made good money after split and now I am thinking is CIG & FSV are still keeping good potential to grow? I have them in my TFSA portfolio. Is it good time to sell and to invest in some potentially faster growing names?

Q: I bought this stock last July and you can see where it is at now. Do you have a prognosis for it's future performance in 2016?

Q: Hello,
Could I please get your opinion on Transforce vs Trimac. When Contrans was sold I purchased a small part position in each TFI and TMA. Both are down approx 30% and each represent about 1- 1.5% of my portfolio. I am debating on selling one of them for a loss and adding to the other. Which one if any would keep and why? Or should I average down on both or one of them? I can hold long term if needed.
Thanks for your help,
Kerri

Q: I am interested in ARE, STN, WSP and SNC as potential beneficiaries of federal infrastructure spending but am wondering how much of these company's current business is associated with the energy industry. Do you have an estimate of this for each of these 4 companies.
Thank You

Q: Good morning. With provincial and federal health ministers strategizing to lower pharmaceutical costs for Canadians, what do you think will be the impact on Jean-Coutu? Is it likely or even certain that a Pan-Canadian bulk-buying program for drugs will open Jean-Coutu's sales to more provinces and increase the volume of generic drugs Jean-Coutu sells? Thanks for your excellent advice.

Here is a quote from the CBC article posted Jan 21:

The group will build on the work of the provinces' bulk-buying program, the Pan-Canadian Pharmaceutical Alliance, which saves money by negotiating large contracts with pharmaceutical companies.

"Even with that work, prescription drugs are still too expensive in this country," said B.C. Health Minister Terry Lake.

Q: Please give an update, I have held this for six years, is it ever going to do any thing? Thank you

Q: Hello,

I have sold my Bin shares and I would like to add to one of my current industrial holding. At the present time which one would you have a preference towards. My holdings include Stn, Wsp, Bad and Mda.

Thank you

Q: Please provide your view on MNW's announcement on voluntary $25m pay down on its credit line from its strong cash [position,& its upward revised guidance.It really got hitn recently(even down today despite strong market recovery.Appreciate your usual great advice & services.Have a small holdings @ $12.66,so should I average down hare a bit; Further to my Q earlier tonight,Canadian Insider shows that on Jan 19,Richard McBee has a -500,000(in red) expiration of options @ US$5.16.Please advise meaning.Thanks for your usual great services & views.

Q: Aside from Whitecap Resources, the two hardest hit stocks in your balanced portfolio YTD are Stella Jones and Enghouse. I know Enghouse was highly priced, but are there other reasons why these two have been hit harder than others? I would have thought SJ would be a fairly conservative, low beta stock insulated from world problems, including oil. Is this likely to continue or is this a buying opportunity? Do you regard Enghouse as still being highly priced after its 20% fall?

Q: For a conservative income investor looking for more diversification, do you think that Chemtrade's sector and specific product lines are an appropriate choice in current economic conditions? I would be adding to a current holding in Chemtrade.

Q: Please comment on the results from CP. the market does not seem to like them.
HOw do you feel about the attempted take over of Norfolk southern?
Is the fall in price justified? At what point would you consider CP a good buy?
Thankyou.

Q: Stocks in my Industrial sector are: ATA, BOS, CJT, DRT, XTC, KBL, LNR, WSP. (BOS, DRT & LNR as very small positions). I have some cash as a result of selling BIN yesterday and would appreciate your thoughts on how to re-deploy it in the same sector, either by purchasing different or adding to currently held stocks. Also, if you feel any of my existing stocks should be sold & replaced.
Ryan's article this morning was a good read. Many thanks.

Q: Hello Peter,
Any idea why Newalta is surging higher for the last two days. I have not seen any news to reflect such increases. Could it be due to Progressive Waste Solutions ticking higher and Newalta being possible takeover? Also, would you consider adding to Enb, BAM, and Banks as 5 year holds? My weights for ENB, Banks, etc are greater than 5% but given the dividends, it is enticing to increase the weights for monies needed 5 years down the road(RRSP etc). Much appreciated.

Q: I am looking to bye approx. 4% of my portfolio in this company. I has come down a lot and the yield is good. Would you recommend it and for what reason? Is the dividend safe?

Thanks

Paul

Q: In my well-balanced portfolio, and with no need for cash, is there any of the following you would recommend selling at this time in this down market, and the reasons for any sale recommendations.
Chase Corp CCF-US: Bellatrix BXE-T; Thomson Reuters TRI-T; Interrent IIP.UN-T; Inovalis INO.UN-T; Onex OCX-T; SK Telecom SKM-US; Dream Global DRG.UN-T; Chemtrade-CHE.UN-T; Partners-PAR.UN-T; Premium Brands-PBH-T.
Thank you in advance for your comments and opinion.