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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: Hi 5iR, This is not a question just a comment on TOY. 5iR I think you need to adjust your thinking on TOY. An increasing number of kids today do not play with toys. They play with their devices. As a grandparent I watch my grandchildren spend hours on their devices, not toys....it drives me nuts...... Since TOY is not in the software business, I would be a seller of TOY not a buyer. Cheers, Chris
Read Answer Asked by Chris on March 16, 2018
Q: Good morning Peter, Ryan & Team,

I am looking at my international and american exposure. Can you give me a rough idea about what percentage of companies in the balanced portfolio have american and international exposure and how significant it is? Does that typically play to your portfolio country allocation? For example, I have 20% american equities, but X percentage of Canadian equities from the balanced portfolio get the majority of their revenue from the US, would you consider that a (20 + x) american exposure?

Thanks for your time,

Wes
Read Answer Asked by Wes on March 15, 2018
Q: Hello,

I was wondering what your thoughts are on RHT given it's current price ( ~$2.22 as of today). Based on the most recent share count outstanding (81,871,000), this suggests an EV of about $180 MM for a company that is showing 6 month revenue of $1.1 MM. While I know that early stage companies are based on what the future holds, I also like to keep an eye on what EBITDA needs to be (in the future) to justify valuations. For instance, in the case of RHT, if one believes that within the next 12-24 months they can achieve EBITDA of ~ $12 MM, then this would suggest that today it is trading at a EV/EBITDA multiple of 15 based on future results. EBITDA of $12 MM in turn is achievable if they can hit ~ $20.5 MM in gross revenue with a 78% gross margin (as per most recent financials) and no increase in cash expenses of $4.0 MM annually, as 6 month financials suggest ~ $2.0 MM in cash expenses. In short, does your modelling of RHT suggest/indicate that this is a realistic expectation, and that within the 12-24 month time frame they can reach ~ $20 MM in gross revenue with no margin compression and no increase in cash G&A costs ?

Thanks!
Read Answer Asked by Mike on March 13, 2018
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