Investment Q&A

Q: BNS is the worst performer of the big 5 plus NA.It ranks #5 on 1yr return @ 6.1%,last on 3mo.@ 2% & 1mo @ 1.5%(as @ Jan 11/18 per TR).Recently a $2.9b acquistion of BBVA's Chile franchise.It is a fact that the above 6 banks takes turn to lead.So it is time to buy some BNS.Thanks for u usualgreat services & views.

Q: Hi guys,

I have been holding on to ITC patiently but it doesn't seem to be going anywhere? Is it time let go of it and if so do you have any replacement suggestions?

Thanks again

Q: In your model portfolios you hold almost 100% Cdn companies with little allocation to US or International. Can you speak to why when the industry is constantly preaching to diversify outside Canada.
Thanks
Mike

Q: Just a comment on reason for GS share price down today.
GS had a news release yesterday. Net Outflows accelerated in Q2/F18 to their highest level in over five years, thus validating our concerns surrounding the recent departure of key portfolio manager Ms. Jeannine LiChong (responsible for managing ~22% of GS' AUM at Q1/F18) which was announced early in the quarter (Oct. 10th).
Publish as you wish.
Thanks
Victor

Q: DOES THIS 4% DROP TODAY LOOK LIKE AN OVER REACTION TO THE INTEREST RATE HIKE OR IS SOMETHING ELSE GOING ON. I AM DOWN A LITTLE AND WOULD LIKE TO ADD MORE Thx James

Q: Hi Peter and Ryan,
Would you consider Chesswood group a long term hold as the stock hardly moves and if it does, it is to the downside. It does have a nice dividend but given its performance, it is not a good enough reason to keep it. Your thoughts please. Also, i am thinking of increasing my weight to 5 percent for Savaria or Constellation software. I am leaning towards Savaria (growing sector, decent dividend, good momentum), but your thoughts please. Thanks very much.

Q: NWC has dropped more than 10% in the last 6 weeks at quite high volumes relative to previous volumes. Do you have any ideas as to why, given that there has been no news recently concerning this company? Is it sensitivity to rising interest rates? My intent is to buy a half position short term and a full position longer term, but I'm reluctant to buy with what appears to be a "falling knife" situation. How would you recommend one proceed, given my trading costs are low? Wait for the price to stabilize or a partial buy?
Thanks for any suggestions which you are able to make.

Q: Constellation buys Acceo for C$250MM which might represent around $30-40MM of EBITDA. Whereas today CSU's market cap goes up $1.1B on a generally soft day. I'm pleased as CSU is one of my larger positions, however, is this market reaction seem appropriate to you or is something else going on? Or am I just over-analysing things? Thanks!

Q: My father recently sold his share in his company. He knows I manage my investments myself (with your help of course thank you!) and asked me if I wanted to manage part of the resulting cash. It represents 400K$ that he doesn't need for his retirement income. I was thinking of using the Balanced Equity portfolio. I am about start initiating positions. Do you think it's better to buy over several months to spread the timing risk or just buy all at once? At the moment what would be your top 5 stocks based on growth and overall company quality?

Q: When are the results expected and could you post street estimates, please ? Also, how much is the insiders ownership in the company ? Thanks

Q: Just curious why this is being called Element Financial rather than Element Fleet? It took me a while to realize that this must be same company.
Thanks.

Q: CRIUS ANNOUNCES 2% DISTRIBUTION INCREASE AND CONFIRMS FIRST

As a div, addict is the above increase an indication that cash flow can reasonably cover the div. or is it a div. trap.
All I want from them is the div. but would like to know if you think their business model can sustain it,
thanks
Yossi

Q: Sylogist just released its quarterly earnings this morning. Would appreciate your comments. Any concerns with slightly lower revenue ? Thanks

Q: Any reason for MX getting hit today....down 4.5% already.
Thank you!

Q: I realize that AIF stock price has risen about 16% in the last 12 months but since early Jan of this year it’s been on a continuing decline. Can’t find any reason - maybe large shopping malls suddenly out of favour? Or is it sector rotation? What is your thinking on this stock?

Q: Seems like a barrage of questions on Cineplex, in a week, but will ask, anyway. What is its current/ forward PE and is the present valuation justified (even after the steep decline) ? Do you expect Cineplex to continue to generate strong cash flow to pay down its very high debt load ( $600 mln ? ) and support 4.5 - 5% dividend ? How are the results of Cineplex capital investments in new initiatives like Rec rooms and VIP Cinemas ? Cineplex was removed/sold from 5iPortfolios, last year, in what looks like a smart move. But added back to Income portfolio, after some time, at a much lower price ($36.50, I think). With the recent drop in price, do you still have conviction that it's a good income stock to own and would you add ? Also, any change to A- Rating, with all recent developments and outlook ? Thanks

Q: Constellation Software announced this morning of a nice acquisition of Acceo Solutions for a price of $250 mln.
Q1: Seems like a good size acquisition, after some time. With annual proforma revenue of $116 mln, how significant is this transaction ?
Q2 : What is your understanding of the proposed financing ?
" Constellation expects to finance the Acceo acquisition on a stand-alone basis. This is a continuation of Constellation’s use of leveraged capital structures to compete more effectively for larger vertical market software businesses. "
Thanks

Q: Hello Peter. What do you think about the $250M deal that CSU announced this morning, and what do you think it will do for CSU's outlook and share price going forward in the near/mid-term?

Thanks,

Q: As a follow-up to your Jan 12 reply to Elmer: I bought OTEX a couple of years back partly based on a very low PE in the 6-7 range (Thompson-Reuters stock info in National Post). Same source now has PE at 80. Your response says: the stock is cheap at 13X earnings. I'm confused. Could you explain? Should investors ignore the Thomp-Reuters numbers, or how can they be used?
Thnx in advance.

Q: Savaria is a small company in what seems to be a fairly fragmented market. What are their competitive advantages? Do they benefit from patents? Who are there primary competitors?

Bought a full position on your recommendation and it has run up nicely from the ~$14 range. Would you continue to hold? Also, what is the forward PE multiple?

Thanks very much!