Investment Q&A

Q: Almost daily headlines in Vancouver's newspaper re River Rock casino,Vancouver(owned by GC),Yesterday headline---Casino money -laundering probe found alleged"terrorist financing".New B.C.Attorney General had ordered a independent review of B.C.'s anti-money laundering policies & practices re B.C. casinos.So far,it appears that River Rock is alleged et be heavily involved & BCLC(supervising body) likes the huge tax revenue from casinos.Stay tuned.

Q: SHOP has had a very high valuation for the longest time on every metrics using comparables with similar stocks.
Even though the short sellers thesis is wrong, would a report like this make the stock correct naturally to a more reasonable valuation?
Meaning, maybe the real value of SHOP should be $100CAN instead of the present $130 and this report will be an EXCUSE to correct the price of SHOP and lower its NEW valuation for once and for all?
Is this what is happening right before our eyes?
Thanks

Q: BNN.ca Thursday October 5, 2017

Shopify responds to short-seller, ‘vigorously’ defends business model
Ian Vandaelle, Chase Producer, BNN

Shopify has responded to allegations levelled against the company by short-seller Andrew Left of Citron Research.

In a statement released early Thursday, Shopify defended its business model, which Left said relies on pitching a “get rich quick scheme” comparable to Herbalife.
“We vigorously defend our business model and stand resolutely behind our mission and the success of our merchants,” Shopify said in the press release.

“Shopify has always strived to take the path that leads to more entrepreneurs by designing its platform to remove the technical, operational, and financial barriers to enable anyone, anywhere, to build, grow, and scale a business.”

Q: SHOP issued a statement/rebuttal last evening in response to Citron's attack. How do you think this will play out in both short and long term.

https://seekingalpha.com/article/4111761-shopify-response-citron
Would appreciate your comments and how you think things will play out.

Q: I see ITC has had a nice bounce in the last few days. Any news on this or just normal small cap volatility? I know you said you were getting impatient with this name, how much longer would you give it?

Q: Was wondering what you thought of Couche-Tard? Seems to be in the doldrums right now and a pretty high valuation - with Metro taking over Jean Coutu and owning 5.7% of ATD.B - they might sell this position to take on less debt for the acquisition - their sales per store in the US wasn't that great either - would you hold, sell or buy more on this dip?

Q: Since their loss of a large contract and their last earnings report the stock has been trading poorly. With third quarter earnings coming up and the stock still trading poorly, do you thing this company could have other problems.
Thank you for your expertise.

Q: I know it is psychological and makes no difference but for some reason investors prefer to buy shares when it is perceived to be a low price. So Premium Brands at $100 a share would you see a company like this thinking of splitting their shares to make them seem more affordable to investors?

Q: Anything further to add on SHOP? It's being battered today. Has it seen the worst of it?

Q: I see in addition to Citron, Bill Ackman is also behind the Shopify drop today per the general media. Shop has not responded yet.

Bill had it correct on VRX-tsx but not on HerbaLife. So time will tell.

Q: Would you add to shopify on the dip? Or do you foresee short sellers attacking the stock?
Thx
Karim

Q: What is your advice regarding Shopify today? Hold, Buy or Sell? Thanks.

Q: I'm reading that Citron put a $60 PT on SHOP and is comparing it to the likes of Herbalife. Any validity to these claims that you are aware of or is this just Citron shorting the stock before the report to gain a quick buck? Seems kind of ridiculous!

Q: Shop dropping fast. I can't find any news.

Q: I noticed this month that with the exchange of ENGH for CG that it changed the tech sector allocation from 19% to 16% was this done to facilitate a sector rotation that seems to be underway or simply a function of one company with better prospects over another. I tend to complete the Balanced Portfolio and also have a number of your Income Portfolio stocks in my portfolio and was wondering if I should move my portfolio to that percentage in tech..as usual thank you for your great service...Eugene

Q: Hi,
Just curious. Prometic float display a number of shares of 683 781 000 which means that any 1 dollar tick will increase the value of the company by $ 683 781 000.
I show assets of 62M and liabilities of 121M
I show revenues of 4M.
I know that you will answer discounted cash flow and phase 3 trials. but in this new world of ...." I don't care about valuations type of thinking" would it make sense to really ask how high the stock value will go.
CDJ

Q: Good morning...current thoughts on these today please...

Q: I have a question about IWO. ( GROWTH PORTFOLIO). How Would you compare it to Mawer Global small cap. Which one Would you prefer ( considering taxes, fees, performance, expected return). I would like to know this in context of growth portfolio. thanks

Q: RE- smaller (around 2%-2.5% weight). There are 9 positions with lower weights - some are losing while some are lower wights to start with. Is there any rational in keeping those low convictions. why not consolidate few or may be buy more of if we still like. Just wondering what is your thought around these. Thanks

Q: Hi gang, ET is quite weak the last two weeks. Any news? Do you still like this stock? Thanks Rob