Q: Can you comment on Constellations Software's debt profile and cash position? From what I recall, it is a definite strength of the company. Is there any plausible short to medium term scenario where the company can destroy their strong financial position?
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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: Peter & Team, I think we do have a problem at CRH and it has to do with the minority interests (MI's) in that they are getting way too much of the business, possibly because of mix or maybe the joint ventures are the better operations.
$000
Earnings
Q1 '17 Q1 '16
Net Income $3302 $ 3031
Att. to CRH 1542 2956
Att. to MI's 1760 75
CRH net income down almost 50%. How is it possible that the MI's can be getting more of the profit than CRH shareholders?
and
Cash flow
Cash flow provided 7991 5524
Paid to MI's 4011 627
Share to MI's 50% 11%
Cash paid to the MI's is more than their share of the profits.
Year ago this was not an issue. Now it is!
What should we do here? The business as a whole looks fabulous, it is in a good space with strong and meaningful secular tailwinds, it has a huge 35% conversion of sales to cash flow, but something looks very wrong with the business model and the sharing of the cash and profits.
Kindly advise. Thank you. Keith
$000
Earnings
Q1 '17 Q1 '16
Net Income $3302 $ 3031
Att. to CRH 1542 2956
Att. to MI's 1760 75
CRH net income down almost 50%. How is it possible that the MI's can be getting more of the profit than CRH shareholders?
and
Cash flow
Cash flow provided 7991 5524
Paid to MI's 4011 627
Share to MI's 50% 11%
Cash paid to the MI's is more than their share of the profits.
Year ago this was not an issue. Now it is!
What should we do here? The business as a whole looks fabulous, it is in a good space with strong and meaningful secular tailwinds, it has a huge 35% conversion of sales to cash flow, but something looks very wrong with the business model and the sharing of the cash and profits.
Kindly advise. Thank you. Keith
Q: Hi 5i, is it more upside for Pho? Wondering the share price usually dropped after release earning? Thank you.
Q: Comments please on Constellation's latest quarter.
Thank you
Thank you
Q: Hi Peter and Team,
Is it CRH overvalued now? It seems that investors do not like the financial result and outlook. Your opinion please.
Thanks
Is it CRH overvalued now? It seems that investors do not like the financial result and outlook. Your opinion please.
Thanks
Q: GUD. The stock seems stuck at 10.50$.
Would you advise simply resilience, and awaiting the outcome ?
Would you advise simply resilience, and awaiting the outcome ?
Q: In your last answer on crh do you take into account the correction issued by the company regarding its first press release ?
-
CCL Industries Inc. Unlimited Class B Non-Voting Shares (CCL.B $85.62)
-
Savaria Corporation (SIS $21.58)
Q: Which of these two, At current prices, would you buy today, assuming one has a balanced portfolio?
Thx
Karim
Thx
Karim
Q: Do you know if the secondary offering of PKI shares has closed? There is no confirmation on SEDAR and my broker (RBC Direct) hasn't participated in this (yet).
If it has closed, with the price holding above $29, would you consider this a good time to add?
If it has closed, with the price holding above $29, would you consider this a good time to add?
Q: With the recent drop in price,would this be a good time to take a position for growth?
Q: CRH down another ten percent today. Can you please comment on this after the CC. Do you still recommend holding this.
Q: Good morning and thank you for all your wisdom
Wondering about MX would you beable to shed any light on the drop today
Wondering about MX would you beable to shed any light on the drop today
Q: Sorry, another CRH question. The stock is down after what looked like a solid earning quarter. is there something in the earnings report that investors do not like? Your thought on the continued selling pressure.
Q: Hello,
What about Methenex's results did the market not like?
Regards,
Robert
What about Methenex's results did the market not like?
Regards,
Robert
Q: Rrx, Tog and Spe, which one would you prefer better? Thank you.
Q: I purchased some of this stock for an RESP about a year ago. It has climbed nicely. The company seemingly achieved a good measure of success before going public. What are your views of this company and the stock going forward?
Q: I know you commented on DBO on Monday, but the share price has dropped another 10% since then.The share price has been dropping for almost a year now. I was considering giving it another quarter but I feel mgmt is taking the company in the wrong direction with the talk about moving into the Motion Industrial training market, which is very niche. That and the numbers continue to disappoint every quarter. Is it time to let DBO go? Earnings are mid June.
Q: Good morning 5i team,
Plz comment on quarter.
Thanks,
Dave
Plz comment on quarter.
Thanks,
Dave
Q: Hi,
I currently hold half positions in GUD and PHO. I would like to top one of them up to a full position. Which of these 2 companies do you think would be best to top up? Or do you think both should be topped up?
Thanks for all of your great advice.
Rob
I currently hold half positions in GUD and PHO. I would like to top one of them up to a full position. Which of these 2 companies do you think would be best to top up? Or do you think both should be topped up?
Thanks for all of your great advice.
Rob
Q: Sorry another comment that Members owning CRH may find comforting and certainly shows the clear difference between it and Valeant/Concordia:
"At March 31, 2017 , the Company had $9,232,240 in cash and cash equivalents compared to $9,507,004 at the end of 2016. The decrease in cash and equivalents is primarily a reflection of cash generated from operations, less cash used to finance acquisitions during the first quarter of 2017"
Looking at the Cash Flow Statement: they generated CF-Op of $8M and acquisition cost was $7.5M. Net Debt did go up ~$3M to fund some distribution to non-controlling interest (need to dig more into note 4 for details).
The main point through is CRH earns real cash and finances its acquisitions mainly from its cash flow and not from out of control debt - as the Motley Fool article was suggesting.
"At March 31, 2017 , the Company had $9,232,240 in cash and cash equivalents compared to $9,507,004 at the end of 2016. The decrease in cash and equivalents is primarily a reflection of cash generated from operations, less cash used to finance acquisitions during the first quarter of 2017"
Looking at the Cash Flow Statement: they generated CF-Op of $8M and acquisition cost was $7.5M. Net Debt did go up ~$3M to fund some distribution to non-controlling interest (need to dig more into note 4 for details).
The main point through is CRH earns real cash and finances its acquisitions mainly from its cash flow and not from out of control debt - as the Motley Fool article was suggesting.