Investment Q&A

Q: Hi,
I caught Ryan on BNN last night and he seemed a little worried about IT. I own mostly balanced equity portfolio stocks and just a few growth portfolio stocks, with IT being one. Ryan didn't like the risk/reward at this time. Should I switch into one of his top picks like XTC, which I assume has a better risk/reward. Or on the other hand, should I just hold IT for the long term and ride it out.
Thanks,
Steve

Q: In view of the aftermath of Brexit which could have an effect on markets for some time to come, what (if anything) will you change in your three portfolios. Pls explain your reasons either way. Thks guys. Art

Q: Hi I see IT has a currency hedge till March 2017 (details included)
Regardless I imagine exposure will result in a big sell off. Would you agree?
Cross Currency Swap On November 23, 2015, the Company entered into a cross currency swap agreement (the Currency Swap) in order to minimize the Companys exposure to exchange rate fluctuations between the Great British Pound (GBP) and the US Dollar (USD) as cash generated from the Companys operations is largely in GBP while principal and interest payments on the Companys Term Facility is in USD. Under the Currency Swap, 90% of the Companys USD Term Facilitys interest and principal payments will be swapped into GBP. Intertain will pay a fixed 7.81% interest in place of floating USD interest payments of Libor plus 6.5% (Libor floor of 1%). The interest and principal payments will be made at a GBP/USD FX rate of 1.5135 on USD notional amount of $293,962,500. The Currency Swap terminates on March 31, 2017.

Q: The steep drop in the British pound will have a large impact on Concordia's earnings? Do you know if any of their debt is in the same currency? What would be your assessment of Concordia over the next few quarters?

Q: Because AMCo resides in UK, should that have any bearing on CXR's future performance? Down 10% in early trading today. Or is this a good excuse for the uncommited to bail out of CXR.

Carl

Q: Hi there, I know the two names have very little in common, but which of the two would you own if you had to pick one as being the overall better of the two - which would it be?

Thanks!

Q: 3 excellent stocks in your potfolio.Note that recently the advances of Cgx & SJ stalled @ $52-52.50 & $50 respectively.Please explain.On the other hand,Syz took its time to break the $8 & $9 resistances,now just on top($10.08) of the $10 resistance with next resistance @ $11.It could be a multi bagger as previously suggested. Thanks for your usual great services & opinions.Looking forward to seeing Ryan,ex Vancouverite this Friday on Bnn

Q: I am wondering what you think would have happened to the share price of Concordia had they NOT made the large acquisition of AMCo in September 2015. Do you think CXR would have been better off?

The acquisition of AMCo cost them US$3.5B, and the market liked it initially. They issued 8 million shares at US$65 to help pay for the acquisition. Yet the market cap of CXR is now only US$1.2B, much less than half of what they paid for AMCo, and the share price is now under US$24. Now they put themselves up for sale. Why would they do that?

I know they have been tainted by the problems in the healthcare sector like at VRX, and Hillary’s tweet, but still wasn’t it supposed to be a great acquisition for them, yet the stock has lost almost 75% of its value since then. Yes they have large debt, and that was known when they made the acquisition, and it didn’t seem to matter then. Now everyone cares about it, and the stock is under a short attack.

I want to be a believer in CXR, however, I like to understand what is going on, and at the moment I don’t get it. What lessons can a retail investor learn from this fiasco?

Paul

Q: The share price continues to languish, although it is up substantially from its earlier lows (but still down from its highs). Despite this malaise, the stock continues to draw widespread support from several BNN analysts and others. Why is the proposed restructuring not better reflected in share price? Does it suggest there is a greater deal of risk in this happening than first thought or that restructuring will not prove to be that beneficial?

Appreciate your insight?

Paul F.

Q: Hi, could you please comment on its results and outlook as announced this morning. Also, does it reaffirm your position to start accumulating at today's levels. Thanks

Q: Will you be covering Concordia Healthcare in the future seeing that it is in the growth portfolio (and there are many questions on it)?

Thanks,
Andrew

Q: Is there a stock right now that you would recommend more than ATD.B in the consumer sector? I am considering buying more on this dip, unless there is something you like better? Thanks, Neil

Q: Any comments on the deal announced today with HP?

As a secondary question, when deals that have long closing dates (this is scheduled to close in 2017, I beleive) when should we expect the share price to react? Of course it depends on the deal but is there normally an immediate change, followed by more activity towards the closing date or does it all tend to get baked in right away?

Appreciate your insight.

Paul F.

Q: I noticed that ATD.B made an acquisition today for various fuel stations. I was going to ask what your team thought of the deal, but I noticed that "the parties have agreed not to disclose the purchase price for this acquisition". How is this even possible for a publicly traded company?

Q: If no one else has asked yet, what do you think of SPB's update on the status of the Canexus deal?

Q: Hi, Sylogist continues to buy back its stock significantly under new NCIB, most recent being 99,700 shares for $9.99 on June 17. I know it's a solid vote of company's confidence in its own stock being undervalued. So, is it a good strategy to add to my position alongside the company at current levels $10. My second question is if Sylogist prefers using its cash chest to buy its own stock, does it indicate that new acquisitions are not near the horizon ? Thanks

Q: First bought a small position when it had dropped to $90 from its alt-time of around $117. Averaged down several months ago to a $53 cost and about a 3.5% position. Am thinking about chasing it at its current price of $29 to lower my cost to $40. Can't understand the downward pressure on this stock. I know it has some debt but also strong earnings. Can't help but think of Teck when it was down below $4 not that long ago and now is over $15. I don't like averaging down but it just seems so mis-priced. Forgetting about the short manipulations, do you you see any faundamental downside risk.

Q: I purchased ATD.A (multiple voting shares) not realizing there are differing options. As a retail investor, is there an advantage to purchasing the class A vs. class B?

Q: Hello team,
thank you for your all your investments answers and for the ones regarding Concordia Healthcare in particular.
Going forward it seems that unfortunately the sentiment towards Biotech stocks, Brexit, the similarities with Valeant, short attacks and other possible concerns with CXR is simply killing the share price and CXR has become a falling knife...

In addition technically speaking it just broke below 2016 lows... Do you still think its buyable now?

Thx again!

Q: I find your answer to the question on couche tard being down the last 2 weeks off the mark.
If they make another purchase and have to do a fund raise would not that be a good thing-- accreditive to earnings, cut costs etc etc, is not that the way couche tard became so successful in the first place.
What am i missing. Dave