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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: Sangoma Technologies released fiscal Q3 results this evening. Revenues have grown for the eight consecutive quarter, 29% this past quarter. The Company stated in the earnings release that total revenues for fiscal 2017 will now exceed their guidance of $25 million. As the market cap grows (today still trading less than 1X sales) do you think this Company would be considered for your model growth portfolio?
Read Answer Asked by Charles on May 18, 2017
Q: Hello,
5NPlus seems to have a huge momentum. I saw your previous response to a question..about not covering this stock. Have things turned around in this company? Do you think this company should be considered in the basic materials sector along with ccl, aem and stella. Thanks. Shyam
Read Answer Asked by Shyam on May 17, 2017
Q: Hi Team, On May 8/17 I asked a general question on TOS and your answer was:TOS has done a very good job getting the company to where it is, with FDA approval, good partners and a solid growth opportunity worldwide. We like what it has done, and it has good potential. But.....the stock is very expensive and this needs consideration. It trades at 7X 'expected' 2018 sales already. It is expected to turn a profit in 2018 but any slowdown or problems would really hurt the stock. We would not 'assume' 40% returns here, but do like it generally today.
I have a followup question, how much of TOS's revenue would come from the US or Europe? My thinking is if TOS has a significant exposure to the US in particular this would help me make an investment decision. It appears to me today good companies with US exposure are worth a little special attention or premium. Thanks as always. Chris
Read Answer Asked by Chris on May 17, 2017
Q: My wife and I just started out an resp for our 3 year old. We only have enough to start out with one position and are planing on adding a potion or two every year. We are ok with some risk at this stage. Can you recommend one or two stocks at his point in time with good potential over the next 5 to ten years? I was thinking GUD may be a good fit. You are the experts though.
Read Answer Asked by Richard on May 17, 2017
Q: The convertible debenture with Mill Road Capital has me confused. If it converts into shares at $8.25/share that means the company would issue 1.8 million shares to pay back the $15 million in dentures. In addition the company has the option to pay the interest for the first 2 years "in kind" which I assume means shares of the company and not cups of coffee :) If this option is exercised the principal amount is increased by the amount of interest owing. I don't get it. If the company chooses this option it sounds like they are paying the interest charges twice, once in kind and the second time by having the principal amount of the debenture increased. Is this normal? Thirdly the debenture has a net settlement feature. It says the company can pay off the face value of the debenture in cash and any excess value of the underlying security in shares. Why does the company have to pay back more than the face value of the security if the shares are trading above the conversion price? Am I understanding this correctly?

Kenn
Read Answer Asked by Kenneth on May 17, 2017
Q: Spring cleaning of my portfolio, I have many small positions that did poorly over the last few years but that I never sold (hoping for a comeback I guess...). Here is the list, can you please adivse if I should sell or hold (keeping in mind it s a small portion of my portfolio and I have excess cash to invest outside these positions) :

Bellatrix BXE
Capstone Mining CS
Argonaut AR
Black Diamond BDI
Canyon FRC
Newalta NAL
Baytex BTE
CDN Equip CFL
RMP Energy RMP
Wi Lan WIN

Also, are VET and Peyto still your top picks for the energy sector (long term hold). Thank you

Read Answer Asked by Pierre on May 16, 2017
Q: I have been following this company for the last couple of weeks, & they supposedly have had several companies sign on to their product line. The stock has gone from approx. $1.00 to $.15 cents, with my limited understanding for financial statements it appears revenue has gone up considerably. What don't I understand here.? I understand this is a very risky stock, but I still am interested, but cautious. Do you have any suggestions how to get further information on their sales or patent, or anything else you can supply me with would be greatly appreciate.
Thank you very much for your great service

Earl
Read Answer Asked by Earl on May 15, 2017
Q: The stock options announced today seems very generous given the stocks history and current trading price.
Should I be concerned about this?
I currently hold 1% position.
Thanks
John


Calgary, Alberta - May 12, 2017 - FLYHT Aerospace Solutions Ltd. (“FLYHT”) (TSX-V: FLY) (OTCQX: FLYLF) is pleased to announce it has granted incentive stock options for an aggregate 3,660,220 common shares, subject to regulatory approval, to employees, officers and directors under the stock option plan approved at the Annual and Special Meeting held on May 10, 2017.
Read Answer Asked by John on May 12, 2017
Q: Hi
I need your expertise to better understand PTG cash flow statement. The cash flow for the first quarter was positively influenced by changes in non-cash working capital NCWC (note 13). For the three months ending March 31, 2017 and 2016, PTG posted $59,151,000 and $63,502,000 in changes in accounts receivable. PTG also listed accounts payable in NCWC. I understand that accounts receivable are bills to customers that have not yet been paid and accrued liabilities are invoices that PTG have not yet been paid. Is it normal practice for these two lines to affect change in none cash working capital ?
PTG reported cash flow of $50,000,000 on revenue of $330,000,000. PTG reduced the debt level by $40,000,000 and bought back shares. The net value of the enterprise, including debt and liquidity, is around $170,000,000. What is the likelihood that PTG will be able to maintain a similar level of cash flow ? In your opinion what will it take for the market to take notice ?
Read Answer Asked by Gilles on May 12, 2017
Q: I am tempted to add to my position in Sangoma Technologie prior to Company reporting their quarterly results later this month because I think the market will start taking more notice of this Company given that its revenue run rate is climbing over $25 million and its EBITDA margins (10.5% last quarter) are now growing too. Based on the Company's new guidance for Fiscal 2018 the stock trades less than 1 times sales with profits on the rise and a good balance sheet. What are your thoughts and is this Company on the cusp to be discovered by more investors since the new management re positioned the Company over the last several years?
Read Answer Asked by Charles on May 12, 2017
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