Investment Q&A

Q: I am under weight in the technology sector. From your portfolios what technology stocks might you recommend at this time (I own DH)? I am good with either income or growth stocks.

Is there a stock not in your portfolios that you may recommend over the others?

Thanks
Paul

Q: What do you think of their latest results, and is this a good company for income and growth.

Q: I read today that if I wouldn't buy the company today perhaps it is a good reason to sell. In the case of Flyht Aerospace, I have lost 74%. So just to clean up my investments a bit I thought of selling. At the same time, I have no need to sell so could hang on for several years if there was a perceived value with FLY. I see that they have changed their executive. I don't know if good or just loss of confidence in the company by their old senior executive. Any thoughts you have in terms of action I should take are appreciated.

Q: Could I get your opinion of URE, they appear to be a low cost producer. Are you familiar with management.

Q: Hi guys, I have done very well with the consumer discretionary sector both in Canada & the U.S.A. My problem is that it has grown to 25% of my portfolio (each name is between 3 to 4%). What is your forcast for the sector in 2016 and should I trim now or wait until they reach 6 to 7%. Should you recommend trimming, what sector looks interesting to you to this time.

Thanks,

Jim

Q: Between CXR or GUD for a full new position, what would you recommend? Thanks

Q: Thinking about switching from Saputo (SAP, about a 2.5% position) to A&W. I'm a little under water on Saputo, I can use for a capital loss.

SAP is trading at around a 20-21x multiple, so in my opinion, chances of it running $3 or $4+ more in the short term is fairly limited. Plus, the Saputo family has a 34% voting interest so, I'm guessing, chances of a takeover are fairly limited in the immediate future.

These are the reason's I wouldn't mind selling SAP for a more efficient use of my funds. However, I am having difficulty valuing AW.UN in comparison with SAP. I like AW.UN's monthly dividend. I like the fact that it seems to be a well run business. And I like the fact its just about the perfect size for a large number of players in the food services industry to take them out. However, like I said, I am having difficulty valuing AW.UN. I'm wondering if you can help me out? Is it cheap, fairly valued, or expensive against the backdrop of its growth profile?

Thanks.

John

Q: Your thoughts on cwx?
thanks

Q: Hi Peter and Ryan, What would be an appropriate Weighted Average Cost of Capital (WACC) to use to discount GIL's future free cash flows to firm? I am getting a very low WACC estimate of only 4.41% primarily because GIL's Beta is only 0.39. My other assumptions are as follows,

Risk free rate 2.4%
Market risk premium 5.75%
Beta 0.39
2.4% + (5.75% * 0.39) = 4.64%
Resulting cost of Equity 4.64%
Equity weighting 92.1%
After-tax cost of debt 1.7%
Debt weighting 7.9%
(4.64% * 0.921) + (1.7% * 0.079) = 4.41%
Resulting WACC 4.41%

To me WACC of only 4.41% seems too low. Where do I go wrong with above calculation?

Q: A few days ago various analysts posted pretty optimistic reports on CES. Today it dropped six per cent. What is your view on earnings and the company? Is the dividend safe?

Thanks!

Q: Hi Peter,
The results out today from GRC look quite spectacular, at least on the surface. I have a small position, and added some more today. I wanted to get your thoughts on 2 things: the sustainability of the 10% dividend, and method(s) to estimate fair value for the shares, given that revenue and earnings will likely be quite volatile and unpredictable over the next months/years.
Thanks for your excellent service!

Q: Can you give your thoughts on their most recent 1/4 and the company in general, buy,hold, or sell.

Thanks

Q: Hi - your analysis of the results please. vs what was expected? Are they a better value here or is it time to tax
loss sell? what does the bal sheet look like? thanks

Q: Is it not incumbent for any firm such as SeekingAlpha making accusations to have solid evidence prior to making accusations in support of short selling? Should there not be recourse against both the accuser and possibly the promotors of a class action law suit. If there is no back up evidence of wrong doing, shareowners should consider legal action? How reputable is SeekingAlpha?

Can you provide guidance as to whether I should take my losses in stride?

Thank you

Q: Could I have your thoughts on the latest quarter. Thanks.

Q: Intrinsyc released Q3 yesterday and the results and outlook appear strong. The company was also named as a top 20 public tech company and is presenting at next weeks CIX Tech Investor conference in Toronto. What are you thoughts on ITC as a micro cap tech opportunity given the company's strong balance sheet.

Q: Could you please comment on Prometic's earnings release?
Thank you, Peter

Q: I like the long term potential within the Uranium sector for future electricity generation. I'm looking to invest in the sector for the long term ( at least 5 yrs +) as I believe there is a forecasted supply shortfall emerging between 2018-2020 that could last many years. BAN looks interesting but at $0.03/share also looks very risky with about $8 mill in debt. I'm also looking at Denison and UEX with no debt. Is BAN a survivor for the next upcycle? What do you think of a basket of these juniors?
Thank-you.

Q: UrtheCast Corp released their third quarter results this week. Would you please provide your comments. Did the meet expectations and would you recommend continuing to hold this stock? Thanks

Q: Hey Peter & Team,

Trying to get a handle on Merus. I bought a full position @ $1.94 in Jan 2015. Sold 50% at $3.26 in July. Today it is trading @ $1.55.

The street sentiments appear to be fluctuating quite a bit... Early Oct it carried a Strong Buy recommendation from multiple sources with target prices ranging between $3.25 & $4.25. 3 weeks later Mackie & Scotia reduced their targets from $4.25 - $2.70.

Are you able to shed any light on MSL and what we could expect moving forward?

Thanks for all you do

Gord