Investment Q&A

Q: Hi team:
the peak season for tech stocks starts in late fall
I have full position in CGI.a; with a small position in ESL, KBL
I would like to add to ESL and KBL, would OTC be a better choice or all 3?
thanks!

Q: Mitel Networks in my thinking has been a growth company for sometime. Did you even consider it for your growth portfolio? With the current valuation and the activist interest do you think it is worth taking a position here?

Q: hi folks:
below was your dec 2014 update/report on CTY ---- can you update and offer any idea (aside from low volume and possibly no institutional interest) why it sits at multi year lows?

the chart says something doesn't add up

"No new concerns other than the usual with Calian. It continues to buyback stock, and is still sitting on $25 mm in cash with no debt. Earnings growth has certainly slowed, with governments simply not spending as they used to. But it continues to be quite profitable and generate excess free cash flow. The stock is cheap, and we would consider it a decent income stock, but not much else. With its balance sheet and cash flow, we think it would make a decent candidate for privatization, but this is not really expected. Insiders do not own much (1.4%) so we would like to see this change."

thanks

bob

Q: What do you currently think of CGI Group currently? It some numbers that disapointed but it is now off by about 18%.

Q: I bought this stock at $42 in July and it's currently at $31. I don't mind holding a losing stock if it has potential and I'm looking at a longer holding period of 7 - 12 years. Do you think this company has value for that period of time and should I hold? Is there too much competition for its market and if so how do you think it would fare? If you were to switch to another U.S. Company in the tech sector for that time frame could you give me 2 or 3 names you think would do well over time?

Q: ABT announced a substantial issuer bid to purchase CAD$50 million in value of its common shares for cancellation. The offer is being conducted as a “modified Dutch auction” with a price range from C$7.75 to C$9.00. The offer expires on Oct 20th 2015 (extended from Oct 5th).

The stock closed today at C$7.47. Why would the stock be trading below the minimum auction price? Do you view this as an arbitrage opportunity to purchase the stock in the open market and then tender the shares for auction?

Q: Your opinion of Oracle please, and would you buy this company at this price.
Matter of fact would you be buying any U.S. stocks with our dollar being so low.
Thanks

Q: Dear Peter and team:
Even though the tech sector has also corrected, it appears its gains haven't been completely wiped out.
What ETF would you recommend for one to take a position in NASDAQ. Keep in mind that the CAD is so weak! Do you see NASDAQ losing even more or holding steady in the next year or two. This is for my RRSPs. Time horizon 3 to 5 years.
If you don't recommend any ETFs, can you suggest some tech stocks?
Thanks .

Q: What do you think about this company in the US as a long term investment? Is it priced high relatively? I noticed it in the fintech rankings. Thanks. Regards, Shyam

Q: I was wondering about IT now that they have a poison pill in place to protect them from a takeover. would they do this because their shares are cheap or has some other company been sniffing around. thanks.

Q: Hi 5I,

I recently sold ET for a tax loss and am considering buying it back. Is it still a good quality company worth repurchasing? Would it be better to wait until maybe November - closer to tax loss selling time? or should I just re-buy it now?

Thanks!

Q: Semiconductor companies represent about 5% of 'folio.
For some reason, the logic of which escapes even me, I am not worried about other semis I have , all of which are down. But Micron has me puzzled. Micron's continuing and rapid descent looks similar to an object trying futilely to escape the powerful gravity of a black hole.

I look at MU's financials and my lying eyes see only a beautifully valued company. I lie to myself and pretend that I do not fall in love with my stocks , but I do. I have thus hung on to Micron. And now I rationalize (illogically) that it is ridiculously cheap,so why sell now? Am I wrong ? Do you see much more downside? (I refer herein to Micron , not more downside on my reasoning or logic).
Do you advise sell?

Q: I purchased shares of ABT at $9.88. Recently received a Corporate Action Notice for a Voluntary Dutch Purchase Offer of the following:
Option 1: "Auction Tender" whereby I would specify the price I want;
Option 2: "Purchase Price Tender" whereby I accept the price determined by the Company.
-OR-
Do Nothing.
Suggestion? Will these shares see $9.88 or better in future?
And, please explain the taxability of these options. Thanx

Q: WANTED Tech. TSXV: WAN got take out offer today at $1.79 by NYSE listed CEB Inc. Do you think its a fair price? Should I hold the stock to see if another higher offer comes?

Q: Hi Peter and team,

I have a question about Pivot. Can you briefy explain me the company and is it a good time to purchase shares. Currently, Ralph Garcea of Cantor Fitzgerald Canada has a $1.25 target price. Ralph mention Pivot can raise their dividend, buy back shares and increase their margins. Can you kindly share your thoughts. Thanks.

Q: Would you please give your short and long term view of the prospects of this company given the news today of a small revenue shortfall expected for the current quarter?

Thanks

Q: Your expert comment on ET's results & conference call today.What will be the impact on its share price going forward?.Appreciate your usual great views & services

Q: Hi Peter and Gang,

Would you please comment on Mitel's recent price drops. I am down by about 25%, should I hang on to my Mitel holdings or bite the bullet -- sell it at a loss and move on to something else. As always, great work guys.

Regards,
H.S.

Q: Hi Peter and Team,

In my RRIF,I have 1425 shares of ABT with an average cost of $9.7042. (ABT closed today at $8.33).

In today's mail, I received an "Offer to purchase for cash, up to $50,000,000 in value of its common shares at a purchase price of not less than $7.75 and not more than $9.00 per common share". If I want to accept the tender offer, I need to inform my broker by Sept. 30.

I am confused as to what course of action I should take, or should I do nothing and hope that this share buyback will increase the value of my shares, hopefully above $9.7042? It's obvious that I bought high, and would feel better if I was able to sell at at least for what I paid. Or is ABT's range for this tender too low, and they think that the stock isn't worth any more than $9.00, and I should tender my shares for $9.00 in their "Dutch Auction"? (The other alternative offered by Absolute is to let them determine the price which could be as low as $7.75 or as high as $9.00).

Sorry for such a convoluted question, and as always, await your timely advice.

Q: Hello 5i,
I am presently underweight the tech sector. Assuming I own equal weights AVO,DSG,GIB.A CSU and MDA which one should I add to today? Or bring a new company into the portfolio?
Many thanks, Doug