Investment Q&A

Q: symbol: SVC
Hi Peter and Team,
Pls offer your thought on Sandvine Corp. Share price dropped lately, is it buyable at this level.
Thanks as always.
From Pui

Q: Hi Peter, in the tech area we hold AAPL, AVO, CSU, EMC, ESL, ET, and Samsung in ~equal amounts. I'd like to replace Samsung as it's harder for me to follow. Would appreciate your recommendation for a replacement and any other changes you might make. Thank you.

Q: Can you tell me anything about a us company Invensense INVN. A technology company for wearable applications. Would this be a company google would want to buy? Or does it have merit on its own? Comparing JDSU-- JDS Uniphase to INVN, which would you buy or would not buy at all. Thanks.

Q: Any comment re BBRY earnings announcement this morning ?

Q: Hi 5i: I am thinking about Amaya’s (AYA) valuation, at this point with the stock around $17.50ish, and whether it makes sense to add some. Relative to before the announcement, it seems there is now a new risk factor and a counterbalancing potential reward, the balancing of which indicates market approval via the pop to the shares. Presumably the difference between the market price and the equity financing price of 20.00 reflects some deal completion risk, at least in part, along with merged enterprise business risk. Could you comment on what that deal completion risk really amounts to? In other words, if this falls apart, which participant(s) would be most likely to balk and why? If the deal doesn’t close, AYA likely dumps back down into the $9.00 – $11.00 range, all else being equal. The guys financing it at $20 obviously think there is significant upside from $20. Are they likely to be averaging down with public market purchases in the meantime? On the other hand, is there any sense in which a stock price below $20 between now and the acquisition closing date might itself amount to a barrier to the successful completion? Or is the equity financing effectively committed at $20? Thanks for your perspective on these points.

Q: Hello Peter & Co.
Tip of the hat to you guys for having responded to one of my questions on a Sunday; don't you take a break?
My wife's RRIF (portfolio of 11 stocks) has CGI as the only tech exposure; I know it is one of your least favourites. Which of CSU, DSG, ESL, MDA, OTC, SYZ, ET would be a good replacement?
Thanks
Tony

Q: Hi: In the Tech sector I currently have CSU and MDA at 3% each, and ESL,GIB,OTC and DH at 1.5% each or 12% of my total portfolio in Tech stocks. I am thinking of selling one to reduce the number of stocks, while buying more of some of the remaining stocks. Perhaps to increase my overall tech exposure as well.
Your thoughts would be appreciated.
Also, do you consider AYA to be a Tech stock or a Consumer stock assuming the acquisition goes through.

Q: I would appreciate your evaluation of the recent floating rate debenture offering from Constellation Software. The interest rate is very enticing but I understand the CSU can defer interest payments. What do you think of the value and risk of this investment. Thank you.

Q: I currently own Sylogist (SYZ), Avigilon (AVO), Constellation (CSU), Amaya (AYA), Fair Isaac (FICA - Q), DH Corporation (DH)and Enghouse (ESL) and am thinking of adding Evertz (ET). I know you like all of these companies (not sure about FICA) but I have two problems.

First, are they all considered technology companies, even though some are software base, they service different industries and some focus more on haresare? Can a portfolio safely handle 5% holding in each of these companies mentioned or os that way out of whack?

Second, if there is portfolio overlap, which are the "best' ones to own, in terms of long term holds.

Thanks for the superb advice. I am now well on my way to be being able to thank you for a constantly better looking retirement!

Paul F.

Q: Hi Team
I sold my position in Web Tech wireless when approval was given for a share consolidation of 1 for 5.Consolidations from my experience are usually negative for the share price.The company looks decent enough at this price,i believe they are cash flow positive and also have around 23 million in cash.My thinking is that i should be able to re-purchase shares after they drift down for a year or so after the consolidation.Can i have your comments please.
Thanks Gordon

Q: In Avigilon’s (AVO) recent annual meeting circular, they are proposing an amendment to the corporation’s by-laws which would indemnify the Directors and officers in the event of any criminal or civil proceedings against them. Normally I wouldn’t give this a second thought, but in consideration of the recent abrupt (and mysterious) departure of the CFO it causes me concern. I am far from a conspiracy theorist, but it leaves the impression that something shady might be going on, hence the CFO departure the day before the release of quarterly results, and now a move to better insulate the officers from any liability. I’ve read all the Q and A as well as the AVO report that you just updated and it is clear that the recent CFO departure doesn’t seem to concern you, but what if anything do you read into the company’s move (and the timing of it) to amend their by-laws to better protect the Officers?

Q: Hi 5i: Could you please comment on NXP Semi-Conductor (NXPI) on NASDAQ. It was a top pick recently on BNN.

Q: Any insights on KXS - just went public this week. Seems like a bit of a resurgence in the tech sector? thanks

Q: I have large positions in Cineplex and Interpipeline-the two make up about 20% of my portfolio. I was thinking of bringing the total down to 10% and using the funds to buy Everet Technologies. Your thoughts please?

Q: Hi,

Your views on ET results please. Thanks

Q: Hi Peter, I own CTSH, haven't made any real money, seems solid but it has a downgrade due to valuation, it has a 1.6 peg and I am wondering if I could do better with another stock over the next year. Thanks once again, appreciation of your service comes with a capital A.

Q: Hi 5i,

I have another question regarding buying companies with options. I would love to buy calls (8 months-1.5 years) for ESL or CSU, but unfortunately none are available.

Upon trying to find comparables to CSU or ESL I've come across Tyler Technologies (TYL). TYL has shown great growth, has no debt and maintains a nice ROE. My only concern is it appears to trade at over 60x earnings. Is this accurate? Are there other solid and growing tech companies that you think might be appropriate here? (I already have some Jan 2015 OCT Calls that have done very well).

Thanks!!

Q: I have noticed alcoa (aa) and a french company has been testing and promoting an electric car battery that extends a vehicle range up to 1800 kms. There has been some talk of creating a plant in Quebec. I have looked into the technology and it seems they do have something that has the potential to be enormous and could propel electric vehicles into main stream. I understand Ford is involved also. Do you have any opinion on this new battery and alcoa and if this is a good entry point? Thank you Dave T.

Q: Could you please advise as to Enghouse's (ESL) eps and revenues anticipated in its quarterly earnings to be released after the market closes today? Thank you. Peter

Q: Hi Peter and Team,

Can you give an update on Norsat International, NII.