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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: Computer task group just reported. From the press release CTG expects total revenue for the 2016 second quarter to range between $85.0 and $87.0 million. Net income is expected to be between $0.03 and $0.05 per diluted share.

For the full year 2016, Non-GAAP net income is expected to be between $0.13 and $0.21 per diluted share.

Revenue has been declining over the past few years, the long time CEO also died recently.

They have reported $7.9M in cash in the balance sheet right now, and $79M is accounts receivable.

Is it rare to see a company trading with a market cap at close to cash + AR? (Currrent market cap is $96M)

Do you think they will drain cash to maintain the quarterly dividend of $0.06/share, making it unsustainable? Or a candidate for a cut?

Do you see this as a potential value play or trap?

Is it reasonable to speculate that a Democratic win in 2016 would be positive for healthcare IT spend? (one of CTG strengths.)

Could CTG be a takeover target?
Read Answer Asked by Michael on April 28, 2016
Q: I have owned the above Spirit Airlines for a year or so, got in around $74.00 and while the earnings seem positive,the price of fuel is low, it has steadily declined since I have owned. Is it something I should consider selling, it is unfortunately in my rsp, so I am somewhat reluctant. I look forward to your assessment of the stock. Thank you.
Read Answer Asked by Maureen on April 28, 2016
Q: I am considering replacing vxc with 50% vti and 50% vxus in my Rrsp. This I think will save some small mer, better for taxation and less losses due to currency exposure. I would appreciate your thoughts and suggestions also about possible alternatives.
Read Answer Asked by Shyam on April 28, 2016
Q: I have sold a holiday home in the US and have $150,000 that I want to keep in US funds until later in the year when I think the exchange rate will be better to change to CDN. Can you recommend an ETF or other reasonably safe way to get some dividends on these funds for 6 to 8 months
Read Answer Asked by KENNETH on April 27, 2016
Q: Prior to subscribing to 5I, I bought Jan 2018 call options in TWTR. At the time I figured that they had a large user base with a lot of ad potential, particularly with Periscope. I bought 2 year options knowing that tech moves fast and hoping that would give the company lots of time to turn things around.

Now, having read many of your reports, I feel that I'm a more educated investor and probably wouldn't buy this type of company again. In particular, your reports have helped me to appreciate the negative effects of share dilution which is a big problem for TWTR.

Today's earnings don't look good.

Is there any hope for this stock? I'm not afraid to take a loss and move on if that's the best thing to do.
Read Answer Asked by Andrew on April 27, 2016
Q: I've had a long term holding in IBM, know they have struggled as their traditional hardware markets have declined and services shave stagnated and although they are getting growth with their cloud business, it's not enough to offset declines elsewhere. Declines seem to be levelling off though, they exceeded analyst expectations last quarter. Debating whether to hold on as stock is cheap (for good reason) or dump my shares and move on to more attractive growth opportunities. Any thoughts? See Buffett still holds shares...
Read Answer Asked by John on April 25, 2016
Q: Hi, 5i.

What are your top picks for consumer staples at this time?

Thank you,
Robert
Read Answer Asked by Robert on April 25, 2016
Q: Of the two ETf's as listed above would you comment on the timing and prospects for these ETF's in the current economic environment with both the US and Canadian governments emphasis on infrastructure spending. With thanks, Bill
XMA and VAW
Read Answer Asked by William J on April 22, 2016
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