Investment Q&A

Q: i am considerably down on my shares of dhx. i have recently been offered warrants which expire november 15, these warrants would give me approx 533 shares at a price of 1.67, or i can sell the warrants any recommendations? brenda

Q: I own 8000 shares of DHX. With the rights offering, does that mean I will get 8000 rights at $1.67 free and I can sell them anytime until November 15 or convert them by buying 8000 more shares at $1.67? Not sure what to do with this information. I think a right gives you the right to buy the shares before the expiration date at a certain price and if you don’t they expire? Can you clarify for me please and if you owned the shares would you convert the rights?
As I averaged down over the years I hold my 8000 shares at a cost of $2.10.

Q: So new good CEO at DHX changing its name to WildBrain. Do you think they can get back on track? Never sold my shares huge loss but I have faith in new seasoned ceo to turn things around. And what about this buy out offer a few months ago? Is that off the table? Your thoughts?

Q: Do you see the recent acquisition of eOne by Hasbro increasing the likelihood that DHX Media will be taken out or do you see the company bleeding to death under the weight of its debt and a larger player coming in and scooping up the assets?

Q: Do you know if East Bay management sold their shares yesterday? The volume was huge 899,215 shares as opposed to average of 148,353 shares and the stock dropped .23. Can you shed some light? I also don’t see any news about the rumoured possible buy out.

Q: Can you tell me how much debt DHX has relative to revenue. With their debt, would a company be interested
in buying them and assuming the debt? Looks like insiders are buying tons of stock.

Q: What sort of a price do you think the board will be looking to sell the company for? Thanks

Q: Owned this in the past on a belief that content was king. Hasn't worked out that way for this company yet, though. However, with Disney+ coming on stream and the new hire announced today (with a Pixar connection) is it time to give this company another look? I see it ultimately as a takeout play and wondering if you concur. Or does this company still need to show it can grow profitably first and reduce its debt before buying?

Appreciate your insight.

Paul F.

Q: The company sold roughly 50% of it's stake in Peanuts for over $300,0000,000 cdn . That mean it still has an asset worth 300,000,000 at the very least. That works out to a value of $3/share just for the Peanuts asset. Can you tell me where in the Assets category of their balance sheet that this asset would be included in? Is it intangibles or library content or something else? Thanks.

Q: This one seems to be gaining a bit of traction with the rest of the market. Other than selling their Halifax studio, i can find no other news. What do you think of the company at these levels.

Q: Hello I was wondering if there was any reason you knew why DHX jumped 20%? I do not see any new news or developments. Thanks as always

Q: DHX seems to take two steps up one step back every day. I have been burnt on this stock before, so I do not want to give back what I have earned. Do you have a strategy for letting a winner like this run or do you set a target and exit? Stop losses would probably not work given the lack of liquidity. Thanks

Q: After bottoming out at $1.00 DHX has recovered to $3.00 a share. Every day the stock moves up in this volatile market. Can you tell me if Fine Capital still holds a big stake and if not who does. It lookslike a good turnaround story—dividend cut, WildBrain gaining traction, conference call had some good positives.? Time to buy this time around after three years of just going down it looks like the bottom was found and DHX is moving in the right direction.
What do you think? I have a very small position.

Q: WRT your recent DHX report, I think it leaves out some significant assets: Cash, short term investments, and the Peanuts sale cash. Can you check these numbers:

1) Net debt = $760M - $246M Cash/short term investments - $237M Peanuts sale = $277M
2) I think Current median EV/sales multiples for the media content assets is around 1.8x (confirm?). I believe peanuts sold to Sony closer to 3x (confirm?). I'm not sure the exact net revenue Peanuts brings to DHX?
3) If we assume the 49% sold peanuts stake contributed ~$100M in revenue, the DHX projected revenue would drop to say around $350M. So we are looking at $350M x 1.8 = $630M of content assets.
4) Margin of safety: $630M = $277M net debt + Equity;
Equity = $353M, compared to under $200M current market cap.

This company is certainly a cigar butt, which I picked up close to $1. Seems to have a couple puffs left?

Q: Please comment on the news releases by the company. Thanks

Q: Please comment on their preliminary results. Would these results calm the market down?

Q: Is DHX going belly up? Every day is going down hard

Q: WHY DOESN`T SOMEBODY COME IN AND BUY THIS COMPANY? THE SHARES HAVE TUMBLED ABOUT 75 PERCENT AND IF THE LIBRARY HAS VALUE IN THEIR CONTENT THE COST TO ACQUIRE WOULD BE ALMOST IMMATERIAL FOR DISNEY OR NETFLIX. YOUR THOUGHTS AND THANK YOU

Q: In my well-diversified portfolio, in your view, which of the following are worth holding for possible capital gains in one year, and which should be sold now, with the intention of reinvesting the proceeds in some of your recommendations. DR GH ESN EMP.A DHX. I do not need the cash and do not need tax losses

Q: I thought the worst was over for DHX, but another low today. At what point do you think there is value (bounce potential), or is there no longer any hope for this company.

Paul