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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: In the globe today there was a somewhat negative article about GSY and cash flow.
No need to reprint the entire article, I am sure you have read it with your morning coffee.
What is your take on this should investors be concerned

A portion below


At the behest of the Ontario Securities Commission, which was looking over the company's filings as part of a "continuous disclosure review," goeasy moved a couple of line items out of one portion of the cash-flow statement and into another. As the company noted in a news release, the change had no impact on the company's net income, earnings per share, cash position or balance sheet.

The change in the company's operating cash flow - a measure of cash the company generates in the ordinary course of business - was massive, however.

The company had told shareholders that it had $153-million in operating cash flow (OCF) in 2016; the reclassification turned the number to negative $21-million. For 2017, $179-million in OCF became negative $89-million. Over two years, that's a swing of $445-million (OCF figures are rounded).

And yet, the markets shrugged. The stock has not moved. Analysts covering the company did not put out notes. This was not "material," the word for what a reasonable investor would find important, a couple of analysts told me via email.

I think there's something wrong here, though, when a primary measure of how a company generates cash from its business can swing that much, and no one seems to care. Are we looking at the wrong things - or do financial statements that are compliant with generally accepted accounting principles - GAAP - not matter?
Read Answer Asked by Leon on July 24, 2018
Q: Today Gsy had a press release that indicated it was going to issue more unsecured debt for corporate purposes..
It also released a hint of what its earnings release on August 7 will contain.
Positive numbers.
The stock moved up 2 dollars
Question: is it common for a company to issue a " hint" of its earnings almost a month prior to the official release .i have only seen this before when a company was under a short attack
Read Answer Asked by Leon on July 13, 2018
Q: It’s becoming increasingly clear Canada is facing challenges on many economic fronts from increasing regulatory burdens, inability to attract foerign capital and sub-national debt at the provincial level. Given that these, among many other, factors make Canada a questionable destination for investment, I’m wondering about your take on what this means going forward. Apart from an increased international focus, are there some Canadian companies doing business in Canada you feel can benefit from a potentially deteriorating economic scenario in Canada. I've recently taken a position in GSY and am considering DOL. Your thoughts on these and other suggestions would be greatly appreciated.
Read Answer Asked by Warren on June 07, 2018
Q: I am transferring funds to a TFSA and an unregistered account.I have picked the above to be put in my TFSA and would like another 10 picks for my unregistered account as well as your opinion on the 10 for TFSA please.Both accounts have 100k to invest with a 10 year time line to retirement.
Read Answer Asked by Brad on June 07, 2018
Q: I sold Enercare in my RIF and was considering TCL.A . I own CCL.B is therean overlap ? what other income plus moderate growth stock should I consider
Read Answer Asked by thambirajah on June 06, 2018
Q: Hi team,

Would you be able to suggest a couple of stocks with value, momentum and a chance for higher pricing or spending either in Canada or US. I have some cash but I am hesitant at current valuations in general.

Thank you as always!
Read Answer Asked by Saeed on June 05, 2018
Q: What is your view at this time of Canadian bond proxy stocks versus Cdn dividend growth stocks, and their valuations relative to interest rates?

If you are of the view that dividend growers are more appropriate at this time, can you provide three growers that you recommend, and 3 bond proxy stocks that you would suggest to stay away from, to better understand the types of stocks that fall into this category. Thanks.
Read Answer Asked by Kirk on May 28, 2018
Q: Hi, Could you give 3 small cap and 3 mid cap recommendations for me to look at on the tsx. I'm looking for good management with a good balance sheet. Something with some risk is ok provided the possibility for good growth is there.
Thanks.
Read Answer Asked by Peter on May 14, 2018
Q: Retired and looking to move 125,000$ to unregistered invest. from fixed income to benefit from dividend tax credit. Can you please suggest 5 or 6 stocks with combination of groath and dividend?
Thanks
Sherrill
Read Answer Asked by Sherrill on May 07, 2018
Q: In your opinion, what are the 5 top small cap stocks for growth over the next 2 years
Read Answer Asked by Bob on April 23, 2018
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