Investment Q&A

Q: Thoughts on the proposed merger of SES and TEV?

Q: Hi guys,
any comments on this one? nothing on your Q&A for a long time...
charts looks great, fundamental the same, never seen 115M share float so tight...
who are the holders?
their corporate presentation is good but nothing about the float
your opinion? turnaround story finally? waste management sector and environment is front news... thanks

Q: The Prime Minister just announced a $750M fund to reduce emissions in the energy sector. This seems to be the sort of thing Questor Technologies does. Do you think this will give a boost to QST stock? Are there any other companies that are in this space and could benefit?

Q: From the Globe and Mail: "Trident Exploration Corp. said it ceased operations effective April 30, leaving behind a $329-million bill to clean up 4,700 wells it says are being transferred to the Alberta Energy Regulator (AER)."

There is a problem in Canada with abandoned oil and gas wells and unfunded clean up costs from defunct oil and gas producers. From the press this seems to be a big future liability to the Province and existing companies as well. This would create a massive source of revenue for companies tasked with the clean up job I imagine. Is there an investment thesis here?

Q: With Q4 results released yesterday, I would have expected some reaction from the Market. So far today - nothing.
Can you comment on the results for Q4, Thanks

Q: Thought on Tervita?

Q: I would appreciate an initial assessment of Tervita (T.TEV) which recently became Canada's largest oilfield waste management and environmental services company following their merger with Newalta Corp.

Q: When the Tervita takeover was announced, analysts' estimates of the value offered to Newalta shareholders ranged from $1.55 to $2.50, with an average around $1.65 to $1.70. Since Tervita is currently private these might be quite inaccurate, but they are all investors have to go on until the detailed offer is published. The offer was such a welcome lifeline to Newalta that I expected it would bounce up a bit (it did) and then crawl steadily towards the $1.50 mark (it hasn't). I can't imagine Newalta shareholders will reject the offer, nor that the presumably many fewer Tervita shareholders will defeat the acquisition, so are Newalta shares temporarily worth buying for sale just before the close?

Q: I have a small (losing) position in NAL. With the recent news, is it a good time to sell and move on ? Thank you.

Q: I hold Newalts common shares. Newalta and Tervita merger is announced. Could you explain the net benefit of the plan of arrangement stated in the news. What is the net value to Newalta share holders for each common share..

Q: What are your views on Newalta for a long term hold (5 years)?

Thanks

Q: Scanning your latest research summary the 12.3% yield on NAL jumped off the page at me. Your B ranking doesn't put up a red flag but it also isn't in your portfolios. What is your outlook for this company. Will it continue sideways? Chances they will bring back the div? Possible short term buy at the $2 price with expectation it will pop back up to the recent $2.5 range for a short term profit? Or move on to better things realizing the 12% annualized div is gone and was a statistical hangover from better days...Any other yield traps on your list...BDI, ADN, CPX...

Q: I sometimes like to be a bottom feeder, the above list of companies are all from the growth portfolio and are under water. Do you still have conviction on any of these names for a recovery? Could you please rank the strongest.

Q: You have me confused. Your latest coverage summary has Newalta with a yield of 10.5%, however in your own coverage a while ago you properly indicate that the dividend has been suspended. Do you calculate your yield differently ?

Q: I am down significantly on this name but relatively small position. With the recent price increase, is it a good time to get out ? I have no problem sitting on it for a few years if needed. I have other liquidity to invest in other names. Thank you for your comments.

Q: Since you published your most recent report on March 8th. $51.6m of new equity capital has been raised by a fully oversubscribed bought deal at then current share price with about 765000 shares paid for by all directors and some senior officers. The new capital was apparently used to pay down drawn credit and despite the dilution share price has risen modestly. The Debt/Equity, Insider Ownership, Net Margin (probably got worse) and CR boxes in the sidebar in your report would probably all change. But the Fort McMurray fire has caused another $5m estimated cost to adjusted EBITDA, and I suspect you may regard the present condition of Newalta worse than 2009, which it survived. Bottom line - are you any more optimistic about survival than you were in your report?

Q: I am currently underwater 60% on a small position of NAL (1% of my portfolio). In your view, is NAL likely to survive this market cycle and are they worth holding onto? I very much enjoy the dividend, is this likely to remain? Finally, should I consider doubling down on my position for a long term hold?

Thanks for the service!!

DON

Q: Hi, your thoughts on this mornings news release. Is this going to be a share dilution afair?

Thanks