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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: Hi 5i! Regarding Callidus (CBL), can you comment on the implications of their ongoing share repurchases given the recent share price decline and the relatively tight float? With their FY 2016 Report, CBL indicated “49,916,781 common shares comprising Callidus' total issued and outstanding.” At the same time, they announced an NCIB allowing repurchase of up to 5 percent of that total (i.e. 2,495,839 of its common shares). In the Q2 2017 Report CBL indicated that approximately 1.26M shares had been repurchased under the 2017 NCIB through August 9. All repurchased shares are being cancelled. My online broker’s site currently indicates the number of floating shares at 9.11M. With such a small percentage of issued and outstanding shares floating, a full repurchase under the NCIB would appear to reduce the float by approximately 25 percent. Is it safe to assume that only floating shares are being taken up under the NCIB? As the share float dwindles, does an ultimate privatization become all the more likely? Are there any specific advantages or dangers associated with the shrinking number of floating shares, particularly in connection with a potential privatization and as far as retail shareholders may be concerned? Thanks for any insights!
Read Answer Asked by Lance on August 15, 2017
Q: Does your opinion of cbl change at all after their 2nd q results release? I have about a 2% weighting (as of today) in an rrsp acct, down about 30%. I'm think of selling considering all the quality stocks with far fewer "issues" that are on sale right that I could replace it with. After watching what happened to efn after a rumor and no short interest, it has not recovered at all from it's significant drop so I can't see anything, other than a prompt privatization of cbl, that will turn it around. I don't think this q results will help at all either.

on a side note I think it could be a wise move to basically sell all stocks just before earning seasons and wait for the dust to settle before buying back. all stocks that miss, a lot that meet, and even some that beat get clobbered with very few that make a good run after a beat, dr is a case in point here which I hold. even with trading fees (about $5/trade) this seems like a very profitable possible strategy. I know it's not your style to trade like this but with the markets being as reactionary as they are with the hedge funds and day traders so active a swing of 10% plus swings could be very profitable and more than offset the very few that seem to move up on earnings.

thanks Tom
Read Answer Asked by Tom on August 14, 2017
Q: With the latest news about CBL and the big drop in stock price, what do you suggest a shareholder do (if anything)? Can this company be trusted? They report earnings Thursday after the close but can we believe what they say? I stayed "patient" with DH, Concordia, and HCG only to add to the initial losses. Do you think they can recover from this even if it is shown that no fraud has occurred? As usual, your thoughts please.
Thank you
Read Answer Asked by Rudy on August 10, 2017
Q: Hello,

I have some cash in my TFSA. My return in this account has not been good.
I am looking to invest in a growth stock. Of all of these stocks I listed, which one would you recommend for me to invest in?

And if there is a better stock, which would you recommend?
Thank you.
Read Answer Asked by Marc on August 04, 2017
Q: Hi 5i,
I hold some Callidus (CBL) and I am inclined to keep holding and collecting the dividends while management works on growing the business and works out some kind privatization deal that they will find acceptable. I noticed though that my online broker recently updated its indication of the number of floating shares, reducing it from 12M to 9.24M. Aside from liquidity issues, are there any risks (for shareholders like me) associated with the share float becoming too small? Also, what is the extent of the short interest in the stock and, if indicated in percentage terms, is that a percentage of the issued shares or a percentage of the floating shares? Thanks.
Read Answer Asked by Lance on June 29, 2017
Q: Hi. Thanks for your invaluable advice. Can you indicate what the financial implications are of Callidus Capital's announcement today that they are considering establishing a private fund? It seems to indicate that Callidus is having difficulties finding a buyer. Would you recommend continuing to hold this stock or is it time to consider alternatives?
Read Answer Asked by Alan on June 29, 2017
Q: i am down 10 % or more om tog and hwo . both pay reasonable dividends.if contrary to what may wishful thinking energy doesnt get any better how long can they pay dividends ?should i sell them now.
cbl i purchased a month or so ago at $14 after watching a BNN market call where the host was convincing that due to major sharholder arrangement th stock will close around $18 by end june. it pay an attractive div.
did i understand this correctly.? anycase should i continue to hold cbl
Read Answer Asked by thambirajah on June 15, 2017
Q: Jerome Hass was Market Call, his comments, left me with the impression, that insiders were planning to privatizing this company. Is there no indication on who is looking at the company to buy?? Also, you stated to Ruby that the div. @ 81/2 % is risky, is that because the cash flow or the company could use the money to buy back shares. If they cancelled or greatly reduced the div. then possibly the stock would drop in value and make it cheaper for a buy out??? This seems to me, if any of this was true, would be very unethical, & would there not be some safe guards to prevent this Earl
Read Answer Asked by Earl on May 08, 2017
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