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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
Due to one of the holdings becoming a runaway success it has turned into approx 30% of the overall portfolio value (I know you think this is a bet on one company, leaving that to one side my question relates to the the weighting of the remaining holdings). I'm uncertain as to whether it would be necessary to adjust the weightings of the remaining holdings and in what way. Growth/losses in the other holdings appears to be masked/muted by the overwhelming good fortune that is the 30% holding.

Thanks as always
Mike
Read Answer Asked by mike on March 10, 2017
Q: Hi 5i team, just read your recent report on XTC. How can you explain the higher multiples for XTC versus the three others: growth is currently favored by the market over size, value and more diversification? What would you expect the stabilized P/E to be over the long run for them? Higher and lower for which of these? Thank you, Eric
Read Answer Asked by Eric on March 10, 2017
Q: Hi 5i
When market sentiment turns against a company due to a miss, for example, in this case, like-for-like sales growth (1st slow down in 9 years), but accompanied by a dividend hike and an acquisition among other positives, how significant would you consider one miss? In terms of market expectations are some metrics far more relevant than others ?

I think it's too early to know whether "something has changed" but market reaction was brutal on one of my foreign holdings today (I won't mention which as its not a CDN or US holding).

I know this is a vague question but I guess market sentiment baffles me sometimes.

Thanks for any comment, greatly appreciated.
Mike
Read Answer Asked by mike on March 10, 2017
Q: When to sell. It seems every time I sell something it immediately starts going up. Awhile back I watched Simo fall from $45 to $37 where I sold and the next day it started going up and is still going up to this day. EIF which I watched fall from $45 to $35 and recently sold it at $35 and by the end of the day it started going up and it is still going up to this day. Is this a coincidence - they would turn around and go up as fast as they came down? Right now I have CZO down 40%, ITC down 20% and GSY down 5%. I am skeptical about selling them because it may happen again. Are there any of these three that should be sold? Thank you very much. Dennis
Read Answer Asked by Dennis on March 10, 2017
Q: Would you please explain what the following means in plainer English, and in particular what could cause such large and sudden changes in the "fair value of contingent considerations". Do you think the 20+% drop in share price is a realistic reaction to the news? Thank you.


Offsetting higher operating income during the first nine months of Fiscal 2017 were net financing costs which increased to $5.3 million, resulting from changes in the fair value of contingent considerations which amounted to $5.1 million, and on higher amortization from the acquired intangible assets.
Read Answer Asked by Curtis on March 10, 2017
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