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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: Please give your updated (and substantive) opinion on Seagate. Your previous commentaries, although recent, were written before the gap down in STX price today. What are the company’s prospects? Is it strong enough to compete against Western Digital and others? Is STX at today’s lower price a good buy? Is dividend safe? Does STX have the wherewithal to make acquisitionists in a flash memory maker. I am looking more for your insight—your instincts based on facts. Thanks
Read Answer Asked by Adam on April 27, 2017
Q: Can you confirm that ZUB is the better from a performance analysis standpoint. My take is that as both are priced (?) in CAN $, ZBK will reflect changes in the US/CAN $ relationship which are separate from the underlying bank performances while ZUB because it is hedged will be a more accurate measure of the underlying assets behaviour. Is this correct?
Read Answer Asked by Mike on April 27, 2017
Q: I know you commented on DBO on Monday, but the share price has dropped another 10% since then.The share price has been dropping for almost a year now. I was considering giving it another quarter but I feel mgmt is taking the company in the wrong direction with the talk about moving into the Motion Industrial training market, which is very niche. That and the numbers continue to disappoint every quarter. Is it time to let DBO go? Earnings are mid June.
Read Answer Asked by Adam on April 27, 2017
Q: Hello,

I just want to make sure I fully understand the dividend and tax differences amongst different companies. Could you please list where these different scenarios are best held (TFSA, RRSP, Non Registered), how much they are taxed, and any other important tax information (i.e. which dividends need to be reported, eligible dividends, other common scenarios etc.). This question obviously has many parts so dock as many questions as you see fit.

A) US company with US dividend trading on US exchange:

B) US company without dividend trading on US exchange:

C) Canadian company with US dividend on Canadian Exchange:

D) Canadian company with no dividend trading on US exchange:


Thanks in advance!

Alex
Read Answer Asked by Alex on April 27, 2017
Q: Sorry another comment that Members owning CRH may find comforting and certainly shows the clear difference between it and Valeant/Concordia:

"At March 31, 2017 , the Company had $9,232,240 in cash and cash equivalents compared to $9,507,004 at the end of 2016. The decrease in cash and equivalents is primarily a reflection of cash generated from operations, less cash used to finance acquisitions during the first quarter of 2017"


Looking at the Cash Flow Statement: they generated CF-Op of $8M and acquisition cost was $7.5M. Net Debt did go up ~$3M to fund some distribution to non-controlling interest (need to dig more into note 4 for details).


The main point through is CRH earns real cash and finances its acquisitions mainly from its cash flow and not from out of control debt - as the Motley Fool article was suggesting.
Read Answer Asked by Jennifer on April 27, 2017
Q: Dear 5i
My son is just getting into investing via Questrade (he`s 34) . I`ve given him some ideas that i thought you would have given him particularly pertaining to company`s with solid forecasted earnings growth over the next 1-2 years .
I suggested KXS , SIS , SHOP , PBH , PHO and GSY .
He is interested in EA and MAL. He has $8000 to work with with time .
What would you recommend ?
Thanks
Bill C.
I`m hoping in time he to will be a 5i member as well .
Read Answer Asked by Bill on April 27, 2017
Q: Morguard REIT has just come off a recent high and although I like the dividend, I am down 11% since I bought the shares and there doesn't seem to be much promise of growth, so I am considering selling. Is there any reason for the recent drop?

I am well represented in the REIT sector in Canada and the US and would replace the shares with another good dividend payer. Currently thinking of KWH.UN.

Any comments?
Read Answer Asked by John on April 26, 2017
Q: You mentioned CRH Management will hopefully address the short report in their Management call tomorrow. They already took a first jab in the quarterly release:

"While acquiring less than 100% of an anesthesia business will obviously create more rapid increases to non-controlling interests versus purchasing the entire business, our joint venture strategy does significantly increase our opportunities for accretive acquisitions. As a result, our acquisition pipeline remains strong and we are confident in our ability to deliver on our growth strategy."
Read Answer Asked by Jennifer on April 26, 2017
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