Investment Q&A

Q: Looking to invest my daughters RESP into a low to medium risk fund.
Can you recommend a couple funds or an ETF.
Thanks

Q: Is it a good move to sell SLW to buy NSU. Would you keep SLW or do you have another alternative.

Keep up the excellent work.

Q: Hi Peter & 5i: This just a comment on the recent Avigilon (AVO) events. I owned it. Now I don’t. I don’t view the quarterly report as a definitive answer to everyone’s worries upon the news of the CFO’s sudden departure, at least not all by itself. Management reported a great quarter but quarterly reports are not usually submitted to an external audit process the way that annual financial reports are. It is at least extremely odd that a CFO would have to exit the scene on the eve of the release of a financial report, when the production and accuracy of that report should presumably have been his responsibility. I have no insight into the facts of what has been going on at Avigilon but at this stage I identify that lack of knowledge as a significant barrier to continued investment. It may be tempting to view this as a situation where a healthy and growing company needed to part ways with a CFO, who for one reason or another was not going to be a long term good fit for the company. But it seems to me to be at least equally likely that a CFO’s departure on the eve of a quarterly report release may indicate that the CFO was not willing to stand behind the numbers and representations that management had chosen to go with in the report. If that is the case, then it could call into question the very report that optimistic investors are using as their basis for remaining invested, or possibly for re-investing or increasing investment after the decline from recent highs. It also seems to me that the downward trend preceding this report was fueled at least in part by earnings in the prior financial report missing the Street’s estimates. I would also look back to the last equity financing, which was upsized midstream, and the need for which has yet to be made clear. Not that it is anything like too late for redemption but 5i’s own answer from a March 18 Q&A was as follows:

“With this deal being upsized now to $100 mm we are somewhat surprised. The company, if nothing is bought, will have way too much cash. We will need to watch the company closely. We will be none too impressed if Avigilon does not utilize its cash hoard within a two or three month period. For now, we will give management the benefit of the doubt, based on past performance and their comments.”

So the most recent events may not turn out to have been the first crack in the egg. Whether or not my speculative concerns turn out to be valid, these kinds of issues can prompt short sellers’ attacks, which can play havoc with an investment thesis and chase people out of a stock at lower levels. So all in all, the risks on AVO seem higher to me, and the very positive report that the CFO did not stick around to present is not the perfect answer. Caveat emptor – at least.

Q: Peter Do you known of any Canadian div stocks or prefs that pay their div in US funds?
Kind Regards
Stan

Q: Hi Team,
Could you please comment Bellatrix Exploration(T.BXE)'s Q1/2014. What is your rating for BXE?

Thank you very much1

Q: avo
do you know management, and trust them ?
do you believe health issues as a cause for the departure of the CFO?
do think there may have been disagreements causing the departure?
has the recent equity together with the departure raise a red flag?
I am interested in buying more but want to know if you feel all is honest and management has integrity. The market seemed to believed in management and positively assess the results for an hour or so when the stock went up 10%ish but then it lost 6.7% at the close.
your advise would be appreciated
thanks as always .
Yossi

Q: I got lucky and sold 1/2 my position in Fission (FCU) around $1.60. Have been watching it come down and am considering picking up some more. I don't see any bad news (just lack of news and a dropping uranium price). Am I missing something, i feel this is a fabulous future mine which will be bought out by one of the big players. I don't see how uranium can't be a good investment looking out a couple years. Thanks

Q: Peter, great job on BNN Market Call yesterday ! Your knowledge of all the companies you are asked about is really humbling. Add that you are such a gentleman, and it was a very enjoyable hour to spend. All subscribed here should watch the show. Re: Surge; is it appropriate for a modest allocation in an RESP ? Thank you for all your hard work and services. Paul

Q: Hello Peter and company,
I have a small position in LULU and am down about 30% - bad move. Any thoughts on this company? Should I just move on or hold? Thank you for you incredible insight. Heaather

Q: Linamar is up 12% today on good earnings. It received a sell downgrade recently from a Canaccord Genuity analyst very recently. My question is when an analyst make such poor calls, is there any consequence for him or her. Do they get fired? How should retail investors react to these upgrades and downgrades. Can we be sure they are not manipulating a stock?

Also who is behind Seeking Alpha,giving out all kinds of free information on stocks when we know that nothing in this world is free. Thank you very much for your comments.

Q: 7 May Question by Jason re HCG: Can you define origination, pls.
Gary

Q: Hi 5I team!
Please explain why AVO is lower today than yesterday... did I miss something???

Q: Just wondering Peter why your appearance on BNN would affect the response to questions. Does Ryan Modesto not also reply to questions? By the way it was a very good Market Call segment on BNN! Are you the only one of the 5iResearch Team that replies to questions?

Thamks for the unique service you provide.

Q: Could you please comment on black diamonds results and if you think conditions look favourable for the company going forward. Is there any other company is a similar space that looks good right now?

Very appreciated, as always
Thanks

Q: While I thought that Home Capital's results looked reasonably good, the market does not appear to be overly impressed given the drop in the share price today, What is it about the results that the market does not like?

Q: Dear 5i team,

Can you please post your thoughts on Magna's earnings. Things look ok to me... not a "blow out" quarter but looks good. The stock sold off on the open and then moved back up towards yesterday's close.

Thanks!

Q: CGX
I hold Cineplex in my RRSP. I don't quite understand why the stock is down so much based on its recent quarterly report. Report doesn't look bad to me but perhaps I'm missing something. I like the yield on this stock and don't mind holding it for the long term but don't want to get caught in a long term yield trap. Should I be concerned with its lagtest quarterly report?

Q: Could you comment,please,on Linemar's latest earnings.(1st Qtr.)

Q: Find below your last take on Yellow Media. Any updated view, or endorsement coming?
Yellow made $1.51 per share in the last quarter, and analysts estiimate more than $4.70 per share in 2014, so it is a very low P/E ratio, but not quite as low as RBC indicates. 2013 estimates for the full year when reported are above $6. We have not liked the company much, but need to give it some credit. Online revenue has grown, and was $101 mm in the last quarter. Total revenue is still falling fast, however, with print essentially set to disappear over time. Y still has $600 million in debt, even after eliminating more than $1 bb in debt in its restructuring. As a highly-leveraged, high-risk recovery play it has some merit for aggressive investors. But we cannot endorse it just yet.

Q: Hello Peter & Team, what did you think of the Redknee (RKN) quarter just reported? Can we annualize the 5 cent quarterly eps and deduct 20 cents as the annual eps running rate (implying a 23 x PE ratio? What do you make of valuation? Many thanks, Keith