Investment Q&A

Q: MAL Chairman of the Board, N. Murray Edwards owns 74% of the common shares. I know we like the executives to have skin in the game, but does this high of a percentage create any concern? The annual financial form does state that no owner controls more than 10% of the voting shares.
Thanks

Q: I am a retired, conservative, dividend-income investor with a pension, CPP and diversified portfolio of mostly dividend payers (AD, AQN, ALA, BCE, BNS, CPG, CGX, PBH, RY, WSP, WEF, WCP, ZLB, XIT, Sentry Cdn Income Fund, Sentry REIT, RBC Cdn Income Fund, Annuities, Fisgard Capital).

I have held PBH for quite a while and need to trim it (for the 8th time), yet again. I am looking to build a position in another consumer stock (already hold CGX, PBH and those within ZLB and the above funds).

I think ECI would make a good fit, but I am concerned about the high P/E at 27.8 and high P/BV at 3.51. Also, this recent purchase is USA-based.

I am looking for a reliable dividend payer, with some dividend growth and capital gains growth as well. Your comments are appreciated. Thanks...Steve

Q: This seems like a great business - management seems has done a great job of improving customer retention rates and growing the business but they are about to close on a large and transformative acquisition. They trade at about 9x EV/EBITDA and they appear to be paying about 15x for the acquisition but claim it to be accretive. I've gone through their numbers and have trouble seeing how it gets to be accretive. Your latest report is from August 2015 - have you been looking at this acquisition and do you plan to do a report in the near future?

Q: BEP.UN has very thinly traded options,(like most other CDN options). Is it worth the effort to try and add portfolio value by selling calls against my position, or selling puts if I want to increase my position? Thanks for your response....Jim

Q: The Kobo ebook version of Market Masters, which was mentioned earlier this month and includes an interview with Peter Hodson, is available this weekend (March 25 - 28) for only $4.99. If you look it up on the Chapters Indigo site, there is a link to Kobo to buy the ebook version.

Q: looking more carefully the insider trading was 1.5 million dollars, like isn't that a real small amount.
secondly i have been in the markets for 40 years and when amaya took over rational there was so much action in the stock befor the transaction it was unbelievable, obviously i have no proof but i was convinced at the time there was insider trading.
it seems to me this was baazov but evidence and proving it is a whole other scenario. please comment dave

Q: Hi Peter, Ryan and Team - Although we can't ignore all the controversy surrounding Amaya since it has a major effect on the stock, based on just the fundamentals, balance sheet, earnings and potential earnings would this be a good company to buy now. Also what is the debt level - is it a concern - and could you provide the level of insider ownership as well. I have found your your advice to be invaluable ever since joining 5i Research - what a great service! Thank you.

Q: Hi,

I understand from your, rating and description of UW.UN, that you consider it to be a good investment for income investors due to its high and sustainable yield, and as well as the possibility of small distribution increases in the future.

Can you please clarify your position on AW.UN for long-term investors who are looking for a combination of both capital gains and distributions (In a registered account, so ta is not a consideration).

What is your estimate of the increase in share price of AW.UN over a few years? Is it something along the lines of 4% to 5% yearly?

Thanks,
IF

Q: This shipping has been beaten up so BADLY and the yield is so compelling. I know probably shipping companies were suffering from historic low volume of global trade, but what is your guys' thoughts on it. I am more like a conservative income investor, so I think why don't buy a bunch of companies at low prices while gauging 12% a year? Sound like a good idea. Please give me your thoughts. Much appreciated!!! Tao

Q: It seems to me the charges against Amaya's Baazov are more akin to tipping and stock manipulation than insider trading, probably even more difficult to prove. However there's a cease trading order on these insiders so wouldn't that affect Baazov's ability to continue with his $21 bid, even if he wanted to? Also how many months might this case drag on before people get their day in court and isn't it likely the stock will mostly mark time till things are resolved?

I wouldn't be in this stock except for 5i but my average cost is <$8 having been in since 2013 and I have taken profits 4 times up to $35 so even though I didn't act on the Feb.29 blog post (actually sold some more @$19) I did act on the CUS reco and am currently +5%, so thanks for that. It's my opinion that we are all personally responsible for our own actions, not someone else! J.

Q: Can you please shed some light on why CXR is down 8% since the call this morning? I thought the call was positive and it helped to break the correlation to Valeant's business issues. What on the call is being interpreted so negatively by the markets? This doesn't impact my decision to hold long term as I got in at a very high price, just trying to educate myself on market moves. Thanks again and again...John C.

Q: I would like to know your advice as to Silver Miners that are producers and have major recoveries of silver discovered on the land they hold, that appear on the TSX. Thanks

Q: What did you think of their latest financial releases for 4th qtr and YE? Thankyou.

Q: I have done well with RDM..the company which provides the technology to scan cheques by phone..It now seems selfie payment is the big trend and whichever company provided this technology is going to do very well..Can you recommend a company to take advantage of this? Although I have my doubts if my payment will be accepted on a bad hairday :)

Q: Intrinsyc Technologies just release Q4 results they were outstanding with significant revenue growth. The Company was fully profitable for the year earning $US0.03 EPS. Many non-profitable tech companies are trading at much higher multiples than ITC. What is your opinion about ITC and do think the company will get some more attention from the street even though they do not need any money.

Q: Hello Peter et al.

What do you make of the earning release today? No movement in the stock price today after the release. Everything is stated to be on track still for Stella's sailaway in May/June with 1st oil prior to 30-Sep. The hedging program they have had has saved them and they still have it for 10K BOED out to Jul 2017. They still have their RBL redetermination slated for April 30 so that is the next catalyst for the stock up or down. They have reduced their debt from 800M to 665M as of Dec 31st, 2015. I guess it is still a show me stock but hopefully will have a jump by year end. Is there anything else that I am missing or should be aware of for this stock in 2016?

Thanks,

Brendan

Q: Hey

Just a question on Phm. I'm holding for the next quarter results to see how things are going but does it not seem to be trading awfully strange. As if it's being held down at these what I perceive to be very low levels? There's been some crazy talk of a potential sale do you think that's a reason it's remainly at such low levels? Finally if you don't mind what do you think of Concordia now. I took first position at 35 last week on drop.

Q: Do you have a current opinion on this stock ? Buy, sell or hold and why ?
Thank you.

Q: What are your thoughts on Cxr's earning call? Have you noticed any red flags/ or view this company a strong buy. Please also comment on their debt management plans.

Thanks
Febin

Q: I noticed in your question/answer dated Mar 16/16, you talk about the quarter report, but I'm sure you sent me an email saying Mar 21/16 when the quarter report was coming out & CXR on the 23. Question: Could you give me the results for both companies.