Investment Q&A

Q: I read Element Financials conference call transcript for Q2 and this what I got from it.

They have been winding down 2 portions of their businesses which intern has,
1) Reduced originations and lowered EPS
2) Returned capital to make them M&A ready
3) Short term from "30,000 ft view" makes them look like they are falling apart
4) But, closing these business books will allow them to redeploy the capital to much higher ROE investments to grow earnings faster

The split of the company has put some of it's business activity on hold,
1) M&A has been stopped until the split so no big growth in Q2 and Q3
2) 3 immediate acquisition targets will be pursued when split happens
3) New funds will be launched for income growth and to free up capital for M&A
4) Expect some major accretive acquisition(s) to happen and possible surprise earnings either in Q4 or Q1.

So in conclusion they are setting themselves up for greater growth and shareholder value. To do this they have to sacrifice income in the short term to strengthen their capital, plus delay growth until the split occurs.

Is my simplified summary similar to 5i's consensus on this company?

Thanks, Shane

Q: I own four gold stocks Barrick Gold, Eldorado Gold, Goldcorp, and Primero. I'm considering sell Eldorado and Primero and adding to either Barrick or Goldcorp. Which one would you choose? Do you have a better suggestion?

Q: my teenage daughter has just registered her tfsa. She has a small amount of $ (4000) to start. she is thinking for simplicity and risk sake at this point in her life to go with the global couch potato. Which 4 ETFs would you recommend for her. she needs a CAN equity, US equity, INTER equity and a bond ETF.
Do you think this is a good idea or would you recommend she stick to specific company stocks instead?
thanks
michele

Q: Please comment on these income funds, including the effect of management expenses.

Q: What are your current thoughts on bed bath & beyond? Thanks!

Q: SJ seems such a reliable stock, railway ties and telephone pole replacement. Why the continued fall?
Thanks

Q: Hi guys,

When analyzing companies with a high debt load model like infrastructure companies or utilities, what is the best metric to analyze the valuation? Should we use a multiple of EBITDA, rather than net income since net income will be heavily influenced be depreciation and interest expense?

Thanks,
Jason

Q: I own these 2 stocks in equal amounts in my TFSA which equate to 6% of my total portfolio-the rest in RSP which comprises of mainly banks, utilities ,REITs and infrastructure stocks along with AD,SPB,VSN,WEF and PKI. Am looking for a dividend paying small cap stock with 4% yield with growth prospects to add to TFSA. Any ideas? Thanks
Derek

Q: I read with interest Jason's Aug. 24 comment on being allocated some subscription receipts with IPL's recent deal. How does one go about receiving such offers?

Q: Regarding Intertain Group, they seem to continue delivering having just had a quarter that surpassed expectations nicely but the stock cannot get any traction. Would you say that the company is not trading in accordance with its fundamental strengths and has simply fallen out of favour? I am starting to look at it as a growth/value stock that almost inevitably has to move up 20% barring a scandal. Your thoughts?

Q: I have barely ever read anything on anyone's website about ULTA-NASDAQ, Ulta Salon, Cosmetics & Fragrance, Inc..

I unfortunately only learned of it over 1 year ago and not earlier.

It beats a lottery ticket in rewards.
It blows popular stock like AMZN, NFLX, GOOG, APPL....out of the water.

Do you have any thoughts, pros/cons, financial, management or else wise?

Since 7 years ago, ~April 2009 to recently:
- 90%/annum return!!!!!!!! That is almost a doubling every year!!
- $50,0000 invested ideally in 2009 would be ~$4.4 million now!!!
- its stock has been on a consistent slope upwards for 7 years.
- the stock never has a noticeable pullback so far since 2009.

Q: Would appreciate a update on your views on HNL and HBM. Thank you

Q: This stock is being sold off on the basis of an earnings miss. What's your take on their results and prospects?

Q: I own Primero (P) at a much high price. Would you consider it a hold or a sell at this time?

Q: I checked Yahoo for the payout ratio on it's dividend, it looks like 85%? Is that correct?

Thanks.

Q: Hi 5i: I own some of Student Transportation’s US$ convertible debentures (STB.DB.U: 6.25%, 30 June 2018). The company has just announced they are redeeming them as of September 19, 2016. Is there any downside to waiting for them to be redeemed and being paid out by the company, as opposed to selling them into the market in the meantime? If it is all cash I’d be inclined to wait and accumulate as much of the interest as I can and save the transaction fee. But I wouldn’t want to wait if there is any potential for the company to pay up the debentures in STB common shares instead of cash. Thanks!

Q: I am interested in farmland. Are there any REITS, etf's, or stocks in Canada? Does FPI:Z work for North American exposure?

Q: Hi , is there a short list of potential suitors for RKN

and do you see them as an attractive aquisition to anyone?

Thanks,
David

Q: What do you think of Clairvest? http://www.clairvest.com/wp-content/uploads/bsk-pdf-manager/Q4_2016_Press_Release_FINAL_53.pdf

It looks like their net income is down about 25% from 2015 yet their book value keeps rising. How do you assess book value on a bunch of privately owned companies? Is it a somewhat subjective?
Just wondering about an investment at some point but since the stock has gone up while net income is down, wondering if it is a good idea.
Or am I reading this wrong?
Thanks

Q: what is your thinking about afn and do you see more share price appreciation?
would you prefer agt over afn? and why?