Investment Q&A

Q: What did you think of Aphria's earnings? Looks like they delivered eps of 9 cents a share when $0.00 was expected. Thompson Reuters has their current fiscal year (2019) estimates at 14 cents. Looks like a muted outlook considering what I thought was a pretty decent Q1.

Your thoughts?

Q: What's your view on the NFI announcement last night? Thanks.

Q: Sunlife has fallen off a cliff recently, at least on a 1 year chart. Any indication why? This has been a core holding for me but this move has me concerned.

Q: The other day a question was asked about this Company and earnings reporting. You had suggested that you would contact the Company for confirmation. Any word?

As a follow up, your best guess as to the run on the stock would be appreciated. I note that there doesn’t appear to be any insider buying, is that problematic if insiders don’t believe in their own stock at such a discount to its yearly high? Or are they blacked out from purchasing stock?

All the best!

KC

Q: You keep saying that nothing has changed. A stock doesn't drop 70% when nothing changes. Something is very fishy here and it stinks. It looks more and more like PHM and CRX. While it may be that there are two sides of each trades, only one is right (and makes money).

Q: Can we get your view.on RHT with this mornings development

Q: You have mentioned on two occasions that it has had a short report. Who is responsible for this report. Unlike the SHOP and other short reports, this was not publicized.

Q: BNS is down about 14% over the past year. Average revenue growth rate over the past 3 years is 3%. Net Income average growth over 3 years is about 1%. The share price is about the same as it was 4 years ago. Yet BNS remains your favorite Canadian bank. Why is that?

Q: Could you provide an update of your views on this stock ? Volume seems to be increasing substantially, with a rising price. Would you classify it as medical marijuana or tech/software programming stock ?
Thousand thanks,
JD

Q: Can I get your thoughts on ZCL, everyday looking better, any reason for the constant down draft?

Q: How come RHT has not released any quarterly and annual income statement for June 30,2018? Thanks

Q: Hi 5iResearch.
Folks thank you for such a wonderful service.

Thoughts on this business, my friends on another website say the ROIC is around 16% on average over the last 5 years. The Operating Inc. is 22M over a market cap of 212M - so the earnings on enterprise value is ~ 10%..... Very low capital requirements and such a healthy ROIC.......this rate must be beating the company's WACC.... whats your take ?

Good business, cheap and creating value for shareholders when I put my monacle on my right eye........

Q: Hi, Any comments on the recent price drop ? Should the row about the disappearance of journalist and possible consequences for SA be investors' concern ? How could this play out for Covalon in near and long term, if it's relevant at all ? Thanks

Q: ..thinking American midterm elections may be a catalyst if Dems win and dampen the economic momentum (and associated rate increases) going forward...under that scenario do you think utilities would be a good place for relative safety, yield and a possible rebound? thanks.

Q: Please comment on my perspective below. Am I wrong?

A bond matures and you get a known amount of principal back (on top of the distributions paid out along the way). As such it provides a safety component in your portfolio. The safety comes from NOT being at the mercy of the market (all you have to do is wait till it matures).

A bond ETF does not do this. The principal you put into it is eternally at the mercy of the current market price of that ETF. Even when any bond matures, the ETF just goes out and buys more bonds at current market prices. Therefore it does not return a known amount of principal as a bond would. The whole concept of "maturity" or "yield to maturity" disappears. So these ETFs are a lot more like equities than bonds. If people are following advice about the percentage to allocate between bonds and equities, in my opinion it is a mistake to treat the bond ETFs as in the bond category.

(The exception to the above being "target date bond etfs which do mature and return your principal").

Q: Hi Peter,
Jim Keohane from Hoop was on BNN Friday and was explaining his absolute return strategies he uses to run the HOOP Pension plan. He was explaining the approach for lower risk vs return vs a equity only approach. Is it better ? Are there any strong funds like this available to the average guy ?
Thanks, Paul

Q: Not sure if readers are aware, but it looks like Photon bought #650,000 of their own shares during September with their abundance of cash. Also, Mawer New Canada increased their position to over 4% of the company. Can you comment about these 2 developments?

Q: I owned ICC Labs which got a take over offer from Aurora to be paid in ACB shares. ACB price has gone crazy while ICC is still trading below the offer price. I must be missing something cos I cant figure out why everyone isn't buying ICC shares to give them up in exchange for ACB shares valued at the time of the deal. Thanks!

Q: Kinaxis is currently trading at an extremely high multiple; about 55 times forward earnings in 2019. In the current environment does this not make the stock extremely vulnerable to a significant pullback. If not, why not? Thanks.

Q: While your comments could apply to both our Canadian and US markets it is interesting that your slant appears to lean toward US markets rather than Canadian even though the bulk of your research covers Canadian based companies. Sure the US markets are still up this year but it is quite a different picture when looking at the Canadian markets. We are ' not still up' this year but down since January. Interest in the Canadian equity markets is waning for various reasons, taxes, regulatory hurdles, etc. So could you perhaps add some comments that address our markets and investment environment.in the context of our recent performance and future expectations. Thanks.