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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: Peter Lynch amassed a fortune investing in undervalued growth stocks. I currently own LNR & GSY. Can I get some other names that you would consider good GARP stocks?
Thanks in advance.
Read Answer Asked by David on March 13, 2018
Q: Snap-on SNA.us looked undervalued after price-weakness following its results reported about a month ago. Yet it is down 3.7% this morning. What am I missing? Fundamentals SEEM fine. I don't see fresh news today.

Is SNA a good longish term dividend grower with prospects of reasonable capital gain? Are you aware of any reason why it has kept dropping? Is debt the issue? Is it a falling knife—i.e. I am missing something important? Would you buy and why please?
Read Answer Asked by Adam on March 13, 2018
Q: Hi, what stocks look undervalued this week one should consider picking up?

Thanks
Kim
Read Answer Asked by Kimbeley on March 13, 2018
Q: I use Investorline. Help is sought in evaluating veracity of BMO-Morningstar Eq.Analysts reports: They contradict themselves:aMay 26,2017 FVE 86.00, March 13,2018 price 106.00
Feb 2018 analyst say:with share price close to our FVE we recommend not to add more
I feel these reports are not updated or not proof read or what else.???? Can you read it and comment pls
Art
Read Answer Asked by Arthur on March 13, 2018
Q: Hello,

How do you feel about Amazon's performance lately. Its obviously doing very well but do you think it will continue to perform like this or could you see a correction and price decrease in the near future? My shares have exploded and i'm glad to ride the wave but don't want to get caught in a bubble.

Do you think it will split?

Thanks!
Read Answer Asked by Harrison on March 13, 2018
Q: hi, wrt John's question about "My Watchlist " from the G&M/Globeinvestor, I have also been using this service for years. Awhile ago (a few years) they required you to 'register' to use this service but you did not have to 'subscribe'. Recently they updated this service. As far as I know, if you were a previously 'registered' user ie you had to login, then you can continue to login to use My Watchlist...at least that is what I have done to continue to use the service. I did not have to create a new account to use the new My Watchlist update. I simply logged in using my previously registered account.
Hope this helps John and others.
And yes they keep removing features of this service ie recently removed the 52 week high/low of a stock from the main view....but you can still see it by selecting the down arrow or expand graphic of each stock but they have also added some other very useful 'views', ie Dividend and Perfomance data

Cheers,
Steve
Read Answer Asked by Stephen on March 13, 2018
Q: Hello,

I was wondering what your thoughts are on RHT given it's current price ( ~$2.22 as of today). Based on the most recent share count outstanding (81,871,000), this suggests an EV of about $180 MM for a company that is showing 6 month revenue of $1.1 MM. While I know that early stage companies are based on what the future holds, I also like to keep an eye on what EBITDA needs to be (in the future) to justify valuations. For instance, in the case of RHT, if one believes that within the next 12-24 months they can achieve EBITDA of ~ $12 MM, then this would suggest that today it is trading at a EV/EBITDA multiple of 15 based on future results. EBITDA of $12 MM in turn is achievable if they can hit ~ $20.5 MM in gross revenue with a 78% gross margin (as per most recent financials) and no increase in cash expenses of $4.0 MM annually, as 6 month financials suggest ~ $2.0 MM in cash expenses. In short, does your modelling of RHT suggest/indicate that this is a realistic expectation, and that within the 12-24 month time frame they can reach ~ $20 MM in gross revenue with no margin compression and no increase in cash G&A costs ?

Thanks!
Read Answer Asked by Mike on March 13, 2018
Q: Qualcomm’s offer to buy NXPI is valued around $127.50. NXPI was trading at $125 a couple of days ago. It is at ~ $123.50 this morning 12 March.
There is considerable confusion over Broadcom (AVAGO) offer to buy QCOM. (I also own QCOM). There are reports today of US regulators fuming at AVGO due to alleged disregard of certain notices required by US regulators.

There are apparently also risks that China could block the sale of NXPI. I am fine keeping NXPI but not if the risk-reward is not in favor of private shareholders. Would you guess that the risk of a deal failure is higher than 50%? If NXPI is left at the altar, do you think NXPI would likely drop significantly in value--- say more than 20%--- or is it a good enough company that it will prosper on its own. Prosper means doing much better than just chugging along.

NXPI seems to be fair value even without M&A activity… Is it? would you buy more if you already had QCOM and NXPI? Would you sell NXPI? Or would you simply hold on.

NXPI seems to have an attractive business model and a good market position. Would it make an attractive target for a different buyer ... say an Intel?
Read Answer Asked by Adam on March 13, 2018
Q: Hi gents and Happy Friday,
You will see from the list below my exposure to Europe is mainly through ZWE and DRG.UN with PPL Corp being one of my riskier stocks which also has major Britain exposure. All together its a small, around 5%, portion of my portfolio. I belive Europe is offering good value but am having difficult finding other decent ways to invest there- especially given that through TD Waterhouse I cannot invest direclty in Eurpean Exchanges without much hassle.

Can you offer 1) some guidance on other potential equities/dividend stocks I could pick up on the other side of the pond that perhaps you have in your portfolios here that I am just not aware are European?, 2) any other companies you are watching with interest not in your current portfolios? Lastly, are you sensing Europe is looking like a good investing ground especially since US is getting so expensive?

If I asked any questions in the wrong way, please forgive me. I am learning and open to any and all correction.

These are my other positions below in case I am not seeing that I have more European exposure than perhaps I think I do.

Thanks for the work you do. I did search for other threads on Europe and did not find any, hence the ask. If I missed them please direct me to the pages.


ENT AMC US AMC ENTERTAINMENT HLDG-A
FIN ZWE CA BMO EUR HI DIV CC HDG ETF
FIN ZWB CA BMO COVRD CALL CDN BK ETF
ENERG BXE CA BELLATRIX EXPLORATION-NEW
ENERG CPG CA CRESCENT POINT ENGY CORP
FIN RY CA ROYAL BANK OF CANADA
FIN TF CA TIMBERCREEK FINANCIAL CRP
FIN TD CA TORONTO DOMINION BANK
FIN CM US CDN IMPERIAL BK COMMERCE
FIN CIM US CHIMERA INVT CORP-NEW
TECH FB US FACEBOOK INC CL-A
FIN MFA US MFA FINANCIAL INC
REAL NRZ US NEW RESIDENTIAL INVT-NEW
COMM VZ US VERIZON COMMUNICATIONS
ENT BCE CA BCE INC
MINING CCO CA CAMECO CORP
REAL DRG.UN CA DREAM GLB RL EST INVT T/U
MINING PSK CA PRAIRIESKY ROYALTY LTD
Read Answer Asked by Derek on March 13, 2018
Q: amongst CU,EMA, ENB AND ACO,
A.please rank in order, best value buy and what metric is most appropriate for them in terms of assessing "value".
B. Also could you please give me some historical perspective on their value (always hard to decide on when to buy in given all of the recent drop.)
Read Answer Asked by Ernest on March 13, 2018
Q: My investment company has changed their calculation of portfolio returns from time weighted to money weighted returns. Do you know where I can find money weighted returns of Canadian and US stock indices, so I can benchmark my results against the markets? Many thanks!
Read Answer Asked by Linda on March 13, 2018
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