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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: Hi Guys,

I just completed my election of Directors for GS. When voting for directors you had two choices: Vote for a director or withhold a vote for the director. To be ridiculous, let’s say that all shareholders, except one, withheld their votes. The one shareholder votes for the director. Would that director be elected to the Board?

This method is used by many Canadian companies. I want to understand how and why they use this method. It really doesn’t seem like shareholders have a voice in selecting directors if the only vote that counts is a vote for a director.

Thanks for the information.
John
Read Answer Asked by John on November 02, 2018
Q: As a follow up to a question on CLS, which stocks in the three portfolios are on your "intensive care list" for monitoring, or do you keep a close eye on all the holdings?
Read Answer Asked by Kelly on November 02, 2018
Q: Just a comment about ALA's changed circumstances. During the conference call management made reference to changed circumstances in relation to access to capital and cost of capital for funding its growth plans. In addition to changes in interest rates over the past couple of years, a significant aspect of the capital equation is that its share price has basically been halved since the announcement of the WGL transaction. Recourse to capital through an equity raise would likely further reduce the share price and have a relatively greater dilutive effect on per share earnings and cash flow than it would have had when the share price was $33. The result is that the answer to the question of what is the most prudent means for the company to raise money has shifted. Though it's market cap is around $4.5B, according to the Q3 balance sheet ALA has about $23B in assets against about $12B in liabilities. Under those circumstances, if it can get anywhere close to 'value' for its assets, its cheapest access to capital by a longshot is simply through the monetization of some of its own asset base. If it can create further increased value by reinvesting that capital in its preferred growth projects, that can still be a very attractive proposition and set the company up well for the future. But in the meantime, the resulting reduction of the asset base for funding purposes will mean that it will have diminished cash flow from operations, and it is that cash flow that is required to pay/maintain/raise the dividend. As a long-time shareholder, I have taken a significant loss on my ALA exposure but I don't think there needs to be recourse to suggestions of fraud to explain the circumstances that the company has come to today. My view is that ALA may well rise again and be successful but that it would be further in the future than I had been looking for, there will probably be a (prudently) reduced dividend in the meantime, and the present market conditions are setting up better near-term opportunities elsewhere for loss recovery and profit, through companies that are not in the doghouse when the market comes definitively out of its corrective phase. ... for what it's worth.
Read Answer Asked by Lance on November 02, 2018
Q: Hello Folks:
I own LLL and with technology companies facing current headwinds, what is your feeling of the long term future for this defense stock.
At 15 billion cap it certainly isn’t in league with big players, however I like it’s three core product lines.
Your opinion is most appreciated.
brian
Read Answer Asked by Brian on November 02, 2018
Q: Hi

What are your sources or how can we find that a company or stock is shorted.

Thanks.
Read Answer Asked by sunday on November 02, 2018
Q: Looking at starting a position in railroads - how would you rank the above for a 3-5 year period and why - are there any others you would rank higher - and what is your overall view on investing in this sector at this time.

Thanks,
Terry
Read Answer Asked by Terry on November 02, 2018
Q: hello, when do the above report and what are the eps/ rev expectations? Thanks
Read Answer Asked by Jordan on November 01, 2018
Q: I would appreciate your thoughts on the weak price performance of PBH stock. PKI by contrast is much stronger although the metrics of PBH are at least comparable. For example both have high debt over 120% of equity. Both have forward earnings growth over 30% and both trade on a forward PE below the 5 year low PE. The big difference is the price action. PKI trades close to median price that analysts estimate for next year whereas PBH is well below those estimates. I am assuming you prefer the good price momentum of PKI and, all being equal, you would go with PKI despite the apparent better value in PBH? Your thoughts would be appreciated.
Mike
Read Answer Asked by michael on November 01, 2018
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