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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: Hello Peter,
1. Your reply to a previous question on Stars Group was not very positive yet you indicated it was okay to step in. Please elaborate as the Russian market is a top market, "On the conf. call, TSGI indicated that new Russian banking rules may hinder growth there, one of its top markets. We would be OK stepping in with the decline.
2. Is it better to wait before adding to Shopify? I have about 4 percent position
3. Why is Square surging everyday?
Thank you
Read Answer Asked by umedali on March 14, 2018
Q: Someone from another stock discussion forum has stated that although SJ reported $0.74 EPS this was a result of a one-time $30M cash benefit, effectively making earnings $21.1M net income for Q4 rather than the reported $51.1M. Thus, without the cash benefit EPS came in at only $0.30 (below estimates of $0.31).

Is this accurate, and/or a fair way to assess the results? In light of this is it more reasonable to view today's results as more of a miss than a beat, as today's market action seems to suggest?
Read Answer Asked by Peter on March 14, 2018
Q: Down 50% and 35% respectively on these two companies. Would you move on and put what is left of my money somewhere else? Been holding XTC for three years and EFN for over a year. Is there any catalysts coming soon worth waiting for. Thanks.
Read Answer Asked by Helen on March 14, 2018
Q: Good morning 5i
Many years ago I owned shares in Nvidia and Netflix and sold way to early, I think now is a similar entry point into the marijuana market which is already global if not legal.What would you think is the company with the most potential to expand into the States and perhaps Global, Aphria or Canopy Growth or do you have other companies that are on your radar that would be worth looking at for the longer term.
Best Regards,
Tom
Read Answer Asked by Thomas on March 14, 2018
Q: Hi Peter & Team,
Would this be a good portfolio of Mawer Funds for a time frame of at least 15 years, or is there something I am missing or could be improved upon.
Thanks for your input
Ivan
Read Answer Asked by Ivan on March 14, 2018
Q: Hi, 5I
On march 13 William asked you about Enbridge and the possibility of increasing his position. You mentionned ''positive momentum'' as a trigger for adding to the investment.
I am not familiar with what positive momentum entails, so I would like to take the Enbridge situation as a ''REAL'' example.
Enbridge reached a low of 40.38 on march 02, the stock is now at 42.45 (12-03 at 12.43)
Does this increase constitute ''positive momentum'' or would you wait more and particularily at what price would you consider any increase would be a positive momentum.
Thanks
CDJ
Read Answer Asked by claude on March 14, 2018
Q: My question is twofold.
1) I am trying to determine if Spotify will be a good investment. It appears to have a lot of positive momentum; however, it has never made any money, there appear to be lawsuits, everybody in the music business is not happy, and over the years I've read on occasion that their business model is not viable (as the artists and/or studios are not properly compensated and the business model will need to change). I do not think that the music industry will ever revert to its former self but possibly pricing/offerings may need to change. Your thoughts are much appreciated on how you see this company possibly making a sustainable profit if the issues are valid. (On a positive note revenues appear to be increasing nicely, their market share is approx twice as big as it nearest competitor. BTW. I have not read the prospectus other than some articles referencing the doc. Anything else to share if you have read it?)
2) If I do want to acquire some shares, how do you proceed? I have read that this is not going to be an IPO but a DPO. This is what I read "In February 2018, Spotify filed for a direct public offering (DPO) — a type of offering without intermediaries". I have also discovered that they will list on the NYSE on the week of April 2nd but there will not be any opening price but a suggested price range ($90-132/share). This seems like Russian Roulette, so do we take a chance and buy at any price (not an intelligent way to invest) or do you recommend that we see what happens by waiting a few days or weeks after the DPO, once things have calmed down.

We have been paying subscribers of the Spotify service for many years, probably from the initial days it was offered in Canada. It has much improved and we like it a lot.

Thanks again.
Read Answer Asked by Walter on March 14, 2018
Q: John, the Nat Post just came out with a New WATCHLIST. http://business.financialpost.com/markets/watchlist

Austin
Read Answer Asked by Austin on March 14, 2018
Q: Could you tell me if i transferred all of my holdings, eg. Stocks, Etf's from an RSP into a TFSA, if i would take a tax hit? If i did, would it not make sense to do it, thanks?
Read Answer Asked by Pat on March 14, 2018
Q: I notice that the recent US corporate tax reduction is enhancing the earnings of Canadian companies that operate divisions in the US. It appears these tax changes may not have been factored into earning estimates.
One cfo told me that the effective corporate tax rate should decrease 3% going forward.

Equally as important, having an operating company in the US gives a company more flexibility to structure operations/source product more efficiently, leaving more profit in the US without the incremental tax cost.



Read Answer Asked by Murray on March 14, 2018
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