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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,

I am wondering about the merit of purchasing NBLY shares prior to the deal close in order to acquire the Contingent Value Rights (CVR). My thinking is that this would require a short term commitment of capital that could potentially yield a payout in 2026. How likely is it that the EBITDA Target of $128M will be met? If one were to proceed with this strategy when would the shares need to be purchased?

Read Answer Asked by Stephen on January 23, 2024
Q: These are the big losers in my portfolios.
So sick of looking at them and waiting for improvement (which I know is unlikely and a bad idea). My wifeís analysis of my investment strategy is ďbreak even quickĒ. Are any worth holding, or is it time to just jettison the works?
I donít mind a bit of risk, but am thinking theyíre just mistakes, at this point. I believe I have a diversified portfolio over all, with none of these being overweight.

Thanks for your help.
Read Answer Asked by Leonard on January 19, 2024
Q: Hi Team,
I would like your opinion on FMC. The stock is down significantly because one of the key product family is seeing patents expiry-diamides. It probably also moved lower with the rest of the agrobusiness sector-. Do you think it is a good time to take a small position in FMC. I am looking to a 3 to 5 years horizon.

I would also take position in one of the 3 other Cie listed -LIN, CTAS, KBL- due to the fact that I think these are 3 companies that could be fairly resilient in an economic downturn. How would you rank these choices in term of stability and capital appreciation potential ? Other suggestions are welcome!

Take the amount of credit necessary to answer my questions and sub questions!

Thank you,

Read Answer Asked by Michel on January 12, 2024
Q: Hi 5i Team - In an answer to a question on Sept. 27 you mentioned that Neighbourly had a growing balance sheet, good forward sales and earnings and solid fundamentals with a cautionary note that it was not yet profitable and needed to become so. At that time it traded around $12.50. It seemed to have a lot of potential back then before the offer. If the offer falls through completely and it returned to around that price level would it not still have good potential and be worth buying for a mid to long term hold. Would the same theory hold for today's price of around $15. Also what is your opinion of management. Thanks.
Read Answer Asked by Rob on December 20, 2023
Q: Iím guessing someone else already asked a similar question, but just in case: Do you still see NBLY as a good arbitrage play after the revised purchase price of $18.50?

Itís definitely frustrating (I guess thatís one of the risks when thereís a majority shareholder) but given the share price has adjusted lower Iím thinking itís still a good arbitrage play from todayís price?

PCP already owns over 50% of the company so the risk of this not going through appears low)?
Read Answer Asked by Patrick on December 18, 2023
Q: Hello 5i team,
You entered a position for NBLY of ~$34 in the growth portfolio. Since there was a tentative offer to go private of $20.50, what is the rationale to stay? Is it in anticipation that the offer would not go through and continue to hold going forward into the future?

It seems that there is no reason for this stock to ever go past $20.50 until this is finalized, or am I missing something here.

Thank You,
Read Answer Asked by Andrew on November 22, 2023
Q: Dear 5i team.

In early Oct. after the possible take private offer on NBLY was announced, I started keeping tabs on it. From the initial pop the price action is down on a daily basis, it seems.
When do we expect more public info to be released on this one? It sure smells like the old DND bait and switch example of the past year or so and we know how that one has played out. (apologize for the cynical DND comment, but it's the most recent example I could think of)
Is the arbitrage opportunity here picking up speed, or a sign that the market thinks this deal will not complete, thus stay away?

Many thanks for your help.
Read Answer Asked by Arthur on October 25, 2023