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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 again team,

One of the companies I have been absolutely smoked on is PHM. Currently I hold it, and I see that in previous questions that it is likely trading under fair value but with concerns of further losses. With the recent quarter being as messy as it was I am stuck in two modes of thought. 1) Wait for a quarter with business write offs removed to show more clarity on the situation. 2) Swap the stock with something for fewer issues. I am considering DHX media and TIO Networks. I found DHX interesting after reading the research report in regards to opening up more channels for distribution. Do you have a fcff, or RI (Residual Income Model) stock price valuation on the three companies and which do you prefer at this moment? Do you also have separate models / option pricing models for DHX in regards to opening up a youtube channel, netflix, or China subsidiary? Do you have any thoughts on which options provide the greatest benefit?

Thank you, looking forward to any feedback that you can provide.
Read Answer Asked by Liam on June 21, 2016
Q: Any comments on the deal announced today with HP?

As a secondary question, when deals that have long closing dates (this is scheduled to close in 2017, I beleive) when should we expect the share price to react? Of course it depends on the deal but is there normally an immediate change, followed by more activity towards the closing date or does it all tend to get baked in right away?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on June 21, 2016
Q: If purchased in US$, on the Amex, is this company still considered to be "Canadian" for tax purposes.
Read Answer Asked by Edgar on June 20, 2016
Q: Hi, It appears from recent comments that you like this company a lot and it will be a favorite addition to your portfolios, when possible. I had a 4% position ( purchased at $37 and $41.50), but decided to trim over past 2 weeks. I believe that company has a solid growth profile for next 5 years, specially in municipal buses segment in US. They continue to receive large orders. But I am not sure of the recent purchase of motor coach business and its future prospects (could you comment pls). In addition, my other concern is insider selling. Coliseum Capital (L. Adam Gray) the 2nd largest shareholder of the co. has cut their holding by at least 25-30% over past 6 months and continues to do so, as recent as June 10 (243,300 shares @41.01). I think this could be a reason for stock unable to move out of $40- $41.50 range, for past several weeks, despite a very strong quarter and promising outlook. I would appreciate it if you could share your thoughts and is it prudent to wait to add to this stock . Thanks
Read Answer Asked by rajeev on June 20, 2016
Q: Hi, what do you think of this new fund, Caldwell US Dividend Advantage? It still very small. I am trying to diversify from Canadian only stocks, want a dividend and don't want ROC (which they state in their prospectus might happen). Thanks!
Read Answer Asked by TK on June 20, 2016
Q: Hi,

I am looking to replace ZRE in my non-registered accounts with 2 - 3 REITs. I am trying to adopt a best-in-class approach, versus holding the "basket". Do you have any suggestions for best-in-class REITs, that will hopefully endure as best-in-class (versus a flavour of the month)?

Second question (please don't hesitate to deduct another credit): I am not quite sure what constitutes best-in-class but would guess a promising growth profile, strong management, manageable risks, and a reasonable distribution. Am I missing something? What do you look for or consider important when evaluating a REIT as a stand-out, best-in-class? Or are they generally all the same?

Thanks,

Derek
Read Answer Asked by Derek on June 20, 2016
Q: I bought shares in EFL 5 days ago and it has since gone up by 92%. The surge seems to be due to a contract for a 200 million euro deal to provide residential energy storage (using its own lithium batteries) to a Europe provider over the next 3 yrs.

The stock has seen sharp pops and drops in the past (it was $8 back in 2001) but may be in for a prolonged growth phase. So my question is what kind of price target to give a stock like this. With other microcaps, I have generally taken my start out capital out once a stock doubles, but I am wondering whether that would be prudent in this case. Would it be better to use stop losses?

"Toronto, Ontario – June 15, 2016 – Electrovaya Inc. (TSX: EFL) today announced that it signed a Letter of Intent (LOI) with a Global Original Equipment Manufacturer (OEM) for the delivery of battery modules for Residential Energy Storage with volume quantity deliveries starting early Q1 CY2017. Electrovaya will provide its battery modules with integrated cells and battery management systems (iBMS). Electrovaya's battery modules have unparalleled safety and cycle life performance which is the critical performance required by the OEM.
The demand for Electrovaya's battery modules by this OEM, is estimated to be up to Euro 199 million (Cdn $ 288 million or US $ 223 million) over a period of 3 years. High volume deliveries are scheduled to start in early Q1 CY2017 with smaller quantities with delivery in CY2016."
Read Answer Asked by David on June 20, 2016
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