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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 5I,
What are your top 5 buys right now on both the US and Canada looking.
Thanks
Read Answer Asked by Tyler on May 25, 2022
Q: You recently answered Sheldon's question and gave a positive view of this stock and its last quarter report. It keeps dropping significantly with the market. With its reasonable valuation and more generous dividend I'd like to buy a full position of Tricon for a 3 year hold. With rising rates and mortgage costs the rental market in the US should be strong (folks need a place to live). Is there a bear thesis you can put forth to suggest this current proposed investment has more downside than I now am seeing? Thank you
Read Answer Asked by Ken on May 25, 2022
Q: Hi,
I'm wondering about the new issue for convertible debentures from PBH - is this a good deal, given the interest rate, vs just buying the stock? I notice that the first interest payment won't be until Mar 2023, so a long time for the cash to sit idle. However the conversion price of 160.25 seems pretty good, given the stock closed today at 100.17. If the deal is a worthy one, then is it best to try to buy the new issue, or wait until after it closes to see how it settles? As always, your advice is much appreciated!
Dawn

Read Answer Asked by Dawn on May 25, 2022
Q: Hi All at 5i!!! DND has always been a confusing stock for me. I held it for a while and it got a vast amount of negative sentiment from the market , so I sold it. I have read a lot of conflicting opinions on it. So here I am seeking out your opinion. The straight goods....is it a good, stable stock to hold, well positioned for good future growth? Or are it’s prospects nebulous , dependent on (metaphorically speaking ) many stars aligning??? Looking forward to your reply, Cheers, Tamara
Read Answer Asked by Tamara on May 24, 2022
Q: I plan to sell these stocks for a tax loss and then buy them back after 30 days. Could you suggest a proxy stock that I could buy as a replacement for the 30 days
Read Answer Asked by Ian on May 24, 2022
Q: Hi team,
I enjoyed your stock screener blog on CDN stocks down 40%. Some stocks look very interesting. Looking at the 2 yr growth in EPS, using DND as an example, does this mean it is expected to grow 1318% in Yr 2 from the EPS level at the end of Yr 1? If so, that is a great growth rate in Yr 2. Also, on Net Debt to EBITDA, some stocks are blank in that column. Does that mean they either have no debt or no positive earnings, but the negative earnings are getting better? Also, it is hard to find 2 Yr EPS growth projections. Is that from a proprietary paid database or is there a publicly available one?
Thanks again.
Read Answer Asked by Dave on May 20, 2022
Q: FYI - I recently asked one of my hedge funds who has a position in DND what their thoughts were on the possibility of losing TMG and their view on the LINK transaction proceeding. Below is their response, feel free to publish if you think it is of value to the members:

The TMG acquisition makes up roughly 8-9% of EBITDA so the overall impact is muted. On the call management was confident in their ability to close Link. However if that is not the case, then with the TMG sale and the cash earmarked for Link, DND will be cashed up which in theory leads to the ability for either massive buybacks or another attempt by management to go private. Either way, the channel checks which are backed up by churn rates, are constructive and the stock is one of if not the cheapest one we can find at the moment. (still trading at less than half the appropriate multiple in our view)
The financing for the Link deal is secured. It is an all cash offer and financing is interesting. Ares did a $109m equity offering at $53/share and also took $841m in preferred shares exchangeable at $60/share. The rest is financed with normal debt from Goldman Sachs and JP Morgan. Shareholder vote scheduled for July 19th.
Also management bought $50m in shares on Tuesday.
Read Answer Asked by Scott on May 19, 2022
Q: 1) What do you think the odds are of DND being able to reverse the ruling by the CMA?

2) Do you agree that if DND had to sell TMG it would reduce revenue by about 6%? This was my rough calculation based on 2021 DND annual revenue.

Thanks for your insights.


These questions are prompted by the following news release:

"The CMA has provisionally found that Dye & Durham's acquisition of TMG, which closed in July 2021, would lessen competition in the UK property search services market. The CMA also asserts that the only effective way to address the issues it has identified would be for Dye & Durham to sell TMG to a third party. Lastly, the CMA press release gives the erroneous impression that Dye & Durham failed to notify the CMA regarding the transaction when in fact there was no obligation to do so under applicable UK law, which provides only for voluntary notification.


Dye & Durham disagrees with the CMA's provisional findings and is evaluating its potential options. Dye & Durham complies with all laws and regulations in every market in which it operates. The Company has exercised every best effort to help the CMA with its review of the transaction, explain its benefits and offer a remedy proposal and is ready to continue to work collaboratively with the CMA going forward."
Read Answer Asked by Robert on May 19, 2022
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