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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: Not sure I understand the following line from your April report on GC: "Where we do find some comfort is with
the close ties (and revenue contributions) to governments as well as Brookfield. GC will have access to support, finances, and might even be a go-private candidate. For this reason, we are maintaining our rating at ‘B+’." Not sure of the relationship to Brookfield, or what it means. And do you mean that government revenue is such a priority that casinos would open up sooner? Not sure what going private would mean in terms of price. Would private equity be looking for a "bargain." Also, not sure where GC's revenue mainly comes from: slots, black jack, hotels, poker tables, etc.? I could see slots returning to action with masked players, but have trouble seeing poker players packed around a table, even with masks. Although, I don't believe much revenue comes from poker tournaments; cash games may be a different story. Sorry about this rather confused question. It's just that if I had to pick a company that would be clearly negatively impacted by a Covid-19 shut down, it would be a brick and mortar gaming company, especially one with hotel and entertainment destination sides. Any clarification much appreciated. Thanks
Read Answer Asked by Gordon on May 20, 2020
Q: Have you changed your opinion of this company? It wasn't too long ago when 5i was recommending purchasing the company at $39, yet now you are saying that $50 is a long way away. I know that times may have changed, but many of the Tech stocks are hitting all time highs, and with LSPD having enough cash to last 12 years or more, isn't the current price a very good price vs. fair value?
Read Answer Asked by stephen on May 20, 2020
Q: LSPD's business is focussed on small-medium sized retailers, restaurants and the hospitality industry. These are amongst the worst sectors in the economy and may be permanently impaired. Does this not change the investing thesis for LSPD? Is this not a case of sell now and consider buying at a potentially higher price down the road if they can confirm that growth has returned or at least stabilized?
Read Answer Asked by Joel on May 20, 2020
Q: As a retiree with a balanced portfolio, I hold SIS and wonder if there are better longer term opportunities in this market. I like SIS's demographic market position and strong balance sheet. Covid-19 may entice more seniors to stay at home longer, which could help SIS. But I have concerns. The firm's international growth will challenge their Board and management to deal with greater complexity. They have a new CFO and SIS did not have much to say about the person in their announcement. The CEO owns a large share position, and the company's payout ratio seems high. All in all, I'm wondering if I should move on and sell. What do you think of my assessment? Anything else I should be considering? Thank you.
Edward
Read Answer Asked by Edward on May 20, 2020
Q: If you had to put a fair price ( or range ) on the stock today - what would it be? If you want to wait till after the quarter to answer the question that is okay. I don’t trust analysts but I trust you. I am trying to decide at what point I want my average price to be. I have $20,000 in cash to add to my position and the investment now will have very substantial profits in five years which I know the price will be significantly higher than it is now. I am usually NOT in favour of averaging down but I know they will get to the other side intact. Currently my average price is just north of $32, which I thought was good 45 days ago.
Clayton
Read Answer Asked by Clayton on May 19, 2020
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