Investment Q&A

Q: I track my asset allocation in detail...retired, lots of time and interest to do so. I break out ETFs and my few mutual funds by sector. A few of my stocks are split into a pair of sectors. As an example, TRP is sometimes referred to as a Utility, but seems to track the Energy sector...so I split it 50-50. Ditto for CSH...I split it 50-50 between REITs and Healthcare.

Both NFI and TCL are listed on the Company Profile as being in the Consumer sector, but I have seen them both in the Industrial sector as well. Using my TRP and CSH examples above (to be consistent in my tracking methodology), where should NFI and TCL be allocated...solely to one sector or 50-50?

Thanks,
Steve

Q: Is there an update to forward 1 year p/e ratio on these companies? Thanks

Q: Sorry, yet another question on Premium Brands. In your response to Jim today you noted that 5I would consider the management of PBH to be good. In their 2019 Outlook they indicate they are expecting close to $10 per share of adjusted EBITA. Also they expect revenue of $3.7billion. Both seem impressive numbers, if they can be relied on, and the latter is especially so given the current market cap is appx. $2.4billion.

Analysts have reduced their earnings estimates for next year from $5.54 to $4.53 giving a forward PE of 16 which is below the 5 year low PE of 23.

Debt seems on the high side at 1.26 times equity and management have noted they are paying higher interest rates because of the current debt to adjusted EBITDA ratio. However interest coverage seems reasonable at 4.3 and if the EBITDA comes in as they expect there might be some interest rate relief.

In light of this what reasons would you advance for not investing at todays price?
Mike

Q: Greetings,
Falling sword or a possible future potential ?
At what price range is the running actual business worth more than share price?
At what point would you say it has become worth a "punt"?
Cheers

Q: THANK YOU FOR THE SOLID WORK IN A VOLATILE MARKET . REALY HELPS .. CAN YOU SEE SIS CONTINUING TO GROW DOES IT HAVE ROOM FOR MORE ACQUISITIONS . PAYOUT RATIO ON DIVIDEND THANKS

Q: Does the reduced outlook that NVDA gave yesterday affect your thoughts on Photon PHO at all? Does the guidance from both companies "jive" as to the general outlook? Or is Photon so small that it could grow rapidly even with the reduced macro outlook? I'm trying to figure out how agressive to be with Photon since I do like the changes the company has made in the last couple of years.

Q: I know photon is a cyclical and will come and go with the semi sector, but at an EV of 70million making almost 2 million in interest alone, the company would trade at 50x earnings without even their core business. would you still expect them to remain profitable, even with a very weak sector?

Q: Hi, I took a half position in TSGI at $44.68, what do you think of adding to it now? Thanks. Peter

Q: I currently have a small position in DSG and am wondering:
1. Would you add at this time?
2. To what percentage of a portfolio would you recommend holding DSG?

Thanks,

Q: This stock has dropped in the last 10 days , after rising on the release of the Quarterly Report on 31 st. October . is there any particular reason for this ? Thomas A

Q: Please provide your opinion of GH's Q3 release. Gross revenue growth did not materialize while costs rose.

Company announced the proposed vend-in of CEO, VP and COO's Grande Prairie hotel for $12.5mm. Property looks appealing completed in 2017 with exceptional customer feedback and a 2 minute walk from Great Northern Casino. Guessing this asset could add approximately $4mm in gross revenues to GH's annual earnings, it's in one of the few areas of Alberta that has shown above-average growth and may continue as gas liquids are being developed in the Montney.

Not a game-changing transaction for the company but if they suggest that the hotel can be acquired and provide accretion for shareholders, what's good for the goose is good for the gander and gaggle of little retail investors.

GH stated that they have increased their LOC by $7mm. Do you think the company will issue common shares as part of the capital paid to Peace Country Hospitality?

I am offering up three 5-i doubloons for this in-depth query. Thank you

Q: What is your take on leons earnings. Is it business usual.
Thank you

Q: Hi 5i

What do you think of K-bro as an investment now? Thank you.

Q: On Sept 20, SIS forecasted:
- 2018 Revenue of $285m & EBITDA of $44-45m
- 2019 Revenue of $400m & EBITDA of $60-62m

Today, SIS is forecasting...yup you guessed it... EXACTLY THE SAME.

Frustrating price action, but maybe a good thing. I'm trying to figure out if, like KXS, when their outlook hasn't changed, is this a fantastic buying opportunity or should we temper the 3-5 year timeframe enthusiasm somewhat given the macro environment.

Q: Why is wpm down today

Q: I , as an investor, agree with you that no company shall be judged by its single quarter performance unless it is extremely bad . SIS after an improved performance in the last quarter compared to last year ,has been beaten to ground . The stock price has slided back to its level in Jan2017. So , in nutshell, it appears that all aquisitions and imprved performance that SIS boasts in the last 2 years at all fronts including dividend increase have no relevance. It looks as if the market and values do not follow any logic/science. Do you still think it is worth holding this stock?

Q: As a logistics company largely relying on international trade and the movement of goods, I'm surprised you did not comment specifically on the potential impact of US/China tarrifs on DSG (you did mention changes in global trade).

While obviously negative to DSG, are you able to quantify what the impacts of the tariffs might be?

Thx.

Q: What’s the book value of tsgi?

Q: Good morning team,
What are your thoughts on the 3 acquisitions announced today? Would you add today?
Thx!

Q: I am missing something with Savaria
Where is the big miss in the quarter. is it not expected with the acquisition of Garaventa, that the EBITDA would be affected. there 9 month numbers are up substantially, With the sell off today would you be a buyer now?
With Crius the sell seems warranted as they continue to disappoint. Are you willing to hold?