Investment Q&A

Q: Each of these companies have a 2% weighting in my rrsp.I have losses of 20% for TOY,4% for SIS,11% for GSY and 13% for KXS.
Buy,sell,hold?
Your recommendations please.

Q: Can you see why ENGH is up in such a volatile market?

Thanks

Sheldon

Q: Moody’s withdraws all ratings of Great Canadian following redemption of rated debt. What does that mean? Is that bad, good, neutral? I don’t understand what that means for GC Or ME—the investor!

Q: I have asked before about slf but really don’t understand the reason for the big drop. Can you explain, should I. Buy a us insurer, and if so which one. Thank you

Q: GC--Any reason for recent decline? CLIQ--what's u take now after termination of div resulting in a big drop(some 22%) in a day.In my opinion,management is terrible. Thanks for u usualngreat services & views

Q: Further to my question and that of Marios, I tend to agree that when a stock continues to fall as it has, one does get concerned that something is happening that we do not know about. Perhaps poker popularity is diminishing or perhaps debt reduction is not being taken seriously enough?
Based on your analysis of the company what are your projected revenues/ their forecasted this year and the next? Has the company made any comments/projections regarding how internet gambling is trending? Also you mentioned their debt levels. Has debt been increasing this year and are there any tangible signs that the company has plans to reduce the debt load.? What have they said in their conference calls regarding the industry and their plans to cope with their debt levels? Do they have the cash flow that would allow debt reduction?
It seems obvious that the market is concerned about something re this company. When I see a company trading at about 10 times next year's expected earnings and people continue to sell the shares day after day then one starts to question the validity of the projections and their ability to continue as a viable company with excessive debt! Not too long ago there was a drug company with all kinds of rosy projections that fell to junk status from very lofty levels. And debt, I seem to recall was an issue. Hopefully we do not have a similar situation with TSGI?!

Q: Has Sylogist indicated what its guidance is for 2019?

Q: in the globe today an insider spent 24 million buyin stock at
35.00, is. that a typo,and what does this tell you about nfi, i do not own but seeing this is impressive. dave

Q: Perhaps the relentless selling down of tsgi is a result of an unpleasant ruling on the Kentucky lawsuit forth coming?? How does your evaluation work based on worse case senario??
Regards.

Q: With the recent results of KXS - how do you feel about the company?? - better to take a tax loss now and look at it again in the future?? - thanks

Q: TOY has dropped much more than market averages. It appears 5i still likes the company. Of course, at a much lower multiple, it makes itself more to be liked. But how does 5i really feel about TOY? Is is a sell, hold or buy. You last indicated ... it is not one we would be truly worried about. Please explain.

Q: Not really a question but more of a ‘ feet on the street ‘ observation. The Americans are CRAZY about their sports and like to gamble.
Am going to buy some TSGI with next year’s TFSA contribution.

Q: Which of the above three stocks would you recommend purchasing for a three year investment? I hold DOO and am down substantially. Thank You.

Q: Hi, Thanks for attaching the link to Amazon-Toys media post of Dec 10. Looks like the news did cause some ripples among toy stocks like Hasbro, Mattel and to some extent Spin Master on Dec 10. But as you pointed out, this could be another reason why TOY has been trading down for some time. TOY actually has lost about $15 or over 25-30% since release of last quarterly results. Toys'r us bankruptcy was perceived to be the primary reason for the softness. Holiday season and announcement of some new products has also failed to reverse the precipitous decline of past two months. Now there is this Amazon news to worry about (probably could be more serious one). I know that TOY has somewhat of a distinguished status among toys companies, due to Spin Master's innovation capabilities and high tech and interactive nature of its products. But, in your view, how insulated company will be if Amazon decides to seriously expand in this lucrative market ? TOY has been owned in most of our family accounts, as its been a favourite of yours for a long time and we are happy to see stock has do well over years. But the recent trend with no sign of reversal is concerning, to say the least. Do you see any catalysts and strong reasons to continue to own this co ? Thanks

Q: What is the appropriate payout ratio to look at for Enbridge? They just raised the dividend 10% which signals optimism; however, I'm looking at a Motley Fool article today that argues earnings and free cash flow are both below the amount of cash needed to pay the dividend. I believe it likely the author is looking at the wrong metric and wanted to get your view. How comfortable are you with ENB's payout ratios?

Also, what is the yield assuming current price and the newly raised 2019 dividend payments?

Many thanks.

Q: Lots of uneasiness and questions on TSGI it seems. I believe it has been consistently referenced as a company that you expect good upside from after tax loss selling. Is it still your view that it holds lots of upside potential or is the continued slide enough to shift your advice from possible buy to a hold/sell?

Q: comments on the latest quarter please ?

Q: I’m getting slaughtered on this one. Hang in?

Q: Would you say this is an accurate way to characterize Knight Therapeutics?

The Globe and Mail reports in its Monday edition that the markets are on edge and trend followers are running for the exits. The Globe's Norman Rothery writes in the Inside the Market column that it is hard for companies to raise money while fear stalks the land. Mr. Rothery says they risk becoming zombie stocks that shamble around a bit before keeling over. He says even in good times, firms with negative earnings fare poorly and are, as a group, best avoided. For the current column, Mr. Rothery says he focused on stocks that are, potentially, in much more dire circumstances. To find them he looked at earnings before interest, taxes, depreciation and amortization or EBITDA. It is bad enough to fall into the red after paying normal and recurring business expenses such as interest and taxes and other expenses; it can be deadly having negative earnings even before these essentials are paid for. Companies with negative EBITDAs are in a particularly precarious position and may be zombies. Matters get worse when the markets tumble and it becomes next to impossible to borrow money or to sell stock. Mr. Rothery's potential zombie stocks are Hexo, Knight Therapeutics, Advanz Pharma, Katanga Mining and Paramount Resources.

Thanks as always,

Rob

Q: According to a Morningstar report, year to date earnings per share are negative; yet another report I saw seems to contradict this. What do you see as this year's EPS?
Also what is your current projection for earnings over the next two years? And what are possible events that could affect your estimates either up or down?