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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: Spin Master looks like a dog, acts like a dog, and will soon be barking like a dog. Insiders, over the past year have been sellers of the company with no insider buying that I could see. Is this puppy healthy or is it rabid and needs to mercifully be put down?
About a month ago you said that you would issue a detailed report on the company in a timely manner. Given how the stock has been acting over the past month would this be a good time to issue a more detailed analysis,
Read Answer Asked by John on April 19, 2018
Q: Because of the lack of liquidity on BCI I placed a limit order at $32 for the quantity I am looking for. I realize that once I'm in it will not be easy to exit.

Your last comment on BCI was a month ago and wondering how you felt about the stock at $32 for the next 2 or 3 years.

Asking this mostly because of the illiquidity and thought $32 might make it a good buy.

Please advise.


Sheldon
Read Answer Asked by Sheldon on April 19, 2018
Q: I hate it when companies do “bought deals” at prices lower that market price. I understand why they do it but it feels like a blindside. Companies do not care for the shareholders.

The little guy always feels the pain and then the stock is dead money for several months until the deal is closed or longer.

5I is just guessing they will buy another company, no one knows for sure.

My questions are:

1. Why would SIS-t have to “clean up the balance sheet” prior to buying another company? It’s such a small deal. Is there something wrong with the balance sheet?
They did not do this for previous purchases. (H.E.S. Elevator or was it Visilift) or did they, I may have missed it? Is there another reason for this deal? Isn’t the issue for more funds normally done at the same time or after a purchase instead of before?

2. SIS-t will be “dead money now”. Do you not believe that when a stock becomes “dead money” it would it not be better to place capital elsewhere until the stock moves up?

3. For bought deals, the little guy can’t participate in these types of issues if managing a self-directed account. How unfair is this?

4. I don’t usually look at financial reports for companies but this looks suspect.

The Annual Balance Sheet for Dec 31, 2017 shows:
“ Intangibles” = $100.49C$Mil. versus less than 12.05 mil in previous years

Why is it much higher than the preceding 3 years? Can you explain what this is? And should we be worried?
Read Answer Asked by Robert on April 18, 2018
Q: Hi, Could you please shed some light on your current views about Cineplex. They announced 100 F/T job cuts, which company tried to downplay but obviously market did n't buy it. As per one of your earlier comments, even at current levels, stock continues to be expensive. I have a feeling that there could be more downside and just wondering if it is time to cut the losses and move on. Globe mentioned that Gordon Pape finally threw the towel and decided to sell all their holdings in the Income Balanced portfolio. Your thoughts are most appreciated.
Read Answer Asked by rajeev on April 13, 2018
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