Investment Q&A

Q: I believe badger daylighting's success is built around the quality of the teams they have operating their equipment. I took a good look at @glassdoor.com and the employee experience on BAD in the US is very mixed with lots of very negative commentary. I have researched employee thoughts for other companies, and there are obviously always some complainers, but BAD's employee commentary seemed worse than normal. Should I read anything into this or am I getting too much into the nitty gritty of the company?

Q: Explain to me why they would raise money on the market in the past and not put it to use, why not just raise it when they need it? Does it not cost them money when they raise money?
Thanks

Q: Just to note that there was also a ratings upgrade on CSU per Globe Investor on Tuesday:
Scotia Capital analyst Paul Steep upgraded Constellation Software Inc. (CSU-T) to "sector outperform" from "sector perform." Mr. Steep increased his target to $850 from $740. The average target is currently $750.

Q: Have insiders been buying stock ??

Q: Hi 5i - which stock (PKI or CGX) would you add at today's price for the current yield and long term capital appreciation? Or is there another stock in the portfolios you would add before these two? Thanks, Neil

Q: CGX keep lower everyday for last two weeks and the volume is pretty high. I hold some at -30%. Should I get out before down further, or they have chance bounce back?
Thanks as always,
Tak J

Q: What was your take on the update announced by Magna mgt for the coming year? They provided growth projections but there was no context in the article so I don't know if the numbers represent much in the way of growth.

Appreciate your insight.

Q: What 5i stocks (portfolio and rated/covered) are making new highs these days?
Cheers

Q: Good Afternoon; do you have any information on the move in BAD today?
Can you comment on their business competition? Competitive advantage?
Thanks!

Q: Constellation buys Acceo for C$250MM which might represent around $30-40MM of EBITDA. Whereas today CSU's market cap goes up $1.1B on a generally soft day. I'm pleased as CSU is one of my larger positions, however, is this market reaction seem appropriate to you or is something else going on? Or am I just over-analysing things? Thanks!

Q: Hello Peter and Ryan,
Australia's filed a complaint with WTO on Canada regarding Canada's rules on selling wine. How will this affect Andrew Peller in the long run? I currently have close to 5 percent weighting on ADW.A and have done well. Any comments.

Q: according to sedar a 3 billion shelf prospectus was filed any thoughts? Thx

Q: Money was raised at 10$ over a year ago. What is GUD doing with its hoard of cash ?

Q: Enghouse's recent announcement of the new "President", has him starting immediately, without any explanation as to a departing "President". Is it correct to assume there was no prior President of the Company, and in the past the CEO and President role were both held by Stephen Sadler, or is this a vacancy that is getting filled? Why would there not be a better explanation in the press release, this could be construed as a negative?

Q: Sylogist just released its quarterly earnings this morning. Would appreciate your comments. Any concerns with slightly lower revenue ? Thanks

Q: Preliminary financial results announced today. Any surprises or insights? If others are in the process of asking similar question...don't waste your time on answering my email too.

Cheers, Stephen S

Q: Seems like a barrage of questions on Cineplex, in a week, but will ask, anyway. What is its current/ forward PE and is the present valuation justified (even after the steep decline) ? Do you expect Cineplex to continue to generate strong cash flow to pay down its very high debt load ( $600 mln ? ) and support 4.5 - 5% dividend ? How are the results of Cineplex capital investments in new initiatives like Rec rooms and VIP Cinemas ? Cineplex was removed/sold from 5iPortfolios, last year, in what looks like a smart move. But added back to Income portfolio, after some time, at a much lower price ($36.50, I think). With the recent drop in price, do you still have conviction that it's a good income stock to own and would you add ? Also, any change to A- Rating, with all recent developments and outlook ? Thanks

Q: Constellation Software announced this morning of a nice acquisition of Acceo Solutions for a price of $250 mln.
Q1: Seems like a good size acquisition, after some time. With annual proforma revenue of $116 mln, how significant is this transaction ?
Q2 : What is your understanding of the proposed financing ?
" Constellation expects to finance the Acceo acquisition on a stand-alone basis. This is a continuation of Constellation’s use of leveraged capital structures to compete more effectively for larger vertical market software businesses. "
Thanks

Q: Hello Peter. What do you think about the $250M deal that CSU announced this morning, and what do you think it will do for CSU's outlook and share price going forward in the near/mid-term?

Thanks,

Q: I have a question about A&W Revenue Royalties. The early warning report dated Jan 05 seems to boil down to A&W food services increasing (or wanting to increase) its ownership stake in A&W Revenue Royalties Income Fund from 21.1% to something in the vicinity of 24.7%. I cannot see this as anything but good news as it is essentially insiders buying significantly into the fund. My question is, is this just that and would you consider the December buy levels (slightly above the current price) a sign of confidence toward the stock price? Or, is there something else potentially going on here? Thank-you.