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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: Please provide your view on the deal for Peanuts and Strawberry Shortcake announced today. It would appear to be potentially transformational for the company: C$475 deal as against current market cap of C$630. I initiated a small position over the last few months at current prices. Would you suggest stepping up to a 1/2 position on this news?
Read Answer Asked by David on May 10, 2017
Q: Reading through the quarterly report I see on the cash flow statement that finance costs are considered an item not affecting cash. The note dealing with it does not explain just itemizes the individual charges. This is also the same for others in the industry, EXE and SIA. How is it that this is true? My head hurts when I try to justify it. My financing costs, mortgage interest, car loan etc affect my cash flow. Thanks

Kenn
Read Answer Asked by Kenneth on May 09, 2017
Q: You seem lukewarm on STN lately. Synergies from the large MWH acquisition seem to take time to flow to the bottom line...

However, it seems to be that are extracting a lot of value out of the MWH acquisition. STN is not a SW company, so it makes sense that they would divest "Innovyze" as non-core asset. However, I am surprized that they got USD-$270M for it - given the relative sale price versus the entire MWH acquisition price of ~$1B (i.e. 27%).

In their press release, they make no mention of expected revenue from this Innovyze business. I would have thought that if they would be losing ~25% of the revenue gained from the MWH acquisition, they would have had to mention this as 'material change'...

Would $270M US, they can repay the debt quickly and focus on core markets. Do you see the same value in this non-core sale and are you surprized at sales price obtained?
Read Answer Asked by Jennifer on May 09, 2017
Q: I am overweight PBH (thanks 5i) and looking to sell half and purchase something else in the consumer sector. GIL looks like an interesting fit, however the risk associated with one customer having 18.2% share and no fixed contract seems a bit daunting. Do we know who this customer is - a retailer like Walmart or a wholesaler? Has thee been a long term association? Given the value of this customer to Gildan would they not put significant pressure on Gildan to reduce margins.
Thanks in advance for your answer and your excellent service
Read Answer Asked by mitchell on May 09, 2017
Q: ABT's share price took a dive today before earnings is released after market closing and the results are not stellar. What is your take on what is being reported?

Thanks.
Read Answer Asked by Victor on May 09, 2017
Q: DSG (Descartes): FPE of 54, ROE low single digit, no dividend, EPS very small - seems very over valued to me. It looks like it has no debt.? I do not see an investment thesis here? Comments please. I usually do not buy companies that do not pay a dividend and grow it on a regular basis which to me shows confidence going forward. Looking for a diversifier. Own ABT, SIS & ZCL in small portions in TFSA.
Read Answer Asked by James on May 09, 2017
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