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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: Last night's guest on Market Call Tonight said Savaria was a great company, and he met with them last month and likes them. But he said the stock was way overpriced. He said he would not buy and if he owned it he would sell it. He said if they continued to perform the stock is going to move sideways at best for the rest of the year. I take it you have a different opinion.
Read Answer Asked by John on February 22, 2017
Q: Good day,
Perhaps I need to be clearer in what I'm asking with regard to the secondary offering announced by A&W. From your earlier answers this is a non-news story that has zero affect on the company and its stock value and does not even really involve the company so much as certain shareholders selling their stock to someone else. So why did A&W announce it? The market seems to think this was a significant event, as the stock has fallen precipitously since the announcement.
Read Answer Asked by John on February 21, 2017
Q: Would you please clarify your answer to Chris. It looks like A&W is offering up new shares for sale. This dilutes the value of existing shares. But the money from the sale of those shares is going to 'indirect shareholders' (the people who own Food Services) rather than to something like reducing debt for A&W or doing something else that will eventually improve shareholder value.
Read Answer Asked by John on February 19, 2017
Q: A&W issued a release regarding a private placement this morning which itself isn't out of the ordinary.

However what caught my eye was what will happen with the proceeds. They will be given to 'certain indirect shareholders' for 'their personal financial planning requirements'. So the fund is selling units to Laurentian, and all of the money is being handed out to unknown shareholders. None of the funds will be distributed to other shareholders, nor will the Fund hold the cash.

I'm no expert but this doesn't pass the smell test. Am I missing something?
Read Answer Asked by Chris on February 17, 2017