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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: What are you thoughts on RDM's results, new contract wins, outlook and dividend increase? On their investor call, management indicated that hardware sales should recover nicely over the balance of the fiscal year and payment process services should strengthen further as results a large bank deployment happening in the current quarter. Cash is at $31.2M US.
Read Answer Asked by Charles on January 27, 2017
Q: Hi,

Would you be a buyer of ABT now, or would it be more prudent to wait until after their next earnings release, which I believe Feb 6?

Thanks,Brad
Read Answer Asked by Brad on January 26, 2017
Q: What are your thoughts on these? With more pipelines likely going through under Trump, pipeline service/camp companies will likely have a great upside. Is here something similar that you would recommend instead? Which of these do you prefer since I think they're fairly similar (correct?)

Thanks!
Read Answer Asked by david on January 26, 2017
Q: Looking through Sylogist's annual report I have a question for you about how you think they are running their business in regards to use of cash. Total Cash declined meaningfully (but was high to start) and the use of cash was largely to buyback shares. Cash flow from operations, when also considering the change in working capital, was roughy equal to the dividend payments. Therefore, the company seems to be betting against its ability to find future opportunities for investment (either organic or acquisitions) that provide at least an IRR at least equal to its current ROE otherwise it would be 're-investing' some of its cash flow back into the business would it not?

Also, I see comments in the member's questions indicating that insiders are buying? Is that truly the case or is it part of their incentive compensation scheme? Management bonuses and equity based compensation in each of the last two years was equivalent of all of the G&A expenses of the company. Do you know if anyone has analyzed the share purchases to determine if they exceed the equity portion of the insider compensation?

Cash and use of cash by insiders is so important to understand. Thanks in advance for the response and, as always, the good work.
Read Answer Asked by Derek on January 26, 2017
Q: Hi Peter! SIS said in their statement "There are over a thousand resellers of accessibility products in North America." Their purpose behind this statement was to iterate that there are many opportunities for acquisitions that could improve synergies, but I'm more concerned about how they maintain a competitive advantage. Do they depend too much on R&D? If not, what makes them stand out from the rest and what are the barriers to entry? Is there any brand loyalty among its customers? Do you see them being bought out in the future (i.e. like United Technologies that own OTIS elevators)? Thanks!
Read Answer Asked by Michael on January 23, 2017
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