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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: Hi, I am trying to understand the value of this transaction ( Agreement yet to be approved by RKN shareholders) of US$80 mln investment in Redknee Solutions by Constellation Shareholder to the company and its shareholders. Per your comments, Constellation is interested in company's mobile billing software and its clients and will be entitled to receive 10% Preferred shares( is it 10% dividend or 10% of the shares issue) and warrants. It appears like a take over in a round about manner. I would appreciate if you could help with an analysis and your views. Thanks
Read Answer Asked by rajeev on December 12, 2016
Q: My question is on RPI.un. I have held it for about a year, and have done fine. It now looks expensive, but its EBITDA and earnings are impacted by a line called "contingent consideration revaluation" apparently related to their last acquisition. What does this mean in plain english? Will it continue to impact earnings going forward? How often do they increase their dividend? Finally, how would it compare with WPK? Thanks.
Read Answer Asked by Noel on December 09, 2016
Q: Thanks for the webinar today. It's reminded me to think about fundamentals. Normally I rely on you think about that for me (I follow BE), but not always. I hung on to Amaya after you removed if from the portfolio and bought a bit more at ~19.50 when the original bid came and you did a great blog about two "trades" (the other being SPB--it was a nailbiter but I did well on that one).

There's a lot of noise on this company and I want to ignore that. What is your view about fundamentals and outlook for AYA? If you think there are better opportunities right now, could you please give me some suggestions? Doesn't need to be the same sector. I want to avoid the pitfall of hanging on too long if this is not a very promising company long term.

Thanks.
Read Answer Asked by Chris on December 08, 2016
Q: I used to own XTC and left in disappointment - bought at around and sold at $14.70 and sold at about $15.00. In between I wasted a lot of time waiting and finally left with much gain.

XTC has really fallen on hard times of late and I just want to know if it's a good bottom fishing candidate, or there is no rush to re-enter this sector yet? MG and others are still recovering and I assume it would take XTC (a much small company) to regain its traction.

One positive thing is they did raised their dividend in the past years. Is that dividend sustainable, or it was raised in a vain effort to boost share price?

Thanks.
Read Answer Asked by Victor on December 08, 2016
Q: My wife recently purchased a pair of glasses on-line. I was skeptical but the process was very easy, the fit turned out to be much better than her last pair that was purchased at a store and the price was a small fraction of the cost of a store bought pair. My concern about BCI is how are they going to counter this trend with some very aggressive players moving into the on-line glasses business? Would this be a concern going forward?
Read Answer Asked by Alex on December 08, 2016
Q: I have owned AYA for almost 3 years and have sold when when my weighting was more than 7%, so I am just holding my profits now. I think when the stock was trading higher than $35, 5i was recommending the stock. As far as I can tell the fundamentals have not changed and that is why I am still holding some AYA stock. I can understand that external events may have turned some shareholders off and therefore the shares are trading at $19. On a stock like AYA, is it the momentum or in this case the lack of it that drives the price? If the potential was there when the stock was $38, is the potential not there anymore? I have my doubts that the privatization bid will succeed; but in the next two+ years is there not good growth expected?

I think 5i is the best!
Read Answer Asked by stephen on December 08, 2016
Q: After the stock price of DH rose significantly and then dropped back today, trading has been halted, presumably because of the company's news release that, "a process has been established by its Board of Directors, including the formation of a Special Committee of independent Directors, to address expressions of interest from certain third parties to acquire DH. No formal offers have been received and there can be no assurances that any transaction will result from this process."

Once the situation is clarified please comment on the implications for holders of this stock. Thank you.
Read Answer Asked by Glen on December 07, 2016
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