Investment Q&A

Q: Could you please provide your views on the recent earnings. Good holding going forward?

Thanks

Q: Good a.m. gentlemen,

Just when I thought DHX was about to get traction, they issue more shares.
Here goes another spiral down, thoughts?

Q: I sensed that when I looked at the DH results, it was kind of soft (as confirmed by you in the earlier answer). Also, the dumping leading to the day of the release is a strong sign the market will react negatively. All have since come true.

Of course. based on the opening actions, I also sensed that the "shorts" could be at work to milk their last cent out of this stock. Hence the big dive and the big volumes at the opening bell.

Based on your experience watching market actions, am I right about this? Or I'm just a paranoid small retail investor grasping for answers?

If I'm right hopeful that would get rid of the volatility grapping this stock for the last while (with the departure of the shorts) and normal trading would resume.

Q: Hi With stock as volatile As DH how does 5I give it such a high rating it was down 13% today the second such pluge is a year
Stan

Q: The company has just issued more shares in a bought deal. I am trying to understand if this is beneficial/detrimental to shareholders and the company. In my mind, on the negative side, there is dilution, the stock is to reduce debt (despite the fact that debt should be cheap these days) and not for acquistion, and it brings to market more shares when the shares of this company haven't done much for quite a while anyway.

On the plus side, it brings attention to the company since the underwriters will now be beating the bushes to sell the stock and less debt should increase company flexibility should a deal come down the road.

I know you like companies that don't tend to issue stock. Should this deal be viewed as negative? Also, I assume the difference between the share price to the underwriters and current market price is the dealers profit. Typically, how long will dealers hold onto shares to ensure they don't flood the market and lower the share price vs. sell the new shares in an orderly fashion to maximize their profits.

Appreciate your insight.

Paul F.

p.s. love all of the new changes

Q: I would like to add to some of my positions. Of the following companies, which ones do you feel could be added to now: atd.b, Efn, Hcg, mg, Esl, sj, Dhx, Tcn, syz.

Thank you

Q: Dear 5i,
I have a half position in CCL.B and have been waiting for a pull back to buy more. I see the Winpak has had an excessive sell off. Do you think there may be more opportunity with Winpak vs CCL at this time for my other half position?
Thank you,
Kerri

Q: I bought Home Capital before it ran into trouble with some of the lenders. I hung on and then I got a notice about a Dutch auction. How is that different from a company just buying it's own shares on the open market? Do you see a benefit to this auction? I read that Home Capital will soon have insured lending. Could these two events move the stock out of the dump?

Q: It looks like absolutely nothing has changed with this stock except the price, so to me it looks like a great buying opportunity. Do you agree? Thanks. Bill

Q: Greetings 5i; are you confident enough in GUD that you would be ok going overweight? Say a position and a half or two? I have some cash to allocate and there seem to be few names out there with such good risk/reward profiles.
Thanks again.

Q: In the just released annual Presidents letter the CEO states: "When really good companies start trading at 5 and 6 times revenues, it’s time to start worrying. I hope
our shareholders are never in that position."

How many multiples of revenue is CSU current share price?

Q: I bought BOS in Dec 2015. What is your opinion of this company.

Q: I read the response on the dividend tax credit. Just to clarify if you have BEP.UN in an RRSP account none of this matters. Correct?

Q: DH just released its 2016 Q1 results. It looks good to me but nowadays companies are evaluated on a quarter by quarter basis against the mysterious "expectations" by the market, which seldom care about anything long term. Good results are not necessarily rewarded with pops in share price, but bad results will definitely be punished.

With that said, how do you interpret the DH first quarter? I'm somewhat disappointed that there is no dividend increase since it's been set at $0.32 for a long time. Thanks.

Q: To clarify an answer to an earlier question re: tax treatment of the distribution. You mentioned that distributions are not eligible for the dividend tax credit - which is not entirely correct. I have held a large position in BEP.UN for a few years. In 2015 58% of the distribution were eligible for the dividend tax credit. Another 28% of the distribution was a return of capital and only 14% of the distribution will be subject to the full tax rate. In 2014 29% of the distribution was taxed at the full rate. This of course will change from year to year. For historical taxation - have a look at their website which has a good breakdown of the tax treatment of all distributions. Hope this is helpful.

Q: Could you give me your outlook for Prism Medical, it's recent quarter, it's payout ratio, its recent decline and the sustainability of the (increasing) dividend?

Thanks for your service

Q: What is the consensus for Exco's Q2 consolidated sales and eps?

Q: Followup to recent Q. on BEP.UN. Distributions can be taken in US or C$, default is US, so if held in a C$ account broker will convert at their exchange rate. To receive in C$ you must instruct broker you want this option, I estimate it's worth at least 1% of the distributions received, not much, but better in my pocket than broker's.

The above comment was posted and I am confused by it. What exactly would I tell my discount broker? Would it be better to get the distribution in US$? Would I need to move my shares to the US listing in order to get the distribution in $US or can I just request to be paid in $US even though the stock holding is on the TSX? Would this be a good way to increase US$ over time?

Thanks
Dolores

Q: What is the consensus for Q1 revenue, adjusted ebitda and adjusted eps in US dollars?

Q: Pays a high dividend.Would this stock also be a suitable purchase for long term capital appreciation on the stock price in addition to the dividend play ?
Thank you