Investment Q&A

Q: I have to agree with Henry, that it just is not normal trading, i also in over 40 years of stock trading have never seen a stock drop in a well managed business like this, have seen in some bio tech company with no earnings and it's drug not being approved, but this a company that everybody knows what they are doing and has good cash flow, a good dividend and yes has a poor quarter, but it is not a company going out of business. The street knew of there acquisitions, there debt level, the companies they compete against and how they are moving forward. To trade 20x normal, do you have any idea who made this large volume of trades, and what qualifies a stock for a PUKE OUT!!! which i have never heard of for a quality stock? Did the fraud in Bre X every have a 40% drop in one day. I would appreciate a a more detail answer on this trading than a general answer that the market is tired of the stock.

Q: RBC came out this a.m. reducing their target on DH from $28 to $18 (thanks a lot RBC).
They think what we are getting is a bit of a dead cat bounce.

Until 5i removes DH from the portfolio do you think in the short to intermediate term this company would be a worthy covered call candidate going forward?

Q: Pretty large drop on small volume but bearish engulfing pattern forming. Any reason for the drop that you see?

Thanks

Sheldon

Q: Hi 5i,
This is not a question, but rather a note to add to the ongoing DH dialogue. A number of weeks or months ago, DH had a release stating that they were working in conjunction with another firm to explore and develop Blockchain technology (if I read and understood correctly). This, to me, is a positive in that it shows that DH can and will innovate and is not going to be "left behind" if they can help it. Blockchain is expected to be a "disruptive" technology if it pans out as anticipated. DH is looking to try and be on the leading edge, not following and playing "catch up" later.
For myself, I will hold on and wait, perhaps add enough to be just slightly overweight, take the dividend, and give the company a chance to further prove themselves. If I am totally wrong in this, my weighting at about 1.50% (pre-drop) won't cause me too much grief in the big scheme of things.
Anyway, for what it is worth, I thought I would offer this up.......

Q: Good morning. I'm wondering if you would consider this a good entry point for KBL? Its RSI at 28 seems like this might be a good time to jump in but I wanted your take on its valuation. Is the forward P/E of 22.8 (according to Globeinvestor) reasonable for this company? After the excitement of DH this week, I'm thinking a "boring" stock like KBL might be a nice addition to my holdings. Thanks!

Q: I have already read all the Q&A and understand your opinion. As an investor I am trying to learn from this mess. With that in mind and looking for past experience guidance to making a decision on my holdings, I am looking for a similar "case study" stock.

A stock that is highly respected, good track record over time, solid management, etc, but in more of a "sunset" business than a sunrise business - but trying hard to change.

The one that quickly comes to mind is Yellow Pages, and we know that did not turn out well for investors - unless they bought the depreciated and restructured company and have seen a nice profit since then.

Any parallels here or other foreseeable surprises ahead?

Your thoughts, please.

Thanks.

Q: Please comment on quarter and outlook. It appears they are serious about reverting to profits and growth. Is there bona fide progress, or just a case of 'managing expectations' as new management transitions in?

Q: Hi there,
How confident are you in DH management to get us through the bad news and grow the business?
How does DH stack up against competition in the fintech space? What is their competitive advantage? Is their acquisition last year helping or was it a drain on capital?
What is the short position today - do you expect short covering?
Thanks!

Q: This is a new one on me. I have been investing for 30+ years and have never suffered a 40+% loss in one day in a stock and my investments have included microcaps, junior golds, etc; 40% gains in one day - yes. Question is: is this a new world? or Is something else happening? The answers you gave for the crash isn't enough to explain such a big drop. It would require a chance in the next year of major collapse or big fraud or official investigation. The company is making money, paying down debt and a dividend. So, is it possible that we are in a world where hedge funds and short-sellers can engineer such a crash in a relatively small (by U S standards) company? or is someone hiding something? Thanks again Henry

Q: For information purposes.Today DH downgraded by many firms with a range of $22 to $33 target price

Q: What's your thoughts on the quarterly results released this afternoon? EPS looks to be quite solid with revenue in-line with expectations.

Q: Hi Peter what you thought of picking up a half position at around the $15 mark and how safe do you think the div is?
Kind regards
Stan

Q: I am by no means an expert, but I certainly am an observer of circumstances.

Since joining 5i one of my key observations is, when one of your companies is under a short attack, be amongst the first to leave.

If the ship stays afloat, you're still safe, having abandoned ship. If it sinks you're off and alive to fight another day.

My observations are based on CXR, HCG and of course today's DH. Certainly this strategy would have worked on all of these.

Perhaps a good strategy for those investors with a risk averse bent.

On to fight another day!!

Sheldon

Q: Concerning the DH previously asked about. Can you provide a source where maturity dates and coupons are shown? My Bmo investor line account shows neither

Thx
KR

Q: Do you think that taking a stab at the convertible debentures in DH (2016's and 2018's) makes sense here?

Thanks

Q: On top of the 789 other DH questions here is mine. -45% is not a haircut, it's not an overreaction it is a wholesale evacuation. So what gives? What has the market smelled that isn't in the newswires?

Q: The extreme sell-off in DH shares seems really overdone. Is DH now a "Buy"?

Thank you, Peter

Q: Good morning,

Could you please comment on the viability of the dividend of DH- if it is within a reasonable payout ratio, it seems like the stock could be well supported by its yield at these levels - your thoughts are appreciated.

Thank you,
Brad

Q: Thanks for your quick response to my question regarding what to do now with the shares. The other part of my question had to do with the dividend and whether you felt the dividend would be maintained or cut. The yield is now very high and that often is a danger signal. What is your sense regarding the dividend?

Q: Could you please comment on today's earnings report and would you consider this to be a good entry point for an RRSP account.

Thanks