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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: I'm ready to buy into a Canadian Bank. It seems like the stock prices in the last two years have fallen to the point where buying it makes sense to lock in some juicy dividends.

But while I've been waiting around, there is this nagging feeling that the Canadian Banks have some bad loans on the books. I know there is a lot of talk about their Oil and Gas loan book and potential defaults. In the last 4 quarters it seems there hasn't been any sign of it yet (so far) that's significant on their top or bottom lines. But my concern is that while their commercial loans aren't significant, their domestic mortgages are significant.

In the event that more job losses are coming and the majority of Canadians might feel this loss in work, are there not contagion affects to residential real estate that then affects the mortgage loan book of Canadian Banks including Scotiabank? If that does happen, how will Scotiabank's business be affected by a prolonged housing market downturn?
Read Answer Asked by Eugene on March 20, 2016
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.

Details at bottom of page here:

https://www.brookfieldrenewable.com/content/investor_relations/distributions-30413.html
Read Answer Asked by Jeff on March 18, 2016
Q: A follow up from my question yesterday about ADW.A.
It is down another 6% this AM. Something was be going on.

Craig
Read Answer Asked by Craig on March 18, 2016
Q: Disappointed with the market initial reaction(It was $51.51 early yesterday) 2 notes: Today TD Bank increased its target price to $57 from $51 & rated a BUY.On 2/25 V Hirsch,who closely follows SJ for many years,interviewed management 1/2 weeks prior to 2/25.Management advised that it was starting to get major orders to replace poles,which is @ the end of its life.Apparently CNR is expediating replacement of railway ties.Hirsch rated it as a BUY for 2/3 years
Read Answer Asked by Peter on March 18, 2016
Q: Can you comment on the p/e, ev/ebitda for Amaya? How does this compare to competitors? And how does this compare to the future growth in earnings? I'm trying to ignore the recent theatrics and just look at it from pure valuation in terms of it's growth. Don't own it yet. Thanks.
Read Answer Asked by Michael on March 18, 2016
Q: P Shoiry(ceo to v.chairman) on BNN,3/16 stated that 20% of its revenue is from Canada,& the co.has done well the last 10 years & its price is determined by the market.No wonder it has missed estimates in EPS 9 out of 14 Q.since 3rd Q,2012 as per Thomson/Reuters.Hopefully,new Ceo will do a better job in this aspect. Will the Federal expected infrastrutal spending have a material effect on WSP? Always appreciate your usual great services & views
Read Answer Asked by Peter on March 18, 2016
Q: ACQ announced results at market close yesterday Same store results were ugly:
Same store revenue decreased by 5.9% in 2015, compared to 2014. Same store gross profit decreased by 11.7% in 2015, compared to 2014.

Free cash flow decreased to $38.7 million in 2015 or $1.57 per share as compared to $63.7 million or $2.70 per share in 2014.

Adjusted free cash flow decreased to $38.8 million in 2015 or $1.59 per share as compared to $62.1 million or $2.67 per share in 2014.

Same store new vehicle retail revenue decreased by 14.2%, or $119.7 million, to $722.0 million in 2015 from $841.7 million in 2014.

Same store used vehicle retail revenue increased by 10.4%, or $27.5 million, to $292.3 million in 2015 from $264.8 million in 2014.

On a more Same store parts, service and collision repair revenue increased by 2.8%, or $4.9 million, to $177.3 million in 2015 from $172.4 million in 2014.

Pre market bid/ask looks weak. Is this a buying opportunity? or a time to run. or hold tight?
Read Answer Asked by Douglas on March 18, 2016
Q: See that Cervus has rolled back their dividend based on poorer year over year results due to lower western canadian demand. Any thoughts on their YE and worth holding here for a recovery in the western canadian market, or should I dump it and move on?
Read Answer Asked by John on March 17, 2016
Q: Further to the Dutch auction, I am trying to figure out the affect this auction may have on the current and future stock price. When exactly does the company buy the stock? Do they do one big purchase on Apr 15 or buy daily along the way? Will the stock stay between $34 - $38 during the auction period or if the stock goes above $38 does the company end the auction? Finally, by putting a purchase price with a ceiling of $38 is the company saying that is what they think the stock is worth?

Apprecitate your insight.

Paul F.
Read Answer Asked by Paul on March 17, 2016
Q: Can you please comment on Fiera's latest quarter and prospects going forward? It seems to have some momentum. Would you swap this out for BNS or any other financial?
Read Answer Asked by Marty on March 17, 2016
Q: Good Morning Peter, Ryan, and Team,
Fiera Capital reported this morning and the numbers looked fairly good, at least to me. I have the company in my wife's RRSP account, primarily for its 4% plus dividend yield and future dividend growth. They seem to be growing their AUM quite nicely in difficult markets. Finally the valuation seems inexpensive compared to other Canadian asset managers. I would like your take on the above. Thank you as always for your sage insights. (PS- I just purchased the book "Market Masters" and I thoroughly enjoyed the section devoted to 5i Founder and CEO Peter Hodson. Great interview and wonderful book. I highly recommend it to other 5i subscribers)
Read Answer Asked by Dennis on March 17, 2016
Q: This will interest other members holding $GSY. It's not short sellers. I'm told that some employees sold about 2M dollars of shares now that the "buying/selling window" is opened, but a fund picked them up within 30 minutes at $18. Also 4 insiders have bought the stock recently at 19.50 in the public market.
Read Answer Asked by Matt on March 17, 2016
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