Investment Q&A

Q: Hello,
Is it time to get back into this name? Is the dividend safe?
From their web site:
today declared a dividend of $0.05 per share to be paid on December 15, 2015 to shareholders of record on November 30, 2015. The ex-dividend date is November 26, 2015.

So, if I buy know I get the dividend?

Thanks
Marios

Q: Hello team,

Could you please shed more light on Amaya's $3 billion prospectus. Is this why Amaya fell and hence is it not already priced in? How is this going to affect the stock price in the next couple of years? Do you think they issue more debt or common shares? Is it prudent to wait and buy when shares are cheaper or is it better to just proceed and ignore the short term price gyrations? And finally what do you think of the article in Financial Post: http://business.financialpost.com/financial-post-magazine/high-school-dropout-has-turned-amaya-into-a-gaming-and-publicly-traded-powerhouse
Who is Andy Holloway? Is he credible? Would you buy what his glowing assessment?
I already own Amaya and after the market meltdown and its own fall my position has been reduced to 2% and I wonder if I should add now and wait for better times? I want to believe in the company and the growing online gaming industry but not foolishly or excessively?

And for what is worth, like other members I too have lost money on many of the stocks suggested by 5i, but I have no regrets and know very well that I would have lost much much more without your informed guidance. So, keep up the excellent job you are doing on our behalf and don't be discouraged by the negative comments you hear every now and then. For everyone of those you have at least 9 happy members who don't say much. Stock market is not made for the faint of hearts and we all know that you are on our side all the time, good and bad. It is not your fault that the market is not doing as well as it used to in the past few years. Thank you for everything!

Q: Hello 5i team
How do you see CMI facing the future? I am getting a bit discouraged as to its possibilities.

Q: Between CXR or GUD for a full new position, what would you recommend? Thanks

Q: Thinking about switching from Saputo (SAP, about a 2.5% position) to A&W. I'm a little under water on Saputo, I can use for a capital loss.

SAP is trading at around a 20-21x multiple, so in my opinion, chances of it running $3 or $4+ more in the short term is fairly limited. Plus, the Saputo family has a 34% voting interest so, I'm guessing, chances of a takeover are fairly limited in the immediate future.

These are the reason's I wouldn't mind selling SAP for a more efficient use of my funds. However, I am having difficulty valuing AW.UN in comparison with SAP. I like AW.UN's monthly dividend. I like the fact that it seems to be a well run business. And I like the fact its just about the perfect size for a large number of players in the food services industry to take them out. However, like I said, I am having difficulty valuing AW.UN. I'm wondering if you can help me out? Is it cheap, fairly valued, or expensive against the backdrop of its growth profile?

Thanks.

John

Q: Hi Peter and Ryan, What would be an appropriate Weighted Average Cost of Capital (WACC) to use to discount GIL's future free cash flows to firm? I am getting a very low WACC estimate of only 4.41% primarily because GIL's Beta is only 0.39. My other assumptions are as follows,

Risk free rate 2.4%
Market risk premium 5.75%
Beta 0.39
2.4% + (5.75% * 0.39) = 4.64%
Resulting cost of Equity 4.64%
Equity weighting 92.1%
After-tax cost of debt 1.7%
Debt weighting 7.9%
(4.64% * 0.921) + (1.7% * 0.079) = 4.41%
Resulting WACC 4.41%

To me WACC of only 4.41% seems too low. Where do I go wrong with above calculation?

Q: I was surprised that you dropped coverage of this company. I have a position and also feel the pain but how low can it go ... With regard to management, i suppose they did a few good moves in the past if you were confortable with them before the recent events. Are they other factors outside lack of visibility and dividend cut that makes this a sell. It can be a mistake but i don t see the point of selling at these level if the company s balance sheet is still strong with a few years ahead to better position themselves. You general comments are always appreciated. Thank you.

Q: Big moves in Badger, is this some short covering, or is the market reacting to the earnings report. Your comments are greatly appreciated.

cheers
Darcy

Q: Would HCG still be rated "A-" today?

Q: Do you know what the short interest is in this stock. Is this a good entry point.

Q: Could I please have your opinion on third quarter news from this company?
Garry

Q: Do you think it is getting expensive.Hate selling stocks at new highs.if sold where would you go

Q: I've been holding WIN in my TFSA (for the dividend income). Now I'm wondering whether it's worth transferring it out into my unregistered account and hanging onto it for an eventual recovery, or to just dump it. What would you suggest? (Either way, it's not staying in my TFSA!) Thanks

Q: with no dividend and never any updates from management, with no banking license and a very thinly traded stock, what is the reason to hold onto this supposedly great company.have you made a mistake on this one, i really do not get it anymore and really will any of your members wait 3 years for this to work?dave

Q: Enbridge has cut its wokforce 5% is this good because of money saved or a further sign of things to come.

Q: Your comments on the last quarter please.

Q: I have to ask as I am still holding my WIN (wrong symbol for sure). You mentioned holding until the shareholder base changed and new investors buy in. How long do you think this process will take and do you expect it to recover to over $1.50 in the short term? In hindsight, I should have sold on news and joined the rush out. Management should be fired for what they have done to this company.

Q: I have held Questor all the way down. Should I be letting it go? Or hold on for a recovery. Down 80% on it.

I am sure it is being hurt since it is energy related, but it is down more than straight oil companies, and that I don't understand.

Q: Hi:
last time someone asked this question was in April
I wonder how one would compare A&W (ranked B+) compared to PZA.un ?
I am looking for dividends income and safety of capital
(almost 65) thanks!

Q: 5i discusses how CSU has 80 employees looking for potential acquisitions.Are these employees, whose sole job is to scout for potential acquisitions.