Investment Q&A

Q: RBC came out with a research note on CSU this morning and a $475 target price (well below market price).

Do you agree, and can you comment on their observations I'm quoting below plse:

"In light of the divergence between Constellation’s current pace of acquisitions and valuation, RBC CM wanted to outline the conditions necessary and scenario for re-acceleration in acquisitions. The analyst believes a reduction in Constellation’s hurdle rate is needed to counter the elevated pricing environment and drive material re-acceleration in acquisitions. In the meantime, RBC CM sees acquisitions below FCF and Constellation deleveraging. RBC CM believes Constellation’s long-term fundamentals remain attractive. However, valuation multiples near the high end of Constellation’s historical range have diverged from its slower pace of M&A. RBC CM’s C$475 target equates to 16x CY16E EV/EBITDA on $519MM CY16E adj. EBITDA."

Thanks

Q: Hi Peter and team, Any reason (other than the expected interest rate hike) for the under performance of FCR? If you still like FCR, what % of portfolio would you recommend?
Thank you very much for all you do to help us.
Silvia

Q: Wonderful company. Reading their financial statements, however, they are starting to 'speak' less about growth and more about profits, cash flow, dividends. Is there any reasonable work that indicates their market share? Without getting into related/adjacent industries/products do they have any real opportunity to grow left? Thanks for the A+ service!

Q: According to the charts in TD Broker, the PE multiple on this stock has doubled over the last 5 years(give or take) and the stock price has moved from $40 to $500. Do you think the value is too high even with the probability of more acquisitions? Do you find PE an important component to consider in a growth stock like this one? If so how important? Thank you
Jeremy

Q: Do you think AHF is worth holding at this time? Is there any light at the end of the tunnel? Thanx Robbie

Q: Peter; CXI sold a block of insider shares ( 159,000) to a institutional entity. Obviously because of the thin trading history - but would this indicate that somtime they will have to do a equity issue to put some liquidity in the stock. Do you have any idea who the buyer might be? Thanks.Rod

Q: I just read your report on Winpak. At present I hold a 5% weighting in CCL.B in my cash account. How much does WPK and CCL.B overlap in the type of business they do?

While I have no plan to sell my CCL.B, would a half position in WPK in addition to CCL.B make any sense? I am a long-term investor with a diversified balance among my holdings/groups that I am comfortable with at the present time. I do have some cash that needs to move away from the sidelines.

Q: Hello, I am up 55% with ESL and am thinking of reducing position and buying a half position of Western Forest Products (WEF) or First Quantum (FM). Your thoughts please.

Q: Hi, Hope everyone at 5i are well and happy on this bright summer's day? It seems we are likely to use our cellphones more and more for our banking - paying for goods and depositing cheques. Will this trend affect DH positively or negatively in the medium/long term? Thanks again. Henry

Q: Hello 5i: I am slowly building the Model Growth portfolio. I now own AVO, DHX.B, EFN, and GUD. I have enough money to add either 3 small positions or 2 full positions. Can you help me decide which stocks to pick next.

I will then probably add 2 per month until portfolio is complete. I realize this is a tough question because it should be viewed as a portfolio, but unfortunately I must go according to cash available. Thanks for all the good work you do.

Q: For a 10 year hold, which company would you consider a better buy right now (WSP or BIN)? Thanks!

Q: Is AW.UN a good choice for my TFSA?

Q: Hi! Any plans to update your report on Richards? Would you still rate the company C+?
Thank you.
David

Q: How do these two companies compare with respect to risk, current valuation, quality of management and growth prospects.

Q: Any reason why A&W has been pulling back?

Q: insider buying is up. Your thoughts on this.

Tom

Q: What do you think of Prism Medical (PM)? Seems to trade at a decent valuation with pretty good growth for next year. Any thoughts on their management and how stable their particular sector is regarding government regulation? Lastly, are their any particular red flags with this company I'm missing?

Thank you.

John

Q: April 2014 is the most recent review available for this company. Will you be updating this anytime soon? or can you confirm the B- rating of that date
Thank you

Q: Any thoughts on this price weakness? I know the dividend is not covered, but that's not new. Do you think it is oversold?

Q: the price of AFN just keeps falling. Do you think this is overdone or is there some fundamental reason for it. Thanks.