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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: Based on yesterday's close Auto Canada's (ACQ) price to book ratio is 7.25 compared to Constellation Software's (CSU) 21.26 and trailing PE ratio is 36.21 compared to 57.47. Considering the nature of each company's business and assets, which I appreciate are comparing apples and oranges, I consider ACQ fully valued however significantly more reasonably priced than CSU. Doesn't the high rate being offered by CSU on the recent rate reset pfd share issue indicate the risky nature of CSU as an investment? How does the market justify a price for CSU that is so high relative to what is supported by their financials? Could I please have your comments?

Duncan
Read Answer Asked by Duncan on August 14, 2014
Q: Hi Guys,

Any thoughts on Gamehost (GH)

Thanks
John
Read Answer Asked by John on August 13, 2014
Q: Peter and Team,

I am a shareholder of CSU and am interested in the debentures they are issuing. I have a few questions: first, does it make sense to buy more stock now to get more rights to get debentures at a $95 per $100 par value or should I wait for the rights to come on the exchange and buy them then? Second, I think the debentures are supposed to yield 7.4% compared on the par value and then reset to 6.5% + CPI annually. Is my understanding correct? Third, I think that the floating nature of this debenture should make its capital value stay pretty flat even in a rising interest rate environment as long as CSU's credit-worthiness is good. Any thoughts on this?

Thanks!
Read Answer Asked by Marc on August 13, 2014
Q: A comment on Badger BAD. On Market Call Tonight on Monday evening Aug 11, John O'Connell of Davis Rea responded to a question on Badger by saying "I had a quick peek at their earnings when they came out this morning...." then proceeded to say revenues were up but margins were down etc., basically describing the results that were released this morning.(The video is available on the BNN.CA web site.) What do you make of this? Is it possible Badger gave Mr. O'Connell an early look at their results?
Read Answer Asked by David on August 13, 2014
Q: I currently hold the 5.75% convertible debentures from Healthlease Properties and I am confused as to how today’s takeover announcement affects the debentures. My understanding is that holders can convert the debentures into shares at $14.00 (which is almost in-line with the takeover price) or they may be purchased back by Health Care at 101%. Both options offer only a very tiny premium yet the debentures are trading higher on the news (right now at $105). I am inclined to sell now for the current premium unless there is something I don’t understand. Does selling now to take advantage of the uptick on this news make sense?
Read Answer Asked by Steven on August 13, 2014
Q: Healthlease Properties ( HLP.UN.TO)
I own 2k. with the current buyout would you recommend:
1. wait
2.sell 1k
3. sell all
4.other
thanks
yossi
Read Answer Asked by JOSEPH on August 13, 2014
Q: Hi Peter

What are you thoughts on earnings report from BAD. Is it an opportunity to add some shares at this level.

Thanks
Mike
Read Answer Asked by Michael on August 13, 2014
Q: Hi
I am holding HLP.UN which has received an offer for $14.20.
It is currently trading for $14.23. Is there any possible benefit to waiting for the transaction to occur or would I be better to sell the units today? Thanks!
Read Answer Asked by maida on August 13, 2014
Q: Peter and Team,

Badger Daylighting is getting smashed today following its earnings report but too me the market reaction seems way overblown. The only bad thing I can see in there is that margins decreased but it was for, what seems to me, good reason in the US and for something that seems out of the company's control in Canada.

Your thoughts on what to do with the stock from here? Forgetting the dividend, I was up about 18% or so and am now down 1% on it in a day. My tendancy is to continue to hold as I like this company and idea long term but maybe I'm too stuborn?
Read Answer Asked by Marc on August 13, 2014
Q: Please comment on BDI (Black Diamond). Should I add to my position?

THANKS!
Bryan
Read Answer Asked by Bryan on August 13, 2014
Q: Healthlease Properties ( HLP.UN.TO) As we move into the mid/long term future, do you think this entity can grow it's current dividend?
Read Answer Asked by Guy on August 13, 2014
Q: Peter,thanks for recommending CSS on 7/29 on BNN.I bought @ $15.18 as it is a great risk/reward ratio(0.18 for potential of $1 to $3).I will reject TFI's offer
Read Answer Asked by Peter on August 13, 2014
Q: Thoughts on the subordinate debt Constellation (CSU) is offering? Joel Greenblatt wrote a good book on making money in odd deals like this. His thoughts are the big holders create initial selling pressure bc they either specifically invest in equities or the position wouldn't be large enough. Then one could pick up the rights at a discount and to purchase the debt at discount. At $95 for $100 debentures with 7.4% yield your essentially getting a yield of 13.1% annualized in the first year.
Read Answer Asked by Michael on August 12, 2014
Q: on july 29 peter was on bnn with contrans as a top pick with an 18. target with no takeover by transforce. also peter felt a higher offer would come.
now you seem to be saying that no higher offer is forthcoming, I own contrans but why should I keep this stock now, when there are so many better opportunities out there. it is obvious now that 15. is all we are going to get. dave
Read Answer Asked by david on August 12, 2014
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