Investment Q&A

Q: I have a full position in Russel Metals that includes a 25% gain, and I have a half position in Stella Jones that involves a 5% loss since purchase. I'm thinking of taking half off RUS and topping up SJ as it is cheaper on a PE basis and perhaps RUS has topped here. Would you make this move now, or after SL earnings, or not at all?

John

Q: Good day...I hold mda, sj, bdi, and esl and have most of this year all are down 5 to 7% is this a worry at this time. All of these are in rsp so selling is not a tax issue...cheers

Q: With AYA having received regulatory approval does that mean all the hurdles have been crossed and the deal will actually close in September. I am thinking of adding to CF and was waiting to make sure that they would get their big payoff from the AYA deal. Thanks so much.

Q: I am up 120% on my Stantec in two years. It's now at a PE of 24 and has been flat out for a while. is it time to be reducing/selling my 1000 shares? Thanks

Q: CPX - update on your opinion please after release of Q2.

Q: Peter and Team,

It appears as though AYA Amaya Gaming has received regulatory approval for their acquistion of Rational Group. Are we "home free" here on a regulatory front?

I am holding this as I expect big things but would love any updates on your thoughts about Amaya.

Thanks!

Q: Now that amaya has all regulatory spprovals for purchase of rational what is your target price or a better question where do you see it going from here. Dave

Q: Re DHX
ScotiaMacLeod has downgraded this stock and reaction to it is driving stock down (it has been drifting lower prior to this). Should one react to this, and do you have any comments. Thanks

Q: WPK (winpak) - your thoughts on results please. Thanks much!

Q: Hi Team:
I can't remember the exact date but I do recall your research giving Carfinco (CFN) a "B" rating. The stock has not been performing well lately. Have you changed your
rating & or opinion on the Co.
Thanks: Jerry

Q: Hi 5i: Previous governance issues aside, it seems to me that Enercare’s management is looking like a combination of clever and lucky. Presumably they were working on the details of the announced business acquisition from Direct Energy for the past few months, while watching the ECI share price working its way above the $12 level. They get to a deal they like the look of: immediately accretive to earnings and growing the business in a reasonably logical way. While all that is going on they get an overture from TSSP with a low-end valuation of $13.50 and when that news is released their currency for the Direct Energy business purchase (i.e. their share price) jumps up above 13.50 and they immediately sell out a $310mm financing at $13 per share to fund it. Now that Direct Energy deal is looking just that much more affordable and hence that much better; they have a bunch of new shareholders in at $13 and expecting a profit from that level; and they just made ECI into an even more valuable entity to sell to TSSP or whoever else may be interested. Initially they had responded to TSSP by saying we aren’t even interested in talking to you at $15 per share (which appears to have been a number TSSP put into the conversation). So where does it go from here? Would you consider it to be a good idea to add to a partial position (about 3%) at the current market price? To balance out my little sketch, can you please highlight the main risks for investors? Thanks!

Q: Dhx has received approval from the Crtc. Have they got the cash to buy the family channel or do you foresee another financing?

Q: I awoke this morning to find our CSS was being sold. I jumped on line to see the increase in share price. Wow talk about lunch bag let down 5% premium on the recent share price seems extremely light. Like other 5i members I am concerned. ps who cares about a 52 weeks avg share price. It seems the executive of CSS have sold out and abandoned the shareholders. Listening on line to the Transforce call they seem very happy with the deal of course. The commentators on BNN were positive from a Transforce perspective. Where is the voice of the CSS shareholders? Sorry for the rant, am I off base? Is there a trend for light buy out prices the BA price seemed a little light and CSS's price seems very light. Is this because there is not enough competition in Canada for these companies. mike

Q: Good morning 5i team,
Re: DHX In response to Rod L.'s question of July 23, the following NR came out at the end of the day, yesterday.

DHX Media receives CRTC approval on $170M acquisition of Family Channel and three other children's channels.
24 Jul 2014 - ACQUIREMEDIA

Q: Enercare (ECI) Subscription Receipts

As a current shareholder of Enercare (last traded before being halted on TSX @13.91) would you advise placing an 'Expression of Interest' for the "Subscription Receipts" at $13.00? Or is it better to wait until the closing and buy on the open market?

Q: Re: CSS.to

Don't understand why the board approve unanimously on a deal just around average recent price. What's going on?

Q: Just announced that Transforce (TFI) has offered to take over Contrans (CSS). Board of Contrans supports the deal at approximately $15 per share. Seems low as Contrans closed on Thursday at $14.74.

Who wins: Transforce or Contrans shareholders?

Q: Hi 5i Team
I'm retired and looking to diversify my portfolio. Income and growth have equal weightings and I prefer to hold a quality stock indefinitely. At this time I'm considering Brookfield Infrastructure (BIP.UN)or Stella-Jones (SJ}. I'd appreciate your comments comparing these two companies. Thanks

Q: eci What do you think of enercares latest deal. thanks

Q: What is your current opinion on Exco Technologies(XTC), and what did you think of the recent 3rd quarter (i.e. did it meet or exceed your expectations)? It currently is about a 10% wieghting in my portfolio (I like to keep a concentrated portfolio of small to mid cap names 10-12 stocks) and is the only exposure I have to the auto sector. Should I continue to hold? Thanks