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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: re: AVO... the ongoing Saga

It has become the new/latest "Amaya type" 5i blogging saga. Panic abounds and the length of the discussion grows daily.

I have read all answers and like everyone else I am buried on this one, but for me to cut and run and take a loss based on panic would be retarded. The numbers continued to appear reasonable and future opportunities appear to be available especially if some of their cash can be spent on a quality acquisition.

My Concern??? How easy is Alexander Fernandes to work for? It may be my ignorance of the true situation, but it appears to me the turn over at this company is very high. Which begs the question if all of Mr. Hernandes' time is being spent replacing people, then who is minding the store regarding day to day business? And if in fact he is difficult to work for (which in some respects isn't a bad thing) what can we expect from the people he hires moving forward?

Personnel turnover is expensive. Is there any validity to my concern?

Thanks You for all you

Patiently Yours

Gord
Read Answer Asked by Gord on August 19, 2014
Q: KBL (K-Bro Linen): thoughts on latest results please. Thanks!
Read Answer Asked by Hussein on August 19, 2014
Q: Could you rank the following stocks. I'm looking for growth 3-5 years.
BYD.UN
QST
ACQ
DHX
I'd like to add all of them but my CA weighting can only handle 2.
Thanks so much for all your solid advice.
Read Answer Asked by Andrew on August 19, 2014
Q: BDI vs HNL: I have a 20% paper loss on Horizon North. Would it make sense to trade it for BDI and expect better share price increases and off set the lower dividend on Black Diamond?

Thanks for your help.
Read Answer Asked by Donald on August 19, 2014
Q: Hi Team,

With regards to your team's views on CSS offer being bid up, I just read that TFI has already reached the max they can borrow for the CSS deal. How are they supposed to finance a higher bid. What is the risk the offer will not be accepted by shareholders and no counter offer comes from TFI as well. Where do you think the price will head in that scenario. Thanks
Read Answer Asked by Imtiaz on August 18, 2014
Q: Re: HLP.UN Healthlease Properties
I currently own HLP.UN. When the takeover is completed, what happens to my exiting shares? Are they somehow rolled over into the new company or am I paid out at the takeover price?
Thank you.
Read Answer Asked by Alan on August 18, 2014
Q: While holding Health Lease HLP.UN til tendering, will the monthly interest still be paid? Thanks.
Read Answer Asked by Charles on August 18, 2014
Q: The article from Bloomberg reflects my sentiments quite succinctly. I had bought AVO at $30 and is currently 3% of my portfolio. I am torn between diametrically opposite courses of action.
- The stock has tremendous potential but very risky. If I double my position, the cost base comes down and the percentage risk diminishes but the risked amount increases.
- I could hold on to my current position and I think the downside risk is a lot lower from this point on.
- Or I could take my losses and justify that not doing so would be an opportunity cost of investing elsewhere with lower risk; in case the gain in stock price is not substantial.
I ask your advice as a voice of reason. I have itchy fingers and very often gamble and very often the end result proves the old adage that I was lucky in love.
Read Answer Asked by Rajiv on August 17, 2014
Q: Is there a reason that comments are disabled on the Avigilon blog article? Of concern to me, an AVO owner now in my late sixties, is that Mr. Fernandes, who appears to be in his early forties is thinking very long term with this company if earnings are of secondary importance to product development even going out years. How long will I have to wait for payoff in my underwater investment?

Technically I see that if the stock breaks support at $17.50 next major support is $12.50 established 2012-13 on much lower volume. Perhaps it would be better to cut and run here then wait for a bottom to re-enter. Would you agree? Thanks, J.
Read Answer Asked by Jeff on August 17, 2014
Q: Hi 5i: I've held Avigilon for a while. At one point I was up 60% and am still up though I've lost at least half my paper gains. I still like its growth prospects, but it seems unless the growth is "per share", the market is not impressed. Do you think it's worth holding on to at this point? I'm not in a major hurry but I don't want to go back to my initial acquisition price either. Your wise counsel would be appreciated.
Read Answer Asked by Roland on August 15, 2014
Q: Hey Peter, I was checking out EH, Easy Home as a possible investment. At the bottom of their Easy Home Financial website they list their APR (Annual Percentage Rate) as 46.96%. If you borrowed 500 bucks from them after a year you would have payed 234.80 in interest!!!

Let alone being completely unethical, how is it even legal to loan money to people at that exorbitant rate. I can't invest in a company that abuses people like that. comments?
Read Answer Asked by Andrew on August 15, 2014
Q: CSS Contrans. Similar to my Q on Healthlease I am in the same position with CSS. Thank you! usually I would by the buyer when it pulled back on the purchase but unfortunately that didn't happen. Do you have some stocks to suggest? Mullen Group perhaps?

TIA
Read Answer Asked by Gerald on August 15, 2014
Q: Patrick Horan, on BNN last night, is shorting Cineplex - attendance is dropping and he believes people see movies in recessions, not in good times. I've been a holder of this stock since Jan of this year ($42) and am quite disappointed in its performance to date. (and its in my kids RESP!) Should I get out while my losses are relatively low?
Read Answer Asked by Brenda on August 15, 2014