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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: I’m a little confused by GSY’s recent stock performance. It has been correcting for a while, but that seemed to have accelerated with the tech sell off this month and I don’t see the link. GSY trades at a reasonable multiple and has earnings and earnings growth, but it seems to be down big when the nasdaq is down big and up big when the nasdaq is up. What am I missing? Similar to Costco’s behaviour where the business isn’t technology but because it is included in the Nasdaq it seems to track it. Is that due to selling pressure from ETFs?

Thanks,
Jason
Read Answer Asked by Jason on February 03, 2022
Q: hi. do you have any information on the hiring of "big" mike McCormack as "head of risk management" at ECN capital. has anybody at 5i phoned the CEO at ECN, perhaps he is at big mike's "waterfront home in FLA". apparently over 5 million dollars in stock/stock options accrued he hath, shortly after his retirement from the Toronto police force? I'm just getting this info from Kevin Donovan's article in the Toronto star march 8, 2021. maybe it's just me, but this sounds a bit odd to me?
Read Answer Asked by chris on February 03, 2022
Q: Hi,
If I already own SLF, would it be too much overlap to also buy some TSU? I know they are both insurance but somewhat different? If I wanted more growth, would I lean towards TSU and if I wanted less growth and more stability, lean towards SLF? How does the valuation and growth prospects compare to each other going forward? Thanks!
Read Answer Asked by Keith on February 02, 2022
Q: It looks like investors are disappointed with Paypal for another quarter. What are your thoughts? Is this a good company that just got ahead of itself in valuation and returning to earth or is there maybe a problem here. I've held shares for about 3 years and wondering if it's time to move on from this name. Thanks!
Read Answer Asked by Dennis on February 02, 2022
Q: Globe and Mail reported that between Jan 6-11, three board members of ECN paid an average $5.36 per share and invested about $6.25M. What is the outlook for this company going forward; I don't understand what is left of the company after the sale in December and how profitable it will be going forward. Seems strange that ECN hired ex-Toronto Police Association head Mike McCormack as chief risk officer -apparently he is a friend of the CEO - sounds like nepotism to me and not reassuring to stock holders. Thanks for your comments!
Read Answer Asked by Grant on January 28, 2022
Q: I have been looking into HCAL lately as an alternative to buying Canadian bank stocks directly. I'm aware that it uses a little bit of leverage and possibly some covered call writing to increase returns and am comfortable with the increased risk. I noticed that it appears to rebalance its holdings quarterly moving 80% of the funds into the 3 most oversold banks. I'm assuming that this would create a fair amount of capital gains each year within the fund. Would this create a capital gains for the holders of the ETF at year end or would the holders only claim the capitals gains once the ETF is sold? If so would this be better held in a registered account? Additionally a portion of the distributions would be due to dividends from the banks. Would this portion of the distributions count as eligible dividends for the holders of the ETF?
Read Answer Asked by Wendyl on January 26, 2022
Q: CI Financial is down almost 14% in the last month. Recent numbers appear good. Has CI just got caught up in the recent market downturn and do you feel now is a potential buying opportunity to acquire more shares? Also, as they continue to acquire Investment Advisors, mostly in the US, and their AUM increases, do they become a desirable takeover candidate? Do you see a Canadian bank or other financial company like Power Corp making an offer at some point in the future? What is the likelihood of a takeover in your opinion on a 1-10 basis whereby 10 is most likely. Many thanks in advance for your answer.
Read Answer Asked by Anthony on January 25, 2022
Q: On 5 Jan you responded to James that you had the view that AFRM was still fundamentally strong and was setting up for a potential rebound. Do you still feel this way? I see there are some legal issues surrounding this company now as well. I have a half position in this company, am normally a long term investor, but is it time to sell this and put that money into another company which has better bounce potential? Thanks again, Dan
Read Answer Asked by Dan on January 25, 2022
Q: Friday’s large drop brought Galaxy to my attention and its P/E of 3 per your data made me look further. But I don’t understand some of the other numbers: Revenue = 0, Interest coverage is negative 123.9, and Price to cash flow is 1246.
If P/E is correct it seems like a something to add to my list. I could imagine that revenue might drop if a significant portion of their customers were to drop or reduce their crypto currency activity after taking big hits on those assets.
But I don’t understand their business. Is this as cheap as it appears, and is the outlook decent?
Read Answer Asked by Peter on January 24, 2022
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