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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: Hello,

I am currently holding 2,000 shares of Callidus Capital Corporation which I acquired earlier this year at an average cost of $16.53 per share. I have seriously considered selling these shares at the substantial loss they now pose to my portfolio but have been hesitant to do so.

I am hesitant in part because I perceive that 5i may be of the opinion that the firm might yet be taken private by some means, at a substantial premium to today’s share price. It is also my impression that 5i may possess some level of confidence in the management of Callidus.

I have combed through the firm’s 1st and 2nd quarter 2017 earnings announcements and I have several questions about Callidus that I hope you may be able to assist me with.

• Are my perceptions regarding 5i’s outlook for the firm and faith in its management team accurate?

• Are you able to help me understand exactly how much money Callidus Capital Corporation has invested in Bluberi Gaming Technologies Inc., in aggregate?

• Do you know what remaining value Callidus may be currently attributing to their “investment” in Bluberi Gaming Technologies Inc.? In other words, have they already written down or realized any losses attributable to their investment in Bluberi?

• Was any portion of the money Callidus Capital Corporation currently has at risk, in connection to their investment in Bluberi, ever transferred from Catalyst Capital Group Inc. to Callidus Capital Corporation? If it was, are you able to explain to me the pretense or conditions under which the transfer of this risk might have been conducted?

• Callidus has themselves been buying back shares in the firm at substantial premiums to the current share price over the past number of months. Do you perceive this as a potential positive development or might this somehow further diminish the value of the company? Why are you of that opinion?

• Hypothetically: If you personally owned shares in Callidus and selling all of them meant you would crystalize a loss of 3% of your portfolio’s total value ($12,570.00), would you sell them and move on or would you continue to hold them in the hope you might obtain greater value for them within the next twelve months?

As always, I value your opinions, information and insight. Thank you!
Read Answer Asked by Richard on September 27, 2017
Q: In the financial sector, specifically banks, what dividend stocks do you prospect to have higher growth rates in the long run. Narrow down on a few stable growth stocks in the sector.
Thank You!
Read Answer Asked by James on September 22, 2017
Q: Please provide your opinion on TD bank with reference to buying it on the TSX or NYSE. Since I have both a US and Canadian denominated accounts the buy can be made in either account. Is there any advantage to buying in one versus the other? Is the US listing subject to influences relative to all US banks, which currently are seen in a positive perspective with respect to the US Fed intending to raise interest rates? Although the rates are expected to rise in Canada as well, it does not seem to be as important a factor as compared to the US. At current exchange rates there is a difference in the relative value per share as well as a difference in the proximity to the 52 week high. Is there an explanation for this situation and is it significant to making in buy in US or Canada?
Read Answer Asked by Brian on September 21, 2017
Q: Home Capital Group (HCG) - Recent news show that the company is back to normal operations and investors were confident enough to vote against Warren Buffet's 2nd tranche beliving that the confidence is already in place and reasoning equity dilution was not necessary. Is HCG still a good buy at current levels (say $13 to $15 range) ? Please advise.
Read Answer Asked by Sridhar on September 21, 2017
Q: First off I am 30yrs old slightly more growth investor and plan on holding for long term. I have a 25 CND stock portfolio of approx. 300k and Pension of 100k split between a Global Fund and CND Fund. In reviewing my personal portfolio I feel my financial exposure maybe needs some work (17% Weighting). I have a full position in GSY, TD,SLF and a half position in CXI. My question is because TD and SLF are probably already represented in my pension fund and they don't really fit the style of my portfolio would you look at switching them out? If so what suggestions would you have that would compliment GSY and CXI. Thanks
Read Answer Asked by justin on September 20, 2017
Q: I have owned Canaccord Genuity for several years. On July 4th, 2017, CF announced a (SPAC)deal. This deal appears to create an opportunity to purchase shares in a yet to be found company. Can you explain how CF is going to make money in this deal? Is this an IPO of shares when an acquisition is found? Will CF continue to hold the majority of the shares in the new acquisition?
This deal seem complex to a simple investor like me. Can you help? Is this a good deal for CF?

Cheers,
David
Read Answer Asked by lori on September 19, 2017
Q: Looking through Visa financial statements for last few years and noticed that they had a 1.5 billion extra tax expense for Q316. It was explained as a non reccuring, non cash and related to visa Europe acquisition. So I calculated the p/e without that 1.5b non cash expense and got 31x, which seems much more reasonable than 39x. Is my assumption correct? And do you consider V better investment long term than MA or SQ(which I am might go half position on)?
Read Answer Asked by Jerry on September 19, 2017
Q: A year ago I took less than a full position in Citigroup that has now grown to more than 5% of my holdings. What are your thoughts on trimming to about 3 or 4% and with some additional US funds investing in PACW Pacwest Bancorp. It looks like this would allow a better growth outlook for the funds as well as double the dividends. If a suitable investment what would be the maximum PACW % that you would consider prudent? On the Cdn side I already have full postions of TD and BNS. Thank you.
Read Answer Asked by Harvey on September 15, 2017
Q: I own half position in the 3 financial companies noted as well as some solid banks (BNS as an example). I am down in both CBL and GSY while doing alright in ECN. GSY has been on a move in the right direction lately, is it worth selling cbl with loss and go full position in GSY (I am down some as well)? Should I stay the course. My weighting in financials is at max. A little trimming would be OK too
Read Answer Asked by Scott on September 13, 2017
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