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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: Hi there, I am a big fan of your Balanced Equity Portfolio. I like the more growth oriented names in it and was wondering if you were to swap out the less growth names for names that have a little more risk but for higher return, which would you swap and for what names? Thanks!
Read Answer Asked by Michael on May 20, 2022
Q: I am approx. 80% invested; primarily in your balanced equity fund, with a smaller mix of some of your growth equities. I am considering adding the remaining 20% cash to my investments. Or, would you recommend waiting, or spread the investments out over a cycle of time? "Catch a falling knife comes to mind." Which 6 or so equities would you adding to, considering a 3 - 5 year time horizon?
Read Answer Asked by Claus on May 19, 2022
Q: FYI - I recently asked one of my hedge funds who has a position in DND what their thoughts were on the possibility of losing TMG and their view on the LINK transaction proceeding. Below is their response, feel free to publish if you think it is of value to the members:

The TMG acquisition makes up roughly 8-9% of EBITDA so the overall impact is muted. On the call management was confident in their ability to close Link. However if that is not the case, then with the TMG sale and the cash earmarked for Link, DND will be cashed up which in theory leads to the ability for either massive buybacks or another attempt by management to go private. Either way, the channel checks which are backed up by churn rates, are constructive and the stock is one of if not the cheapest one we can find at the moment. (still trading at less than half the appropriate multiple in our view)
The financing for the Link deal is secured. It is an all cash offer and financing is interesting. Ares did a $109m equity offering at $53/share and also took $841m in preferred shares exchangeable at $60/share. The rest is financed with normal debt from Goldman Sachs and JP Morgan. Shareholder vote scheduled for July 19th.
Also management bought $50m in shares on Tuesday.
Read Answer Asked by Scott on May 19, 2022
Q: 1) What do you think the odds are of DND being able to reverse the ruling by the CMA?

2) Do you agree that if DND had to sell TMG it would reduce revenue by about 6%? This was my rough calculation based on 2021 DND annual revenue.

Thanks for your insights.


These questions are prompted by the following news release:

"The CMA has provisionally found that Dye & Durham's acquisition of TMG, which closed in July 2021, would lessen competition in the UK property search services market. The CMA also asserts that the only effective way to address the issues it has identified would be for Dye & Durham to sell TMG to a third party. Lastly, the CMA press release gives the erroneous impression that Dye & Durham failed to notify the CMA regarding the transaction when in fact there was no obligation to do so under applicable UK law, which provides only for voluntary notification.


Dye & Durham disagrees with the CMA's provisional findings and is evaluating its potential options. Dye & Durham complies with all laws and regulations in every market in which it operates. The Company has exercised every best effort to help the CMA with its review of the transaction, explain its benefits and offer a remedy proposal and is ready to continue to work collaboratively with the CMA going forward."
Read Answer Asked by Robert on May 19, 2022
Q: BEPC/BEP.UN seems to be one of your darlings in utility/renewables sector and you have been highly recommending it for a combination of growth and income. However, it's one of the worst performing stocks in my portfolio in the past two months and I'm wondering what's wrong with it (or what's changed)? The stock is down 20% while others either just declined slightly (e.g. EQN) or even had gains (e.g. FTS). It looks like, during recent selloff, the BEPC stock is behaving more like a technology stock rather than a utility. Do you have any explanation for such a big drop? Are you still considering this company one of the best utility/renewables investments? Thanks.
Read Answer Asked by Michael on May 19, 2022
Q: Recent Q & spinoff are perceived to be good.Is it timely to buy/add in this market backdrop. Txs for U usual great services & views
Read Answer Asked by Peter on May 18, 2022
Q: I bought into the story and concept of Topicus being a Constellation 2.0 junior. However, the S.P. performance has been anything but. Can you provide the top 3 reasons to own this (I am currently down 25%), I am hanging on for the simple fact I do not want to miss out for when this changes course. What timeline should I have in mind for better days and performance.
Read Answer Asked by Chris on May 17, 2022
Q: AW.UN
AQN
POW
ENB
EIF

I am looking for your recommendations on good dividend paying stocks. Stocks which have come under pressure due to market conditions. Stocks that are low risk and do not have high debt. I am mostly interest in income stocks but would also like a stock that would give me some capital gains. I have listed these and would appreciate rating these. Please also provide me with any other tickers you feel would fit my needs here which I may not have thought about.

Thank you.

Donna
Read Answer Asked by Donna on May 16, 2022
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