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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 was a G&M piece under Tim Schulfelt’s by-line today which kind of boiled down to an opinion by some that the past success of growth by acquisition companies may be challenging to maintain going forward due to higher inflation and costs of capital. The article sites many familiar names (ATD, BYD, CSU, GIB, DSG, ENGH, TFII, PBH, CCL) that have had a good run and I guess suggesting that may coming to an end or at least slowing dramatically. There seemed to be a conclusion that going forward investors might want to shift focus to good old boring organic growth stories. Just interested in your comments.
Read Answer Asked by Stephen R. on October 28, 2022
Q: Can you please give me your 8 top stock picks for someone retiring in 8 years. Thank you, I value your teams opinion.
Read Answer Asked by Cheryl on October 28, 2022
Q: I am having a hard time seeing a path to profitability for LSPD. I get that their product offers client service management, however there are tons of different point of sales systems/payment providers. Much of their growth has come from acquisitions, with a tight capital environment I not sure that is a good plan going forward. Why buy this?

Any comments appreciated Leo
Read Answer Asked by Leo on October 28, 2022
Q: I understand Bam.A is in the process of splitting the company.

Could you please explain how they are going to do this, and when.

Also tickers for the new entity and how should an investor proceed?
Read Answer Asked by Peter on October 28, 2022
Q: Hi Peter and Staff

Earlier this month Dollarama issued $700,000,000 of notes with a rate approximately of 5% with a substantial amount being used to repay notes with a rate just above 2 %

How significant is this additional interest cost per annum versus current earnings ?

Thanks for all you do
Dennis
Read Answer Asked by Dennis on October 26, 2022
Q: Last year's volatility on acuity ads (AT) rewarded me since I traded it three times for very nice gains. I kept a small amount of shares since I am playing with the house's money. I looked at today and it is down to $2.17 on the Canadian exchange so the market cap is only about $130 million. From what I can tell them seem to have at least $80 million of cash on the balance sheet. I know their ad revenue will go down if there is a recession but they still have about two thirds of their market cap covered by cash. That is protection, right? If the company can't find an acquisition why don't they do a substantial buy back? The only time I have found a company with such a large amount of cash was a little natural gas producer in New Brunswick called Corridor Resources. I made a few bucks trading on the seasonality and one day, when I didn't own any shares, someone came in and bought Corridor for a healthy premium. Could this happen to Acuity? Are they vulnerable to be acquired with so much market cap covered by cash on the balance sheet?
Read Answer Asked by Paul on October 24, 2022
Q: I have started travelling again and noticed that Air Canada flights are essentially full. I looked at a 3 year chart for the stock share price and it is down from about $50 to $18, obviously due to the pandemic. I noticed that you provided growth data in response to a question where the growth next year is expected to be 128%. This sounded good.

I used your symbol look-up tool to view the AC’s profile and compared it to Delta Airlines (DAL). AC has 359M shares out compared to DAL’s 641M. AC’s EPS and PB is -6.9 and 45.1 whereas DAL is +0.12 and 8.0. DAL is rebounded a bit more than AC but why was AC at $50/share anyway.

It seems to me AC is not managed well and probably has a lot of debt but your profile screen does not give me that info.

It seems DAL is much more attractive as an investment but I am just looking at very simple metrics. What are your thoughts, please?
Read Answer Asked by Danny-boy on October 24, 2022
Q: This question is concerning the 5I growth portfolio. Could you give me 5 names from that group with just strickley the lowest valuations.

Thanks Steve
Read Answer Asked by Steve on October 24, 2022
Q: Hello, my question is about the BAM.A spinoff, I find it confusing. I currently hold 100 shares of BAM.A, so according to what I have read should I understand that few days after the spinoff my account will show 100 shares of "BAM" to replace the current BAM.A symbol and 25 shares of the new company under the "BN" symbol? Thank you,
Read Answer Asked by Gervais on October 22, 2022
Q: In reading your previous answers, you indicate that BAM has 100B in capital to deploy. I don't see that figure anywhere. Can you confirm that number and if it includes unused credit and just mention where you see it? Thank-you
Read Answer Asked by Alex on October 22, 2022
Q: To say ECN has been a disappointment of late is to understate it. I am a BIG fan of Steve Hudson and am buying more. Looking over its group of managed companies, is it fair to say that this is a consumer discretionary stock too? Do you have any insight into this recent underperformance?
Read Answer Asked by Gerald on October 21, 2022
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