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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: WEF has been in losing ground for a year, and seems to have been range-bound for the four years previous. Do you think that yet more bad news on duties is already priced-in, or could things get quite a bit worse from here? Interestingly, Tier 2 data shows a disproportion of bids (vs asks) close-by the trading price; I would have thought this implied buyer confidence in future prospects - yet the price is not being supported.
Read Answer Asked by John on May 13, 2019
Q: I would like to know what the Management and employees have been doing other than collect salaries for the past 5 years, other than a few small acquisitions and filings with the authorities it seems to me that they do not deserve much compensation. I can't see them "working" 50+ hours a week looking at investments day in and day out year after year. What have they been doing? Goodman raised a ton of money at $10.50 or $11.00. I would like to see Goodman and his management team paid a salary of $1 per annum (just as Steve Jobs did) and be paid with stock options, not at the current value but at $10.50 or $11.00. I have put my faith in this guy but like a lot of shareholders I think its time to move on from Goodman and his underperforming company. Goodman's talk of an overnight success for my grandchildren does not give me much comfort. I was hoping for more of a shake up yesterday and was disappointed it did not occur. The fact that his Dad owns a company that competes with Knight was something new that I did not know when I purchased GUD shares.
Read Answer Asked by stephen on May 13, 2019
Q: Is it time to bail on NFI or are the worst of the operating issues behind them? I have owned it since 2015 and saw the shares rise from $17 to $60 a year ago, only to half the amount today.
The Q1 results are not encouraging. Operating cash flow is a deficit of $7 million, earnings were down 46% or 56% adjusted. Gross profit margins declined Q/Q by 240 bps to just 16%. There have been substantial investments in new products (with learning curve troubles), a new zero emission bus, facility upgrades, a new parts facility (with start up problems and cost overruns), IT harmonization project, oh and they lost the Setra distribution rights in the motor coach division.

Concerningly, on capital allocation, they have increased the dividend with lower earnings and have a substantial debt funded share buy back. Annual interest is now about $25 million. This looks like brave policy unless the business really is about to turn the corner and shares return towards their $60 level.

What do you think?




Read Answer Asked by Keith on May 13, 2019
Q: I dont understand when PHO says ""The industry is witnessing significantly curtailed investments in the memory sector, which are expected to persist for the foreseeable future" , then I look at the chart of SOXX that until recently has been straight up year to date. Was SOXX oversold that bad and investors are ahead of the curve or is PHO making excuses? Just a point on the comment from PHO, I appreciate companies not being over promotional, but using a phrase like " foreseeable future" seems to me the opposite of promotional.
Read Answer Asked by Charles on May 10, 2019
Q: I also agree that this is an excellent deal for TSGI. There does not appear to be alot of analyst coverage for the company. I can't find anything on their website and RBC and CIBC do not have reports. What do you see as the next catalysts for the stock? I bought a position because too many times in the past I have waited for pullbacks and missed out (e.g. SHOP).
Read Answer Asked by James on May 10, 2019
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