Investment Q&A

Q: hi folks:

as a followup to my earlier query on savaria's accounting i would like your further comment

sis employed hedges when it had ZERO debt , claiming it wanted to smooth out earnings variation caused by currency --- in those years this hedging cut profit in half

today they have debt which, along with the hedges, is impairing profit --- revenue is up 55% while operating income rose half that amount and EBITDA, (which is a phoney figure) is even less.

their accounting is unnecessarily complicated which always concerns me

if you look at a big company, like Teck or LNR, the reporting is 'fairly' straight forward

in my opinion these SIS guys try too hard to look better than they are - and are potentially just awaiting the next acquisition to get back to growth

comments?

thanks

Q: Has Great Canadian Gaming bought back shares since Q1 (last quarter)? Has there been any insider buying/selling?

Q: Have SIS closes the $14.55 financing?Thought it closed last week,but see no news.Please update.Thanks for u usual great services & views

Q: Both MG and GSY have receded from lofty levels, but are still up considerably. Do you think current prices are good entry levels or would you wait for a further pullback?
Thanks

Q: I was a latecomer to learn about 5iResearch so alot of your stock picks in the model portfolios had grown too high for me to jump in on and put together a proper plan. I was wondering, with so many new stocks coming on the market since 2013, will you be putting together any new model portfolios with lower entry prices for members who were late to the party? You provide a wonderful service and I am enjoying learning from everyone's questions. Thanks so much.

Q: Hi Peter

every quarter they highlight growing sales and EBITDA, but it never translates to the bottom line

profit is flat

what is wrong with the company, that growth never comes out the bottom line?

also with 59% of revenue from the USA, why does it need to have currency hedges to protect itself from rising material costs priced in US dollars? --that should be a natural hedge

most quarters (except last one) those hedges are a drag on profits

and now they hedge interest rates too !!

thx in advance

Q: These three companies are a part of balanced equity model portfolio as of last report. All three are down somewhere in the range of 15-20% since April 30. Do you still like/recommend them (i.e. are they still a "buy") or there is a change in your views and you are going to dump them and replace in BE portfolio?

Q: Why is it being hammered and would you buy it today ?

Q: You seemed happy with ENB's last quarter. I notice it is one of the more shorted stocks. (Recent G&M article).Do you have thoughts on what the short argument would be?

Q: Should Savaria shareholders be concerned that in the recent Directors election J-M Bourassa had 30 % votes and S Bourassa 20% votes withheld?

Q: Hello
Versa Bank never have much to say. Is the deal they announced this morning material to Versa Bank. It looks positive enough.
Thank You

Q: "Alaris Royalty Corp. Announces A $100 Million Bought Deal Financing."
What does this do to their debt levels? Do you think this is a sign that all is not going so well at Alaris?

Thanks Always

Q: What do you think of the bought deal alaris is doing. Is this positive or negative.

Q: Hi,

If you had to initiate an opening position into GSY, what % would you allocate?
Considering I hold half of the growth portfolio and various etf's for diversification.
Thank you.

Q: If you had to pick one to add to today in a TFSA which would it be?

Q: Do you see a switch from NFI to CAE being long term profitable at this time?

Q: Hi 5i,

My question is in regards to tax loss harvesting. I am down, in our non-registered accounts, anywhere from 10-30% on Magna, Methanex, NFI, Vermilion, and Great Canadian Gaming.

I like all of these companies and would like to have them in my portfolio as long term holds. My time horizon is years, if not decades. I don't mind the volatility of these stocks at all, nor do I mind being down (on paper) significantly at any point in time with them - I understand these are cyclical names. Dividends, and dividend growth, from most of them ease any short term frustration.

All of that said, would you recommend crystalizing a loss on any of the above? Do you see any catalyst for short term price jumps (earnings?) that may cause me to get caught buying back in at a higher price in 30 days? And if harvesting a loss is the way to go, would I be better off keeping the proceeds in cash to buy back in after waiting? Or park it in comparable securities? If so, any suggestions?

Dollar-wise, the amounts are significant enough that trading costs aren't really material. The only other variable I should mention is that I don't have any capital gains (realized) to use the losses against, so it would just go "in the bank" to be carried forward to the future.

Lots of parts to that question so deduct credits as necessary.

Thanks, enjoy the long weekend!

Q: I just noticed that the May income portfolio is more than 10% in cash. Is it normal ?, or it due partially to the sale of Valener, ?, if not, are you setting aside some cash for future deployment in a market downturn ? , what would you buy then (or now) ?.
thanks

Q: Hi,

Just curious about this Company with the announcement of the FOX tie up, which I believe you had mused about last year, a media company at least. Currently they only have sports betting in NJ, I believe. They could set up in Nevada, WV and PA with their partnership with Eldorado and Mount Airy. Any reason why they elected to wait? Additionally I don't think they have a licence in PA for betting. Is the stock valuation suffering as a result of the time it has taken to get sports betting to market or are there other variables? I cannot agree that the financing of the purchase of sky bet and william hill were not telegraphed and are the reason for the fall from the heights.

Thoughts?

Q: Thoughts on starting a position in MX.CA at current levels?? Are low global growth fears hitting stock?