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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: Good morning, my question is regarding PBH's recent 5 year outlook. " achieving over the next five years annual sales of $6.0 billion and an
EBITDA margin of 10%." I am wondering if this goal were to be achieved do you think this is ambitious? They estimate sales to go from 3 billion to 3.7 billion a 23% increase, so that would mean if sales are 6 billion at end of 2023 then revenue only grows at 13% per year 2020-2023 which is quite the decrease or would this be their goal without taking into account growth by acquisitions? They do note EBITDA margins would improve to 10% so maybe I am missing the importance of this.
Read Answer Asked by Michael on March 18, 2019
Q: Great 2 days for CLIQ from a terrible drop from 1yr high of $11.80 to current $5.63(1 yr low of $4).On Mar 14 it was up 7% on news of partnership On Mar 15,up 9.75% after release of Q results--Rev was up & beat estimates by 5% & huge increases in SSS(up 7.4% in Can. & 6% in U.S.) which is the best in 6yrs.The vol on both days of 363k & 743k exceed the 150k average.Finally management executed after missing 11 of previous 13 Qs.Now that it just started selling weed,there are expectations of further growth ahead.Weed & liquor should be profitable & revenue generating items.Also ACB(has a 25 % share @ recent $15 per share p/p plus option to buy additional 15% @ the above price) has just got the famous Mr Peltz to join the co.for option of 20m shares @ $10.43 per vest in 4 yrs & expire after 7 yrs.As a result,ACB had huge increases last week.In light of the foregoing,there is chance of more increases for both cos.May I have u usual great views & services.Thanks
Read Answer Asked by Peter on March 18, 2019
Q: I completely understand your support for Johnathan Goodman at Knight as his history is beyond impressive. However, I think Mr. Jakobsohn's proposal asks some significant questions that, as a shareholder, I would like to hear answers for. It does make me uncomfortable that his family company got involved in four deals and he will benefit more than if he had Knight involved. That seems like a legitimate concern as is the puny revenues generated in four years since Knight's launch. Conversely, Knight provided Medisen the opportunity to thrive and succeed and it is not the first time I have seen beneficiaries conveniently forget who helped them become successful once they have achieved momentum and no longer need their benefactor.
Ultimately, I do hope this exercise will help Goodman see some valid points in Jakobsohn's presentation and diversify his board and spend some cash. The articles that have appeared about Goodman detail his bargaining savvy but who would want to deal with him when it is public knowledge he has a desire to buy for nothing... I wish he would forget about his famous "grandchildren" analogy and show the investors who have supported his financings and bought the stock at $10 plus that he can still discover companies with potential and make mutually beneficial deals so Knight can thrive and grow.
I doubt Jakobsohn's proposal will go anywhere but perhaps it will reinforce to Goodman that his approach could be a little more "in the present" to his many investors/supporters.
I have a bad case of FOMO when it comes to Knight. If I liquidate part or all of my shares, I stress about Goodman making a blockbuster deal the next day!!
Would you agree with anything I have said and please provide an opinion on any value in the dissenting proposal.

Thanks.
Read Answer Asked by Steven on March 15, 2019
Q: I own all of the stocks in the Balanced and Income portfolios across my RRSP, TFSA and RESPs with the exception of those listed above. Based on current valuations and 3-5 year prospects, which one would you choose to put a recent RRSP contribution to work?
Read Answer Asked by Chris on March 14, 2019
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