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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: I really can't understand DOO.
I have been investing for 15 years and have never seen this. DOO has beating earnings 9 out of the last 9 times and the stock, after reaching
$51 on Monday is now below $41.
I know there is no news to account for this drop.
Can there be something we do not know about that is the reason?
Can that sale of stock in September still have an effect on this stock?
Maybe Trump has plans to only tax Ski-Doos?
Read Answer Asked by Herm on December 05, 2018
Q: The removal of the 2 major overhangs,at least for the short term--The Fed is now data dependent & close to neutral rate.2)US/Sino 90day truce for 90days(though US & Chinese versions differ in a lots of way)-- are very positive for the markets.resulting in big increases.even in oil price tonight.Other favourable factors are indication that Russia & S Arabia may cut oil production @ next OPEC meeting ,later this month & 2) normal y/e rally(historical data shows 70% rally in Dec)A question is,will the FAANG recover from bear territory? In view of the above,this appears time to buy.If so.please provide the best names from u 3 portfolios.Thanks for u usual great services & views
Read Answer Asked by Peter on December 04, 2018
Q: how is it that only days and weeks before announcing a Dutch auction, management and the company were buying large amounts of shares on the tsx? Is the not a prime example of insider trading before the puclic announcement? No wonder so many will not invest as it is not a level playing field!!!!
Read Answer Asked by george on December 03, 2018
Q: My biggest position is in Knight and my two biggest concerns are the possibility that Mr. Goodman's health is deteriorating following his accident which could affect his zeal for a large deal and, second, if his reputation as a bargain-hunter is precluding him from having access to good deals as sellers may only view him as a desperate last resort.
Finally, the trading in this stock seems consumed by day traders generating a flurry of orders following the limited buy/sell from real investors. Is someone propping this stock up to generate action while the shareholder base yawns through the daily action waiting with exasperation for the company to put their $800M to WORK!!
Thank you.
Read Answer Asked by Steven on November 30, 2018
Q: Good morning 5i team
My question relates to concerns raised about DOL's relationship with Dollar City.
The following appeared on a well-known security trading web site: "On October 31, 2018, Spruce Point Capital Management published a report .... that highlighted ..... purportedly "questionable accounting and governance practices that cast doubt on management and the underlying health of the business". Specifically, <among other points mentioned> the report asserted that "management appears to use aggressive FX hedges and an off-balance-sheet relationship with a Central American retail affiliate to boost margins in a non-transparent way."

Separately, DOL's 2018 Annual Information Form says on Page 8 that as part of their South American biz development strategy, "Under the terms of the Dollar City Agreement .... products are sold to Dollar City at cost, except for a small handling fee charged on shipments that transit through Dollarama’s facilities."

How should one reconcile this apparent conflicting information? How might margins be "boosted in a non-transparent way?" as the short-seller alleges? Or should the words "purportedly" or "appears to" scream out "BEWARE" in this report?

Finally, what does 5i think of investing in DOL in today's economic environment?

Thank you for your comments.
Edward
Read Answer Asked by Edward on November 30, 2018
Q: Good morning Peter & Team,
Part of GM's rationale (so they say) for closing the Oshawa plant and others is to focus on 'autonomous' vehicles that, according to a GM spokesperson, "don't hit each other". How will this affect the core business of Boyd in the medium and long term? Thanks to 5i, I have some fabulous gains on this stock and am wondering if and when I should take some profits. (BYD.UN is 2.55% of our overall portfolio).
Thanks as always for your guidance.
Read Answer Asked by Jerry on November 29, 2018