Investment Q&A

Q: What caused the severe drop?

Q: Here is a list of some of my holdings. Most of them are frightening. TOY, GSY, PHO, COV, TSGI and KXS which I just increased to a full position the other day.
RHT, CXR and SINO FOREST. I have seen them go from dollars to pennies and out of these I am very concerned that TSGI -- one morning I will wake up and it will be pennies and when I go to 5i you will be telling us that you will be removing it from the portfolio and selling it. If it will take years for these to recover, should we not put our money somewhere else until that time comes?
Thanks Dennis

Q: If you had to choose one right now for a long-term hold which would it be?

Q: I have reviewed your previous comments on Premium Brands and see that earnings have been missed 50% of the time but you still feel this is a good long term holding. The stock has dropped over the last 3 months. So my question is does the market expect a miss and is it currently priced into the current stock price.
Thanks John

Q: Do you think nfi will recover in the near future or should we take our gain and reinvest elsewhere?

Q: Would you be a buyer today?

Q: Hi Peter
I have some money to put to work and am building positions in the 5i portfolios over time. I currently have BNS, MG, TSGI,WCP, WSP, AW and EMB. I am building a blend of income and growth. My question is what in your opinion, of the stocks that 5i covers, are most undervalued and oversold? (I am trying to stay away from the oil and gas sector.)

I would greatly appreciate hearing from you.

Alex Ribedn

Q: What is your feeling on their recently announced quarter? I believe you have advised that investors need to be patient on this one and continue to clip the coupon. Still your thesis?

Q: please comment on earnings

Q: Either way, I suspect Kinaxis will be a horror show. today. However, for the purposes of assessing its Q3 performance, isn't the eps number, 19 cents, not 10 cents as was mentioned in a previous answer this morning.

"Prior to the effect of the Standards, Profit for the third quarter of 2018 was $5.2 million ($0.19 per diluted share), compared to $6.0 million ($0.23 per diluted share)".

Thanks.

John

Q: I have a full 5% position in NFI. I understand the market likes to react to expectations and I’m ok with this. A 13% drop today was too much in my opinion so I picked up a few shares.
My question is about volume. NFI is a 2.4 billion market cap company and approx. 1 million shares traded today being roughly $39 million.
Such a small % of market cap I see the drop today as irrelevant to the real share value.
So back to my question, is there a point where volume as a % of market value is something to guide us in either a down or up market? And I’m looking not as a trader but a long term investor.
I hope you understand the question.
Thanks
John

Q: Please comment on these two company's earnings. Thank you.

Q: In the conference call the guidance discussed was $2.13-2.68 (although someonelse suggested $2.16-2.71). The analyst estimate from your website shows $2.88 for 2018 and an estimate of $3.24 90 days ago. This seems to be a considerable downward trend although management seemed quite upbeat and insisted there are no structural changes to account for the weakness. Given this context I have two questions. Are there other metrics to suggest management is executing well? Are you comfortable with the potential such that you would take a new position at this price or would you wait for next quarter?
Mike

Q: Goeasy results looked great as usual but the stock is down more than 10% as I write this. What is the market not liking in the latest report? Is this stock a screaming buy now or stay away until it settles down?
Thanks for great service.
Rob

Q: You have already responded about the earnings - my questions is more about strategy. Both these stocks broke their intermediate trends (using 200 MA) sometime ago (I think you called it a technical breakdown) . But both price and now earnings momentum are horrible why hold? I realize in the long term maybe okay but when things get this ugly (down more than 20% from their high) would it not it be better to allocate capital some where else - rather than have dead money? Thanks

Q: Comments on SLF earnings ?
If I may suggest, that if you where to automatically post your comments and analysis of earnings for stocks in the portfolios it would make your life easier and ours.
Thanks for your expertise !
I noticed that sometimes my questions appear as private without checking that box ?

Q: Hi,

Morningstar shows the ownership data for funds/institutions and net change in terms of buyers and sellers. I checked the details for TSGI and I am seeing more buyers than sellers. Is that true or do you follow any other website which shows net buyers or sellers for a stock.

Thanks
Ninad

Q: Did TSG screw up with their purchase of Sky Betting?

I ask because I wonder if the money would have been better spent partnering with major North American Sport Leagues instead? I can see a future (I hear this is the case with European football) where watching sports becomes more interactive with in-game betting or fantasy sports that is integrated and live as I watch. This could be through an enhanced subscription. How awesome would it be from my television remote to bet how many home runs will be scored in a game, inning, player, etc? With other gaming companies signing exclusive agreements I'm sure such scenarios will be channeled through their gaming products as opposed to The Stars Group.

Q: What were the main factors that drove TSGI's stock price from April to its high in June? And what has now been the main reason for its decline? Has anything fundamentally changed? I see that Poker, its largest revenue source actually declined in comparison to Q3 2017. Is this a big concern, or is most of it's expected growth to come from gaming/betting? Is there hope that when/if most States legalize online gambling that TSGI will earn more much revenue from this?

Q: Your thoughts on GSY recent quarter? This seems to be an extremely well run company...
• 34th consecutive quarter of same store sales growth
• 69th consecutive quarters of positive net income
• Compound annual growth in diluted earnings per share of 37.0% since 2001

Looking at the outlook for 2019 and 2020, revenue growth drops from (26% - 28%) in 2018, to (20% - 22%) in 2019 and (14 - 16%) in 2022 (they do note ROE will increase each year). Is this a concern? or is it just the reality of a company getting older or are they just being conservative. Last years Q3 2017 outlook was (16% ‐ 18% for 2018) (14% ‐ 16% in 2019) and (10% ‐ 12% in 2020) so they certainly beat 2018 expectations and have increased 2019 and 2020 since last years outlook.