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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 am trying to balance out my portfolio sector weightings and am having trouble classifying where these 3 companies should go. I have all 3 of them as "Manufacturing and/or Industrial" whereas you have BOS and MG as "Consumer Cyclicals" and BDI as "Energy". Can it be argued that these are Industrials or should I just stick with your sector classifications?
Read Answer Asked by Sandy on September 07, 2016
Q: Do you know the % of insider ownership of ABT shares. For small companies I like to have that information but couldn't find it on a company presentation. Thanks
Read Answer Asked by Jerome on September 06, 2016
Q: ABT: recommended in latest 5i email: I read the description of it's business and it was like reading a foreign language - I am not a technology person at all and do not buy companies I do not understand; so, please educate me.TTM PE 23, FPE 270, make no or very little money, ROE 0, CF .23, and pays a healthy dividend. I currently hold no technology other than DH if it qualifies?
Read Answer Asked by James on September 06, 2016
Q: So an "A" rated company, MDA, gets kicked out of the Balanced Porfolio for TOY. TOY seems to have public for about a year and looks to be much smaller than MDA. So why do you prefer TOY over NFI? Are you sure TOY should be in the Balanced portfolio - it looks to me to be more a candidate for the Growth portfolio?
Jim
Read Answer Asked by James on September 01, 2016
Q: Hi Peter,why are you warming up to absolute software?did their last quarter looked that good?
Would you prefer ABT over ET?
Could ABT be a takeover target as well?
Read Answer Asked by Josh on September 01, 2016
Q: I read Element Financials conference call transcript for Q2 and this what I got from it.

They have been winding down 2 portions of their businesses which intern has,
1) Reduced originations and lowered EPS
2) Returned capital to make them M&A ready
3) Short term from "30,000 ft view" makes them look like they are falling apart
4) But, closing these business books will allow them to redeploy the capital to much higher ROE investments to grow earnings faster

The split of the company has put some of it's business activity on hold,
1) M&A has been stopped until the split so no big growth in Q2 and Q3
2) 3 immediate acquisition targets will be pursued when split happens
3) New funds will be launched for income growth and to free up capital for M&A
4) Expect some major accretive acquisition(s) to happen and possible surprise earnings either in Q4 or Q1.

So in conclusion they are setting themselves up for greater growth and shareholder value. To do this they have to sacrifice income in the short term to strengthen their capital, plus delay growth until the split occurs.

Is my simplified summary similar to 5i's consensus on this company?

Thanks, Shane
Read Answer Asked by SHANE on August 26, 2016