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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 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
Q: Regarding Intertain Group, they seem to continue delivering having just had a quarter that surpassed expectations nicely but the stock cannot get any traction. Would you say that the company is not trading in accordance with its fundamental strengths and has simply fallen out of favour? I am starting to look at it as a growth/value stock that almost inevitably has to move up 20% barring a scandal. Your thoughts?
Read Answer Asked by Tim on August 26, 2016
Q: I would appreciate your comments on PLI's announcement this morning that it plans to acquire all of the shares of Telesta Therapeutics. Also is private equity or a large controlling shareholder behind PLI? In thie press release management exudes a lot of confidence about the future and it is hard to assess whether their confidence is misplaced.

Thank you, Peter
Read Answer Asked by Peter on August 24, 2016
Q: Hi team, given today's news on Alimenation Couche Tard and price jump, is it still a buy for long term growth, or would PBH or DOL be good alternatives
Thanks. Sam
Read Answer Asked by sam on August 23, 2016
Q: Hi guys,

I read an article on Stella Jones from a couple of years ago where the CEO said that eventually the Company would move up its payout ratio after its exhausted its acquisition/growth phase and it envisions itself similar to a utility in the future with slow growth, but a high payout ratio and yield. Do you think the same can be said for ATD.B eventually. Do you think they will raise their payout ratio to more than 50% when growth slows and transform themselves into a utility like stock?

Thanks,
Jason
Read Answer Asked by Jason on August 23, 2016
Q: I would appreciate your suggestions in what to do with this stock. Are my options selling or acquiring Loblaw stock or is acquiring Loblaw stock an option? If I sell I will have a nice capital gain which I will have to declare as I hold it in a non registered account. If I were to acquire Loblaw stock and then sell Loblaw in a few months does a capital gain apply? Thank You.
Read Answer Asked by Brian on August 22, 2016
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