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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: Are there any small to mid-cap companies that have been beaten up over the past year that you really like the longer term outlook for?

Thanks
Read Answer Asked by Dustin on March 13, 2023
Q: I noticed something in your answer to a question asked by Dan (not me) on Mar 10th about AutoCanada (ACQ). You said that ACQ has $1.9 billion of debt and that it was a major concern. Looking at their financial statements and the press release pertaining to the quarterly report, I think some clarification is in order. In the press release, ACQ states that their net indebtedness is $443.8 million at year end, and that, quote:

"our net indebtedness leverage ratio1 of 2.1x remained well below our target range at the end of Q4 2022".

Quite a substantial difference between their number and the $1.9 billion you mention. Looking at the financial statements, the difference comes from your number including the floorplan financing of approx $1 billion, which is something dealerships use to finance their inventory and is paid back as cars sell, and leases of approx $500 million.

Management seems to feel their debt levels are OK. Wondering if your comment that the debt is a "major concern" is somewhat overstating things.
Read Answer Asked by Dan on March 13, 2023
Q: Hi 5i, I imagine when trading resumes that there'll be another large drop. What would you do? Thx.
Read Answer Asked by Christopher on March 13, 2023
Q: How bad is this news of their money being in the SVB bank?
Could this scenario bankrupt acuity ads?
Read Answer Asked by Helen on March 10, 2023
Q: Your take on the halt and the reason behind it?
Read Answer Asked by Robert on March 10, 2023