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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: Carmanah is selling its Sabik assets and will end up with net cash of about CAD $118 million. This for a company with a current market cap of only CAD $65 million. Are there significant residual assets after the Sabik sale? On its face it looks like this is an opportunity to buy a dollar for 55 cents and get the remaining business for free.
Read Answer Asked by David on December 13, 2018
Q: Most trading days this year Intrinsyc Technologies has been a buyer of it own stock (up to the allowable max). Though as of late in addition, they have purchased large blocks, yesterday 165,000 shares and 225,000 just 2 weeks ago (combined 2% of the float). What should investors read into this given the Company has had a string of strong quarterly results? I guess the obvious is the positive impact on EPS going forward.
Read Answer Asked by Charles on December 12, 2018
Q: RE: "MBA is losing money and has too much debt for any comfort level." I'm confused about this statement. MBA has been cash flow positive and has been making significant gains from their student housing projects, which includes 8% development fees and capital gains associated with the % ownership of the projects through the Joint Ventures.

Last year they made 0.25/share. That doesn't include the Pearson project who's fair value wasn't yet realized on the income/balance sheet and who's fair value adds another $49M of equity before minority interest or 0.18-0.19 of earnings/equity to CIBT shareholders. This company works similarly to BAM in that it takes outside money through partnerships, charges a management fee, invests into real assets, and realizes profits through eventual sales, and cycles profits into other opportunities.

All the debt is mortgages owned through the limited partnerships. The actual debt to capital before minority interests is normal in real asset financing and not actually very high, especially if you consider the unrealized gains, the cash, etc.

What's more, it's pretty easy to look to the projects they have, and estimate earnings, management fees, etc and come up with a reasonable forecast.

I don't know if your comment was referring to MBA as a mistake, but I encourage you to read the annual report vice relying on numbers on the Bloomberg terminal. In my opinion, this is a hidden jem.
Read Answer Asked by Wayne on December 12, 2018
Q: Evrim Resources (EVM) dropped about 75% today on the latest drilling results from its 100% owned Cuale project in Mexico. However this company has several other projects which are well financed through joint ventures with other gold companies. I am just wondering if this stock has been oversold since there should be substantial value in the other projects even though they are joint ventured. Could you please comment on the accuracy of my take on this as well as any further information you could provide including the cash position, overall financial health, insider ownership/recent buying or selling, and quality/experience of management. Thanks as always for your great service.
Read Answer Asked by Rob on December 07, 2018