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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: This company makes up a very small percentage of an overall balanced portfolio. Last quarter was obviously a mess. Market is pricing in a reduction in the dividend. From it's current valuation, what would you expect the market reaction to be if they reduced their dividend by 50%? Further decline/appreciation or are we now in a basing/trading range for the next few quarters?

Regards,

Robert
Read Answer Asked by Robert on May 17, 2016
Q: Good afternoon,
As part of an overall portfolio, I hold some speculative positions in precious metal stocks. These are somewhat balanced between names like FNV, THO, and PG on the one hand, and smaller and riskier names on the other. In the latter category I do hold some shares of ORG. I believe it is run by the former Red Back team, but would appreciate your views on whether a position should be maintained.
Thank you.
Read Answer Asked by Peter on May 17, 2016
Q: A recent questioner addressed the issue of identifying high growth and high momentum stocks at attractive valuations that remain under the radar but have the potential to become investor and fund manager "favorites".

I am wondering if PIH could be such a stock. With increasing share price and trade volume appreciation, and rising growth in revenues/earnings, but attractive valuation (around 11 trailing P/E), am I wrong in thinking this one could start to gain increasing attention? Does it make sense to average up on a stock like this as I have been doing over the past couple weeks (the full position would be quite a small fraction of my overall portfolio)?
Read Answer Asked by David on May 17, 2016
Q: Glacier has just announced a rights offering. Could you please explain how this works, what the advantages are for the investor and for the company, why would they do this and is this typically a prudent move by the company. Putting Glacier aside, do you recommend investing during a time when a company has made such an offering? Also, how do the backstop agreements work? Thanks for your great work.
Read Answer Asked by Robert on May 15, 2016
Q: Hi 5i Team!

FTG was a top pick on Market Call yesterday and is among the most active on the TSX today. Your lone opinion on FTG on April 12 indicates a positive impression and outlook. Would you please expand on your opinion as follows:

What current metrics matter to 5i when evaluating this company now, and how does this guide you in forming your opinion?

What metrics would you focus on when evaluating FTG a year from now?

What industry do they serve, and who are their main customers To what extent do they depend on domestic and export sales of their technology?

Is FTG a good candidate for a 2-3% patient wealth building portfolio or do you consider more of a cyclical investment?

Is FTG the kind of investment that would possibly considered by 5i in future as a candidate for the Growth Portfolio?

Appreciate your opinion, as always...

SGR
Read Answer Asked by SG on May 14, 2016
Q: More M&A going on in the burgeoning programmatic ad space with Comcast acquiring StickyAds today for $US 100m+

https://finance.yahoo.com/news/comcast-acquired-french-ad-tech-102757421.html

As mentioned in the article, Comcast had also acquired FreeWheel previously for $US 320m in 2014

As I understand it, AcuityAds already includes the marketing and technical aspects of a combined FreeWheel and StickyAds. Of course the scale of business is different but their valuation at US $420m+ might make AcuitiyAds at $CDN 33m look attractive to someone. Would you agree?
Read Answer Asked by Richard on May 10, 2016