Investment Q&A

Q: Hi
Is there a Canadian small cap fund your team likes?
I tried purchasing the Mawer New Canada Fund, but it's now closed and unavailable to the public.
Any favourites you can suggest?

Thanks

Q: Is DIV a buy now?

Q: Been awhile since last comment on this,could you provide any further update or opinion.

Q: Can you please explain what is happening with slyce? It looks like it stopped trading today due to a potential takeover. What is your recommendation for those of us still hanging on?
Thanks!

Q: Hi Guys,

Can you comment on RFC's latest quarter?

I know there's fear of Alberta exposure, future car sales in Canada and loan losses continuing to increase, but is this company not starting to look incredibly cheap? I'm thinking of initiating a 3% position.

Mike

Q: Given your familiarity with Wi-lan, I am hoping you will have equal insight into Memex, Inc. (OEE.v) Although very much a micro-cap, with all that implies, what is your opinion of its potential?

Q: What is up with Dream Office? Yield in now 12.42%, it has fallen over $3 in the past month. What do other people in the market know that we don't? Is the dividend reasonably safe?

Joe

Q: At what point would you consider this a "buy" in anticipation of the company benefitting from the recovery in US housing ?

Q: I've held this since IPO and have been happy to collect the dividend. Now the stock is trading bellow the IPO cost that I paid and I am wondering if I should sell or continue to hold. Is there much more downside risk from here and are there any positives that will help the company to increase revenues and earnings in the next 12 months.

Q: WI-LAN has cut it's div.s and stocks drop like a stone do you think it has a chance to rebound . Please give your take on this company .

Thanks JIM

Q: I am under weight in the technology sector. From your portfolios what technology stocks might you recommend at this time (I own DH)? I am good with either income or growth stocks.

Is there a stock not in your portfolios that you may recommend over the others?

Thanks
Paul

Q: What do you think of their latest results, and is this a good company for income and growth.

Q: I read today that if I wouldn't buy the company today perhaps it is a good reason to sell. In the case of Flyht Aerospace, I have lost 74%. So just to clean up my investments a bit I thought of selling. At the same time, I have no need to sell so could hang on for several years if there was a perceived value with FLY. I see that they have changed their executive. I don't know if good or just loss of confidence in the company by their old senior executive. Any thoughts you have in terms of action I should take are appreciated.

Q: Could I get your opinion of URE, they appear to be a low cost producer. Are you familiar with management.

Q: Hi guys, I have done very well with the consumer discretionary sector both in Canada & the U.S.A. My problem is that it has grown to 25% of my portfolio (each name is between 3 to 4%). What is your forcast for the sector in 2016 and should I trim now or wait until they reach 6 to 7%. Should you recommend trimming, what sector looks interesting to you to this time.

Thanks,

Jim

Q: Between CXR or GUD for a full new position, what would you recommend? Thanks

Q: Thinking about switching from Saputo (SAP, about a 2.5% position) to A&W. I'm a little under water on Saputo, I can use for a capital loss.

SAP is trading at around a 20-21x multiple, so in my opinion, chances of it running $3 or $4+ more in the short term is fairly limited. Plus, the Saputo family has a 34% voting interest so, I'm guessing, chances of a takeover are fairly limited in the immediate future.

These are the reason's I wouldn't mind selling SAP for a more efficient use of my funds. However, I am having difficulty valuing AW.UN in comparison with SAP. I like AW.UN's monthly dividend. I like the fact that it seems to be a well run business. And I like the fact its just about the perfect size for a large number of players in the food services industry to take them out. However, like I said, I am having difficulty valuing AW.UN. I'm wondering if you can help me out? Is it cheap, fairly valued, or expensive against the backdrop of its growth profile?

Thanks.

John

Q: Your thoughts on cwx?
thanks

Q: Hi Peter and Ryan, What would be an appropriate Weighted Average Cost of Capital (WACC) to use to discount GIL's future free cash flows to firm? I am getting a very low WACC estimate of only 4.41% primarily because GIL's Beta is only 0.39. My other assumptions are as follows,

Risk free rate 2.4%
Market risk premium 5.75%
Beta 0.39
2.4% + (5.75% * 0.39) = 4.64%
Resulting cost of Equity 4.64%
Equity weighting 92.1%
After-tax cost of debt 1.7%
Debt weighting 7.9%
(4.64% * 0.921) + (1.7% * 0.079) = 4.41%
Resulting WACC 4.41%

To me WACC of only 4.41% seems too low. Where do I go wrong with above calculation?

Q: A few days ago various analysts posted pretty optimistic reports on CES. Today it dropped six per cent. What is your view on earnings and the company? Is the dividend safe?

Thanks!