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Investment Q&A

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Q: Please provide your view on MNW's announcement on voluntary $25m pay down on its credit line from its strong cash [position,& its upward revised guidance.It really got hitn recently(even down today despite strong market recovery.Appreciate your usual great advice & services.Have a small holdings @ $12.66,so should I average down hare a bit; Further to my Q earlier tonight,Canadian Insider shows that on Jan 19,Richard McBee has a -500,000(in red) expiration of options @ US$5.16.Please advise meaning.Thanks for your usual great services & views.
Read Answer Asked by Peter on January 22, 2016
Q: Just a comment.This is MNW's response to Elliott.MNW welcomed Elliott's interest & it shared the fund's view on consolidation in the industry.It does not comment on specific M&A discussion.As always,it look forward to creating value for all MNW'shareholders. Note that MNW management was very deligent in attending roadshows & conferences after release of last Q
Read Answer Asked by Peter on October 12, 2015
Q: Mitel is up today, ostensibly on news that Eliott Management Corp has initiated a significant investment in MNW and combined with their holding in another similar company is urging the board, I think, to consider merging the two. (please correct me if I am wrong). This type of shareholder agitation is not new but I am wondering what to make of it. While not all cases will be the same, in general it seems to me that these types of action - whether it be calls for mergers, asset sell-offs, special dividends etc. are essentially a condemnation of current management since if these ideas are so good the management should have thought of them.

The market seems to like this latest move as the stock is way up but if it is such a good thing, why didn't the current management initiate it? Should we continue to have confidence in the current management or is someone like Elliott, who seem to have a good reputation, just a smart group that thought of something no one else did?

Your insight is greatly appreciated.

Paul F.
Read Answer Asked by Paul on October 08, 2015
Q: MNW's ceo Rick McBee appeared on BNN this morning stating that the sell-off on Aug 6 does NOT reflect its growth.Solid growth in Cloud(21%) & Mobile(35%).Executing well vs profitable growth strategy.Recent acquistion,Mavenir is integrating well & will grow revenue. A report fr.CIBC today stating $13 target price basing on 12 x 2016 EPS of $1.10 & a rating of Sector Outperformer.Further,the street modelling is off due to acquistion & normal Q3 seasonality.(EPS--7-13 cents(MNW) vs 18(street)vs 11(CIBC) ).Likes as 1)revenue growth fr.Cloud & Mobile.2)EBITDA is tracking on expectations.3)trading @ 8 x 2016 EPS.Free cash flow yield of 11%. Your expert view & is this a good entry point.Appreciate your usual great services & views.
Read Answer Asked by Peter on August 10, 2015