Investment Q&A

Q: I own DBO,PHM,PTG,QHR,SYZ and TNC in a TFSA. I am up in all but for a small loss in PHM. Without considering risk or sector I am looking to either add To my existing holdings or another stock entirely and would like to hear your unvarnished opinion. Thanx Robbie

Q: In a recent answer to a question on syz, esl and csu you said
" SYZ and ESL have historically always had high multiples. Keep in mind also that both have large cash balances which if excluded would lower earnings valuations ".
Can you clarify how large cash balances affect earnings multiples?
How would this be calculated for example with SYZ? ie how much would their current cash balance lower their P/E?

Thanks, as always, for a great service.

Rob

Q: Good Afternoon,
I am adding several positions to my portfolio. I have narrowed it down by using your reports/comments etc. . Some of the reports are dated, would like to know if you still consider these names a buy at today's level, or any other more favoured names in these sectors. Also wondering if you would recommend staggering purchases or waiting for a market pullback, realizing that some of these names are high.
All would be additions to a diversified portfolio and considered to be long term holds. Thanks for the assistance. Lavern

Q: Can you please comment on the current valuations of SYZ, ESL and CSU relative to their historical valuations and growth prospects?

Thanks.

Q: Your analysis on earnings please

Sheldon

Q: To all the people who responded to my concern about liquidity in sylogist , i never buy less than 15000 shares in a company like sylogist or 150,000 dollars therefore liquidity is always a concern and i am a trader, not a buy and hold investor.Dave

Q: Re David.A small cap stock like SYZ with no coverage is illiquid,but once covered by analysts & known to the investment community,you will be unable to buy at this price.Technically,if it breaks out of $11-$11.20,the next target is $12.50-$13.00.The chart looks good.

Q: Just an FYI for David. I first bought SYZ in early 2006 At $2.40. I have owned it ever since. I have never had an issue adding to the stock on dips nor an issue selling when I needed to take some off the table.Including the dividends it is probably the best ( most Consistent) ATM I have owned. If 5i likes it chances are strong that it is a winner Thanx Robbie

Q: i want to buy syllgist, you keep recommending it, but it is not liquid.
if something goes wrong you cannot get out and you will take a huge loss, and this has happened to me before so could you comment.
i own lots of shopify and kinaxis but there liquid so i am much less concerned. dave

Q: Hi, Attached is a press release from Today. Do you think it is expected to benefit Sylogist, in a material way? Thanks

"Sylogist Signs Global Agreement for Public Sector with Microsoft" 16:14 EDT Tuesday, August 02, 2016
CALGARY, ALBERTA--(Marketwired - Aug. 2, 2016)

Sylogist Ltd. (TSX VENTURE:SYZ) ("Sylogist" or the "Company"), through its Serenic Software operating division, is pleased to announce that it has amended its Solution Provider Agreement, providing a long term, worldwide commitment, with Microsoft Corporation. The new agreement addresses the large opportunity emerging in the public sector ERP marketplace, with particular emphasis on the North American mid-markets.

Q: Could you please provide your top 5 picks from within the 5i watchlist that have committed to share buybacks.

Thanks for your excellent service!

Q: I have 15% of my well diversified portfolio in Tech stocks. I am thinking of consolidating my 7 stocks into a smaller number of stocks - perhaps down to 5. I have 2%-3% in all the mentioned companies except SYZ at 1%. Any suggestions as to which companies to sell and which ones to "top up" would be appreciated, or maybe just leave as is.

Q: I'm trying to understand SYZ. It's a fabulous company but little known. There is strong insider buying and the company is aggressively buying back shares. The share price has moved steadily from $6.60 to the $10.50 range. It isn't widely followed by the market. 5i has been the big supporter to date. My concern with the stock is that the upward movement in the share price appears to be directly due to the company buying back shares. If the company stops buying, what happens next? I guess the question is how does a small company get broader recognition and a wider following to push the price higher on pure market conditions? When the company isn't buying shares, the trading volume is usually very low.

thank you

Q: 3 excellent stocks in your potfolio.Note that recently the advances of Cgx & SJ stalled @ $52-52.50 & $50 respectively.Please explain.On the other hand,Syz took its time to break the $8 & $9 resistances,now just on top($10.08) of the $10 resistance with next resistance @ $11.It could be a multi bagger as previously suggested. Thanks for your usual great services & opinions.Looking forward to seeing Ryan,ex Vancouverite this Friday on Bnn

Q: Hi, Sylogist continues to buy back its stock significantly under new NCIB, most recent being 99,700 shares for $9.99 on June 17. I know it's a solid vote of company's confidence in its own stock being undervalued. So, is it a good strategy to add to my position alongside the company at current levels $10. My second question is if Sylogist prefers using its cash chest to buy its own stock, does it indicate that new acquisitions are not near the horizon ? Thanks

Q: I don't have a lot of tech exposure in my portfolio and am looking to add. Which of the tech companies in the model portfolio should an investor start buying at this point if you could only buy two? Thanks

Q: Which of these two would you pick, and could you explain why.
Thanks Peter.

Q: Can't seem to find why the trading halt yesterday on Sylogist for their pending news. The stock has not reacted one way or the other. Can you tell me if it was positive or negative for the company.

Q: In reference to Sylogist talking up a dividend cut. My memory may be tainted with a bias towards the last 5 years; however, it seems as if a CEO talks about it -- its a done deal.

Do you have any contrary info?

Q: Hi Peter & Ryan,

While the results looked decent at SYZ; I was caught off guard by the following statment in the the dividend release. "Jim Wilson, President & CEO of Sylogist commented "Moving forward, we can foresee that prudent capital allocation may dictate adjusting our dividend downward to allow us to invest directly in business acquisitions where the opportunity to increase our share's intrinsic value exceeds the value of a pre-tax return of cash to shareholders."

It was also noteworthy that they broke their mini streak of raises every two qtrs. Seems to me by my simple analysis that a very large acquisition is in the works that may eat in to the some or all of the cash pile. Am I reading the tea leaves correctly? Would they really cut, instead of just keeping it flat?

Part of the attraction to this company has been the way the add value to shareholders; so I would defer to management to do what they seem fit to add value; but a potential cut seems to send the wrong message.


Thanks,
J.