Investment Q&A

Q: Good day

I read from one analyst that he expects DH to hit $48.00 with in a year. Your comments please.

Q: Please comment on DH's earnings release issued last nite.
Thank you, Peter

Q: Hi 5i: DH Corp does not seem to have dropped along with the market. Do you still think it is a buy at its current P/E? And how would you rate its debt level?

Q: Hi, Hope everyone at 5i are well and happy on this bright summer's day? It seems we are likely to use our cellphones more and more for our banking - paying for goods and depositing cheques. Will this trend affect DH positively or negatively in the medium/long term? Thanks again. Henry

Q: Hi,
Is DH roughly at a current 16-17x p/e multiple and a 15-16x forward estimate p/e multiple? Good buy at today's levels??
Thank you

Q: Hi, After the recent run up to $43, subsequent to Fundtech acquisition news and upward revision of price targets by most analysts, stock seems to be taking a breather, lately. Do you think anything has changed in its outlook? I am considering to add to my position in @$40-$41 range for growth/income over long term and would appreciate your thoughts. Thanks

Q: I use Canadian Insider on a daily basis as part of my ongoing checklist of investments. Would you please clarify the term "acquisition under a prospectus". A recent example - DH - 3/10/2015. Thank you.

Q: Unfortunately I'm forced to sell a stock for some cash needs. I've identified these two stocks and would like your opinion on which one I should let go. Evertz or DH Corp. Thank you for your help.

Q: At Close today DH announced purchase of fundtech for 1.25 b, coupled with 5.00% Convertible Debenture to probably fund the purchase.
The stock has been halted at the moment, and wonder what your thoughts are regarding the open tomorrow.

Thanks for your great advice

Q: Davis & Henderson has clearly been a good pick for you.After such a climb and noting a very high dividend payout ratio (vs EPS) would start a new position at this point?

Q: Hi Team,

DH and BIP.UN are rising rapidly lately including today. Is there any particular reason for this action? On another note, CTC.A is dropping incessantly since December. Hold? Ironically DH was getting to 9% of equity and I was going to trim back to 5%. Probably still should? Thank you for great advice.

Ted

Q: In following your recent dividend info webinar, I'm trying to find the financial ratios you suggested to track the stock's performance -ie payout ratio, for starters. When I look on Qtrade to get the 2014 financials, I see the free cash flow is $132 Million, the dividend is $1.28 X 81 million shares = $104 Million, that makes the payout ratio $104million/$132 million = 78%, which is high according to your webinar comments. Am I performing this calculation correctly? Is there a better place to go to get stock financials than Qtrade?
Thanks for your reply....Jim

Q: I would like your advice for someone in their mid40s who has just moved pension money into a self-directed LIRA. Their risk tolerance is fair. I was thinking of suggesting stocks from your Model Portfolio. Any other thoughts? Much appreciated, as always.

Q: Can you please comment on dh revenue sustainability and client concentration. Do they sign long term contracts ? Would you be confortable with a full position at current price? Thank you

Q: I have about a 6% position in Open Text (OTC) and about a 2.5% position in DH Corp (DH) representing my tech holdings. Do you see anything wrong with slowly adding to DH while valuations remain under 14.5x 2015 earnings (I have 2015 consensus at $2.45 earnings per share)?

Do you see the potential slowing earnings in the banks having a material impact on DH's growth prospects?

Lastly, I'm thinking about slowly building DH to about a 4% position and then adding between a 4% and 5% position in either CSU or MDA to round out my tech holdings over the course of this year. What percentage weighting in tech would you consider too much? Thanks again.

Q: (Prevoiusly known as Davis & Henderson)
Re: All the comments about DH Corp initiating a DRIP. If you own shares thru a Broker (i.e TDDI) and you own a sufficient quantity of shares that your dividends allow the purchase of at least ONE SHARE then your Broker will purchase for you (called a Synthetic DRIP, with no commission)as many shares as possible (only whole shares, no fractions). This is why Mike has been recieving re-invasted dividends since March 2013 (as have I). One qualification is, at least with TDDI you need to have this feature turned on for the respective A/C. This cannot be done by the Client. You must contact your Broker to ascertain or request that the feature is enabled.
Company DRIP's are an economical way for small investors to start to build a position and also re-invest 100% of the dividends including fractional share purchases.
Hope this provides some clarification.

Q: Just a comment further to the discussion around the DRIP recently announced - I have been having my dividends re-invested since I first bought DH back in March 2013. I now have 13 additional shares over and above those I purchased. I just assumed they always had such a option.....

Q: Do you have any thoughts on DH starting a dividend reinvestment plan. Is this an indication that their cash flow is tight?

Q: Hi Peter/Team,

What's your opinion on putting new money in DH at this time.

Thanks,
Jim

Q: Peter What is your thoughts on DH share dilution should we hit the sell button or is this a better way for them to reduce debt the stock in all likely hood will gravitate to the offer
Stan