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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: JTR has been struggling a bit lately but their recent NR (particularly the expansion of Love Child) seems very promising. As always, I would appreciate your analysis.

TORONTO, May 16, 2018 /CNW/ - GreenSpace Brands Inc. ("GreenSpace" or "the Company") (TSXV: JTR) today reported winning a total of 31,031 new facings across 3,805 points of distribution with major grocery and pharmacy retailers across Canada.

Key Highlights of the incremental distribution wins include:

A total of 31,031 new facings for 68 products across five brands.
Love Child has added 2,276 new stores, including 820 in Quebec alone, for up to 29 of its products in several major Canadian grocery chains, pharmacies and natural food stores. This includes the launch of 16 Love Child SKUs in both Jean Coutu and Metro Quebec, four new snacking SKUs in the two largest baby food retailers in Canada, and the launch of Love Child into Food Basics, one of its first entries into a discount banner in Canada.

Central Roast has added distribution in one of the largest grocery companies in Canada with its new 'Flavour' line of internationally inspired products, as well as a broad-based listing for its granola line in London Drugs.

Kiju iced teas have been placed into both Walmart and Shoppers Drug Mart for the summer.

Rolling Meadow has seen widespread natural food and independent distribution wins, mostly in Ontario

Cedar has seen distribution wins across the Natural Food channel, where they had little previous exposure, as well as continued distribution wins within the Produce section of one of the largest grocery chains in Canada.

"Increased distribution across all our brands will help us continue to drive rapid organic growth as we fill the gaps and make our products available to a greater number of Canadian consumers. Our sales team have been enjoying great tailwinds as they place our products into more and more stores, and as our brands continue to evolve we are reinforcing our reputation for building some of the most innovative brands in the Natural Food world." says Matthew von Teichman, CEO of GreenSpace Brands. "Love Child in particular continues to evolve into one of the most dominant Organic food brands in Canada, representing the majority of the growth in the entire baby food category."
Read Answer Asked by karl on May 22, 2018
Q: Hi 5iR Team, I have read a number of your answers to investors questions on PD. 5iR's main concern appears to be PD's high debt. I have read TD's most recent PD report dated April 27/18. In contrast as stated below it is positively a glowing report on PD as if management could walk on water. TD states....
"In our opinion, persistent negativity across the Canadian oilfield services sector
has created one of the best opportunities for investment in quite some time. In this context, we believe that Precision should be a core holding in all
energy portfolios, based on our view of its quality assets, compelling valuation,
potential for FCF generation and deleveraging, experienced management team,
scale advantage, strong U.S. exposure, leading-edge technology initiatives, size,
and liquidity. Specifically, as supply constraints result in near-term pricing traction
and rig upgrades, we expect that Precision's high-quality, homogeneous asset base
will require less capital spending than its peers, implying stronger relative FCF
generation. We are maintaining our ACTION LIST BUY rating and $7.00 target price. In addition, TD does recognize debt as a concern for PD but feels management is committed to better capital discipline.
Ok, 5iR other than high debt do you have other concerns that clearly TD has yet to uncover?
As a cautious investor it always gives me a better feeling when I can get both 5iR and TD analysts recommendations to concur.
Finally SES would probably be TD's second top pick in the drillers. Any thoughts on SES?
Thanks Team. Cheers, Chris
Read Answer Asked by Chris on May 22, 2018
Q: Hi Team,
I am would like your opinion on the prospect of these companies and a ranking of these companies in term of your "Risk/Reward ranking" if one was to buy these companies now with 3 to 5 years time frame.

Thank you!

Michel
Read Answer Asked by Michel on May 22, 2018
Q: Good morning,
Looking at utilities with high yield I came across a report that forecasts growth of 44% for 2018 and 95% for 2019. Are these numbers good ?
How are they going to fund the acquisition and is it going to be a problem ?
Debt is high so is payout ratio for 2018. Probability that the deal closes soon seems high.
What is your take on it ?
Thanks and enjoy the long weekend !
Read Answer Asked by Denis on May 22, 2018
Q: Hi 5i,
I have not done well in my TFSA (Other accounts doing well enough.)
I'm looking for stock(s) with good growth potential but low downside risk. I am comfort to not make great gains but don't want to keep losing in this account.
GUD seems the logical choice. Would you agree and are there other names that you would consider here even if growth potential is lower? Thank you for the great service.
Tulio
Read Answer Asked by Tulio on May 22, 2018
Q: I have a small position in HEMP and have already taken my initial invested capital back when it doubled. With the change in CEO there has been a lot of positive news from the company and it looks like they have a good plan for growth going forward. They have a new processing facility opening soon and was wondering about adding to my position. Do you think this is a little safer than going into the MED/REC Cannabis?
Thanks
Read Answer Asked by Rudy on May 22, 2018