Investment Q&A

Q: I purchased AMAT earlier this week based on my review of their financials and a desire to gain specific exposure to the semiconductor space. Unfortunately, the stock is tanking today on seemingly no news. Do you know why? Would you suggest I ride this out?

Q: Good day,
What is going on with mksi today? I can’t find any news.
Thanks
Luke

Q: Morning,

I don't view Callidus as a must sell and I think your recent comments have suggested that you are comfortable holding. My question is whether you would expect this to drift even lower with tax loss selling in the next two weeks? I don't have an appetite to hold it down to $8 or 9$ and wonder if it makes sense to sell now and take another look in the new year?

Your advice? Buy sell or hold?

Q: A member just asked about CGX...maybe this is the reason...from TD:

Yesterday afternoon, it was confirmed that Cineworld Group plc (CINE-LN, not rated) is currently engaged in discussions about a possible all-cash acquisition of Regal Entertainment Group (RGC-US, not rated), the No. 2 U.S. exhibitor, at a price of US$23 per share, or ~US$3.6bln (~US$5.9bln including debt).
However, no agreement has been reached.
Impact: SLIGHTLY POSITIVE
A US$23 per share purchase price is a 26% premium to Monday's closing price, but a 44% premium from a week ago. This equates to ~9.0x and ~22.0x 2018 consensus EBITDA and EPS, respectively. Implications for CGX include:
■ The valuation being implied for Regal gives us confidence in the ~10.1x we are applying to CGX's theatre segment within our SOTP calculation. CGX is currently trading at 9.7x our 2018 EBITDA estimate, and our current $47.00 target price is based on an 11.0x EV/EBITDA multiple applied to our consolidated EBITDA estimate for the 12 months ending September 2019.
■ We do not believe that CGX is currently for sale; however, applying Regal's takeover valuation plus the historical 3.0x-4.0x multiple point premium to CGX's 2018 EBITDA suggests that CGX could be worth $50-$55 in a takeout.
However, given its market share, mix of high-margin businesses, and strong earnings profile, we believe that this range would be the floor price.
■ The selloff in CGX shares has been overdone, exacerbated by increasing investor short positions over the past few months. We believe that industry M&A — which could be a consequence of what is perceived to be the diminishing influence exhibitors wield over the major studios — should provide short-term support for the share price. Over the long term, we believe that valuation will start rising once it becomes more evident that Cineplex's ongoing diversification initiatives are lessening its dependence on Hollywood content and when there is greater clarity surrounding the impact of Premium Video on Demand (PVOD). We expect these to become clearer closer to 2019.
Post if you think appropriate.

Q: As a follow up to the question asked today, in yesterday's Barrons online edition, there was an article by Michael Kahn called "3 stocks to play the rebounding Movie Theater Sector'. CGX may have moved up as part of that industry.

Q: what am i missing on couche tard.great earnings, 2 excellent upgrades today with price targets in the high seventies and the stock has done nothing.
is the market telling us something. dave

Q: Hi! What's up with CGX? Can't find any news.

Q: Why the large drop?

Q: Is PKI an appropriate alternative to the (expensive) pipeline/infrastructure stocks and ATD.b or is the debt too concerning at the moment? Thanks!

Q: would appreciate your insight and views on this company now that they have reported and seem to be showing momentum.
would it be a little less riskier now for a small position.
thanks as always gary

Q: How would you view pollard announcing yesterday that they are increasing their ownership in NYX?

Regards

Robert

Q: Any idea what is happening with CNR right out of the gate, this morning? Big volume and down $4. Is there an unfavorable analyst report out today?

Thanks.

John

Q: Well, 14 months since my previous Q on CSO and it seems like there is a positive trend (after 3 years of negative eps the latest 3 qtrs were positive). But has it been solely due to the price of (mostly) met coal, or do you think their operations have improved (any indication that they are besting some of their competitors)?
The management commentary sounded quite positive - but that's what I wanted to hear - so I'm interested a more critical take.

Q: Would appreciate your opinion on this company. Seems they have foothold in Austraila.

Q: In a cash account, I have 18% loss on this. I don't need this money for now. For growth or growth with torque where would you go. Or I should keep it.
Thanks.

Q: Good Afternoon - The resto royalties seem to have lagged this year. What are your thoughts in general and could you please rank the four listed here. Thanks.

Q: Do you have any thoughts on the new CEO of High Arctic Energy Services?

Q: I am looking to add to either my Utilities or Industrial's.

My industrial weighting for Industrial is 11.8% which might be a bit light, and I can add to CAE or NFI.

Or,

Add to my Utilities is also quite low at 4%. I have BEP and ENB there. Should I add to ENB at this time?

As always thanks for the great advice

Lastly, the only REIT I have is a Small Position in Chartwell. Which i have put in Healthcare. I do have Financials at close to 15%, but should I look at my home as a big investment in real estate and not worry about it?

Q: Big mistake I made and it seems to be dead money in a RRSP. If you have any sggestions. Hold or Sell. What would you replace it in USD.
Thank you.

Q: I recently bought ZCL based on 5i recommendation. Then after a missed quarter you drop ZCL from the growth portfolio, so I'm left holding a stock you no longer follow.
However for GUD you continue to recommend quarter after quarter based on no news or developments and a declining stock price?