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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: Hi Team,

Hoping you can provide some context to the recently announced contract win for Acuity Ads for $750K, representing 1% of its market cap. Is it significant? Blah? Is the customer of any strategic importance? General thoughts on the company moving forward... Thanks!
Read Answer Asked by Ray on October 12, 2017
Q: I currently own WFC but am thinking of trading it for either of V or BAC. Would you have a preference? Secondly, with earning season coming on, if one is thinking of doing some trading is it best to wait for all the dust to settle to make the trades you were going to make without regard to timing the quarterly report? Any trades I would do would be with a view to holding the stock long term.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on October 12, 2017
Q: Further to the cash balance question of Oct.10, iTrade has a superior product to the cash optimizer 0.25%. It is the Scotia Investment Savings Acct. run by Dynamic, so technically a MF, symbol DYN1300, min $1000 paying 0.95% (same as TD's ISA).
Tangerine often has special temporary deals for large cash amounts to 500K (current one is 2.5% till end Dec.). I don't deal with RBC but you could probably find something competitive with the above rates if you poked a bit.
Read Answer Asked by Jeff on October 12, 2017
Q: It is discerning to see the huge drop in price on abnormally huge volume these 2 days despite positive news of increase 2% in distribution.The news today is that it is releasing its results on Nov 13.Did someone smells poor results.It does not have a good record of beating expected EPS Remember that it dropped sharply to around $8.50 before recovery after release of last Q.What are u expectations of upcoming results vs expected.Appreciate u normal great services & views
Read Answer Asked by Peter on October 12, 2017
Q: I have held these two stocks for several years, primarily for the dividend. The recent 'coup' which replaced the LIQ board, has nothing for the stock. And STB, as you have noted, is mostly doing nothing.Can you suggest two growth stocks that I might consider as replacements? My timeline is up to 10 years. Thanks
Read Answer Asked by RANDALL on October 12, 2017
Q: Reason for drop? "Crius Energy* (KWH.UN : TSX : $9.34), Net Change: -0.24, % Change: -2.51%, Vol: 221,451
WHY SO CRIUS? LET’S PUT A SMILE ON THAT FACE. Canaccord Genuity Industrial Technologies Analyst Raveel Afzaal has marginally downgraded his outlook on shares of Crius Energy after revising his US:CAD exchange rate assumption to $1.25 from $1.30. While he continues to believe his bullish target is achievable within 12 months, Afzaal expects the shares to trade sideways in the near term as Q3/17 consensus forecasts are potentially revised down, and due to the overhang created by expiry of the shares' lock-up period. This may result in temporary weakness in the share price and provide a better entry point. Afzaal has revising down Q3/17 EBITDA forecast from $29M to $19M; consensus at $30M: Crius Energy is expected to report its Q3/17 results in November (exact date not yet released). The company generated $21M in Adj. EBITDA in Q3/16. Afzaal believes mild weather can result in a $5-7M Y/Y EBITDA decline while gross margin compression can result in another $2-3M EBITDA decline. Afzaal expects USG&E to contribute ~$4-5M in Q3/17 (Q3 is seasonally weak due to its large natural gas portfolio). In the regards to the share lock-up, Afzaal expects 3.8M shares associated with the USG&E acquisition and another ~3.8M associated with the 2016 equity financing to come off lock-up during the Nov '17–Jan '18 time frame. At the end of the day, he says the attractive distribution yield and valuation multiple should provide support to the share price."
Read Answer Asked by Kurt W on October 11, 2017