Investment Q&A

Q: This is basically just an opinion but I think that last week the action with CRH was an example of what you really mean by volatility. The the 5 to 10% that happens some days for no good, obvious reason are to be expected in a growth portfolio and are just a healthy fluctuation in a share price. Such fluctuations actually strengthen the stock. Comment ?
Thanks for your support
Clarence

Q: The authorities knew if they dd anything home capital would have issues. I thought it would skate through with a fine and a few firings. Why bring down the whole company? Check the mortgages determine the default rate and then decide what to do.Announce action everyone deserts Home Capital gics and the company swirls into the bowl. Hoop insider probably knows the default rate ponies up the money.Please explain.

Q: Very interesting article. I don't know if you have read it. The World According to a Free-Range Short Seller With Nothing to Lose.

https://www.bloomberg.com/news/features/2017-02-09/the-world-according-to-free-range-short-seller-mark-cohodes

Publish if you wish.

Q: i have sometimes been critical of 5i, i have never owned home capital but have read everything about hcg, i suggest your subscribers read reflections of a fund manager by michael mccloskey on hcg, this was/is a great company brought down by circumstance a lot of which were beyond their control, 5i did nothing wrong in having this stock in its portfolio or recommending it to its members.dave

Q: In March and February your comments about this company were generally positive. Yet just recently you said that this company was the most likely candidate to be booted out of the balanced equity portfolio. Sounds like you views have changed in the past four weeks. Can you explain the apparent shift in your position please. Thx.

Q: Hi 5i

Recently, RBC expressed concern about competition in DR's largest market, is it overdone? May have your thoughts on this? I was thinking of reducing an oversized position before it becomes right-sized on its own, if you know what I mean.

Thanks,

David

Q: Please comment on the year end results.

Q: I would like to buy some preferred shares of the canadian banks.
Would you recommend one bank over the other and which series.

thanks,

Q: What are your thoughts on Verde Agritech?

Q: Hello,

I have read a suggestion that perhaps OSFI or the government might "encourage" a big bank to purchase home capital. Any insight as to what a potential price could be? What metrics do you think someone could base a bid on?

Regards,

Robert

Q: What is your view of their recent year end results? Thanks, Gerry

Q: I am considering adding to CZO and NLN at these prices. Would you have any issues with this. Are the fundamentals basically OK

Q: I hold Facebook with a decent gain. Do you see he rising trend continue and what might be the limiting factors?? Thanks JIm

Q: Understanding that you don't really cover the US, any thoughts on SIMO's earnings and potential?

Q: In just over 2 weeks with no particular changes in the world or the North American economy, including the market positioning or financial results of CRH; the stock has dropped over 35%! Is there something I just can't see or read into the latest Quarterly report or is there something relative to the MI positions that are not apparent in the Statements??

Q: Cohodes said to Bloomberg he is getting ready to announce another company that he's going after. Says "It’s a doozy". I had to look up what that means: unique. It's not EQB, it's another one. I don't think it's CIBC, because it isn't "unique". What are your top 2 guesses for this company? My guess is Genworth, because it's the only mortgage insurer in Canada and so, is "unique" in my opinion. But the carry cost to short it is over 5.5%, so there might be a better choice I have not thought about.

Q: Can you comment on Constellations Software's debt profile and cash position? From what I recall, it is a definite strength of the company. Is there any plausible short to medium term scenario where the company can destroy their strong financial position?

Q: Hi Team,
Would you please comment on Canadian Western Bank !
Time to do a half position ?
Thanks as always,
Tak

Q: Any idea why the sudden drop in EIF and should I increase my holding to 5% with this drop?

MX is also down. Do you foresee a further drop or increase upwards again?

Thank you 5i Team!

Q: Peter & Team, I think we do have a problem at CRH and it has to do with the minority interests (MI's) in that they are getting way too much of the business, possibly because of mix or maybe the joint ventures are the better operations.

$000
Earnings

                    Q1 '17               Q1 '16
Net Income        $3302                $ 3031
Att. to CRH          1542                  2956
Att. to MI's         1760                 75

CRH net income down almost 50%. How is it possible that the MI's can be getting more of the profit than CRH shareholders?

and

Cash flow

Cash flow provided 7991                 5524
Paid to MI's             4011                  627

Share to MI's             50%                  11%

Cash paid to the MI's is more than their share of the profits.

Year ago this was not an issue. Now it is!

What should we do here? The business as a whole looks fabulous, it is in a good space with strong and meaningful secular tailwinds, it has a huge 35% conversion of sales to cash flow, but something looks very wrong with the business model and the sharing of the cash and profits.

Kindly advise. Thank you. Keith