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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: Good morning everyone,

Something is not making sense in the market here. Disney buys 33% of Neulions competitor BAMtech for $1 billion.

$1 Billion / .33 = assumed market cap by Disney (liquidity discount most likely applies, but lets negate it) of $6 billion.

Neulion has a market cap of $220 million.

Neulion has, NBA, NFL, global soccer, UFC, tennis locked in, BAMtech has NHL, MLB, PGA. Therefore Neulion > BAMtech in my mind.

$3 billion > 220 million by 13.6x. Is there something I am missing in regards to this massive valuation difference? Technology? Does Disney see some second level of montetization that the market can't comprehend? A special deal perhaps? I picked up more to make a medium sized holding, but will sell if you guys could potential shave off the valuation gap.
Read Answer Asked by Liam on August 11, 2016
Q: Hello,
Do you still have a positive outlook for these 3 companies (2 year outlook). I currently own these 3 stocks and I am tempted to take some profit but do not need the money at the moment. Sector allocation is still fine.

Also, with oil now at $42, can you please share your short term outlook. Should we expect some increased volatilty over the next few months ? Thank you.
Read Answer Asked by Pierre on August 11, 2016
Q: Peter and His Wonder Team
BXE just reported horrible numbers. Since I am not an accountant... I am wondering about all these financial transactions. Do they really reduce there debt and put them on a more sustainable footing going forward. Do they really buy them time and the ability to survive this down cycle? I realize an increase in oil price would be great news for all energy companies!
Thanks for your time and insightful thoughts... and yes you are always great on BNN! Ha!Ha!
Dr.Ernest Rivait
Read Answer Asked by Ernest on August 11, 2016