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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: The last question to 5i regarding PANW is listed July 2014. What is your assessment of this company based on an additional 18 months of history and would you recommend it as a buy? Thank yoi for your great service.
Read Answer Asked by Deborah on December 17, 2015
Q: I hold ENB in my non-registered account (much larger than my RRSP in terms of total dollars). What is the precise difference between ENB & ENF in terms of operation and assets: both have said they are going to incr. dividends by up to 10% until 2020. You say that ENF is much risker than ENB - why? And, secondly does it make any sense to have ENF in my RRSP at it's current depressed price?
Read Answer Asked by James on December 17, 2015
Q: Hello,
In an earlier question I asked about selling Sgy for a tax loss and buying Whitecap. It should be the other way around. Selling Whitecap and buying, perhaps SGY? A good idea? Or, would you suggest another name? thanks
Read Answer Asked by joseph on December 17, 2015
Q: apparently a short report from spruce point. should we have any concerns ,thanks
Read Answer Asked by andre on December 17, 2015
Q: Hi!
What would be the best non hedged ETF to follow the US market that is traded in Can$. Would that be VUN-T?
Read Answer Asked by David on December 17, 2015
Q: The MD&A provides an explanation for the decrease in revenue.

"Revenue for the Q1 2016 was $15,276,822 a decrease of $4,407,391 or 22.4% from $19,684,213 as
recorded in the first quarter of fiscal 2015. When compared to the three months ending July 31, 2015,
revenue increased by $1,325,387 or 9.5% from $13,951,435. There are a number of factors impacting
revenues between Q1 2016 vs. Q1 2015:
- The revenue growth at TIO and its subsidiaries.
- One-time revenues related to the Company’s kiosk program, which included sales of kiosks to
an existing biller customer and a removal fee charged to another biller customer for the
removal of low transacting kiosks.
- The strengthening of the US dollar from quarter averages of 1.0927 in Q1 2015 to 1.3163 in Q1
2016
- The change in revenue resulting from the migration of TIO’s largest biller’s entire customer
base from one billing platform to another
Page 7 of 18
This migration affects the Company in the following ways:
1- Historically, the vast majority of transactions processed by the Company for this biller carried
a front-end consumer funded convenience fee of $3.00. The Company historically has
recognized this fee as its revenue and shared the proceeds of this fee with both the retail
partner and the biller itself. Once migrated from the CDMA to the GSM platform, the
customer no longer is required to pay such a fee. The Company’s margin is now paid as a
back-end fee directly by the Biller and in the same amount ensuring that the Company’s per
unit economics are not affected as it relates to gross profit generated per transaction.
2- In Q1 FY 2016, an immaterial amount (approximately $10K) of this billing partner’s bill
payment transactions for its branded retail channel (which excludes 3rd party locations)
resulted in the Company collecting a $3.00 front-end fee. As noted in Q4 2015 virtually all of
its gross transaction revenues from this billing partner is earned through back-end fees. A
typical back-end fee from this partner is expected to generate 1/12th the revenue of a typical
front-end fee, however at a significantly higher gross margin percentage. During August 31,
2015, we had less than 3k monthly bill payment transactions with a front-end fee for the
branded retail channel; the legacy CDMA service was disabled at the end of August. This
transition has significantly reduced the recognized gross revenue while having no impact on
gross profit on a per transaction basis as our largest billing partner’s transaction volume
reached the maximum discount level allowed in the tiered pricing structure. This zero
consumer fee structure may also incentivize more customers to pay using the Company’s
services.
3- As a result of this revenue model transition, TIO experienced a decline in transaction revenues
generated by its largest billing partner from Q4 FY 2014 through to Q1 FY 2016. However, at
the same time the gross margin percentage of the revenues generated by this partner
increased significantly to a range of 90-95%. Due to this billers growth, TIO saw transactions
and total gross profit dollars generated by its largest billing increase despite the significant
reduction in gross transaction revenues. Throughout this transition, investors and analysts
were reminded to monitor the total transactions, gross margin percentage and absolute gross
profit generated by TIO as the best indicators of growth in TIO’s business."
Read Answer Asked by Richard on December 17, 2015
Q: Peter, I have virtually no investment in oil and gas. But what goes down, must go up. (I think...maybe) If I was to start a minor position now in an energy company and add to it over time on the dips, which name would you recommend?
Read Answer Asked by Barry on December 17, 2015
Q: could you please explain the sudden drop of over 15% since last Friday?
Read Answer Asked by Frank on December 17, 2015
Q: Could I have your take on Birchcliff. Is it profitable in this environment, and would you think it will survive this low gas price if there is no LNG connection in the future?

As always, thanks

Read Answer Asked by John on December 17, 2015
Q: DTV has merged with AT&T this year. How was the deal structured? There were shares and cash given. What happens at tax time with the cash distribution and with the old/new shares?
Read Answer Asked by Elizabeth on December 17, 2015
Q: I was thinking about buying some Ceiba Energy as I do not have any Energy exposure. Can you tell me what the debt situation is, and is this in line with this size of company in the energy sector. A guest on BNN said that the EBITDA is increasing every quarter and this was a screaming buy. Is the EBITDA increasing and do you think it is a good buy candidate? I am ok with the small market cap of this company. In your opinion is this a company that can survive another 15% drop in energy that may last 12 months? Once tax loss selling is over, is this a stock that should outperform the broader energy sector on an energy bounce?

Thanks as always and Happy Holidays
Darcy
Read Answer Asked by Darcy on December 17, 2015
Q: Today, Acasti (APO) announced positive feedback from the US FDA and, as a result, its shares jumped about 50%. However, the share price of NTP, which owns almost 50% of APO, rose less than 10%. I would have expected an approx. 25% increase for NTP. Is this a good arbitrage opportunity?
Read Answer Asked by Gregory on December 17, 2015
Q: A lot of insider buying lately and stock options being issued @16 cents Sunvalley and Kinross have accumulated about 30 % of the shares..I get the feeling something is going on or maybe about to happen.
Thanks--Have a great Xmas
Read Answer Asked by peter on December 17, 2015
Q: Hi, "Reuters - December 16, 2015 - Canadian cable-TV operator Shaw Communications Inc said it has agreed to buy Mid-Bowline Group Corp and its subsidiary Wind Mobile Corp for about C$1.6 billion ($1.2 billion).
Wind is Canada's largest non-incumbent wireless services provider with about 940,000 subscribers across Ontario, British Columbia and Alberta, Shaw Communications said. "

So Shaw will become the 4th major Wireless Services provider in Canada, if the deal is approved by regulators. How would it impact the business of BCE, Telus and Rogers in terms of possible competition? Which one of the three is expected to be affected most, based on Wireless Revenue/Profits as % of their total business and the geographical base of Wind Mobile ? Do you see this development causing a reaction to share prices of these companies? Thanks for your insight.
Read Answer Asked by rajeev on December 17, 2015