Investment Q&A

Q: Hello Stellar 5i Team, please help me with AYA. It appears frequently as a top pick even though your latest report is out of date and the stock is up 100% from Sept 2012. True revenue growth is off the charts in part from great but not cheap acquisitions. But the company is not profitable, has therefore no ROE, it no longer has a stellar balance sheet; enormous G&A costs at 75% of revenue offset the appealing 97% GP margin. Annualized cash flow of only $12 million as a percent of market cap an is puny at less than 2%. When will growth translate to high returns on equity and how do you make sense of valuations like the 244x cash flow and over 5x revenue? I have locked in my SUM gains and am attracted to the recent 15% decline in the AYA price but am really struggling with the fundamentals here.

Q: Hello,

What is your opinion on SNC these days? Is it worth buying?

Q: The Russell 2000 Index gained 68% last year. What is a good etf to use to play this & has it run too far to expect gains this year? Thanks in advance.
Dave

Q: could I please have your opion on cum. thanks

Q: Do you have a preference for Winpak or CCL at this time. Now that both are off their highs do you think they present a good investment opportunity. Thank-you.

Q: CPG shares have been flat for a long time, and I am thinking of selling. However if you see any upside in the immediate future, please advise and I will hold them.
Regardless, please recommend some solid growth stock(s).

Thanks

Robert

Q: I have the majority of my US holdings in VIG and IWO plus a few large caps (JNJ, MSFT, ABBV, NSC, GE, T). I am still underweight in this area so I would like to buy more over the next few months. However, with the falling loonie I am feeling reluctant to add to these positions in my CDN $ registered account. I already feel like I screwed by the discount broker on foreign exchange to begin with, and the weak loonie just makes me feel worse. Any comments would be appreciated.

Q: I see that Enghouse is listed in the US as well, as EGHSF:PNK. Its US price history is similar to ESL:T but not the same. Can you tell me why they are different and does it matter which is bought (aside from the different currency risk)?

Q: There's an excellent article in today's Globe amplifying and supporting Peter's views of analysts reports. It's "What to read,(and what to ignore) in analysts reports." by Chris Umiastowski.

Q: your opinion short term on HGN

Q: Hi
Any reason for Canexus's dropping like a stone? Is the dividend in danger now?
thanks for a great service
ms

Q: With the latest down turn in LULU, should I add to my position or is it too risky to buy right now? I got in at $58. I have about a half a position in the company. I believe the company is better then what the street says it is worth so I am looking for more entrance opportunities. Thanks for your comments.

Q: HI Peter and Team,

Gear energy (GXE) just provided an operational update that is quite positive. It is still quite small and focused on heavy oil but could i get your opinion on this one?

thanks

Q: Peter, regarding TFSA holdings, I am unhappy with the performance and looking for suggestions. This TFSA is maxed out for contributions. Total value is only $34, 932. The holdings are ax.un (26%), zwb (9%), BCE (40% ) and Rei.un (7%). The remainder, almost 18% is cash. The yields on ACB are as follows: artis..9%, zwb... 5.4%, BCE..5.9%, and Riocan is 6.9%.

I would appreciate your suggestions for restructuring this portfolio. I am looking for some solid growth.

Ruth Ann

Q: Do you have an opinion and information on LED Medical Diagnostics (LMD), maker of VELscope? Thanks.

Q: good day to you all .please can you give me your opinion on IFP.A thanks

Q: Hi team,

CTY - Callian technologies.

What do you think of the their latest acquisition? Market seems to like it.

Q: Hi In Dec 31/08 I took a position in the Big 5 Can Banks.The current result are BMO +17.46% CM +19.56% BNS +11.61% TD +23.61%
RY+34.08%.BNS has for some reason lagged behind and lately since I enlarged my position in this stock it has been on a toboggan.
Even today the others are in green BNS red would you hold or should I cut my losses and move on ?
Stan

Q: Could you please comment on the results of Sylogist Ltd (SYZ) which were released this morning? Thank you, Peter

Q: Hi 5i!
Regarding Surge Energy (SGY)
I have read back through several months of questions before going to the research function of my on-line broker. I, too, am considering the switch from CPG to SGY - based on your answers regarding SGY. My question is this: looking at the financials, SGY numbers do not seem particularly positive - and this seems to my untrained eye to apply particularly to Cash Flow. Without 250mm + from financing it would seem they would be in a very negative position. (Looking at past 9 months ending Sept. 30/13). I know for many businesses Cash Flow or FFO are almost as important as the larger Balance Sheet issues, but I am perceiving - perhaps very incorrectly - significant weakness in those numbers from SGY. Can you help me out here because I am likely missing a great deal.
Thanks!!
Cheers,
Mike