We continue to hold a large position in Colabor but it will be a quiet stock for a couple of quarters given the recently announced changes. Shedding that money-losing Cara contract is the right move but with charges for severance etc. the P&L will be sloppy. It’s still a very interesting deep-value play but it’s likely a sleeper for a while and with all the recent turnover in upper management and the pressing need to gain new revenues to maintain and improve scale, the risks are higher, although that’s been priced in. The convertible debentures pay 6% and are quoted at $85 per $100 of face value, with a three-year maturity and a yield to maturity of 12%. They may be of interest to investors looking for a safer way to play this.
The information and recommendations made available here (“Information”) by The President’s Club Investment Letter and/or all affiliates is for informational purposes only and not to be used or construed as an offer to sell or a solicitation of an offer to buy any services or securities. You further agree that The President’s Club will be liable for any losses or liabilities that may be occasioned as a result of the information or commentary provided in the letter. By accessing the site and receiving this email, you accept and agree to be bound by and comply with the terms and conditions set out herein. If you do not accept and agree to the terms, you should not be a subscriber or accept this email.
The President’s Club Investment Letter is not registered as an adviser under the securities legislation of any jurisdiction of Canada and provides the Information pursuant to an exemption from the registration requirements that is available in respect of generic advice. The recommendations contained on this email are not tailored to the needs of particular persons and may not be appropriate for you depending on your financial position or investment goals or needs. You should apply your own judgment in making any use of the Information, especially as the basis for any investment decision. Prior to making any investment decision, we recommend that you seek outside advice from a qualified and registered investment advisor.
In no event will The President’s Club Investment Letter be responsible or liable to you or any other party for any damages of any kind arising out of or relating to the use of, misuse of or inability to use this site and email. The Information is directed only at person resident in Canada. Nothing in this site shall constitute an offer or solicitation to anyone in the United States of America or any jurisdiction where such offer or solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation. If you choose to subscribe and receive emails from outside of Canada, you acknowledge that the Information is intended for use by persons resident in Canada only.
This is not an investment advisory, and should not be used to make investment decisions. Information in The President’s Club Investment Letter is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of The President’s Club Investment Letter may have positions in the stocks discussed above and may trade in the stocks mentioned. Don’t consider buying or selling any stock without conducting your own due diligence.
Copyright © 2019 The Presidents Club investment letter, All rights reserved