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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: What do you attribute to the head wind, other than the smear by the short sellers, that DH faces since April this year?

DH is my single largest holding and it was cruising along nicely until the recent bumps. I also made the "rookie" mistake of increasing my stake in DH as share price spirals downward. To make a long story short, it went from my biggest winner to my biggest loser in my portfolio in a flash.

My dilemma is - do I add even more (betting this sell down is over done), hold a bit longer (hoping for a turn around by some upcoming catalyst), or sell some or all (to cut my losses and move on.

The real key is the business operation of DH. What's you read on the business of DH?

You insight s much appreciated.
Read Answer Asked by Victor on July 11, 2016
Q: Hi, PBH announced their plans to build new sandwich facility in Phoenix USA at an appx cost of USD 29 mln. It is expected to be operational in 2017. What are the implications of this development with respect to company's revenue and earnings ? Stock seems to have reacted favorably to news. Thnaks
Read Answer Asked by rajeev on July 07, 2016
Q: Hi Peter
I have been doing well with TNC over the past few months and it is up to 5% of my portfolio with a 50% gain. You still rank it as a B- but since your last report it has doubled its Market Cap and finalized its most recent acquisition. Would you still consider it a B- because of risk? Do you think I should take profits or let it ride a while longer. It is rather illiquid at times.

Also KUDOS on your chapter in the Market Masters book by Robin Speziale. I am on my second reading. It is the best book on investing I have read. Extremely diverse ideas. From common sense to algorithms. I highly recommend it!
Read Answer Asked by Bryan on July 07, 2016
Q: I realize these two companies are very different, but both have had a nice share price reduction recently (well, nice if you're a potential buyer!). Straight-up question: Which would you choose for a better TOTAL return over a 5 - 10 year time frame?
And do you see a material difference in net risk between the two over such a time frame? Thanks!
Read Answer Asked by James on July 07, 2016
Q: I'm considering buying this stock on valuation basis and growth potential. In your answer to a question regarding this company, you also mentioned its 7x pe as cheap. But a principle of buying cyclical stock is when its pe is high compare to historical level because it maybe in trough earnings period. So how should we handle this conflict perspectives?

Many thanks!
Read Answer Asked by Dong Sheng on July 07, 2016
Q: I'm trying to understand SYZ. It's a fabulous company but little known. There is strong insider buying and the company is aggressively buying back shares. The share price has moved steadily from $6.60 to the $10.50 range. It isn't widely followed by the market. 5i has been the big supporter to date. My concern with the stock is that the upward movement in the share price appears to be directly due to the company buying back shares. If the company stops buying, what happens next? I guess the question is how does a small company get broader recognition and a wider following to push the price higher on pure market conditions? When the company isn't buying shares, the trading volume is usually very low.

thank you
Read Answer Asked on July 07, 2016