Investment Q&A

Q: Perhaps there is confusion between "averaging down" and portfolio rebalancing. If a person had bought GSY or TSGI at $50 and they each were 5% of a portfolio and were considered to have cheap valuations at that time. If, after the market correction they are each 3% of the portfolio with no change in fundamentals is there a problem with bringing each one back up to 5% ? I look at GSY and a consortium of investors put $46,460,000 into it at $50.50/share on Oct 10. I'm sure they did a lot of homework and considered it to be very cheap. It must be a steal now.

Q: Do you still expect great things from Stingray? I heard about an app that they are participating on and remembered it was a pick awhile back. I've been waiting for an entry point. Is this it or are there better options with the pull back?

Q: I am watching as the weed stocks decrease in this downturn. Just wondering what you think would be a good entry point for Canopy Growth Corp? I only want the largest of CDN companies.....let me know if you like others as well. At the time of writing this the stock is down to just over $35.00. 52 week high is 76.68.....I realize that valuations are pretty skewed with weed stocks.......just looking for a guide here.

Q: Hi, I'd love some feedback on this company. Looking forward their potential seems great, and partnerships smart. One project, the Delta greenhouse at an eventual 2.2 million sq ft would place it near Canopy Growth for production, throw in Houweling's involvement and it looks promising. I have a long term outlook and don't mind the risk here.
Thanks in advance!

Q: As AGT trades further below the offer price, does it become a potential buy? It seems unlikely that the $18 offer will meet with positive response from majority of shareholders (unless of course share price somehow drops below $14 or so in the mean time).
What are the odds, do you think, of a higher offer if the first one fails?
Any chance the offer isn't genuine and just intended to support the share price until financials improve?

Q: I am a Money Saver Subscriber and have just read your 5i edition. Rani wrote a very good article on the Marijuana sector. I did really well in the sector as I unloaded in JAN2018 when the bragging started. I am interested in FIRE after reading the article. I see from previous questions that FIRE was not on the radar. It is now. What changed? What was the price at the time the article was written? Thank you. Jeff

Q: Hi,
I originally got into nvda at $160, and photon at $1.20. After watching good companies climb to great highs then fall lower than ever do you ever recommend averaging down? I’m only 33 and don’t need the money back for years. Since this is my first major correction since beginning investing I actually find it exciting to see so many things on sale. Would you recommend topping off these and and other good names (bns, aqn, gsy, sis etc.) or initiating new positions In names the methanex, magna etc.? I use all drips available (including proxy drips in my tfsa to save on fees). I only have about $10-$15k available to deploy right now, but will have more in the new year, so I don’t want to spread it too thin.
Thanks and Merry Christmas!

Q: Just wanted to say thanks for your level headed comments through a tough year.

Could you please provide 5 companies that you think will have minimal impact to their growth guidance due to trade disputes? If possible, could I please get 5 from the US listed exchanges as well?

Please deduct as many credits as you see fit. Happy holidays!

Q: Do you think NWC is less at risk from the Amazon effect than the other larger retailers?

Q: Merry Christmas Peter and Co.

I need a couple of potential 10 baggers for our 2019 stock pool .
Can you help me?
Thanks

Q: What companies do you think have the best prospects heading into 2019? Are there any recently discounted names you would suggest adding to?

Q: Can you comment the recent acquisition and the market reaction?
Thanks, and have a wonderful holiday!

Q: Would you be a buyer at these levels, taking into consideration its current price, valuation as well as market conditions?

Q: Hi 5i,

How do you feel about GOOS? Would you be a buyer here?

Thanks!

Q: Have there been any estimates as to the current and projected sizes of the two main markets for marijuana i.e. health care vs recreational use? I realize that these stocks are characterized as health stocks which leads me to think most feel that is the area where growth will occur but do any facts currently back that up?

Appreciate your insight.

Paul F.

Q: Do you consider these stocks long term buy and hold ? : CCL, PLC, SIS, BNS, MG, MX, PBH, TOY, DOL, SJ, NFI, SLF.

Which are your favorites ? Would you sell any ?
Thank you !

Q: Internal Damage?

When companies go through a major drop from their 52 week high (TSGI -60%, SIS -41%, GRUB-51%, NVDA-53%, KXS-35%) What kind of internal damage is created? I'm thinking employee moral, to stock options, to the ability to finance future growth? Other items? It's very tempting to continue to average down (although my dry powder is getting low) but when a company loses 40%-50% of it's value is it the same company anymore? Or is buying something like a Microsoft (down only 11%) a more prudent investment? (i.e. it hasn't breached a point of internal damage)

My holding period is very long, but I'm wondering if the current steep discounts currently are somewhat false illusions...

Q: Hi 5i, On September 19 a client asked you a question on this stock and its price peaked at $0.45 that day. Here is part of your response "At $220M market cap, each 'future' location is being valued at about $4M, which seems high to us for a small retail outlet."
Stock is now $.05 - market cap 28.55 million. With the managements experience running Solo Liquor stores, does this seem like a good entry point, this would of course be risky and speculative as it is the Cannabis space, negative momentum etc, I am not looking to add a ton of money to this but maybe a 1% position, what are your thoughts on the company now? Recent update states they hope to have 25 stores open by end of 2019 and are focusing growth on Ontario now. Also, with Ontario possibly opening up liquor to private retailers this could be a play on that as well. Thanks for your advice.

Q: Can you comment on why Onex has been so terrible in terms of this years performance.....and what you think it's prospects for 2019 are?Also is Vermillion dividend safe in your view?

Q: Hi 5i,
Can I have your opinion on averaging down on these in the current climate, say in the next few days,. Without regard for weightings,risk profile etc, could you rank them in order that you would chip away at them?
Thanks