Investment Q&A

Q: When companies do a private placement or a bought deal, what percentage of the time would the stock price rise above that price, lets say in 1 year? Do you know any studies that answer the question, or can you provide an answer based on your experience? I recognize the question is very broad. I suppose your answer would differ depending on the market cap of that company. Asking because I want to see if it is a good strategy to buy based on a dip down to the PP price. Thanks.

Q: CAE announced public offering of common shares priced at $27.50USD to raise $250,000,000USD to finance a portion of the purchase price and related cost of L3 Harris Military training business. What are the pros and cons of public offering versus brought deal from a company’s and investor's point of view? Is one financing deemed "better" than the other? Thank you.

Q: extreme stock market enthusiasts

Believe you have produced a new acronym.

Q: In one of your recent replies you said that “while the declines are big, we are not so sure we are at capitulation just yet.” I remember similar comments in early 2020. Recognizing it’s tough to predict a bottom, what signs do you look for that suggest we are at or very near the point of capitulation? I believe quick reversals is one, but are there others?

Thanks.

Q: Sirs , could you please explain what a value stock is and what the purpose of a value portfolio is .
Thanks Donna

Q: Good morning 5i team,
What is 5i's view of companies that spread stock option expense across P&L categories? A company might report significant R&D expense which an investor views as a positive, until one realizes that a considerable portion of the R&D expense is related to stock options? Is that generally-accepted accounting treatment? How do companies generally handle this? How does 5i view one treatment versus another? Thank you.

Q: Hi Peter,
I enjoyed your article again in the FP, as I always do. I do think the 60/40 split is an old market axiom that has outlived its time. I understand the bond argument for balance and income. I am lucky to have a DB pension, so I don’ t need bond income. Similarly, if I want to sleep better, I move into lower beta or value names, which I have done. My question, if you don’t mind me asking, is what is the average bond weighting of your staff in your portfolios?
Thanks again.
Dave

Q: hello, what is the difference in subsets(?)/classes of stocks? As an example, what is the difference between these two stocks? thank you

Q: RE my question about criteria for buyable microcaps. I cannot remember anything specific to help locate this item in the feed. As an alternative, could you suggest several criteria to help deciding if a microcap is worth considering for purchase: e.g., certain level of booked revenues etc.
Thanks, David

Q: Google has held up pretty well through the market turmoil. Would you ever sell it to buy something that has been hit hard? For example, would you sell GOOG and buy TTD?

Q: I struggle to identify and summarize reporting dates for my holdings' earnings announcements. I am using the nasdaq site, which is inefficient and sometimes incorrect. Any suggestions on how to organize or what apps might be helpful?

Thanks in advance.

Q: Hello,

Just a quick follow up on a question asked on theScore. I've owned it in the past and sold chunks at various prices but I like the long term prospects and would like to re-enter at some point.

You answered that "We think $33 would be more interesting as a buy, but it is volatile and is not trading on fundamentals yet, only expectations.". J

ust wondering if you can elaborate a little on why you selected $33 as an interesting point for a buy.

Thanks very much,

Steve

Q: I noticed how strangely AT has been trading the last few days,it seems to have only one or two lots in the bid and ask column all the time.Looks like manipulation of some sort,

Q: Can you explain why these companies always appear to lose money ? Is there another way of gauging if these are companies that should be owned ?

Thanks,
Robbie

Q: A lot of time i see comments by your long time holders of stocks?, , asking why a stock they hold, that you have recommend is down 10% today. Your comment is that the stock is up 50 to 100% for the year, so no big deal. My question is that the stock maybe should not have been up that much to start with. A lot of these stocks are a way over priced and should drop a lot. I have been in the market for over 45 years and saw this happen in 2000, when you could buy all the high flyers everyday and watch them go up, when that market was over, you only wished you were down 10%. It's a new time now, but a lot of investment rules have not changed.

Q: Hi 5i Team. Question relates to what symbol that one can use for, as an example US 10yr bond yield, or other bond yields (2, 5 or 20 year). I often use the TMX Money site to call-up various companies and ETF's, but it does not recognize bond yield symbols. My purpose here is to be able to track, compare various bond ETF's to bond yields. Any help in this area would be great. Thx for all your wisdom. Steve.

Q: Good day,

I was wondering if there is a good (free) source that publishes the expected future (i.e., next) date of earnings reports? If not, is it something you could add to your company profiles without much work on your end?

Thanks!

Steve

Q: When you said: "Many current and day orders get cleared out overnight, only leaving long term orders in, which tend to have wider spreads." Do you mean that orders actually get filled when the stock market is closed?

Q: Why before the market opens do I see many bid and ask amounts much higher and lower than the last price? Does this mean I shouldn't put in an order overnight because I could pay an inflated asking price?

Q: Good day! I am slightly off topic but have a comment & question. I think the your chart attack is a nice addition. Thank You.
My question is with the February Chart attack. Looking at the chart for "House price to income", I noticed that Canada, as you mentioned alongside New Zealand, is the most expensive place to live per dollar of income earned. What surprises me is that I was expecting this to be the result of the crazy real estate price increases during the last year but looking at the chart, the amount of income earned to buy a house has been pretty stable in Canada for the last 4-5 years. The year 2020 (which some of us call a bubble) has not changed this important metric. Our new inflated house prices are equally expensive today as they were 4-5 years ago. If yes, there has been no real increase in real estate prices as a % of household income which is definitely not what I expected. Am I reading this correctly? Any comments? As a secondary question on same topic, I thought the US real estate market also shot up but does not appear to be reflective here (or not as much of an issue)?? Is there really a bubble going on?
Thanks.