Q: Peter and Team: This is my first question since joining this august group, as I am still in learning mode and want to make sure my questions add value. However, I think this issue is important and I am truly perplexed. I note that yesterday, 80% of CRHM volume traded were short sales and on above average volume (source: shortvolume.com), which was highly unusual, and the price closes even. Then, the very next day on much greater volume still, the price plummets. Doesn't this strike one as extremely odd, temporally speaking, and especially, as you point out, that most of the trading seemed to be retail? What could be the possible explanations for this? I would really like to understand this one for future reference. On the surface, it would suggest to me that some folks must have information that others don't (earnings leak?), because I find it difficult to believe that the short report referred to earlier explains it all. Any and all thoughts would be most appreciated.
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Investment Q&A
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Q: Hello Peter, Ryan et al
I spoke with Kettina Cordero, IR Director for CRH regarding the volatility which she attributes to a letter from a hedge fund manage to his subscribers, however, my thinking was related to the release next week of "Unaudited" statements. She indicated that the CRH fundamentals have not changed and that it is fairly common that unaudited quarterly financials are not audited. Any thoughts?
Thank you .... Marty
I spoke with Kettina Cordero, IR Director for CRH regarding the volatility which she attributes to a letter from a hedge fund manage to his subscribers, however, my thinking was related to the release next week of "Unaudited" statements. She indicated that the CRH fundamentals have not changed and that it is fairly common that unaudited quarterly financials are not audited. Any thoughts?
Thank you .... Marty
Q: What are the expectations for earnings and sales for the Q ending 03/31? I understand they report after hours on April 26 with a conference call the following day
Q: CRH is basically a core holding for me I guess. It climbed to 8% of my total portfolio but is now 3.9% which I can handle. I was wondering however if this might provide a short term trading opportunity on a core position. The question is when to buy, before or after they report.
Thank You again
Clarence
Thank You again
Clarence
Q: Hi 5i,
Just a comment: I’m not sure exactly what to conclude from CRH’s price move today. We have a one-day share price decline of over 18% on something like 6x average volume (possibly more because I don’t think my broker’s site picks up all volume), which appears to have been motivated by a rumor that an un-named hedge fund manager has circulated a negative report and short recommendation on the company. At the time of my writing, trading for Friday is closed and I still can’t find any mention of who supposedly issued this negative report and recommendation, let alone a copy (or even a second-hand description) of the report, to begin informing myself and critically evaluate. Nonetheless, based on the reported size of the individual sales, the initial appearance is that today’s sell-off was fueled significantly by retail investors, who would likely be in no better position to evaluate the situation than I am, rather than by large block sales from institutional investors. Of course with a stock like CRH having tripled fairly quickly from the $4 level, it was ripe to be sold. Anyone holding over that period could hedge out by selling half their position in the $10-$12 range, crystallizing a profit, and be left with only winnings on the table to play with. Investor sentiment may be influenced by fundamentally unrelated confidence issues, such as events and trading around HCG over the past few days, among other items. And there may be many holders of CRH who still can’t say exactly what separates it from being another PHM. But without even any allegations to look at, shareholders are exhibiting a “sell on the rumor of a rumor” mentality, and CRH is worth nearly $163,000,000 CAD less (by market cap) than it was at this time yesterday.
Meanwhile, SHOP was attacked by a negative report with a “Zacks Rank 5 – Strong Sell” rating slapped on it at the end of March, supposedly based on valuation getting too far ahead of fundamentals. Shortly thereafter the stock plunged from above $97 CAD to below $90 CAD in two days. Almost 3 weeks later, with no specific fundamental news in the interim, SHOP closed today above $103 CAD. Zacks Rank today? “3 – Hold” (https://www.zacks.com/stock/quote/SHOP ).
Yeesh!
Publish only if you want to.
Just a comment: I’m not sure exactly what to conclude from CRH’s price move today. We have a one-day share price decline of over 18% on something like 6x average volume (possibly more because I don’t think my broker’s site picks up all volume), which appears to have been motivated by a rumor that an un-named hedge fund manager has circulated a negative report and short recommendation on the company. At the time of my writing, trading for Friday is closed and I still can’t find any mention of who supposedly issued this negative report and recommendation, let alone a copy (or even a second-hand description) of the report, to begin informing myself and critically evaluate. Nonetheless, based on the reported size of the individual sales, the initial appearance is that today’s sell-off was fueled significantly by retail investors, who would likely be in no better position to evaluate the situation than I am, rather than by large block sales from institutional investors. Of course with a stock like CRH having tripled fairly quickly from the $4 level, it was ripe to be sold. Anyone holding over that period could hedge out by selling half their position in the $10-$12 range, crystallizing a profit, and be left with only winnings on the table to play with. Investor sentiment may be influenced by fundamentally unrelated confidence issues, such as events and trading around HCG over the past few days, among other items. And there may be many holders of CRH who still can’t say exactly what separates it from being another PHM. But without even any allegations to look at, shareholders are exhibiting a “sell on the rumor of a rumor” mentality, and CRH is worth nearly $163,000,000 CAD less (by market cap) than it was at this time yesterday.
Meanwhile, SHOP was attacked by a negative report with a “Zacks Rank 5 – Strong Sell” rating slapped on it at the end of March, supposedly based on valuation getting too far ahead of fundamentals. Shortly thereafter the stock plunged from above $97 CAD to below $90 CAD in two days. Almost 3 weeks later, with no specific fundamental news in the interim, SHOP closed today above $103 CAD. Zacks Rank today? “3 – Hold” (https://www.zacks.com/stock/quote/SHOP ).
Yeesh!
Publish only if you want to.
Q: What do you think of Shopify's new card?
Q: totally agree with Jim your services surpass any other
your advice and analysis are more than appreciated
keep the super good work
thanks for your insight and knowledge
your advice and analysis are more than appreciated
keep the super good work
thanks for your insight and knowledge
Q: Your recommendation to "do nothing" with CRH is probably the main reason why I bought and continue to subscribe to your service. Understanding you won't always be right it's comforting to have a professional opinion on matters that would often lead to panic decisions. Thanks.
On that note, why did you lean towards "do nothing" as the appropriate action? How did you weigh this decision? What criteria? Is this a gut decision? Is there a strategy at play with upcoming earnings (i.e. determining if results fit in with your long term investment thesis)?
On that note, why did you lean towards "do nothing" as the appropriate action? How did you weigh this decision? What criteria? Is this a gut decision? Is there a strategy at play with upcoming earnings (i.e. determining if results fit in with your long term investment thesis)?
Q: While topical to CRH today, this is more of a general question. My concern has always been that CA firms have done their audit and interim reports are being printed just prior to the release of numbers (in this case next Wednesday). While I acknowledge CA firms have a reputation to keep, I just have to believe a lot of eyes get to see these numbers before they are published. In your opinion, is there some reason to be worried that a major drop in a stock just prior to numbers being made public, may be a sign someone with loose lips has seen the numbers and is advising insiders to bail before the release? Or should I simply stop playing detective?
Q: I have been waiting to get into this stock. Is it time to buy now? 4 month ago, it dropped a lot in high volume after a steady rise. Thanks .
Q: CRH is down around 13% at the moment. You mentioned in your previous comments that there is no significant news known yet. Would you consider this stock a buy, sell, or hold at its current market price?
Thanks as always.
Thanks as always.
Q: FYI - In response to some of the questions regarding CRH - it was written up as a short idea in a fund manager’s newsletter. The letter is making the rounds on Bay Street and obviously people are reacting to it.
Q: Looks like the MOMENTUM chasers are bailing out. Good time to buy more?
Q: Hello Peter,
CRH is down considerably. Based on your previous replies, it appears there were a few large blocks of shares sold (over 20K shares). I am not sure if that caused the stock to take a hit. However, on March 24, 2017, a director sold a large amount of shares ($5M plus). As well, there were other directors that sold in March and yet no impact on share price. I am not clear why such as drastic move today unless something is going on that is not reported yet. Any comments. Thank you
http://www.watchlistnews.com/crh-medical-corp-crh-director-sells-c5525000-00-in-stock/1168444.html
CRH is down considerably. Based on your previous replies, it appears there were a few large blocks of shares sold (over 20K shares). I am not sure if that caused the stock to take a hit. However, on March 24, 2017, a director sold a large amount of shares ($5M plus). As well, there were other directors that sold in March and yet no impact on share price. I am not clear why such as drastic move today unless something is going on that is not reported yet. Any comments. Thank you
http://www.watchlistnews.com/crh-medical-corp-crh-director-sells-c5525000-00-in-stock/1168444.html
Q: How should someone review and react to a drop like CRH Medical is having today? Are there clues one should look for?
Is it primarily retail or institutional investors selling & buying CRH today? Thanks.
Is it primarily retail or institutional investors selling & buying CRH today? Thanks.
Q: Why is CRH down over 12% today?
Q: Hello,
I'm looking at initiating a position in either KXS or PHO for an aggressive growth pick within my TFSA. I like the larger size and scope of KXS but am intrigued by the increasing volume of PHO which seems to be missing from the KXS chart. I'm also less familiar with PHO (no 5i Report) - could you quickly highlight their customer base, and which company/industry/product is responsible for their current stock profile?
Thanks,
Cam.
I'm looking at initiating a position in either KXS or PHO for an aggressive growth pick within my TFSA. I like the larger size and scope of KXS but am intrigued by the increasing volume of PHO which seems to be missing from the KXS chart. I'm also less familiar with PHO (no 5i Report) - could you quickly highlight their customer base, and which company/industry/product is responsible for their current stock profile?
Thanks,
Cam.
Q: Please comment of the shareholder rights plan. It seems to be a proposal to give the board more time to extract more value in the event of an unsolicited take-over offer. The stock has been strong recently but I suppose there has been no unsolicited offer. If the board had received an unsolicited "feeler" would they have been obligated to release it to the public or only if there had been a firm offer?
By the way I agree with the other members in supporting all the work you do.
Jim
By the way I agree with the other members in supporting all the work you do.
Jim
Q: Any reason for CRH dropping this morning? I can't find any news to cause this.
Q: You have often stated that 20 equity holdings is about perfect and over that there is no real benefit to “over-diversification” and it actually moves a portfolio closer to just replicating an index. I like to follow your BE portfolio, but when you add on my US holdings, ETFs for international diversification, emerging markets, bonds, preferreds etc my portfolio (7 figures) is left with 58 different individual holdings /ETFs. I would like to cut it down a bit. My question is this: Your BE portfolio started with 20 names and has now grown to 25. Are there any plans to reduce the number of holdings back down to 20 in the near future?