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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: Back on Nov 2 nd, in answering a question about LUMN …you mentioned concerns about “ glaring issues “.

As is typical 5i really nailed that issue.

Now they have eliminated one of the reasons I own the stock ( namely the dividend).

According to Rbc the PE is 2.6. At the current depressed price do you see any significant upside potential over the next 3-6 months ?

Thanks for your help.

PS I also own AQN which cut its dividend but at least did not eliminate it.
Can we read anything into this? More of the same in the year ahead.
Read Answer Asked by Donald on February 06, 2023
Q: Hi 5i,
What do you know about this US stock - 374 Water Inc .
Thanks for all the good information.
Connie
Read Answer Asked by Constance on February 02, 2023
Q: I sent you a question(s) on CFX this morning. Since then I have been educating myself a little bit more about the company. There seems to be very little analyst or "expert" interest in this stock (stockchase shows no one talking about CFX for a number of years). I also found out that it has VERY light trading. Is that because the parent company Canfor Forest Products holds the majority of the shares? Since it trades lightly I know the professional money will say that the stock has no liquidity. But I am a retail guy that would start with a 1000 shares and may get up to 5000 shares max. Should I be that concerned about liquidity? If I leg into this stock I will promise myself not to think of it has a quick source of cash if the mark has a systemic leg down. B thyat tI mean if the market has a rough patch I will be willing to wait to sell cfx and instead sell something else if I think I need cash? Good strategy? I still have not bought since this stock has a lot of negatives and little shareholder following but it seems to be like a possible turn around stock especially if Chinese pulp demand grows because of a reopening of their economy. Also the only financials I can find on this company are together on a webpage with Canfor Frorest Products which makes in confusing to read. Do you get your info from your Bloomberg Terminal and if so is there aa cleaner way for a retail guy like me to read CFX quarterlies?
Read Answer Asked by Paul on February 01, 2023
Q: Jim Chanos (Shorts) said on CNBC yesterday that it is a no Brainer to buy APE since there is is a proposal to convert all APE shares to AMC in March at Face Value. APE is trading today at $2.35 &AMC at $5.11.
Sounds too God to be true???
Thanks!
Read Answer Asked by Austin on February 01, 2023
Q: What would be your top 3 picks in the junior gold mining sector at the moment be and why?
Read Answer Asked by John on January 31, 2023
Q: Wondering your thoughts? New acquisition, new focus for the company, utilizing tax loss carryforwards is one of the goals. Recently on BNN, this was stated by an analyst.

This one is a bit of a departure from traditional earnings metrics stories we usually look at and is more of a special situation.
Aimia formerly had the contract to run Aeroplan, but then Air Canada cancelled that and ultimately bought the business back from Aimia. Since then, it is essentially a holding company, run by managers with a track record of value investing. It is essentially a public asset manager/hedge fund.
It recently sold its interest in PLM to Aeromexico for $541 million and this is where the story gets interesting. Today, the have interests in a few other companies worth around three or four dollars per share. It has cash of more than six dollars per share from its asset sales. Net of preferred shares, this gives it an estimated “sum-of-the-parts” of about seven dollars per share. The stock currently trades at $3.90, at just over half of its “fair” value, which we think makes it too cheap to ignore.
Sum-of-the-parts only works if management can do something to close the discount. It has $785 million of tax losses that can be utilized, and are in the enviable position of having a ton of cash to put to work at now very compelling valuations given the market sell-off. Since taking over the business, current management has been very active in crystallizing value. If it can’t find cash-flowing businesses to buy, it will continue to buy back stock, effectively returning cash to shareholders. In the past, it has done regular buybacks as well as substantial issuer bids.
Ultimately discounts like this don’t persist forever, and while we think you need to be patient, we also think it is aligned with shareholders as large personal holders of the stock, and that it will work to close the discount to fair value.
Read Answer Asked by Husseinali on January 31, 2023
Q: Dear 5i team.

In a cleanup, what order would you sell these in?
Which of them are bankruptcy candidates in the foreseeable future if you had to venture an educated guess.

After watching XBC go bankrupt, these penny stocks seem destined for the same result.


Many thanks for your help.
Read Answer Asked by Arthur on January 31, 2023
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