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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: Thinking of buying a new mattress with a concealed side zipper. I find it hard to believe that a stock that trades in the USA and Canada can in one month lose 50% of its value because of a slight miss in earning and its outlook. Why?

You have strongly recommended NUVEI for quite some time and I was hesitant after involvement with LSPD. However, when another reputable investment newsletter (with a very conservative outlook), recently recommended this loser (NUVEI), I decided to take the plunge and pull the trigger. Boom, down 50%.

My question is about warning signs. How can one detect such things in advance? Obviously, nobody did, but for company to loss 50% of its value in less than one month, there must be something? No insider selling (or buying) unless it was done another way. The insiders must have known that they were going to lose half of their investment. Maybe they don’t own much? No idea?

I think something stinks here.

Anyway, I am off to Sleep Country.
Read Answer Asked by Danny-boy on August 15, 2023
Q: May I please have your thoughts/comments on LICY (Li-Cycle holdings)?

Knowing that it is early days and the related costs for scaling a business such as this are expensive up-front, can you also please comment on:
1). Is there a market for their product?

2). What is their competition doing in comparison?

3). Is it somewhat of a moat business?

4). How long until the up-front costs of establishing the business begin to pay off?

5). What is inside ownership like?

In past questions related to this company you felt that it was too early to consider investing in the company. Do you still feel that way?

If so, at what point does it become a company to invest in? What are the tell-tale numbers that someone should be looking for?

Thank you very much!!
Read Answer Asked by Brian on August 15, 2023
Q: If you didn't have any shares in these companies wouldn't this be a good time to buy and slowly add over the next couple years. My thinking is CTS just has to go back to three dollars and your up 20%. They are buying back shares, dividend, huge ebitda etc. Board makes a few tweeks and sentiment and direction changes. I understand if you have a position to hold. Do you generally agree with the above.
Read Answer Asked by Steve on August 14, 2023
Q: Are any of these three buying opportunities right now? Any you would sell? Looking at a 3 - 5 year time frame.
Read Answer Asked by Alfred on August 14, 2023
Q: Sorry for another NVEI question.
In the responses on NVEI, 5i considers it a HOLD. I'm down 60% in a taxable account and will probably sell for tax reasons. My plan was to buy it back after 30 days.

What would it take for your recommendation to become a "buy" or "add to an existing position"? On the other hand at what point does it become a "sell"?

Are you considering the same "hold" status for the growth portfolio of will you be making changes with NVEI?
Thanks
Read Answer Asked by Marco on August 14, 2023
Q: Do we know which large customer did NVEI lose? At what cost?

We often see sell/buy transactions with no divulged details. Being naïve, shouldn’t the investors know these details, when they could impact the financials. Do analysts know more than we do? I’m aware we are talking private companies and their competitors, but it is a bit frustrating.

Thanks for your work.
Read Answer Asked by Denise on August 14, 2023
Q: I have LSPD at a loss in my TFSA. A two year chart suggest both NVEI and LSPD have dropped about 75% from their highs. With no tax loss benefit, is it worth switching to NVEI. (I am in no particular need of cash from this account for many years, if ever.)
Read Answer Asked by David on August 11, 2023
Q: Hello, i know you don't believe in averaging down but of these companies that really blindsided me on somewhat over reaction on earnings,which company has the best chance to bounce off these lows possibly like 10-20% up from here i am thinking could be possible which do you pick and why....thanks
Read Answer Asked by Greg on August 11, 2023
Q: According to the July 18 news release from CSU:

"The Company’s quarterly results will be disseminated via press release and made available on the Company’s website ( www.csisoftware.com ) and SEDAR, after markets close on Friday, August 11, 2023."

Is it normal for companies to release their results after market close ON A FRIDAY?

Politicians want to release bad news at the end of the day on a Friday, especially before a long weekend. So I am wondering if a company would follow suit by releasing bad news at the end of the week after the market closes.

I am not expecting bad news, but I can't recall a company like CSU releasing their results after the markets are closed on a Friday.

Your comments?
Read Answer Asked by Paul on August 11, 2023
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