Investment Q&A

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.

Q: Any reason for the uptick in Mission Ready today?

Q: The new additions to the growth portfolio appear very conservative. Especially after past picks such as xbc, qst, and mrs. Has the methodology of the growth portfolio changed? Big bounce potential? STN is near ath.

Q: I have several small cap stocks which are significantly down in 2022. I need to harvest some tax losses. Can you rank these in on a scale of 1 to 10.....#1 being "Sell for sure", and #10 = "speculative hold for possible recovery".

Q: Hi Peter, I've had this stock since Apr. 2021 in my TFSA. Is it worth holding even with the new contract it just received with Massif or is this a sell. Thanks, Nick

Q: In a recent answer you mentioned there are better microcaps to own than MRS. Can you suggest 2 or 3 that are equally as beaten down but that have much better potential over the next 24 months or so.

Q: you answered a question on mrs today. I recall this name as you brought it to members attention probably a couple of years ago. you seemed to rate it as an excellent speculative buy with good growth potential. based on what you mentioned today about the company, I don't understand why it was mentioned in the first place. it seems like a poor company with poor metrics. do you regret hi-liting the name. would you rate it a sell today.

Q: Hi 5i Team - Could you provide an update on Mission Ready Solutions. How much cash and how much debt does it have. In general what is the state of the balance sheet - can it weather a continued downturn. Could you also comment on insider trading and potential going forward. Thanks.

Q: Wondering if your thoughts have changed on this one. Given the horrors in the Ukraine, one might have thought anything related to defense would have sky rocketed. What will it take for MRS to take off ?

Q: When does mrs report next. What's expected and what is needed to move the stock. Apart from the last large contract (up to $200m), has there been anything else of significance reported?

Q: Hi
I am having difficulty knowing when to cut my losses and sell my shares or hang on and hope they go back up. Can I please have some advice regarding when to sell shares at a loss? I have included my four biggest losses and wondering if I could get some advice on which of the following I should cut my losses and sell.
Thank you
APLI purchased in Sep 2020 for $1.21, now down 90%
DYA purchased in Feb 2020 for $1.23 now down 80%
MRS purchased in April 2021 for $0.65 now down 56%
FVI acquired for $6.90 when Fortuna Silver merged Roxgold (ROXG) jul 2021 now down 40%
Thank you

Q: A 60 % move on one contract announcement! For the stubborn investor like me that held on, is this the catalyst for a turn around? Thoughts please moving forward.

Q: Hi 5i Team - I am ready to sell Mission Ready but when selling a losing stock I prefer to replace it quickly with a similar company, in this case not necessarily in the same sector but with a similar market cap along with with better fundamentals and better growth profile. What would be your suggestion(s) be for a replacement. Thanks.

Q: Suggestion for 5i. Please be more careful in what stocks you feel will move up in price and raise to your customers' attention.
I see that MRS has fallen like a rock since 5i spoke so highly of it back I believe in April. A mere 7 months ago the stock was 70 cents and now under 20 cents. When 5i first touted the stock, I found it odd as it didn't seem all that solid a company for the long term, something that 5i keeps reminding customers about. MRS had won big government contracts but much was related to the pandemic. What would it do for an encore after the pandemic? I was lucky I guess and chose to pay little attention to it but I'm sure others didn't and had to take a loss. It's on us (customers) to due due diligence and decide what seems like good investments. But I expect 5i to raise names to our attention that fit a long term strategy and aren't get rich quick wonders. I supported the 5i decision to strongly caution against getting involved in the early days of cannabis stocks.
Keep up the good work, thanks

Q: Can you please comment on earnings?
Thank you

Q: Hi Team,
I sold MRS at a 66% loss in my TFSA. Should I put the leftover money towards PINS, EGLX, PLTR, LSPD or WELL? Please list in order or preference. Or should I wait in the new year with the additional funds that I will add?
Thanks

Q: Hi,
Would you know when is MRS reporting and what are the expectations?
Thanks

Q: Peter and His Wonder Team
Not sure what to do with MRS...hold or sell. I am a patient investor. Please give your current view. Do they have any earning potential in this environment? Fair to give them a couple more quarters? Thanks, your views and info is always valuable.

Q: I looked at the archived Q+A on MRS and see it's on a "short leash" in the growth fund.
Looking at the high level numbers, revenue is 141m but market cap is 44m? Seems like every other growth stock is the inverse of this. Would this not be a great take out candidate assuming someone does not own majority of shares? Even so, would seem to be a great take private candidate? What am I missing with this picture?

I am considering a small position as a flyer but wanted to hear your take one more time.

Many thanks.

Q: In the growth portfolio you bought REAL for $12.95 and sold it, per your Oct 12 update, on a day when the highest price it traded at was $9.81, locking in a 24% loss. If you "like the industry and the company's fundamentals continue to look decent," isn't this a classic case of "buy high, sell low" when nothing but sentiment has changed in the company's long term outlook?

Analyst consensus EPS is $0.47/share in 2022 and $0.56/share in 2023. If such earnings materialize, this would be 19% growth in earnings for a company with no debt. I know it's a big if, but if REAL does achieve $0.56/share in 2023, traders selling it today would be selling a stock with estimated 19% growth in earnings for only 17 times 2023 earnings. What am I missing?

I took a quick look at the 5I Growth Portfolio and found that a couple of your big losers, QST and MRS, are bigger losers than REAL and have no earnings and/or none forecast. Why not sell these instead of REAL?