Investment Q&A

Q: Hello 5i
I have been selling options on the US stocks that I own to make a little extra money. IMy question has to do with buying back the option. I think what I do is ok but I want to check with you in case I am missing something. If I decide to buy the option back before expiration date, if I have a feeling that the stock price has a good chance of continuing to rise.

I check to see how much I made with the premium and combine that with the difference now between the strike price and the current value of the stock.. For instance, Costco at a strike price of $460. The stock is now $477, for a difference of $17. Then I check how much it will cost for me to buy the option back. In many cases, I will get pretty close to the original premiums,, say in this case, $210 rather than $250. Then I can sell another option. The only downside that I can see is if the stock price should decline after buying back the options. I would only do this, of course, with stocks that I wanted to hold anyway. Any problems here?
thanks for you service

Q: Hi
Just read you market update and wonder if you could give your best recommendation for a semi conductor play at present and do you think this would be a good time to step in?

Q: Hello Peter,

I am learning how to build a position and would like to know how one should go about it.
In this case, I waited nearer to market close to buy AMD. As the price kept going up relentlessly, I decided to buy half a position.
I was aware that it was near the 52 week high and that it was going to report after 2 trading days. So the chances of the price retreating before that was not going to happen. Am I correct to assume that?
And now for buying more to complete my position. Should one do it immediately tomorrow, the next trading day or should one wait for the earnings report and buy once the trend is confirmed?
Thank you in advance.
Regards
Rajiv

Q: Good day. Could you please clarify the Sundial offer for me. I am up quite a bit on CLIQ and wondering what to do now. Thank you.

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?

Q: DWAC, DWACW Would you please give your opinion on these two stocks, what is the relationship , how do you feel about them
thanks 5i,

Q: I am puzzled by their recent $75m bought deal when they have such a large amount to come in. Any thoughts?

Q: After a seemingly sunny day today (OCT 21) in the market -- including for each of the stocks listed -- something must have happened after the trading day ended. Tech stocks especially dropping into the red in After Hours trading. FB almost -6%; TTD -5%; APPS and ROKU -3% each. And those are just the more noteworthy ones. I cant seem to find any mention (as yet) in the press. Inquiring minds would like to know. Thanks.

Q: Not sure of the rationale for PayPal buying PINS. A $45 billion price tag seems like a lot considering they could of done a partnership instead. A merger that lacks strategic vision is a great way to destroy shareholder value…just ask Time Warner/AOL. Although it is preliminary what are your thoughts? As a long term PayPal shareholder should I sell and buy Square to hold for the next five years? There are no tax or risk considerations just a straight swap to change horses.

Q: What caused Energy Transfer stock price to fall today? Whatever it was do you see it as a red flag?

Q: Hello. I would appreciate your opinion about the merits or otherwise of investing in CDRs as a way for Canadians to hold an interest in US stocks - particularly the high value tech stocks. Is there any particular risk in trading through the newish exchange offering these investment vehicles.

Q: With all the speculation about major dividend increases once restrictions are lifted, would investment in banks be a good short term strategy (hoping for a boost upon announcements), or has the expectation already been cooked into current prices? Any guesses as to who will announce the largest increase?

Q: Dear 5i
I suspect paypal is declining of late due to the potential PINS deal . Should i continue to hold it or is there reason to sell ?Do you expect it will bounce back ?
Also CROX has been strong the past few years . In an otherwise balanced portfolio would it be a good addition either in a TFSA , cash account or RRSP account ? What growth rates is CROX expecting over the next 2-3 years ?
Thanks
Bill C

Q: Your article today state the the 3 best sectors to benefit from current supply constraints are Raw materials,Industrials & Financials.Please provide a few best names from each of the 3 sectors to invest today.Txs for u usual great services & views

Q: I have a couple of stocks which have effectively gone to $0 a couple of years ago. But, I'm not sure why they're still listed in my margin account, if they're worthless.

My broker is offering a service where I can donate the shares to them, and then officially declare a tax loss. I'm thinking of taking them up on this offer, but I want your opinion, just in case either of these stocks still has some life left in it (or if I'm not understanding the $0 valuation properly). For example, the assets of Bellatrix Exploration (oil and gas) were taken over by another company. I assume this was some kind of bankruptcy sale.

Is it safe to say that with a reasonable probability that the shares of both Bellatrix and Distinct Infrastructure are effectively worthless?

Q: Hi
with inflation rising what sectors should we consider being in and which should we avoid

Thank

Q: Hi 5i Team - Are there any Canadian companies in the semi-conductor space that would be of interest to you, including start-up companies, suppliers of materials, and any potential companies on the horizon. I sold my shares in Photon Control some time ago and am looking for some kind of replacement on the Canadian side. If the U.S. is the only way to go in this field could you please suggest a couple of top picks. l already have Nvidia. Thanks.

Q: Hi 5i Team, Huge bump in volume today for the thinly traded SYZ.
Can you tell who is buying? Also, where do all the sellers come from when the volume is 20 or 30 times daily volume?
I take it this is a good sign to see the price moving up on a huge volume move.
Would you be a buyer in here?
Rob

Q: Can I please get your view on Ibio? I can't find the symbol here.
Thanks

Q: Is it time to get into cyber currencies and how would you suggest investing in it?