Investment Q&A

Q: Hi Peter,

How do you see the hedge funds unwinding their position? All the data says that there is still over 100% short interest.. if "the people" don't sell and keep buying it will drive the price/daily margin calls higher and higher until they are bankrupt (and they are already probably close due to the $2.75B injection Melvin had to get, which was before the price was as high as it is now and is probably all gone).

But if they start unwinding the massive short position it will just squeeze them harder. Am I missing something? What do you think their plan is here? Are they all calling each other saying "don't unwind we need to hold off?" Seems like a big game of chicken and the masses are not backing down - people were already pissed off before hand, but I think people got extremely enraged on that day the retail guy for restricted and could only sell but the hedge funds could trade freely.

I think they were already on the brink and it would have been game over if robinhood didn't restrict trading that day last week. But even now they only allow 1 share to be bought. If it wasn't for the restrictions "the squeeze would have be squoze" they say! What do you see as likely scenarios for this ending?

Q: Please tell me about this situation

Q: As it says no trading commision Does it make sence to switch to them?
Are they insued for clients money.This is not stock related but most of Us will benefit
by Free trading.
2.Is it because of GME and others that Hedgefund is selling stocks and driving market down.Please advice us how to protect us from big losses from current wild fluctuation.

Q: Hello 5i

Could you please let me which option below you’d select and what would be your favorite dividend grower with stock appreciation to add new money to? BCE is yielding 6% and is either

1. A great gic as it pays a solid 6% return but business is flat and will not grow.

2. A shrinking business and will lower in value going forward.

3. A growth and income stock that provides a great yield, continues to increase that yield and will growth the business business (worst days behind it)

Q: How long of notice do these short squeezed companies have to give to issue new shares and shore up the balance sheet? If AMC was to issue new shares at the elevated price it would be a win for them. I see executives are cashing shares in - why not? I would.

Q: Hello Peter,
What does the acquisition do to the stock price in the short term? The share count nearly doubles. Do the newly minted shares lead to some selling pressure specially by the new owners or the promise of future drive the price higher immediately?

Q: I have small holdings(less than 1%) in WELL and CHR. Would it be best to consolidate both into one stock? If so which one is the better one to have.

Q: Is there a stock issue/dilution as part of Sangoma’s latest purchase. I would be interested in buying any of a share issue but can’t locate any details. Can you gauge the SP reaction when it resumes trading?
Thank you

Q: I’ve heard that the costs to borrow shares for shorting purposes have gone from 29% to 50%. I’ve never shorted shares before and was curious if this was an annual percentage fee.

Q: Janet Yellen - Federal Reserve - talking about taxing unrealized capital gains - year after year even if you have not sold. Your opinion on this. Now that everyone including young people I know are getting information through Reddit and buying all these risky plays, i.e. Koss, and Gamestop are making a lot of money for new people in the market. Will there be enough to go around for people who just want to buy safe stocks and hold on to them for a period of time? Most of my stocks in this area have gone a fair amount over the past while, whereas these highly promoted risky and shorted stocks - seemed to be skyrocketing and more money will gravitate to them. Your opinion on that?

Q: Do you anticipate that the price of silver and silver miners will get flashmobbed this coming week such that silver will rise to at least US$30/oz?


Thank you.

Q: hi 5i team

2 beginners questions about options

Question 1; This may seem like a silly question. I owned 300 shares of FLGT for a while, then I sold 3 july calls at 47.5 Now the silly question is, when the call expires, do I have to give specific instructions to the brokerage, or do they just see the 300 shares in my account and automatically sell them at 47.50 ? (since I did not place both the buy share order and sell call at the same time).

Question 2a and 2b: For the sake of the question, let's assume a zero bid ask spread. From what I see in the quotes in my account, and suppose the call was to expire at the same prices tomorrow, then I would be better (by about 1000$ US) to buy back the calls and sell the shares at the current prices then to let it execute ! I am surprised by that, any comment you can make, does it seem normal ?
Question 2b: then IF I thought the price of the stock would keep going up, it would be better to close out the position now.
many thanks

Q: The typical suggested portfolio size seems to be about 20 stocks. Your portfolios are constructed at about this size. Why?

Why not a larger assortment of stocks/ETFs/etc...? Perhaps a limit of $2000 (or whatever) per selection could be made and each sector would then be represented and diversified within. Would not this mitigate risk while still providing opportunities for gain?

Q: From what I understand this company is going public in February. Apparently it has been in business since 1973, and is a leader in supplying plastics to the car industry.
Do you have any information about this company, its team, and its past performance??

Thank you
Steve

Q: The IPO for ABC Technologies is upcoming and it is still open for expressions of interest. What are your thoughts on this company based on the prospectus?

Q: There are a lot of small to medium sized Canadian technology companies, some of them fairly new to the stock market, that have seen very good stock price appreciation in the last year or two. Many/most of these companies are not profitable, and obviously this is a fairly speculative segment of the market. Today, I heard Darren Sissons talking about JDS Uniphase which went from $2 to $1,000 and back to $2 in the tech bubble 21 years ago. I'm wondering about how many of these small to medium sized Canadian tech companies might suffer a similar fate, and how many will succeed. Of the following list of stocks, what would be your estimate for the % of them that will succeed 5 - 10 years down the road at becoming long term successful businesses, with strong profits and a substantially higher stock price than now, and what % will fall by the wayside, failing to become good profitable businesses, and seeing their stock price drop off substantially. There are no doubt others that could be included in this list, but these are the ones I have picked out. Not asking which ones will succeed, just trying to get an idea of general potential for success/failure for this type of company/stock. ADCO, AT, CTS, DCBO, DND, KSI, LSPD, MVP, NVEI, PHO, QUIS, STC, WISH.

Q: Hi Guys,

I would like to add one more eft to my balance (75%) and growth (25%) portfolio, what would be your top North American pick for a 3 to 5 year hold? I already hold Arkk 3%, Dxg 7%, Arkg 2% and Tan 3.5%. Or should I just add to one of the ones already inside my portfolio.

thanks
Jim

Q: Can you recommend an ETF that covers the green energy industry - particularly solar and hydrogen. Thanks.

Q: Hello,

Can you please provide your thoughts on CHAR Technologies Ltd.?

Thanks!

Q: Is there a Canadian Co. that might benefit from the proposed Infrastructure spending that U.S
President Biden is planning for the U.S.? Would this Co. have to be listed on both the Canadian & U.S. Exchanges? I want a stock that qualifies for the Canadian DTC. I find BIP.UN & BIPC a bit baffling. Last March, BIPC was created & I thought it was supposed to mirror BIP.UN but as of last Friday there was a $20 difference between the price of the two stocks. When I look into BIPC which I would prefer because of the DTC, most of its holdings are in Brazil & the U.K.
Thank you: Jerry