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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: Hi 5i
Been looking at XBC to add as it consolidates.

During my review I found something unsettling and since I can not get the sound to work on the earnings webcast, I can not confirm whether someone asked about this or not.

It has to do with the margin squeezing contracts that are restraining profitability. In the most recent commentary the CEO includes the words "long-term" when referring to the contracts and indicates margins to recover in subsequent quarters.
He never referred to the contract as long-term in previous communications.

It was my belief the negative contributing contracts would roll off in a couple quarters - not many. The statement leads me to believe there will be a longer effect than just a couple quarters.

Do you have a sense of run-off period?
Do you know if anyone asked about the run-off period length?
Was "subsequent quarters" more clearly defined in the Q&A?
Given the new size and make-up of the company, is the magnitude of negative contracts worth concern?
5i has indicated investors should not average down on this name at this time. What is it that will change your view on this position?

Thanks
Dave

From CEO Current Market Outlook (Q2 2021 Earnings)
While consolidated gross margins continue to be impacted by the previously announced loss making long-term, production-type RNG contracts, the company expects that this impact will be tapered down in subsequent quarters.
Read Answer Asked by David on October 06, 2021
Q: Down 30% in AT with an original 2% investment. I don't like to sell into negative momentum especially with a company that has solid growth prospects, and no negative news or issues. I need your assessment. What could turn the price momentum around to positive? And how likely is this to happen in the near term. I don't want to hold this stock down below $6 per share. I could sell now and repurchase later. Any additional thoughts please.
Read Answer Asked by Robert on October 06, 2021
Q: sold all my lspd when short report came out.
i agree with you 100% that cramer is in the entertainment industry, i also think he is a little off upstairs but he is extremely bright and a very hard worker.
my question is why wouldn’t dax disilva go on his show and answer each negative in the short report-if there is nothing to hide this could only benefit the stock and remove the monkey on lightspeeds back. it makes no sense and something does not add up.i value your opinion .dave
Read Answer Asked by david on October 06, 2021
Q: Are there Healthcare ETF's in Canada and in the U.S. that you might recommend? Thank you.
Read Answer Asked by Peter on October 06, 2021
Q: Hi Team,
I am holding the following stocks at a loss. BABA (-52%), MED (-30%), TT(-4%),EGLX (-33%), MG (-8%), SWKS (-20%), U (-1%), PINS (-33%).

My question is, should I continue to hold the line with all of these? Or are there any that stand out to you as being better off to sell and swap out with a different holding of which you suggest? Or any of these I should be selling, and adding to another one of these? I thought perhaps after yesterdays sell off there might be some moves I should be making. (Although the market is already recovering nicely today on alot of these names). Suggestions here would be appreciated. Thanks!
Shane.
Read Answer Asked by Shane on October 06, 2021
Q: Hi team,
I bought Verizon two years ago in expectation of a stable price and a good dividend. Two years later it is down 11% eating up the dividend and leaving me essentially where I started. Would it make sense to sell VZ and use the funds to buy IBM which has a similar dividend and perhaps some growth potential? I can also claim the tax loss on Verizon.
Read Answer Asked by Ken on October 06, 2021
Q: Peter and His Wonder Team
I know they have extended there bankruptcy protection until the end of January 2022. They also reported improved earnings after closing 27 stores. So the stock has jumped today. So your opinion please...I thought they were dead in the water and my stocks were worthless. Is there any possible further improvement or should I sell while I have a chance? Thanks...your opinion is always helpful.
Read Answer Asked by Ernest on October 06, 2021
Q: NO PROFIT... NO PROBLEM...

This is a story in the Globe and Mail dated Sept 25th 2021. The article made all lot of sense and there seems to be a disconnect with growth at all cost with no profit. Maybe this is how things are done just look at how our government is run.

I don't have a specific question to any of the companies mentioned above but with LSPD in the news lately maybe it will apply. I know there has been a short report put out on LSPD and from some of the comments that I am reading from 5i that they are false.

My question is how do you know?

We don't know the real workings of a company and what we get from them is what they want us to hear. Take for example XBC, that wiped out all of value from investors because we didn't get the correct information from Management. It's what they wanted us to hear and we believed them.

I think there should be some healthy skepticism with regards to what Management says and does and investors should take away that capital preservation is paramount.

If LSPD or any company that gets shorted and can't explain the reasons for the discrepancy in a respectfully dialogue then maybe there is some truth to it but like I said we don't really know.

Who is right? The short trader or the Stock promotor?

Until we get all the information it will always be Buyer Beware and don't fall in love with any stock.

Sincerely.
Read Answer Asked by Richard on October 06, 2021
Q: Currently have a 17% position in financials including the above. Giving the current outlook for interest rate, would you consider this position to be favourable. Why or why not.
Read Answer Asked by Roy on October 06, 2021
Q: I have a U.S. RIF account with TD Waterhouse (Webbroker). I have requested that they transfer the monthly payment from this RIF account to my US Margin account. I am concerned over currency exchange issues.

Here is what they do - in January, they use my Dec. 31st RIF balance and "convert" it to Cdn. Dollars to arrive at a Canadian Monthly Withdrawal. Then each month they convert this Cdn. amount to U.S. dollars & then transfer to my U.S. Margin account.

I have challenged them on this, but they insist these are the Gov't RIF's rules?! (I do not have a Cdn. RIF account with them.)

Would you comment on this - thanks.
Read Answer Asked by Ross on October 06, 2021
Q: Hello. Comments on this new Venture traded company? Revenue, growth, insider ownership? What do you think of it’s overall business?
Read Answer Asked by Robert on October 06, 2021
Q: Could you please explain the difference between Brookfield's common and preferred stocks which explains why they perform so differently? According to the Globe and Mail:

BAM.A is up 29.84% ytd, down 4% in the last month BAM.PR-R is up 39.63% ytd, 97% in a month BAM.PR-K is up 45.37% ytd, up 7% in thirty days. BAM-PR-G is up 58.55% ytd and 8.26% over the last thirty days.

Why would these preferred shares be moving so much higher than BAM.A itself? Do you expect this to continue? If so doesn't it make sense to buy the preferred shares? If so, which of the series would you buy?
Read Answer Asked by John on October 06, 2021
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