Investment Q&A

Q: Redknee recently had an upgrade and your guest wrote in about it and you said they had received a new contract. Also NMX (Lithium). A guest wrote in about it and you said they had done some sort of financing. They both dropped off considerably (Redknee a lot more). Did something go wrong with them recently? Another question is a lot of shares are A and B and in the case of tech you take the B shares and Andrew Pellier - you take the A. So sometimes it is an A and sometimes it is a B? Going to squeeze in one more. What does guidance mean in your context.
Thank you very much, Dennis

Q: I own 1,000 shares of Savanna Energy Services at a cost of $8.60. Would it be wise to purchase another 4,000 shares to reduce my cost base? I understand its Australian operations is doing well. What is 5i recommendation on the company? There appears to be no previous questions on this company.

Q: Lightbridge Corp (LTBR) is a US company I am following. It is in the development stage of nuclear fuel based on a uranium/thorium blend to increase the efficiency of existing nuclear reactors as well as decreasing byproducts. This is interim to the next generation reactors. It has several patents in play. I have not completed all my research on this company and have noted its share price steadily falling.
What I have done a lot of research on is the potential of nuclear energy particularly for China and India. When one is investigating a company such as this and the time frame of testing a prototype is in 2017 with plans 3 years out for full implementation, when along this path is a logical place to take a small position. Having asked this question though I am cautious and have more to learn about the company specifically.
Thanks
Lou

Q: I was wondering if you could elaborate on the concept of a "short attack". It does not specifically have to apply to Concordia. From past discussions, I know that individuals or companies that short a stock may then proceed to discredit the company through planted stories, innuendo and maybe even spread outright lies in order to create a lack of confidence and thus benefit as investors sell the stock, causing the share price to drop.

But is that the extent of the "attack"? Can short sellers manipulate the stock in other ways? People often ask what the short position of a stock is. Why is this important? Is it just to see how many other investors think they are wrong about the stock, meaning the psychological impact of a large short is what is at play here, or is there something else?

Appreciate yoru insight.

Paul F.

Q: HiPeter and Team,
Avigilon' share price keep droping every day since Jun 1st from $14.6 to $12.9 this morning. Is this good time to buy this stock if not own currently? Do you still give it a "B" rating?.

Thanks

Q: Is the etf VE okay in my cash savings (taxable) account? There is no more room in my TFSA.
Based on my research, the inception date for FEZ is Oct 15, 2002. The inception date for VE is June 30, 2014. Loblaws became buyable on the stock market January 18, 1956. What is the similar date for GUD? From, Patti.

Q: It looks as if the Williams Cos mess is coming to a close, but which option to choose? I have 200 WMB in my RIF. I am thinking the cash option would be best and then to buy a U.S. stock with potential. You thoughts please and suggestions?

Q: I was wondering if you could comment on the results of Wesdome's recent AGM, and on its performance today. As you may be aware, there were several serious concerns voiced by the majority shareholder in advance of the meeting. If you are not familiar with the company, I would ask that you review both the following releases before commenting:

http://www.wesdome.com/wp-content/uploads/2016/05/Wesdome-PR-AGM-and-Resolute-Response-v11clean.pdf

http://www.newswire.ca/news-releases/resolute-performance-fund-expresses-significant-concerns-with-the-operation-and-management-of-wesdome-gold-mines-579624291.html

If you do not feel comfortable commenting on this company, and/or speaking about your viewpoint of the results of the recent AGM, please let me know. In any event, I look forward to your response. Thank you very much.

Q: Would you have any views on this Company, is it too risky to buy? Thanks

Q: Dear 5i,
I notice everyone from kids to seniors love wearing sketchers shoes. I read that the company is expanding internationlly. The share price is way off their 52 week high. Do you have any insight into this company and do you think Sketchers is a buy at this time?
Thanks,
Kerri

Q: Hi 5i team,

My interest is first time dividends as a trigger for an initial purchase. This based on Peters article in Moneysaver magazine many years ago.

I follow the 5i Twitter Feed to watch for dividend news (raises and reductions), but especially for news of first time dividends.

Womder if you have considered providing a summary of first time dividend stocks (an ever-increasing list, or by quarter, year, whatever) ? I would really value that.

Thanks for the great service.

Q: Which is cheaper, which has the best growth and which has more insiders owning shares: stantec, snc, are or Wsp?

Q: I have found various definitions of Small Cap.
Please tell me what size you consider a small cap, mid cap and large cap.

You are the best!

Q: Considering purchasing but wondering if the price at these levels is too high???

Q: Hi- your analysis of the recent deal please. What is the debt post the raise? What is the growth rate and payout? Thanks

Q: With the recent new issue at $4.54 would this be a good time to start a new position as my reit exposure is minimal. What would be a good percentage amount in my portfolio.

Thanks Peter

Q: Hi 5i,
BTB REIT (BTB.UN) just announced a $30M unit financing at $4.55 (about $0.20 below recent trading prices) for the purpose of redeeming all of their series D debentures. Can you explain the strategy behind this move (replacing a debenture interest obligation with a unit distribution obligation) and, in your opinion, does it make sense for BTB? Thanks.

Q: I find your answer to the question on couche tard being down the last 2 weeks off the mark.
If they make another purchase and have to do a fund raise would not that be a good thing-- accreditive to earnings, cut costs etc etc, is not that the way couche tard became so successful in the first place.
What am i missing. Dave

Q: Hello, is it better to hold CSH.UN in a registered account (RRSP / TFSA) or in a non registered account? Is Chartwell's income in the form of dividend or interest or both? Thanks, Gervais

Q: Hi Guys,

Can you speak a bit about the adjustments that CXR has been making to its financials? Is this accounting gimmickry? Is the underlying business sustainable without these adjustments?

My thinking is that these acquisition-related adjustments can't be made forever, so won't reality of low unadjusted earnings one day set in?