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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: Any chance this company turns things around over the next 2-3 years ? I had a small position which is now tiny. Do you usually recommend to move on in these situations.

Also, i was reading stock options are offered to management at $0.48 , is it common practice for a company that has been doing so poorly. Does not feel right for investors who have paid way more. Thank you !
Read Answer Asked by Pierre on August 18, 2016
Q: I hold CFL in a registered account mainly for its dividend (currently 11%). Bought it at $3.00 and was doing well for a while, but is now down 27% from my cost. Recognize it's a small cap with some revenue coming from the oil & gas sector, so not without its risks. The recent quarterly report didn't seem too bad, though recognize that's looking backward. The stock has recovered a bit today, up 4% as I write.

At today's price, it represents about 1% of my total equity portfolio. Do you see the stock price recovering eventually? Does the dividend appear sustainable? If yes on both questions, would it be worthwhile (or foolhardy) to top my CERF holding up to 1.5%?

Thanks as always for your sound advice and terrific service.
Read Answer Asked by Thomas on December 02, 2014