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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: I've been doing some calculating...

Currently Canopy growth has about 40M in sales on 58,000 registered patients out of a possible 208,000 - that's about 28% of the medical market.

A recent CBC poll came up with about 8 million recreational users in Canada that would potentially buy pot once legalized. Given Canopy Growth's market dominance (and many other factors) it's not hard to see their sales topping $1 Billion/yr. within the next 5 years.

My questions: Would Canopy still be considered over-valued at their current market cap if their sales were $1 Billion? What's the minimum you would expect a company's market cap in the recreational marijuana sector to be if it had sales of $1 Billion?
Read Answer Asked by John on September 15, 2017
Q: I bought WEC.us a couple of years ago, thinking of it as a bond proxy. WEC appreciated modestly in value this past year. I just looked at updated financial metrics and WEC struck me as expensive –but I am not sure.

Is WEC a good proxy for bonds? Should WEC be sold and a 'growthier' name bought? For this question ‘growthier’ mean to me means a security that is expected to have reasonably good dividend growth, consistent with industry, interest-rate and other risks.

If, in your opinion, there are other, better bond proxies, I would be thankful for your suggestions. US and ‘Europe ex-UK’ preferred but I am also open to Canadian names you care to suggest. (If you want, disregard tax aspects. The Cdn and US Governments own 60% of me; I finally accepted that resistance is futile.
Read Answer Asked by Adam on September 15, 2017
Q: Hello 5i,

Would you have interesting companies on your radar screen that are either in the renewable energy, water, or waste sector that would be eco friendly?

Please exclude BEP.UN AQN, BLX, and INE.

(aware of market cap risk and sector risks)

Thanks!
Read Answer Asked by Elliott on September 15, 2017
Q: no comments but a good laugh
For What It's Worth... I thought I switch things up a bit today, since its a Fantastico Friday! A few weeks ago in the Dow Theory Letters I wrote about the trend that's taking us to a cashless society... And one reader sent me this response, which if it weren't eerily what I was talking about, would be funny... So here it is... enjoy!

Hello! Gordon's pizza?
- No sir it's Google's pizza.
- So it's a wrong number?
- No sir, Google bought it.
- OK. Take my order please.
- Well sir, do you want the usual?
- The usual? You know me?
- According to our caller ID, in the last 12 times, you ordered pizza with cheeses, sausage, thick crust.
- OK! .
- May I suggest to you this time ricotta, arugula with dry tomato?
- What? I hate vegetables.
- Your cholesterol is not good.
- How do you know?
- Through the subscribers guide We have the result of your blood tests for the last 7 years.
- Okay, but I do not want this pizza, I already take medicine.
- You have not taken the medicine regularly, 4 months ago, you only purchased 30 tablets at Drugsale Network.
- I bought more from another drugstore.
- It's not showing on your credit card.
- I paid in cash.
- But you did not withdraw that much cash according to your bank statement.
- I have other source of cash.
- This is not showing as per your last tax form unless you bought them from undeclared income source.
- WHAT THE HELL? Enough! I'm sick of Google, Facebook, Twitter, WhatsApp. I'm going to an Island without internet, where there is no cell phone line and no one to spy on me.
- I understand sir but you need to renew your passport; it expired 5 weeks ago........

from the daily pfenning
Read Answer Asked by claude on September 15, 2017
Q: I have been out of the oil and gas markets for quite some. I am still not convinced the sectors will have a "sustained" up move. Perhaps a decent trade but a trade it is as it seems to be with all commodities. Do you think it is foolish to be zero weight in this sector? If so, what minimum weighting would you suggest. I have looked at BIR and would be comfortable buying it if my arm can be twisted enough.
Read Answer Asked by Bill on September 15, 2017
Q: I am overweight Tech, as well as a high allocation in small cap. With no Utilities or Telcos, I think selling GPS and ITC to buy ENB would be a prudent move. My problem is usually being prudent has cost me, over weight and high allocations has served me well for the most part, I'm sure I'm not alone here. Thoughts?
Read Answer Asked by Charles on September 15, 2017
Q: Hi Peter,

Do you know of any companies where the stock price has tanked recently and due to solid fundamentals/management/cycles/etc you would hope to see a dramatic recovery? Basically, I'm looking for good companies with a great risk to reward ratio, for a 1-2 year hold....any Canadian stocks and maybe even a few US ones.

Thank you.
Read Answer Asked by K on September 15, 2017
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