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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: What is the obligation of a publicly traded company in regards to revealing new contracts? Can they wait to the next quarterly report before revealing it? If they wait for the next quarterly report, does it mean the insiders are under a blackout period?

A million dollar contract for a big bank has no significance on its share price, but for a small company like Reliq, it could move the share price. Could you comment?

Read Answer Asked by Gilles on February 06, 2019

Q: I have been investing in the market for 45 years now, many wonderful gains and some 100% loses, example Worldcom(fraud), ask Bernie to confirm. From all my major loses i try to learn something that will help me in the future. I was surprised that you bought into the stock when it was already up a lot and was really pumped by a couple of guests on BNN. My concern with this company was that it was doing nothing new and was competing with major health companies in the US that had market caps in the billions. If this was not some new major new mousetrap, the headwinds for this tiny company were just too risky. Did 5i get caught up in this hype on BNN and the canadian market rise so fast, and in the end, what did 5i learn from this type of investing in the future?

Read Answer Asked by eugene on October 30, 2018

Q: In your reply to my previous question you mentioned you thought Reliq Management had misrepresented revenue. My understanding was that the items to be restated comprise part or all of the Accounts Receivable as reported end of March. Is it considered misrepresentation when A/R turn out to not be collectible do to an unexpected non-reimbursement? It doesn't seem as bad or the same as when Nortel was misrepresenting, booking sales in Texas that had not actually occurred. Any detail you can provide on how analysts view these kind of snafus is appreciated.

Read Answer Asked by John on October 19, 2018

Q: Just as a follow up to my previous question and a comment I am sure is on many members mind. I see that RHT is up a bit today after the call. Maybe a dead cat bounce who knows. The dilemma in selling at a 75% loss is that I do not get the tax loss as its in my TFSA. I imagine many members are in the same predicament. What little is left in the security, will make such a small difference in the overall portfolio, I would rather hang on and hope that your first impression of the Company was correct. Not sure my mentality is appropriate here, but I would rather take the lesson and hold, than to sell and then see it go back up.

Thoughts?

KC

Read Answer Asked by Kelly on October 18, 2018

Q: With all the talk of an admittedly bad mistake (at best) by management, what has happened to the technology? Didn't you believe in iUgo and the accompanying smart phone app and the jump this company supposedly had in producing a superior remote monitoring product for chronic care patients? But they bruise their heals because they didn't understand CMS billing well enough and, oh well, so much for that technology? Is it great technology or not? Will it save government health care money or not? If it will, then surely CMS will come around and recognize this and eventually reimburse for the service, no? This all just seems odd that one day you're touting this company as having the one of the best technology stories in the health technology space, and the next they are a dog because they made a mistake. Is there no room for growing pains for a start up?

Read Answer Asked by John on October 18, 2018

Q: Iím sure that youíre as upset as the members about RHT. Iíve made money with your service and am very happy overall especially because in this case I stuck with your weighting recommendation.

This is a question regarding why you put RHT in the balanced portfolio? Hindsight of course is 20/20 but as a growth play, it probably should have been in the growth portfolio. If it were, many the members might be a little harder on themselves rather than you folks.

Read Answer Asked by Gregory on October 17, 2018

Q: In my TFSA my strategy was to anchor this portfolio with blue chip positions which had worked to achieve my initial goal of making a steady foothold in the market. I then decided to add a few growth positions to see if I could improve the return on the portfolio. The only one in positive territory is PHO up 10%, do you think as a strategy this has the potential to work or not,also do you feel that ECN & TGSI have the potential to thrive in the future I'm down 10% on ECN & 36% on TGSI. I do not intend to draw down from this TFSA so I can wait. I know the answer on RHT

Read Answer Asked by Thomas on October 17, 2018

Q: As a new DIY investor following the Q&A on RHT about to adopt a position, today's news is intriguing. An experienced investor friend tells me that penny stocks on the Vancouver exchange should be avoided due to increased likelihood of fraud and "pump & dump" schemes. It seems the CEO and one of her execs have a history of starting tech companies with government subsidies, taking them public, then bailing. How can we avoid these "games"? I'm assuming your own research process aims to identify frauds in the making. Thanks

Read Answer Asked by Michael on October 17, 2018

Q: On the financials that came out May 30th 2018 (9 months ended Mar 31 2018) it indicates that RHT billed $2.27 MM in revenue.
It also indicates an increase of total receivables of $1.95 MM, from $34K to $1.99 MM total.
At the time of these financials (May 30th), could this have been construed as a bearish signal, given that 86% of the total recorded revenue ($1.95 MM/$2.27 MM) was as of yet uncollected ?

Read Answer Asked by Mike on October 16, 2018

Q: As a member of 5i since 2013 I have used your wise logic as one of the tools to help me position my portfolio. I have had some Major wins with your help, but this has been a gut wrenching experience and I have learned the hard way that keeping a reasonable weighting of any one stock is of paramount importance. I let RHT get too large a weighting and believed in their product as a way to help people. It concerns me that you used the word 'fraud' in one of your previous replies.
I have now reduced most of my position to a very small weighting and am reviewing selling it all.
I have a position in COV that is a full position. It is a bit weak of late but I think that is due to the Saudi Arabian rhetoric and is a temporary blip.
Would you consider VMD to be a good replacement for RHT.

Thanks for all your solid advise in these turbulent times.

Peter

Read Answer Asked by Peter on October 16, 2018