Investment Q&A

Q: Gentlemen

What are your thoughts about Scandium International. The company has a large scandium deposit in Australia which was last week just approved for a mining licence. My understanding is that scandium is a rare earth metal that when partnered with aluminum creates a much stronger alloy that still retains the lightweight aspects of aluminum on its own. My quick investigation sees this as having a number of applications in both the aerospace and automobile industries. I looked at their website but see that this is still in the pre-production stage as there is no revenues but I can see this having great potential especially for fuel savings in the era of climate change. Do you think a position on spec is okay or is it still too early to get in at this time.

Regards
Robert

Q: Could I get your opinion on NMX and comments on its financials and recent announcements. This would be for a small speculative position. Are there any other Li companies that you prefer?
Thank-you

Q: I have less than 2% cash in the U.S. dollar portion of my RRSP and would appreciate an idea or two for something speculative with a reasonable expectation (if that's possible) of success.
Thank you

Q: I must convert my RRSP to a RRIF this year. I want to add about 10 good company stocks that have 1,3,5&10 year compounded returns > 10% to boost the overall annual performance. I have identified the companies and now I want to pick the least volatile ones. I have data regarding beta, return on equity and debt to equity. I'm inclined to do my selection based on the lowest beta, highest ROE and lowest debt to equity in that order. Does this seem effective to accomplish my goal and/or can you suggest a more effective selection process? Thank you.

Q: Any concern with insiders selling just before the drop ?

https://www.chaffeybreeze.com/2017/05/08/zcl-composites-inc-zcl-director-sells-c212570-00-in-stock-updated-updated.html

Thanks

Q: The Canadian dollar has been falling recently in relation to the US. I believe it will fall much further--particularly over disputes in any future trade negotiations. What is the best Canadian listed security to play such a belief.

Bryon in Elmira

Q: I would like to add a few small cap "seed" positions that have the potential of growing a at a rate of 25% plus per year, i.e. essentially a triple+ in 5 yr. I already own PHO and ITC and am interested in GSY, PEO, BUS and PTE. Could you rank these equities (staring from highest growth rate) and include any other small cap candidates that I have not considered that fit the criteria.
And thanks for all the savvy advice provide by your service. James.

Q: I'm looking at very long term investing. I like the buffet/jarislowsky style. I'm thinking years if not decades. If you had to pick 4-5 stocks that should be in a portfolio looking that far ahead, what would they be? I'm looking for strong management, good growth and consistent dividend growth in sectors/businesses that have very low probability of becoming obsolete. I understand that these are going to be big short term growth stocks, just a good foundation for a portfolio to be supplemented with some higher income and more speculative short term growth stocks.

Q: Hi,
I'm a growth investor and getting a little heavy in my consumer discretionary holdings. I own CARA and MTY and thinking of switching one out for PBH. Which one do you think I should consider switching out?
Thanks

Q: Hi, I like this company for several reasons: Packaging industry, consistent and rising dividends, strong management team and good insider ownership. I thought of starting a position 12-18 months ago when stock was trading around $15, but held back based on your opinion/concerns about company's large debt position.Since then stock price has steadily appreciated to present $28 level and company has increased dividends and continues to pay down debt to 1X as at December 31, 2016, as per quarterly results released on Friday. I have a large holding of CCL Industries and would like to add another packaging co. There does not appear to be much analyst coverage on Richard's Packaging and it would be extremely helpful if you could share your views and is it worthwhile to start accumulating at current level for growth and income ? Thanks

Q: Hi 5i,
I’ve owned SFL for years, since shortly after I first became aware of it via some early 5i comments. The holding is under water and has been for much of the time I’ve owned it, though the amount it is down has been more than offset by the generous dividend payments received. It has always been priced as though its dividend was in significant jeopardy but the dividend has actually been increased more than once while I have held it. What do you think of its prospects these days? I don’t have any other marine shipping exposure. I can’t help noting that the short interest is listed by my online broker as about 16% of the “float”. Is it time to abandon ship? Thanks!

Q: Can you comment on Harte Gold Corp. Is the recent dip a buying opportunity, or would you see any concerns.

Q: Good morning.

Your 15% prediction on AGT seems to be holding as accurate.

My question is what should a holder of the stock do with this drop? I own in an RRSP and thus have no tax advantage to sell but if a rebound is unlikely I will suck it up and move on.

Would you
1. Sell
2. Hold
3. Average down

Please explain the fundamental reasons for your recommendation along with best course of action

Thank you in advance

Q: I've been watching this stock for a while (up and up it went). Of course as soon as I jumped onboard a couple of days ago it dropped. I always have trouble with these "shooting star" issues. The question is always did I miss the boat or does it still have legs? What do you think?

Q: Is there a case to be made for trading HCG with it sitting at current levels? I realize that your service advocates careful and balanced portfolio management but there do seem to be opportunities to harvest $.40/.50 cent swings.

As a second part to the question, do you see the company going to Zero or has it already bottomed out as CXR and VRX did before it with the short attacks. The underlying business seems better than it is getting credit for but perhaps that doesn't matter.

Q: Hello - any news on earnings? Thank you.

Q: Could you please comment on their results and outlook.

Thanks,
Milan

Q: Hi 5i,

What are the forward EPS and revenues for Aphria (APH)? What is there trailing and forward quarterly growth rate for revenues at? Also what is there cash and debt position?
What is the cost of production metric that is used in the industry and how do they compare?

Thank you,

Shane

Q: I see on Friday a US Law Firm announced its investigating whether the offer for Span-America was "fair" for Span shareholders. I find this confusing. Isn't this usually instigated by an Investment Bank or large shareholder? What can be unfair about an offer to buy shares? If you don't want to sell, then don't tender. Do you see this causing the offer to rise? Could there be anything illegal about this offer?

Q: Your view on the last quarter would be appreciated.