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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: Thank you so much for what you do. 5i benefits people of modest means as well as the wealthy. (A rising market doesn't hurt)!

A reader mentioned grocers earlier today. We went to COSTCO yesterday and the place was packed. They don't have the distribution of the local grocery stores but in a way they don't need to as customers are willing to drive to them. COSTCO is still more of a wholeseller compared to a company like Loblaws and they don't carry all the small products but no doubt they are one reason why grocery stores are finding it difficult to stay profitable.
Read Answer Asked by James on January 25, 2017
Q: I buy a number of my international stocks on the OTC Market, since my brokerage account does not let me directly transact on exchanges outside of North America. The American Depository Receipts (ADR) for a particular company ("xxxx") have the ticker format xxxxY, whereas the "fungible" shares (i.e. for which there is somewhere, at least in principle, an actual stock certificate issued by the company) have the ticker format xxxxF.

Assuming that there is at least some liquidity for the shares of a particular company, it is almost always the ADRs (xxxxY) that have the most trading volume. However, sometimes the fungible shares (xxxxF) are slightly more liquid than the ADRs.

In terms of risk (e.g. in the event of another major financial crisis) are the ADRs more risky, i.e. do they depend on the solvency of the custodial bank in New York (e.g. BNY)? On the other hand, who actually possesses the fungible shares (xxxxF)? Is it this same custodial bank? Is there a real stock certificate somewhere?

Thanks!
Read Answer Asked by Gregory on January 25, 2017
Q: I have been watching this company for some time now. Despite the stock being up quite a bit over the last 12 months it has stalled. Trading at a ridiculously low valuation compared to other competitors who can't even seem to make a profit (MDI etc.), is the market missing something here? I have Geo at under ten times earnings with essentially no debt. I have no Gold exposure at this time and was thinking about starting a position.

Thanks
Read Answer Asked by Scott on January 25, 2017
Q: To what extent are these two - or others like them - influenced by higher rates. My understanding was that this had become a very competitive sector yet both have appreciated significantly in recent months. What are their prospects?
Read Answer Asked by Mike on January 25, 2017
Q: I have always been interested in this company but have never "pulled the trigger". In an answer to a question yesterday you indicated you consider it presently a good value stock. What valuation metric are you using? Scotia Itrade gives two p/e valuations, 14.4 and 16.2. Stockreports+ says is have a trailing p/e of 7.3 and a forward p/e of 9.6. What valuation are you currently putting on this stock? Thank you. Bill.
Read Answer Asked by Bill on January 25, 2017
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