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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: Lightbridge Corp (LTBR) is a US company I am following. It is in the development stage of nuclear fuel based on a uranium/thorium blend to increase the efficiency of existing nuclear reactors as well as decreasing byproducts. This is interim to the next generation reactors. It has several patents in play. I have not completed all my research on this company and have noted its share price steadily falling.
What I have done a lot of research on is the potential of nuclear energy particularly for China and India. When one is investigating a company such as this and the time frame of testing a prototype is in 2017 with plans 3 years out for full implementation, when along this path is a logical place to take a small position. Having asked this question though I am cautious and have more to learn about the company specifically.
Thanks
Lou
Read Answer Asked by Louise on June 16, 2016
Q: I was wondering if you could elaborate on the concept of a "short attack". It does not specifically have to apply to Concordia. From past discussions, I know that individuals or companies that short a stock may then proceed to discredit the company through planted stories, innuendo and maybe even spread outright lies in order to create a lack of confidence and thus benefit as investors sell the stock, causing the share price to drop.

But is that the extent of the "attack"? Can short sellers manipulate the stock in other ways? People often ask what the short position of a stock is. Why is this important? Is it just to see how many other investors think they are wrong about the stock, meaning the psychological impact of a large short is what is at play here, or is there something else?

Appreciate yoru insight.

Paul F.

Read Answer Asked by Paul on June 16, 2016
Q: Is the etf VE okay in my cash savings (taxable) account? There is no more room in my TFSA.
Based on my research, the inception date for FEZ is Oct 15, 2002. The inception date for VE is June 30, 2014. Loblaws became buyable on the stock market January 18, 1956. What is the similar date for GUD? From, Patti.
Read Answer Asked by Patti on June 16, 2016
Q: It looks as if the Williams Cos mess is coming to a close, but which option to choose? I have 200 WMB in my RIF. I am thinking the cash option would be best and then to buy a U.S. stock with potential. You thoughts please and suggestions?
Read Answer Asked by Elaine or Gerry on June 16, 2016
Q: I was wondering if you could comment on the results of Wesdome's recent AGM, and on its performance today. As you may be aware, there were several serious concerns voiced by the majority shareholder in advance of the meeting. If you are not familiar with the company, I would ask that you review both the following releases before commenting:

http://www.wesdome.com/wp-content/uploads/2016/05/Wesdome-PR-AGM-and-Resolute-Response-v11clean.pdf

http://www.newswire.ca/news-releases/resolute-performance-fund-expresses-significant-concerns-with-the-operation-and-management-of-wesdome-gold-mines-579624291.html

If you do not feel comfortable commenting on this company, and/or speaking about your viewpoint of the results of the recent AGM, please let me know. In any event, I look forward to your response. Thank you very much.
Read Answer Asked by Domenic on June 16, 2016
Q: Hi 5i team,

My interest is first time dividends as a trigger for an initial purchase. This based on Peters article in Moneysaver magazine many years ago.

I follow the 5i Twitter Feed to watch for dividend news (raises and reductions), but especially for news of first time dividends.

Womder if you have considered providing a summary of first time dividend stocks (an ever-increasing list, or by quarter, year, whatever) ? I would really value that.

Thanks for the great service.
Read Answer Asked by Jim on June 16, 2016
Q: Hi 5i,
BTB REIT (BTB.UN) just announced a $30M unit financing at $4.55 (about $0.20 below recent trading prices) for the purpose of redeeming all of their series D debentures. Can you explain the strategy behind this move (replacing a debenture interest obligation with a unit distribution obligation) and, in your opinion, does it make sense for BTB? Thanks.
Read Answer Asked by Lance on June 15, 2016
Q: Hi Guys,

Can you speak a bit about the adjustments that CXR has been making to its financials? Is this accounting gimmickry? Is the underlying business sustainable without these adjustments?

My thinking is that these acquisition-related adjustments can't be made forever, so won't reality of low unadjusted earnings one day set in?
Read Answer Asked by Michael on June 15, 2016
Q: Hello,

To further your last response on the company:

"Markets did not like the May quarterly release and since that time the stock has fallen roughly 18%. So we are not huge fans of the momentum here and would prefer to wait for a sign of strength but at 12 times earnings, the stock is likely getting close to a fair level."

Revenue was up 37%, net income +68.6%. What's not to like? Did they have 1 time items that bloated results?

"The current platform for VCM is reaching maturity and the company now needs to transition to a new platform, the uncertainty around this is likely what has caused the weakness but the outlook remains positive."

Could you elaborate, the company says "Sales of Terrace Family products this quarter reached the highest level ever for the product line as deployment of the MPEG4 capable TC600E continued"...are some of their other products being replaced by newer technologies, or...?
Read Answer Asked by Adam on June 15, 2016