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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: All of my Spec Stocks, the ones listed above, each represent less than 1% of my cash Portfolio. With regard to your article discussing having stocks thta are less than 1% of portfolio weighting, I am thinking of selling 3 or 4 of these stocks and putting them all into one or two of the above stocks that show the best potential. I am down in all of them but to a lesser amount in GPS and CRH. Which, if any, would you say would be the keepers of the bunch?
Thanks
Kevin
Read Answer Asked by Kevin on February 01, 2018
Q: All three of these companies were once market darlings that have fallen from their more favorable market days and are now attempting turnarounds. Do any of these companies appear to be a turnaround buy at their current levels? If not,and if they sit in one's portfolio, should they be ejected? if so, how would they rate from worst (eject 1st)to best (still hope, eject last).
Thanks!
Read Answer Asked by WAYNE on May 09, 2017
Q: GRC is down 3.85% today, with heavy trading volume. I see no news. Is there any hope for a recovery for this company? (I'm 80% in the red.)

On Feb. 13, the CEO made this statement below. Is it credible?
"The portfolio continues to generate strong royalty income on a consistent basis. The operating cost reductions we implemented earlier this year and the conservative approach we continue to ascribe to both Contract Buyouts and underperforming investments in the portfolio position us to exit 2017 stronger than 2016," said Steve Parry, Chief Executive Officer of Grenville. "Our pipeline is stronger than ever as it relates to both the volume and the quality of the opportunities we are reviewing. In our review, we place an increased emphasis on companies with strong growth, recurring/predictable revenues and the ability to raise capital from multiple sources. We intend to return to a more consistent pace of investment in 2017 with the support of our two joint venture partners who have already co-invested in three opportunities with us since October."
Read Answer Asked by Helen on April 03, 2017
Q: Tax loss selling may be setting up GRC as a contrarian opportunity. On the plus side, they eliminated the dividend (stopped the cash drain), they have partnered with other firms (should result in more due diligence on deals), they are trading at a distressed valuation but are still a going concern with a sizable investment portfolio even when allowing for future write-offs. On the negative side they have made changes in the C-suite (maybe good), they have made major strategy changes (maybe good, the old one wasn't so hot), they have done a terrible job communicating with their shareholders in the past (very bad, but they can only improve their communication skills, they can't get any worse then they have been in the past). Overall, although a risky play, the upside seems to out-weight the downside during this tax loss season (it can only go to zero)! I'm Interested in your opinion on this one.

Thanks!
Read Answer Asked by WAYNE on November 08, 2016
Q: I have a question about Grenville Strategic Royalty's announcement yesterday about their stopping their dividend (which I expected) and their new partnerships (which I did not expect). Do you think that these new partnerships are a good idea? Do you think that their debenture is a safe investment at this time (as part of a diversified portfolio)?
Read Answer Asked by Daniel on October 19, 2016
Q: This company makes up a very small percentage of an overall balanced portfolio. Last quarter was obviously a mess. Market is pricing in a reduction in the dividend. From it's current valuation, what would you expect the market reaction to be if they reduced their dividend by 50%? Further decline/appreciation or are we now in a basing/trading range for the next few quarters?

Regards,

Robert
Read Answer Asked by Robert on May 17, 2016
Q: Hi Peter,
The results out today from GRC look quite spectacular, at least on the surface. I have a small position, and added some more today. I wanted to get your thoughts on 2 things: the sustainability of the 10% dividend, and method(s) to estimate fair value for the shares, given that revenue and earnings will likely be quite volatile and unpredictable over the next months/years.
Thanks for your excellent service!
Read Answer Asked by Ed on November 17, 2015
Q: Since you last commented on GRC on August 19, the Company has announced (1) a second big win which together with their first win adds up to proceeds of $8.8 mil which dwarfs the $2 mil of writeoffs, (2) it is collecting $400k on one of the write-offs, and (3) they have closed another deal for US$2 mil.

The stock moved up on these announcements but has settled back down. I was just wondering if these events give you more comfort in recommending this stock, which is now carrying over a 10% yield?
Read Answer Asked by Michael on September 01, 2015
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