Investment Q&A

Q: I own all of the above in roughly equal weights in my TFSA. I am attempting to replicate your Balanced Equity Portfolio. I am also trying to get more defensive. I think I am overweight in the Info Tech sector. I am looking at a 5 year hold. I have cash to buy another position. What would your advice be - hold the cash or make a purchase. If purchase what would be your recommendation for defensive position?

Thanks for your help.

Q: Hi Team,

Could I have your opinion on why GUD has been down lately?
Is it based on a news or data ? or just a sentiment? Is it a good time to buy?

Thanks!

Q: Knight has been in my portfolio for two years, I've been buying on the dips with an average cost of 7.80$. Should I remain patient or move on. Lots of opportunity out there. Please recommend some alternatives that I may consider should I decide to sell.

Q: Do you see any significant potential in Knight's announced up tp US$125M financing with Mokshal8 and why would they announce this on a Monday morning when North American markets are closed?

Q: Simple question

Does 5i view this deal as significant in any way (from the Globe)

Knight Therapeutics Inc. (GUD-T) announced the closing of a strategic financing agreement in Moksha8 Inc., a specialty pharmaceutical company focused on licensing and marketing “innovative and established therapeutics” in Latin America, for up to US$125-million.

Under the agreement, Knight will initially lend Moksha8 up to US$25-million in working capital funding, of which US$10-million will be issued at closing. Knight said it may issue up to an additional US$100-million in funding for M&A and the acquisition of new licenses.

Q: I would like to add to one of these stock positions in the balanced portfolio. Which is your pick today?

Q: A good article on Jonathan Goodman (GUD) in today's ROB magazine. Also, full page ad submitted by Fiera Capital Corp alleging increased investor interest in 'alternative investments'.
Steve

Q: Any reason to explain GUD's jump today? I don't see any news.

Q: I know members have started to raise questions about Knight Therapeutics' cash balance and when they will use it to make a large acquisition.
I am reminded of this YouTube video from 2014: https://www.youtube.com/watch?v=YCps-WZB7_U

Jonathan Goodman was quite clear when he made this speech that it could be 10-15 years before he investors could see big results.

My main questions are: realistically, how much pressure can shareholders place on the company? Is it possible that impatient shareholders could push GUD to make wrong move/acquisition with the cash?

Q: I have 59K (38k in TFSA, 21k in Trading account). I am thinking to follow the balanced equity portfolio, so approx. $2250 each name. Time frame is less than 5 years. Two questions: Do you support this idea? If so, which names to purchase in each account? Thanks very much.

Q: Long time, very frustrated, holder of GUD. GUD never tanked with the Dec carnage but has not rose much either, just seems "stable", which is OK except with no divy there is an opportunity cost in continuing to hold. What would you do? Swallow the frustration and give it more time, or switch to something else in the growth mode, maybe SIS or BCI?

Q: What are your thoughts on this news?
Knight Therapeutics (TSX:GUD) has struck a deal with Puma Biotech (NASDAQ:PBYI) to commercialize breast cancer treatment NERLYNX in Canada.

Q: Hi Peter & 5i team,
These are the current holdings in our grandsons RESP ( age 5). We are adding new money. Could you please give your opinion on our current holdings and what suggestion would you have on acquiring a new stock or alternatively topping up an existing one.
Thank you very much.

Q: Hello 5i team,

I have 1/2 position in each of the names listed above in a TFSA and have funds to top up two of them to full positions. Objective is growth with long time frame and OK with risk.
Which two would you recommend and why?

Thanks and Happy New Year!

Q: Good day and happy New Year team,

This is a twofold question so deduct as many credits as needed. First, I know multiple questions have been asked about GUD in the past. I've been in the name for a few years and hold a gain. That said, how much more patience should one have with this stock? At what time should an investor move on because it really seems like not much is happening?
Second question not related to the first. I dabble in penny stocks and I constantly see 100 share bids from the same house. Bid gets filled and immediately another 100 share bid appears. My question is this a sign of a house accumulating and keeping the price low to do so? I know that's a general question. I'm just wondering if this is some form of manipulation by some bigger players.
Cheers

Q: The market is again very vicious today,hitting all,including the above 5 darlings (& RAY.A)of 5I,Any reasons? Buy/add or hold or sell.Please rank them starting with best for buy Txs for u usual great services & views

Q: Hi Peter,
Please deduct as many credits as you see fit. I have some losers (some big) as per below:

Margin account
CLIQ down 52%
PHO down 37%
MX down 20%
TFII down 23%
ECN down 13%
NFI down 11%

TFSA
GUD down 17%
CLS down 20%
DOL down 38%
TSGI down 47%

RRSP
DOO down 43%
COV down 26%

Here are my questions.
1- Should I claim the capital loss with CLIQ and PHO and repurchase in 30 days?
2- Are there any names there that I should just sell and move on to something else? What would be your top 3 replacements for the removed names in that case?
3- My initial thought was to inject new money in CLIQ, PHO, DOL, TSGI, DOO and COV to bring these names back to my initial weight. Would this be a good move in your opinion?
These names are part of a diversified portfolio and don’t need the funds for another 10 years minimum.
Much appreciate your service. Your responses to this market volatility have kept me from panicking as I did in 2008. I thank you for that.

Q: Would you say this is an accurate way to characterize Knight Therapeutics?

The Globe and Mail reports in its Monday edition that the markets are on edge and trend followers are running for the exits. The Globe's Norman Rothery writes in the Inside the Market column that it is hard for companies to raise money while fear stalks the land. Mr. Rothery says they risk becoming zombie stocks that shamble around a bit before keeling over. He says even in good times, firms with negative earnings fare poorly and are, as a group, best avoided. For the current column, Mr. Rothery says he focused on stocks that are, potentially, in much more dire circumstances. To find them he looked at earnings before interest, taxes, depreciation and amortization or EBITDA. It is bad enough to fall into the red after paying normal and recurring business expenses such as interest and taxes and other expenses; it can be deadly having negative earnings even before these essentials are paid for. Companies with negative EBITDAs are in a particularly precarious position and may be zombies. Matters get worse when the markets tumble and it becomes next to impossible to borrow money or to sell stock. Mr. Rothery's potential zombie stocks are Hexo, Knight Therapeutics, Advanz Pharma, Katanga Mining and Paramount Resources.

Thanks as always,

Rob

Q: My weightings in each of the listed companies is less than 2.5%. I wish to eliminate some and build up others to the 2.5% level. What are the strongest candidates to keep and what are the weakest candidates to get rid of. As always, I appreciate your responses. RAM

Q: I see these companies are mentioned in today's Globe as being in precarious position! Due to negative EBITDA.
These are some of your favourite sticks, no? I own GUD, BB and FM. Hence my nervousness! Plus I respect Norman Rothery.