Investment Q&A

Q: Good Evening 5I Team,

Could provide some advice on the key indicators to consider when evaluating a stock. Any other advice on stock selection would be greatly appreciated.

Thanks.
Terry

Q: Peter; When you see higher than normal volume, and no real price movement on a stock, such as TBE today, is this an indicator to you someone is " bailing" or someone is acquiring a large position.? Is it a buy or sell indicator to a professional? Thanks. Rod

Q: Hi Peter, I'm a new member and very happy that I joined. My question is do you support buying covered calls or naked calls and would you currently buy July in the money calls for CPG, TCK or BB? thanks

Q: Hi Peter & 5i: Good answer to Lionel's question on ROE. It has been a somewhat baffling measure to me. Can you also comment on what exactly is included in "shareholders' equity"? The quoted definition might almost be taken to suggest that it has to do with what shareholders paid for their stock. But it doesn't have anything to do with the current price of shares on the public markets. So for example, Carfinco (CFN) has announced years with an ROE of about 50%, but the E in that calculation would amount to a very small fraction of its recent market cap. Is the amount of E relative the the various value measures (BV, NAV, Mkt Cap) of a company apt to be significantly different in different kinds of businesses or from sector to sector? Thanks.

Q: New member. Very informative site. Enjoying my membership a lot. I would like to add a (non-technology) growth stock to my portfolio. Can you give me two or three names to choose from? (I understand--all too well--that growth always comes with risk.) Thank you

Q: I heard on Bloomberg that 'investors were snapping up tech stocks today'. Isn't this a mistake because for every investor who's snapping up tech stocks, there's a seller. This has been the case since the first stock was traded centuries ago. The reporter should really say that tech stocks are trading higher on the day. Perhaps that doesn't sound as good to the listeners

Q: Just joined and reviewed the section devoted to questions. I am very impressed with your straight forward answers. Exactly what is meant by ROE (return on equity)? It appears to me ( I'm not a trader, more a follower of the market) that a lot of assumptions are behind this term. If there is a commonly accepted use of ROE, is there an easy way for the old cowboys on the prairies to figure it out without having to parse company statements?

Q: A question about Dividend Re-Investment Programs. Given the model portfolios investments of about $5,000 in each individual stock, the DRIP in some cases can mean the addition of approximately one share per month on some of the investments. At that level, is it better to take the cash or the DRIP. Thanks

Q: Hi Peter, Saw your comments on BNN market call tonight regarding ZEN. Thanks for the nice commentary on it! First drill hole of 40 drill hole campain hits 323m, largest intercept they have had yet. Is there a website or spreadsheets to help figure out tonnage on plays like this?
Thanks
Don

Q: On your "View by Category" section, adding Investor Resources as a category would be a help.
You have made many suggestions as to where we can get more detailed information or technical tools, such as changes in short interest, and your subscribers have also sent in sites. If you started that category it would build up over time and be quite useful.

John