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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: I appreciate your answer to Brian on the results today. It seems to me they were very strong, but the stock has been down 1 to 2 % this morning. My question is, that on any given day, (on average) would a rise in the Canadian dollar have an inverse effect on the price of this equity? I seem to notice that the dollar fluctuation often seems to affect the valuation of stocks that trade of more than one exchange quite markedly.
Read Answer Asked by Jim on August 17, 2016
Q: I would like to commend Peter, and poster Robert and his post.

Right ON!!!

98% of people need a diversified portfolio and no one gets every investment to work out. No one.

Even though I am one who prefers a more concentrated portfolio with more effort and patience put towards my selections I never get everyone to work out as I had hoped and predicted. However, patience even mends the bad ones over time to some degree if they have good management.

During my continuing education in this investing in businesses thing (25 years) I have learned that even the big guys/girls that manage $1/2 billion and more routinely have an investment go the way of the DoDo bird or at least they end up selling after 2 years for a smallish loss (lottery win size for most people).

We all have to take ownership when we plunk our money down. 5i gives their opinion which is what we pay for. We may not agree always but ultimately it is our choice. 5i cannot get into more detailed explanations and analysis because many members do not want that nor would they understand it. This is just they way it is.

And I agree the markets are at all time highs which is scary. My finger is on the Shorting button, LOL. And am waiting for good companies to go on sale to buy.

The Shiller PE on the U.S. market, an often watched indicator, is at 27.0 today which is considered explosive, unsafe and dangerous area. Anything above 23 is unsafe territory historically. 15 is normal.

So be careful out there. Diversify and have some cash (amo, ammunition) sitting on the sidelines for good buy opportunities as they present themselves. PATIENCE is always rewarded.

Incoming dividends is lower our cost base, ACB, on many of our stocks (at least for me) so my at risk $ is getting lower as time passes.

Heck, even the road from Toronto to Calgary is not a straight ride. It goes up and down, and left and right but it gets one to the destination with some patience. And think of all the things one gets to see and learn along the way.

Have a great day.
Read Answer Asked by Stan (1) on August 17, 2016
Q: could you please comment on the recent activity regarding the Crescendo Partners' Letter? I have held this company for some time (avg price $4.75) and kept expecting to see it return to those levels only to be disappointed each new quarter. The letter definitely sums of my feelings, but not sure if it was the proper way to do it. Any guestimations on the sum of the parts if RKN decided to sell. p.s. wasn't too impressed with the response letter.
Read Answer Asked by Jim on August 16, 2016
Q: Maybe its me, but can you verify what EIF's consensus 2016 and 2017 current eps estimates are?

Prior to their earnings report, Investor's Edge showed 2016 estimates at $2.49 and 2017 estimates at $2.66. Post earnings report, Investor's Edge is now showing $2.29 and $2.46 as 2016 and 2017 estimates. A little puzzling considering EIF's recent report was pretty good, in my opinion.

Thanks for your thoughts.

John
Read Answer Asked by john on August 16, 2016