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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: Just for my understanding, what is it about SHOP that makes it so appealing? Looking at their financials, their costs have ramped up almost as much as their revenue. Revenue has grown 1600% over 5 years but they still haven't turned a profit. With revenues approaching 1 Billion, in order to achieve a reasonable P/E of say 25 based on today's price, they would need to increase earnings from a loss of 0.53 per share , to a profit of 8.00 (based on FY17), which represents revenue of 743B! I know the math isn't precise, but I think it illustrates my point.
Read Answer Asked by Rick on May 02, 2018
Q: I initially bought a 1.5% position of COV but with the recent decline and me adding cash to other positions, it's now less than 0.7% of my portfolio...
I know you guys are not big fans of averaging down in bad momentum, but in this situation would you recommend doubling my position if I have some extra cash?
Leave it as it is or just sell since it has become such a small position?
Thank you!
Read Answer Asked by Julien on May 02, 2018
Q: Hi 5i team,
Earlier in April they announced a financing deal and the stock price has been going lower ever since. On April 23 they announced a new dividend of .03 cents which means a DY of about 2%. It's not spectacular, but we like the 'confidence' that a dividend announcement brings, no? How long before the market reacts to this? Specifically, shouldn't some fund managers and institutional players jump onboard soon after, when there is a new dividend announcement for this stock? (and a corresponding uptick in the price). Thx, R.
Read Answer Asked by Robert on May 02, 2018
Q: I think you present a sensible outlook however I wonder about the Portfolios? The Balanced Equity is my interest but with 27 stocks it is to big. To do a decent size (2%) my target is $16000.00 per stock. Should I cherry pick? Would like your recommendation. Regards, Burke Purdon
Read Answer Asked by Burke on May 01, 2018
Q: Peter,
Thanks to 5i we purchased CSU shares some years ago. As of close of business yesterday the shares had risen 510%. (I sold some shares last year when the weighting became to high). Now Mr. Rosen is predicting a crash or a recession. He seems to be counselling selling shares to raise cash. However why would I sell my hard won shares because of Mr. Rosen’s predictions? Investors need to think of themselves as owners of a business not “riverboat gamblers” going to get rich quick. I can assure the members that the officers of CSU are not selling their shares because Mr. Rosen is calling a market top. I once read somewhere that making predictions is a bit like spitting into the wind - you got to accept there will be a little spit on the toe. In Mr. Rosen’s case he seems to be going for a “spit polish” - maybe on both shoes!
Thanks for all you do
Jim
Read Answer Asked by James on April 26, 2018