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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 always kick myself when I come to realize a missed opportunity and tell myself that next time, i'll recognize the trend and take advantage of it.

This is me asking that question now.

What 5 US and 5 CDN positions, in your opinion are very much out of favour right now but have quality fundamentals with an excellent chance for share appreciation over the next 3 years?
Read Answer Asked by Robert on August 15, 2023
Q: Thinking of jumping in to Nuvei. It looks like this company is set to report cash flows of more than $300+ million in 2024 and then growing more than 20% annually. Their net debt is low. They are growing sales despite the loss of a large customer. Additionally, they acquired Paya in February which has $250 million in revenue and is net earnings and cash flow positive. Paya is based in the US, and in verticals that are new to Nuvei, and less cyclical than their traditional verticals.
Is it just me or is this a screaming buy here on valuation and future growth prospects? It is only 1.5X sales and 10X forward earnings.
Read Answer Asked by Michael on August 15, 2023
Q: Thinking of buying a new mattress with a concealed side zipper. I find it hard to believe that a stock that trades in the USA and Canada can in one month lose 50% of its value because of a slight miss in earning and its outlook. Why?

You have strongly recommended NUVEI for quite some time and I was hesitant after involvement with LSPD. However, when another reputable investment newsletter (with a very conservative outlook), recently recommended this loser (NUVEI), I decided to take the plunge and pull the trigger. Boom, down 50%.

My question is about warning signs. How can one detect such things in advance? Obviously, nobody did, but for company to loss 50% of its value in less than one month, there must be something? No insider selling (or buying) unless it was done another way. The insiders must have known that they were going to lose half of their investment. Maybe they don’t own much? No idea?

I think something stinks here.

Anyway, I am off to Sleep Country.
Read Answer Asked by Danny-boy on August 15, 2023
Q: I own BEPC at a 6% loss, offset a bit by the dividend but have come to the conclusion that I don’t understand the renewables space, and try to avoid investing in things I don’t understand. What is the catalyst to take this higher? Are companies in renewables much like the broader non-renewable energy sector in that they are price takers and subject to cyclicality? I’m feeling like if I want some growth with a small dividend I’d sooner own BN, and if I want a decent dividend with a little growth I’d be better off with BAM? Appreciate your thoughts and opinion as always.
Read Answer Asked by Stephen R. on August 15, 2023
Q: Hi,

What do you think of this assessment and it's impact on the stock long term?


Tim Shufelt's opinion:"management’s assessment that insurance premium increases must perforce catch up with costs, allowing carriers to fund labour rate increases over the long term, and even though labour rates are not directly tied to written premiums over the short term, political action to curb the magnitude of premium hikes represents a growing risk in our view.”
Quoted from TD Waterhouse citing the GLOBE AND MAIL

Thanks
Read Answer Asked by Jean on August 15, 2023
Q: Hi, I'm not sure if my question went through previously, but I was wondering if you could provide more information on the ETF Fund Growth Model Portfolio with respect to proportions of different sectors and different country involvement?
Read Answer Asked by Adam on August 14, 2023
Q: Is Well Health Technologies the most manipulated stock in the Canadian market? I use Wealthsimple for several accounts and activated their "stock lending" option where they give you a yield on borrowing your shares. Their example target is 4.5% for shares borrowed. I could see the short attack on Well beginning like clockwork, 1 week before last quarterly release, as my shares were lent out more each day. I started getting 6% yield and that was ok. But that went down more and more with each "short", until I was loaning out all my shares for a measly 0.2%. I contacted the brokerage multiple times and they stated "market demand" and "fluctuations". Clearly 0.2% was not part of the deal and certainly not worth the risk. I obviously canceled this borrowing feature. What is this trickery? They are literally giving away shares to shorters as a means to suppress the share price. This has ONLY occured with Well:ca. How do they get away with it?
Read Answer Asked by Ok on August 14, 2023
Q: Do we know which large customer did NVEI lose? At what cost?

We often see sell/buy transactions with no divulged details. Being naïve, shouldn’t the investors know these details, when they could impact the financials. Do analysts know more than we do? I’m aware we are talking private companies and their competitors, but it is a bit frustrating.

Thanks for your work.
Read Answer Asked by Denise on August 14, 2023
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