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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 was wondering if I could get an updated opinion on GAN. They sound the Shopify-equivalent of the gambling space. The CEO claims the US online gambling market to expand from 12% of the country to 75% by 2025 (over 6x increase). Thank you and happy holidays to the whole 5i team.
Read Answer Asked by Laxmyharan on December 24, 2020
Q: INEO Tech (INEO-V) hopes to 'own' the front entrance of many stores by providing targeted  display ads, gathering demographic data, protecting store assets and by selling analytics data. While this sort of thing is not completely new, the company claims that their patented technology will displace the current theft protection competition, in some cases free of charge.  I'd appreciate your outlook for this company. Thanks.
Read Answer Asked by Richard on December 24, 2020
Q: Hi 5i:
It appears Caldwell Partners is now looking to utilize the capital markets to grow by issuing some stock in an acquisition valued about US$11M with today's purchase of a high growth US AI tech firm in talent search. Do you think the market will begin to look differently at CWL going forward given the tech angle which would allow the stock to trade at higher revenue multiple then 30% of sales it has traded at for the past many years while being profitable and debt free.
Read Answer Asked by Charles on December 24, 2020
Q: I have made a double on this stock in a very short time and it is almost 40 % of my total TFSA portfolio. I use my TFSA for most aggressive stocks and the account is only 3% of my total cash/ RRSP portfolios.
You seem to think that January may see a fair amount of volatility this year as investors cash out some of the oversized returns, especially in tech, that have been made this year.
I am looking at adding XBC, WELL, STC, SCR
While writing this I am thinking the best action would be to sell 50% of EGLX now and keep the rest as it certainly has momentum and then wait on the others for the new year. What do you think? Any other small caps that you might consider if you wanted to take a flyer on?
All the best, Derek
Read Answer Asked by Derek on December 23, 2020
Q: DCTH and MLND What are your thoughts on these company’s
Thanks for the help
Read Answer Asked by Sam on December 23, 2020
Q: Hello 5i team,
In a recent answer to a question from Tom about conpanies as a possible target to be acquired, you included CXI. I would like to know what characteristics of CXI makes it a potential candidate besides low valuation and cash on the balance sheet? I know the president of CXI has gone through this process before: has he ever mentioned specifically this endgame before for CXI? I would think that selling at this price + premium would be like a failure in the actual venture. And by what type of acquirers? A bank?
Thank you for your collaboration, Eric
Read Answer Asked by Eric on December 23, 2020
Q: I bought a small amount of a company named Fortress Technologies that is involved in Bitcoin. When the BTC price was lower in 2019 they sub-leased their mining equipment in an arrangement that sees them retain 90% of the profit on each coin mined while the sub-lease company (WeHash) does the mining. This has become lucrative. According to a recent filing they have 163.2 Bitcoin on account which combined with cash and cash equivalent assets meant $.158 per share in tangible value. This number would now be higher with BTC having run from 17k to 23k and another month of mining. For the 3 months ending September 30, they mined 14.2 BTC worth $297,000 USD today at a cost of $10,438 per coin.

Unlike QBTC or GBTC which trade at premiums to BTC and only buy or sell, FORT is mining and buying bitcoin which seems to offer more upside. I understand that a super small cap company like this is not for everyone and that coin prices are just as likely to fall as rise but my question is whether it could be a way to profit in a disproportionate way from bitcoin as more investors look for bitcoin exposure that can be held in registered accounts? To put it another way, could this double based on people piling in and outperform increases in the coin value itself or am I dreaming?

Thanks!
Read Answer Asked by Tim on December 22, 2020
Q: GEVO is up 15% today, and after hours additionally 5%, do you think this rally will continue ? How much upside do you see in one year ? Happy holidays !!!
Read Answer Asked by SAMAR on December 22, 2020