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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: There have been a million questions on this stock which has been virtually decimated. The price now is at Sept 2016 levels when revenues were way lower than the current revenues. So can you please list out the pros and cons of this company, possible market penetration, competition, management credibility and their ownership. What would be next catalyst for this company which will drive the price. Do you think there would be some company who would be really interested to buy them. What should one do if they owned this as a 5% position in the portfolio at average price of 65 cents. Thanks
Read Answer Asked by Imtiaz on March 15, 2018
Q: I have been happily and successfully managing my own investments for 15 years primarily with the help of independent analyst services such as 5i (Thank You). I have always dedicated 5 - 10% of my portfolio to small and micro cap investments and met with great success until recently. The last two years I have seen really poor results from my small/micro cap investments with several big losers and none of the big 2, 3 or 5x winners. IOM is the latest kick in the head for me. I am finding that these sudden big losses stick with me emotionally more than they used too, probably because I am now fully retired and the absence of earned income is pushing me to a more conservative approach. Accordingly I am considering revising my strategy away from individual company investments and simply buying a good small cap and/or micro cap fund or ETF. Could you please comment generally on my strategic thinking here and also suggest some ETF or funds I might want to consider. Low Management expenses preferred of course.
Read Answer Asked by Morgan on March 15, 2018
Q: Any idea of when this stock will be trading again? Have you ever seen an auditing scandal with a happy ending? You would think this would be trading below $1 when trading eventually reopens. Also, could this company face litigation from shareholders who were obviously duped? Looks fishy with the American headquarters (ie why list in Canada when the American Market is much larger)
Read Answer Asked by Thomas on March 15, 2018
Q: This announcement just came down....I hold this stock at 3.90 a share. Is this a positive announcement? Should I continue to hold ? Your comments are appreciated. Rita
Wednesday, March 14, 2018, 9:00 AM ET

ZUG, Switzerland and VANCOUVER, March 14, 2018 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the "Company" or "HIVE") is pleased to announce that it has applied for listing of an aggregate of 48,830,150 common share purchase warrants (the "Warrants") on the TSX Venture Exchange ("TSXV") as a supplemental listing. The Warrants were issued pursuant to private placements of the Company that closed on November 14, 2017, December 18, 2017 and December 29, 2017.
Subject to TSXV approval, the Warrants will commence trading on the TSXV under the symbol "HIVE.WT" concurrently with the expiry of each applicable four month and a day hold period attached to such Warrants. 12,322,250 of the Warrants are expected to be listed on March 15, 2018, 15,873,100 of the Warrants on April 19, 2018 and the remaining 20,634,800 Warrants on April 30, 2018.
Each Warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of C$3.90 until November 14, 2019. The Warrants were issued pursuant to, and are governed by, a warrant indenture between the Company and Computershare Trust Company of Canada dated November 14, 2017, as supplemented by the first supplemental warrant indenture dated December 18, 2017.
About HIVE Blockchain Technologies Ltd.
Read Answer Asked by Rita on March 14, 2018
Q: Peter and His Winder Team
This 55 million dollar order has to be good news. Does it validate that there new products will probably be in demand? In the scheme of things what implications might this have for there future...keeping in mind they have been struggling for a long time!
Thank you for your great service!
Read Answer Asked by Ernest on March 14, 2018
Q: Hello,

I was wondering what your thoughts are on RHT given it's current price ( ~$2.22 as of today). Based on the most recent share count outstanding (81,871,000), this suggests an EV of about $180 MM for a company that is showing 6 month revenue of $1.1 MM. While I know that early stage companies are based on what the future holds, I also like to keep an eye on what EBITDA needs to be (in the future) to justify valuations. For instance, in the case of RHT, if one believes that within the next 12-24 months they can achieve EBITDA of ~ $12 MM, then this would suggest that today it is trading at a EV/EBITDA multiple of 15 based on future results. EBITDA of $12 MM in turn is achievable if they can hit ~ $20.5 MM in gross revenue with a 78% gross margin (as per most recent financials) and no increase in cash expenses of $4.0 MM annually, as 6 month financials suggest ~ $2.0 MM in cash expenses. In short, does your modelling of RHT suggest/indicate that this is a realistic expectation, and that within the 12-24 month time frame they can reach ~ $20 MM in gross revenue with no margin compression and no increase in cash G&A costs ?

Thanks!
Read Answer Asked by Mike on March 13, 2018
Q: Hello 5i team; Any new thoughts on PEO and BYL. I am getting a bit impatient with both of these as of late. I am down 14% on BYL and 5% on PEO since buying them. I know you think highly of PEO. Do you feel it is consolidating after the previous run up or is there material weakness building in some regard? I am looking for near term catalysts to get these 2 stocks moving. BYL from my take should have numerous new avenues of growth after its recent takeover stemming from the whole roster of products acquired and now being able to sell them to their "approved" customers, in which Advantech never could because it didn't have the rights (from what I have gathered from company statements). Anyways just looking for some guidance if I should just hold on and ride these 2 out or sell and move on....
Read Answer Asked by Shane on March 13, 2018
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