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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: In your reply to Dan regarding Amazon and high valuations you mentioned being cautious on companies with “commodity like” businesses receiving high valuations.
Could you give a couple of examples with a couple of explanatory comments so members will have a guideline on these things and know what to watch for.
Thank You for your great service
Clarence
Read Answer Asked by Clarence on November 25, 2020
Q: Looking to buy a stock in the clean and green space. Came across Capstone Turbine (CPST). Could you please comment on it
Read Answer Asked by Howie on November 25, 2020
Q: I know this company has just been listed on the New York Stock Exchange. And I believe 5i views it quite positively. Can you tell me why are you feel it is a good stock to buy and what are its prospects for the future. I believe they have been around many year's and are not that profitable at this time. Could you give me some insight into the company.
Thanks John
Read Answer Asked by John on November 25, 2020
Q: I have been investing for a long time, and have always looked carefully at the p/e ratios and other valuation metrics of stocks that I have bought. I've always felt that the valuation of a stock matters. I read 20 or 30 years ago that the ultimate value any stock holds is the long term ability to generate profits and return these to shareholders in the form of dividends. Lately, it seems that a lot of that is being ignored. There are so many well owned, highly regarded stocks that aren't even profitable on a GAAP basis, and p/e ratios are non-existent in many cases because the company is losing money. I like growth stocks, but it just seems to me that there needs to be some kind of reasonable valuation factored in as well. Many of these high flying tech stocks are now trading at multiples of sales instead of non-existent earnings, and many of those at 20, 30 or more times sales. I know that you like a lot of these, so no need to specify any particular stock. I can see that these companies are growing revenues rapidly, but it can't be as simple as that can it? The revenue is going up 40% or 50% or more a year, and it's a good business, without a ton of debt, so it's a buy? Isn't there some kind of limit? Not trying to be critical - I own some of these high priced tech stocks myself. Some of them, I just can't get my head around what looks like astronomical valuations. Thank you for any comments or insight.
Read Answer Asked by Dan on November 25, 2020
Q: May I please have your opinion of AT. Thank you.
Read Answer Asked by Donna on November 25, 2020
Q: I am looking to buy semiconductor company. Was wondering what you thought of the three that I have been following. Could you please rank them in order of preference and if you have one or two others you can include It would be appreciated.
Thanks John
Read Answer Asked by John on November 25, 2020
Q: I am looking to buy a position in U.US (Unity Software), but I need to sell one of the other listed companies to raise the cash to do this. Which one would you sell (or trim) to do this, taking into consideration this would be a long term investment. I am looking for maximum share price appreciation. Thanks

Shane.
Read Answer Asked by Shane on November 24, 2020
Q: I’m seeing more and more questions from members about the EV space. I’ve taken a small position in EXRO with money I can afford to lose because their technology could be a game changer. I’m comfortable with the thought they may not succeed. It seems to me you always wait to endorse until a company has established a track record through sales, etc. This is obviously sound investing advice but doesn’t apply to many startups or companies with new technologies. I don’t often take ‘a flier’ but I feel we’re observing a sea change in energy and related industries. Could you discuss the EV space and identify some of the companies who may have your interest if not your dollars.
Read Answer Asked by Warren on November 24, 2020
Q: I'm trying to get my old fart head around BBTV. { When my TV asks me to hook up to the internet I stare at it with a blank expression } . But I have read your blog on it and if I am reading it correctly it doesn't have " good " market share it has " massive " market share in their product. But just what is their product ? " What is " unique video " ? How big a market is this ? And reading further in the blog it explains how they make money . Well I don't see a whole lot of overhead there . Just take your cut . So why are the revenues they are reporting not profit ? As I read it they had $120 million revenue and lost $11.5 million . Why are they losing money ? Could you please briefly explain your blog assuming you are explaining it to a tech idiot { cause I am a tech idiot } . I see Mr Market is so far unimpressed and I'm wondering why ? If one were to put a per share valuation on the company based on what they paid for the part they didn't own. What would that share price be ?
Read Answer Asked by Garth on November 24, 2020
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