skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I just read a Globe and Mail Business headline which read as above: FANG meltdown and then the article talked about face plants, sector roatation etc.

In you opinion, is there something truly fundamental going on here; and do you see a need to bail or significantly reduce exposure?

Or is this another example of “Big Noise” and sensationalistic reporting .... and as you often suggest “stay the course”?

With significant holdings here I am hoping your advice will be to hang in there and maybe even add to some of the FANGs.

Thanks
Read Answer Asked by Donald on November 29, 2017
Q: Dear Abby .... I mean 5i : Given the industry’s past-habit of over building capacity in good times, I half-expected Micron to weaken a bit. Notwithstanding that, I also read that the foundries had learned their lesson and were no longer jumping into adding capacity. The sudden and scary drop from impressive heights in MU’s price doesn’t look wholly justified. Although the share price increase may appear dizzying, it isn’t THAT much when one looks at multi-year price-history. For exemple although this year’s chart shows more than a doubling in price, I show 30 odd percent gain, having held MU for several years . I checked the financial sites and didn’t see much that explains the suddenness in price drop . Morgan Stanley unkindly dropped off on Monday a negative blurb on chip makers and most Semi’s dropped after opening on Monday. I read the said report and was not as convinced as Morgan Stanley seemed to be. I later saw MU had a positive report (Baird) . Obviously, I am missing something important . I am much too shy to ask to see your Bloomberg terminal . Your insight and DEEPER look and subsequent comment into this issue would be most appreciated.
Read Answer Asked by Adam on November 29, 2017
Q: Could you please give me your opinion on the etf's FNG and FINX. I am thinking of taking a half position in each. Do you prefer one over the other or do you think splitting between the two a good idea. I currently do not have any exposure to tech other than PHO and OTEX but with the huge gains in tech over the past year I am reluctant to stock pick at this time.
Read Answer Asked by Susan on November 29, 2017
Q: I am doing some research on PTG and I am somewhat amazed to see that the companies market cap is about $100 million, but revenues clock in at over $1.3 billion. It would seem to me that they have a large degree of leverage to any cost savings they can wring out of their operations. Even a 1% reduction would equate to a significant % of their market cap. I was also thinking that this could make it attractive as a takeover candidate. I note, as well, that in a recent response you indicate that the fairly attractive dividend appears safe. I am looking at building an investment "thesis" if you will, and was wondering if you could add any comments as it does sound as though you have had access to management recently.
Kind Regards.
Read Answer Asked by Robert on November 29, 2017
Q: Good Morning,

I have not yet finished my homework on Quarterhill, but I need your advice.

In the past nine months Quarterhill has invested US$67,415,000 in the acquisition of three companies (Viziya, IED and iCOMs), I believe these acquisitions were financed by cash on the balance sheet. In the June quarter, revenues were US $12,842,000, in the September quarter revenues were US $72,158,000. Net income was US $26,211,000, plus a onetime charge of US $15,190,000. They have US $40,000,000 in cash. Can Quarterhill repeat these numbers over the next quarters ? If they do, then their annual revenues will be US $280,000,000 and net income will be in the US $100,000,000 range and cash on the balance sheet will be north of $100,000,000.

Current US stock price is $1.73 ($1.73 multiplied by 124,767,000 stocks) and the market capitalization is US $216,000,000. If I deduct the projected cash on the balance sheet for the next twelve months, the enterprise market cap is US $ 116,000,000. These are very good numbers and this is a cheap company. I feel as if I'm my missing something in my analysis? Why is the company so cheap ? Will the new acquisition remove the lumpiness in revenue from quarter to quarter ?
Merci
Read Answer Asked by Gilles on November 28, 2017
Q: Hi team,

The stock fell by more than 16% after BTIG downgraded the stock from neutral to sell. Do you think the market reaction to BTIG's report is justified? What do you think of their arguments about bitcoin and tax reform on how they can effect on the stock if they don't work out? Is the stock really worth $30?

Thanks for your unique insight and analysis!
Read Answer Asked by Saeed on November 28, 2017
Q: Hi team,

This question is probably going to highlight my ignorance in this area only, but I am going to ask it any: Would it make sense for CSU to take over DSG in a mega deal? Would there be any synergies from a friendly acquisition? If yes, why CSU is not interested in DSG? or similar large Canadian software companies?
I have both and not sure if there are any advantages in keeping both.
Your feedback and insight is much appreciated.
Read Answer Asked by Saeed on November 28, 2017
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!