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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: Ocean rates have gained significantly in recents month. Coming out the pandemic with a robust global economy it is anticipated that global shipping demand will continue to be bullish. Are you able to recommend 3 names(ocean related)that would be a way to participate in this anticipated upswing.
Read Answer Asked by Chris on April 20, 2021
Q: Generally speaking what percentage of one's portfolio do you believe should be allocated to US dollar investments for diversification?

Thanks,

Joe
Read Answer Asked by Joe on April 20, 2021
Q: JEPI is a fairly new actively managed ETF (it is not in your data base). In its description of that JEPI ETF.com says JEPI “... is invests in large-cap US stocks and.... ” .

1. What are equity-linked notes and what do ELNs do risk vs. reward?
2. Would you agree with the following statements:
(a) If any investors are uneasy about current valuations, the covered call strategy the manager uses would likely be acceptable.
(b) JEPI would not be good to have in a major draw down, but...
( c) JEPI would not necessarily be a safety net in a major draw down, but would likely be something of a net in routine dips of up to 15%.

If you have other ETFs that you consider better, I would appreciate if you gave some symbols that one could do further research on.



Read Answer Asked by Adam on April 20, 2021
Q: In your answer dated April 19, 2021 to a question on CRM vs. PINS you write
“ ...[we] and would see PINS as having more potential [than CRM] today”. That is a rather odd thing to say, and you have me baffled. SO baffled that I started to make enquiries about what might have been added to your water supply.
I would be thankful if you would confirm—or correct me— on the following:
1. CRM has a wider moat.
2. CRM’s customer base is much bigger and customers are better able to pay CRM (and certainly less fickle).
3. CRM’s business model is sturdier (superior, stronger) and customers tend to be sticky.
4. CRM has a MUCH LARGER total addressable market.

A concern I do have is if CRM is able to close its proposed acquisition of Slack , integration is costly and will be a risk. AND CRM is unlikely to compete well with MSFT post-acquisition of SLACK.

Although CRM has been trading in a flat range and has been underperforming for almost a year, I was thinking of adding to my position in CRM . I would be happy if you corrected me, so I do not make one of my unfortunate and classic mistakes .
Read Answer Asked by Adam on April 20, 2021
Q: Attention turned to industrials earlier this year and many have already done well. Is it a late to buy 3M ? If no, do you believe 3M to be a good investment assuming we are going to see a healthy recovery in major developed economies. In particular:
1. Do you think there is a high probability of further US$ weakness or is that mostly done now? If the US$ weakens further, would I be correct in thinking that that in itself would make little impact on 3M’s prospects, given that 3M has global facilities?
2. Would you consider 3M to be fairly priced today? I cannot tell if it is GARP or overvalued. (The Dr Dooms are getting to me).
3. Have the most recent quarters been meaningfully good for 3M sales due to Covid ( ventilators, medical supplies?) Or do you believe 3M still has great sales prospects going forward or are comparisons going forward going to depress share price?
4. What is 3M’s PEG ? I see conflicting numbers.
5. I thought 3M had a good MOAT , a business model that is hard to replicate EASILY. Am I correct?
6. Any reason to wonder about management strength?

(Disclosure : I am biased in favor of 3M for reasons that I myself find unfathomable)

Read Answer Asked by Adam on April 20, 2021
Q: Hi team,

I'm interested in adding two defense companies to my holdings, for a 3-5 year period (perhaps longer) and I'm interested to know which companies you would recommend considering?
The companies that I'm looking at right now include LMT, NOC, RTX, GM, BA, HON. Are there other companies I should also be looking at?
Could you please rank the listed companies in order of preference?

Thank you for all that you do!
Read Answer Asked by Tristan on April 19, 2021
Q: What's your opinion of AMD, buy or sell, and why?
Thanks very much!

Leo
Read Answer Asked by Le on April 19, 2021
Q: With more and more US states moving to legalize marijuana I feel it is just a matter of time before that is done at the federal level. I have a large position in these 3 names. I assume they will shift from big tobacco to big marijuana once it is legalized. I think there is big growth potential here. Would you agree with that assessment? Would there be something that could stop this from happening ie government not allowing these big players to dominate that industry?
Read Answer Asked by Edward on April 19, 2021