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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: My question is about Manhattan Bridge Capital Inc ( LOAN on NASDAQ).
The company pays a regular7.6% quarterly dividend and the stock trades in a range of $6.00 to $6.60. The company seems to have quite stable income but is highly leveraged. Nevertheless if the pundits are correct and we have low interest rates for 2020, would it make sense to borrow money at 5% to buy this stock? What could possibly go wrong?
Cheers
Ian
Read Answer Asked by Ian on January 09, 2020
Q: I would like to buy a stock or ETF that deals with water treatment, possibly desalination, or purifying water. This would be a US holding, but not necessarily aimed at treating water in the US. What suggestions might you have? I thought about American WaterWorks, and would like an idea of what else is out there, especially for desalination treatment. Thank you.
Read Answer Asked by Elizabeth on January 09, 2020
Q: Greetings,

I need to add an industrial and a consumer staple/discretionary to my overall well balanced US portfolio. After reviewing a number of options, my top in each category are GD and HBI. I am looking for some growth and a dividend as I am nearing retirement. I am betting that GD will continue its strong growth and HBI will turn things around. Your thoughts and do you have a better recommendation in each sector?

Thanks
Read Answer Asked by kelly on January 08, 2020
Q: LYB shares APPEAR to be good value. Analyst opinions however are all over the spectrum. For example RBC Cap downgraded LYB to hold/neutral from outperform; CFRA has a STRONG buy. I have reviewed Forward P/E , PEG and other quant metrics. What do you think of qualitative aspects? What is your substantive insight into LYB’s BUSINESS model? Based on what you read and your own thoughts on prospects for global growth, is LYB a good holding? It has been a dividend grower but share price is flat to lower for a while. Do you think chances for growth in EPS, and price of shares going forward, is one better to move on? I checked your previous response to on LYB and am looking for more your current thinking.
Read Answer Asked by Adam on January 08, 2020
Q: I am not clear on your December 23 comment on Gilead. You write that GILD has (or may have been) a “value trap” . You do not say whether your view is to sell. Is it your thinking that GILD is a hold? Or did you mean to say it is likely better to sell GILD? I am not sure how 5i defines value trap and you did not elaborate. One acknowledges that your comments are not advice.... that’s understood. With that in mind, I would appreciate more clarity on your thinking. Several pharma and bio tech companies are frustrating securities to hold. But sometimes the pipeline or prospects make the risk-reward equation such that patience is advised. Is it here?
Read Answer Asked by Adam on January 08, 2020