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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: Hi Team,
I am a bit perplexed about why the last couple days NVDA has been trending down after earnings releases such as Meta, GOOG, Msft which all seem to show massive spending on AI. You would think this will translate into high demand for NVDA chips which hopefully will bold well for NVDA earnings. Any thoughts on the outlook here for NVDA earnings estimates? I assume the correct answer as usual will be to hold the stock into earnings. I am also surprised Meta and Msft are dropping after great earnings.

Thanks,
Shane.
Read Answer Asked by Shane on October 31, 2024
Q: Hi,
Few weeks ago I bought a small position in TMDX at $130. As the stock got closer to earnings, I sold some naked puts at $105, collected a nice premium and expecting that if it dropped after earnings, I could pick up some more 20% lower which I'm happy to do. With the larger stock drop after earnings down to $85 now, I'm thinking about my options. I'll most likely be assigned the shares at $105, which expire in 2 weeks.

As you have mentioned in many comments, I think these results are temporary headwinds and long term I'm still bullish. I'm tempted to 1) sell another put at around $70-75 and if the stock drops there, I'm happy to buy more. If it rises, I just keep the premium and reduce my cost base. Or 2) I was thinking I could buy the stock here and sell a covered call at around $95-100? Any other ideas you would implement here if this were you? what would YOU do if this were you? Thank you!
Read Answer Asked by Keith on October 31, 2024
Q: Record(?) or near-record free cash flow of $760M, $2B in additional buybacks announced. Bought back ~$750M of stock since Feb 2024 (~2% of shares outstanding). Gold currently ~$300/oz higher than their average selling price in Q3 of $2518. Surely slightly higher costs aren't that important in the context of the gold price being so strong and the large buybacks.

The old adage is to date the mining companies and marry the royalty companies. Is now a good entry to start dating Newmont?
Read Answer Asked by Marco on October 31, 2024
Q: AMD shares fell over 15%, apparently due to the company issuing forecasts that were noticeably lower than analysts’’ expectations. I bought AMD close to highs and have a substantial loss in a non-registered account. I thought I could harvest the very large tax loss and buy back after 30 days. However, given the company’s respectable record, wide moat (good products that are expected to stay in demand) shares could easily surge in a month or two in amounts higher than any tax-deduction benefit one might realize. I would appreciate your views on the short-term likelihood of AMD shares making a quick recovery. Due to my own biases, I am likely mis-calculating the risk-reward equation.

AMD’s financial results were good vs. estimates. Management gave credible answers and logical comments in the earnings call (although Lisa Su , CEO, did give self-contradictory remarks in media interviews). Although AMD is far behind NVDA , would you agree that its research and development is such that it will produce, after 2025, chips that will compete extremely well? Wishful thinking on my part ? The above is a leading question, so I would appreciate your thoughts independent of my preconceptions. :ao:sab
Read Answer Asked by Adam on October 31, 2024
Q: Shipping companies. I was just doing some research on SBLK and came across a question from Jacques going back to Jan 30/2024. It looks like share prices of all those companies have dropped significantly over the course of this year. Some have low P/E ratios , look oversold and have nice yields. I would appreciate your assessment of the situation and whether or not this is a buying opportunity. My primary interest currently is SBLK but I am open to 5i’s suggestions. Thanks
Read Answer Asked by Donald on October 31, 2024
Q: Do you have any views on Centrus Energy Corporation (LEU:US)? Its price has risen rapidly with uranium prices this fall but it still seems to be reasonably priced. It appears to be the only company that enrichse uranium in North America and would appear to be a vital part of the nuclear energy future.
Read Answer Asked by Ken on October 30, 2024
Q: When does SHOP next report? What is the consensus? More importantly, what does 5i expect? Can you provide background/explanation on your assessment? Looking forward, what do you see as the biggest potential risks that might hurt SHOP over the next year and what are the biggest catalysts that can elevate SHOP to new highs over this time period?
Read Answer Asked on October 30, 2024
Q: Hello 5I, I am considering selling some of my ZSP(S&P500) ETF holdings, and rake some the profits and buy more Canadian index funds like the BMO ETF ZCN. Many financial experts feel that the SP 500 market is currently unsustainable and over priced.

Your thoughts in this matter would be appreciated.
Read Answer Asked by Yves on October 30, 2024
Q: NVDA has 6 of 7 criteria for the definition of a bubble. Is there excessive exuberance in the AI space? More importantly are we in a bubble cause by excess hype and fear of missing out? Is NVDA in a similar situation as CSCO was a number of years ago with all mania surrounding it? Lastly, does NVDA really have an super moat that makes them near invincible, because would that not be the high of hubris…even the formidable Achilles had an exploitable weak spot and I wonder if there is a real danger NVDA & the AI space writ large has one too.
Read Answer Asked by MG on October 30, 2024
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