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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: I realize 5i refers to this type of stuff as noise but hopefully you can elaborate a bit about these comments made in the media. Seeking Alpha reported that Amazon might be getting their own type of pay system which will affect PayPal and Square and notice these two stocks dropped off more than the norm on Friday.
MU - Micron - I read the same article as another member about Micron was downgraded with a low target price. The following day, Seeking Alpha posted pictures of Micron's headquarters stating that at this price Micron was a definite buy and they had a good article on all of the great things about it and a high target price I believe of $75.00. Who do you believe?
A regular analyst on BNN - David Price was stating how he felt the market would not hold the February lows and was showing some charts and saying when it got down around the old lows the automated trading would kick in and the market is going to go quite a bit lower. He sees it as a rough couple of months and more or less said that it would be 2019 before things come along. David Price back when oil got down to the $40 mark, some time ago he said oil would be going to $20. He was wrong. Let us hope he is wrong again. Your thoughts.
Read Answer Asked by Dennis on April 09, 2018
Q: Between American Express AXP and Discover Financial DFS, which one would you buy (IF not both)? I am interested in value with some dividend growth. I have a half position in DFS. Is it worth selling DFS to buy AXP? I look for companies with manageable debt, decent free cash flow, good ROE and reasonable PEG
Read Answer Asked by Adam on April 06, 2018
Q: My average cost 62.50 and I am down quite a bit since the last quarterly report. Reading through your comments on this stock, you feel that the stock has lost its momentum. The company reports next on April 30. Do you see any reversal in the next 6 - 12, should one continue to hold or should one just sell now and replace it with a better choice. Regardless, if I should decide to sell now, could you suggest a couple of US replacements with some growth prospects that have positive momentum. (I was thinking of businesses like Visa or Mcdonalds or something you may consider more appropriate with similar moats). This security is being held in my wife's RRSP and she also holds: AT&T, MSFT, FB, MS, AMTD, JNJ & MO. I am more interested in preservation as my wife will have to begin withdrawing in a couple of years.

Thanks,
Joseph
Read Answer Asked by Joseph on April 06, 2018
Q: Kulicke and Soffa KLIC.us, a provider to the Semiconductor industry, looks interesting. I wonder about its vulnerability to cheaper imports. Does KLIC have a domestic SERVICES business insulated from foreign companies? Does it have good free cash flow and manageable debt? Is KLIC subject to cyclicality as extreme as foundries are? I hold LAM Research LRCX so would I be duplicating with KLIC, do you think?
Read Answer Asked by Adam on April 06, 2018
Q: What companies and/or sectors benefit the most from the tax changes in America? Are there any companies you are aware of that should see substantial earnings boosts due to the changes but haven't seen it reflected in the share price?
Read Answer Asked by Marco on April 06, 2018
Q: I bought GE several years ago for its stable dividend (sigh). I have been pondering whether to let it ride and see how it recovers or if I should sell before it drops to nothing. Looking at what is being published goes in both directions as to whether it should be held or sold. From your Q&A it appears that you wouldn't suggest getting in. What is your position about holding a persons current position?
Read Answer Asked by Betty on April 05, 2018
Q: Would you comment on ICE on the NYSE, please. It has performed nicely since 2015 and wondered if their earnings, etc. bode well for the future. -- i.e., justify continue to hold in this market? Although it's been a "bit rocky'", it certainly hasn't suffered inordinately. (Is there a better Canadian alternative?)

I am wondering which sectors are good for "parking" money at this time (that is, to avoid the crazy volatility of tech, for someone who is always heavily weighted in tech). Is gold a good alternative?

Please feel free to deduct points as appropriate, since this is a two-pronged question.


Read Answer Asked by Sylvia on April 05, 2018
Q: Hello,
At some point 5i seems to have changed direction with Amazon. Earlier on you thought the p/e ratio was just too high. For instance, this was your objection to buying Amazon in July 2014:
5I RESEARCH ANSWER:
We think Amazon is a great, well-managed company, with excellent potential and a solid niche that it continues to develop. Clearly the leader in the space, it further consolidates its position nearly every day. It has $5 billion net cash. We like the 'company' for sure. However, the stock trades at 279 X forward earnings estimates, and we simply cannot get our heads around its valuation. It is a high beta stock, but this year the market is up and it is down 12%. We think there are better growth companies to own.
According to Yahoo Finance the P/E ratio is higher now than it was then. I am interested in buying Amazon amidst its current troubles but the cost really makes me question that decision. I am curious as to what exactly were the elements that brought 5i to become much more favourable towards buying Amazon?
thanks
Read Answer Asked by joseph on April 05, 2018
Q: Just a comment: a complete list of US preferreds, with daily updates, can be found at http://www.wsj.com/mdc/public/page/2_3024-Preferreds.html
Read Answer Asked by Kurt W on April 03, 2018
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