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 purchased about 4K of PHM from Dec 2105 thru to Fab 2016. Average cost is .45 per share. Sitting now at .16 for a total loss of about $ 2600.00 (down 65%). I don't need the money anytime soon so holding it is not an issue. Just wondering if it will be a total loss (noting you already stated previously it's a "show me" story). Any chance this goes to zero or will it just take 2-3-4 years for me to get back to 45 cents ....
Read Answer Asked by Randy on July 21, 2016
Q: Hello again team,

One of the companies I have been absolutely smoked on is PHM. Currently I hold it, and I see that in previous questions that it is likely trading under fair value but with concerns of further losses. With the recent quarter being as messy as it was I am stuck in two modes of thought. 1) Wait for a quarter with business write offs removed to show more clarity on the situation. 2) Swap the stock with something for fewer issues. I am considering DHX media and TIO Networks. I found DHX interesting after reading the research report in regards to opening up more channels for distribution. Do you have a fcff, or RI (Residual Income Model) stock price valuation on the three companies and which do you prefer at this moment? Do you also have separate models / option pricing models for DHX in regards to opening up a youtube channel, netflix, or China subsidiary? Do you have any thoughts on which options provide the greatest benefit?

Thank you, looking forward to any feedback that you can provide.
Read Answer Asked by Liam on June 21, 2016
Q: I have held CNQ for a long time and still show a good profit. Knowing that it's not your favourite energy company, could you please give me your current opinion of it? And which ones you prefer over it?

Regarding PHM I'd like to tell Patrick that I feel his pain. I bought this at $1.42 in my TFSA and it's still sitting there.

Thanks to all at 5i for your usual good service.

Molly
Read Answer Asked by Molly on June 10, 2016
Q: Hi,
Based on other questions asked, I see you aren't recommending Buying PHM anytime soon. I have more frustration with this company than AVO and AYA combined.
Can you enlighten me on how a company like this gets a "2015 TSX Venture 50 Company" designation on TMX Money? The whole concept of the company seems like a sure win, but it keeps going the wrong direction. My loss is so great on this one, it's not even worth selling because it's near worthless. Also, do you feel there is some light at the end of this tunnel say 2-3 years from now? What could help turn it around?
Read Answer Asked by Patrick on June 09, 2016
Q: Hello Peter
I still have Phm 8000@1.046 and Qst 3000@2.57 not looking so good.
Should I sell one and add to the other? Or cut my losses and add to a better growth stock from your growth portfolio?
I am diversified so just looking at a better stock for the next 2-3 years.
Thanks for your work!
Read Answer Asked by Brad on June 09, 2016
Q: Hi Peter and Crew,

So enjoy your objectve answers. So valuable. Keep up the great work.

For better or worse, I am a patient investor. I also buy on all time highs. Sometimes I sell on mental stops. I was able to catch the wave on PHM through 2014 and 2015 adding at new highs and sold most of my position sometime into the decline. Did "awesome."

I have consulted your database of questions on PHM. Based on the answers I am considering adding to my small position, based on the likelyhod of a recovery (although I would expect years for this to happen). The 10 year chart also gives me confidence. My strategy would be to add incrementally in small amounts and only add more if the equity proves itself by heading up.

Do you think the time is "close to right" to start to pull the triger ?

Thanks so much !!!
Read Answer Asked by Jim on May 24, 2016
Q: Down 80% on PHM and 20% with AYA. Thinking of selling these turkeys and buying SIS. SIS is currently overbought, but seems to have generally good fundamentals. I bought GUD almost 2 years ago at its all time high and just broke even on that purchase. I am concerned about the current valuation of SIS and if I am giving up too soon on AYA. My new rule to avoid this mess in the future is to sell half when down 5% and sell the balance when down 10%. Thankyou
Read Answer Asked by Richard on May 09, 2016
Q: I think I'm ready to throw in the towel on PHM and SCR, being down 54% and 42.5%, respectively. I've been doing the Lazarus Watch on them, but I'm ready to concede these will not be coming back from the dead any time soon.

In that vein, I was thinking of replacing them with beaten up oil/energy stocks, that are more likely to recover than either of these. Some thoughts are: Cequence, Rock Energy, Pine Cliff and Cathedral. What are your thoughts on your favourite one of these, assuming I'm in a fugue state and believe in oil recovery? : )

Alternatively, could you recommend a stock, in any sector, with some good trading potential, with a stock price of under $1?

I know this goes against 5 I methods, and for what it's worth, this is not my usual M.O. I normally follow solid 5 I principles, and have made some very nice returns. (thanks for that!). Rather, this is my Mad Money Recovery Mode -- and wanted to exchange, roughly, share count and dollar value. (I think we all have a tiny "gambling gene" in all of us, otherwise we would never go near the Market, with our hard earned cash.)

If you think PHM or SCR are worth holding onto, on the other hand, I would value your opinion. (I do tend to hold onto to things for the longer term if there is hope of probable recovery.)
Read Answer Asked by Sylvia on May 05, 2016
Q: This might be a tough question but I am pretty sure you would have seen it before. I need strategic help. I can’t seem to sell a losing stock. I am paralyzed by the fear that by selling I lock in the loss. Or that at the current price it is actually the time to buy the stock.
Surprisingly even with this list of losers my portfolio is actually up. Much to the credit of 5i. So I don’t need to sell but can’t help thinking that the money could be put to better use. I am also pretty sure that there could be different advice for each stock. But anyway here is my list. What do you think? Sell or hold?
Please take as many question points as you feel is appropriate.
TMA -21%
GH -20%
GS -30%
HLF -33%
PM -25%
WEF -20%
AYA – 45%
CXR -34%
PHM – 79%
Read Answer Asked by David on April 21, 2016
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!