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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: What's your take on the company's revenue recognition policy? It sounds strange and not so "conservative" to me. They should use accrual basis for accounting and reporting. I am wondering if this has something to do with their recent problems with hardware shortage delaying clients onboarding, such that March sales are too low to show. Hope they are not doing this to try to hide something.

Thanks.
Read Answer Asked by Tony on May 31, 2018
Q: This week I will reduce my current energy portfolio (@12%), bringing it down to two holdings to a total sector percentage of 5%. I need a second suggestion for the Energy portion, considering RRX, though with a tendency to PKI.

With the available funds, I’d like to get into the Tech and Healthcare sectors, selecting one new holding each. I have earmarked RHT and PHO for Tech, with CSU and SHOP as secondary options. For Healthcare, I’m eyeing GUD, COV and PLI.

This approach is geared towards a slightly balanced but still aggressive enough growth portfolio.
Please advise on your top picks for each sector. Many thanks in advance.

Cheers
Read Answer Asked by Dominik on May 28, 2018
Q: Hi 5i team. After being badly "burned" by healthcare companies over the last couple years (phm, vrx, cxr) I had sworn off investing in healthcare/ drug companies as every one I was invested in seemed to turn out to be giant scams. But, that being said, I find myself liking the idea of the technology behind RHT and I am considering investing in this recent pullback. On the flip side I used to feel the same about patient home monitoring (and we all know how that turned out). I guess I am looking for reassurance that RHT is a MUCH different home monitoring company than phm was, with competent management that aren't scamsters like Dalsin was, and describe the level of potential RHT has for future growth. I like the "tech" and "AI" component of this technology the best as I believe these will continue to be the highest sector of world growth going forward.

Also, in regards to the upcoming quarter; is there a negative setiment out there in regards to the release that you are aware of? Would a person be better off to buy the dip now, or wait until after the release? Thanks
Read Answer Asked by Shane on May 28, 2018
Q: Are you concerned about the valuation of RHT considering its forward looking from a mgmt team which has never succeeded in the past. Also I was told they have spent a enormous amount in IR and they placed cheap paper below $0.20 with various groups. In addition Texas is one of the worst states for Medicare fraud and when I google their clients not much come up (other than Golden B founder involved in fraud).
Read Answer Asked by Chris on May 28, 2018