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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 have been holding EGLX for quite some time. I view it as a long term hold while it establishes itself in the marketplace. I am concerned about the expenses though, in particular Share Based Compensation. To me, for a growing company this is too high relative to its Gross Profit. What is your opinion on this?
Secondly it has a lot of volatility which makes me think it is being day traded. Any thoughts on this?
Thank you.
Read Answer Asked by Dennis on November 12, 2021
Q: Roku and Acuity Brands of have dropped to around 1% each in my Portfolio. I also have Alphabet and Enthusiast Gaming. I am thinking of selling ROKU and AT and buying Disney. Does this make sense or would you do something else with the above mentioned stocks. Thanks as always for the help.
Read Answer Asked by Neil on November 12, 2021
Q: Hello 5i team

I would like to know your opinion on the resistance that can represent the crowd of potential sellers who can take advantage of the return of the price of a stock to their purchase levels after it has fallen sharply below that same level. I'll give you an example: EGLX. When the stock was rising to new highs, the only potential sellers were those who had bought lower, but now in the case of a rise in the stock, it will be necessary to add a part of those who bought higher and who will take advantage of it to recover their capital. Does this make sense and can it represent a significant brake, especially when the rise is recent. I imagine that if several years have passed, many shareholders will have liquidated their positions tired of waiting and that the effect would be much weaker.

Thank you

Read Answer Asked by Charles on November 10, 2021
Q: I requested some input from Enthusiast Gaming Investor Relations yesterday and here is what they provided:
Re: What is Going On With Your Stock Price?
Inbox

Investor Relations
12:49 AM (8 hours ago)
to me

Hello Chris,

Thank you for your email and valid comments. While we can't comment specifically on the stock price (that is for licensed professionals), we can tell you that the business plan is still very much on track and that over the past year we have been very focused on building a leading gaming, media and entertainment company. In that time, our key operating metrics have all improved, including improving gross margins, subscription growth and direct sales growth, In addition, the company is in a stronger financial position today than a year ago with more cash and less debt on its balance sheet. Finally, we have deployed capital on smart, accretive acquisitions that have strengthened our fan communities while supporting the operating metrics above.

We remain on track to achieve our business plans and have delivered consistent fundamental growth on all of our operating metrics.

Please feel free to reach out any time and we thank you for your ownership and support.
Read Answer Asked by Christopher on October 28, 2021
Q: Since I bought Pltr at $29 from my Tfsa, it keeps going down , it was back to $29 for one day, then it dropped again. I want sell Pltr and buy Sklz. Wondering if Sklz is similar business like Eglx? Would you buy Sklz at current price or what would be a good entry price to get in? It has been moving up for over a week, or should I wait until after report earnings on November 3, your thoughts please, thanks
Read Answer Asked by Hue on October 28, 2021
Q: I am down on these stocks EGLX (-24%), AT (-28%), BRAG (-24%) and PINS (-23%).
These stocks are in a non-registered account.

I have two questions. First, are these stocks worth holding for a turnaround or just take the loss (and take advantage of the tax loss credit) and move on?

Second, if they are worth holding I might do a tax loss sell and buy after 30 days. I am not sure how to time that. Do it now or at the end of the year?

Thank you for your help and advice as always.

David
Read Answer Asked by David on October 26, 2021
Q: I hold TTD In a growth focused portfolio at a small profit but looking for more torque. Would you swap it out for AT?

Same situation for a position with ECN and adding those funds to small positions of DND and EGLX.
Read Answer Asked by Rick on October 20, 2021
Q: Looking at some recommended company's that are near 52 week lows that have a lot of future growth and years of multiple upside. Can you suggest your top 5 companies that fit this criteria(and why you believe the upside potential). I would like to set and forget(for years) for my next few purchases. thx for the great service
Read Answer Asked by Chris on October 15, 2021