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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 5i,
QST's results announced this morning look dismal to me and I'm not seeing much cause for optimism going forward. I hold a few thousand shares in my TFSA and I'm down 30% before market open today. No reason to sell for tax loss purposes and don't need the money right now, but I don't want to just sit and watch things get worse for a year or two.
Is my pessimism justified and should I just take my lumps now, or am I missing some reason for optimism such that hanging in there through at least the next quarter might be warranted?
I look forward to your thoughts - thanks.
Petere
Read Answer Asked by Peter on August 16, 2021
Q: Moving shares into a TFSA. In general, would it be wiser to move shares with growth potential or ones that generate more dividends into the TFSA?
Read Answer Asked by Jacques on August 16, 2021
Q: Many questions relate to a stock that has run into difficulties with a downward stock price. Your customers are looking for an indication of what to do. Quite often they ask 'is it a buy, hold or sell'? In all my years as a customer of 5i, and skimming through the hundreds of thousands of questions, I don't recall more than a few 'sell' responses. Mostly 'hold' is the way to go. I, and probably most of your customers, would appreciate a bit more of a definitive answer. I realize giving a sell response is a big decision that could backfire if the stock recovers. You might end up with unhappy customers. What about qualifying the hold response. How about rating the 'hold' with a number scale from 1 to 10 where one is a weak hold and 10 is a strong hold. A '1' might apply to a company that has missed guidance a quarter or two but has a chance to recover in their market (there is still potential). A '10' might relate to a solid dividend paying company that missed guidance due to a large sale being delayed, currency issues or a temporary drop in margins.

I'm sure others would appreciate this clarity. Keep up the good work.
Read Answer Asked on August 16, 2021
Q: I sold my position in XBC almost 30 days ago, and I am eligible to re-purchase with a crystallized loss on Aug. 19 (next Thursday). XBC has dropped about 20% since my sale, but after reading their comments from their recent quarerly results, it does seem that they are executing on their strategic plan on multiple fronts (e.g. demand for their BioStream products, progress on their HyGear initiative for hydrogen production). I plan to ultimately re-purchase XBC: would the current discount be favourable enough to re-assume a position, or should I hold back and wait through a purchase of another proxy? You had suggested GRN in my last question, and to my detriment, I was too slow to act. I see my alternatives as follows:

- Purchase XBC on the 19th, and hold
- Maintain the cash position liberated by the sale and observe XBC for the time being
- Purchase a proxy (either GRN or alternative, possibly CMC) with the cash position, and continue to watch XBC to determine where price consolidation is ultimately established

As always, I appreciate your thoughts, even if I am slow to act upon them at times. Membership has definitely made a substantial and positive impact on my portfolio! I have already recommended your service to friends who have since become new members, and I continue to do so. I have not come across another service that rivals yours, and I feel that your company is a shining example of how capitalism creates opportunity for enterprising people to enrich the lives of others through ingenuity and dedication to their endeavours. For those who are wondering, yes, I always sound like this! :)

Thanks again!
Read Answer Asked by Domenic on August 16, 2021
Q: The share price seems to have stabilized in the .70-.75 range for 2021. Do you see any long term growth prospect with Lucara? The last couple quarters have not been blow-outs, but have been positive overall. They have been investing in existing operations and increasing capacity, plus finding alternate ways to distribute carats. Are diamond sales expected to increase as the world returns to normal or are they projected to stay relatively flat? Would this be considered a buy/hold/sell at this point?
Read Answer Asked by Daniel on August 16, 2021
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