Investment Q&A

Q: Thank you for the quick response to my ER/AUG. After reading your response, I realized that with ER currently trading at .26, its way below the implied deal price of .42 and I would potentially be leaving a lot of money on the table if I was to sell now and buy AUG. Hence I am best to wait selling my ER to see where all this settles as you suggest. Having said that, my reason to sell was to capture a large loss on ER shares while keeping my AUG exposure - however, if the deal goes through, would the conversion to .117 shares of the new company FURY be considered a deemed disposition of ER??? In that case if I do nothing I would be able to claim the capital loss of ER and still get the new Fury shares if/when the deal goes through? Correct?

Q: I wanted some exposure to these sectors. Can you recommend some companies to look at. It would be a long term hold and I have medium to high risk tolerance. Also what do you think if their current valuations?

Q: Do you think the big 5 AMZN, Apple, Microsoft, Google and Face Book should be in the indexes. They distort what is actually going on in the Sock Market and the Economy ? RAK

Q: I'm interested to hear your feedback about the growth potential (and risk) of the renewable energy theme. What stocks would you recommend, and for how long of a hold?
TIA!

Q: I often see/read commentary ahead of earnings for a stock that it misses/beats a certain % of the time. This is often followed by a percentage of sensitivity or average strength of a move after earnings. My question is if you know of a source for both US listed and TSX stocks that shows each of these figures? As an example, Livongo and Guardant Health both report next week. Is there a source that can tell me how often GH beats or misses and what a typical % price move would be? The % move post earnings is the more important part of this question. It would seem to be helpful in setting a price point to buy on a post earnings dip or to sell into good news.
Thanks as always!

Q: I'd appreciate your opinion on CWO ( Shares emerging mkt). MDM070 ( MD Growth) & MDM050( MD Equity fund). Thank you. Fooklin

Q: Your assessment of MAX,PERU and AZZ would be appreciated.Thanks.

Q: What do you think of WELL’S announcement today? Almost feels like the company is losing focus. Transforming into a cyber security company? How could they possibly compete with the larger names such as Blackberry & Absolute? Market seems to like it though.

Q: Hello,
I am wondering your thoughts on the announcement today on the purchase on the outstanding shares of Millenium Minerals

Thank you

Q: Any specific news to explain the 19% spike in KRR? I was sort of hoping for a pullback to get in and am wondering if I missed my opportunity. Do you think this would still be good long term?

Q: Hello there

can you suggest which canadian REITs you favor these days, and why.

second, I am looking for US etfs that covers the high tech sector and others for the health care sector. Your thoughts. please

as always. your guidance is appreciated

thanks

Q: Hello 5i Research
Thank you for all the questions and answers that you post every day. I start everyday reading all the post to keep me informed.
I currently own visa and MasterCard in my RRSP , do you recommend switching to SQ or/and PayPal at this time?
Thank you for your great service.
Claudio

Q: Can I open an resp for grandchildren with existing holdings by transferring (opening an resp) there are gains on the stock is it considered a gain.

Q: I’m interested in your opinion of DVR and whether this could be a good time for a higher risk small company?
Many thanks for all the great Q&As and advice, Lisa

Q: Adjusted earnings is a scam! (in my opinion). It blows my mind how much attention people pay to adjusted earnings vs GAAP earnings. Management of any company is probably in the most biased position and has the most incentive to paint a rosy picture. This is why GAAP and IFRS exist...to stop management from being able to go into this fantasy land where they can pretend any expenses/cash outflows they don't like never happened.

One of the adjustments I understand the least is the elimination of stock based compensation from expenses when calculating adjusted earnings. Lets pretend there are 2 identical companies. The only difference is company A pays its CEO in stock, and company B pays its CEO in salary for an equivalent amount. Company A will finish the year with higher earnings, however there will be more shares outstanding. As a result, earnings per share (which is what actually matters to an investor) between both companies will be the same (excluded tax impact). This is why it makes no sense in my view for company A to adjust its earnings higher and show higher adjusted earnings vs the identical company B.

The other point I find comical is that companies claim to adjust earnings for 1 time items...yet there are 1 time items every single quarter.... perhaps these 1 time items are part of running the business then?

The worst example might be excluding the write down of Goodwill. News flash manager...that means you made a mistake and over paid for a business...and now you want to pretend it never happened by excluding the write down from earnings?...

My question is surrounding the history of adjusted earnings. How long has this been around for, and is it possible that these (always higher) adjusted earnings are giving the illusion that companies are less over values then they actually might be?

Thanks,
A concerned CPA....

Q: What are your favourite Canadian industrials stocks for growth and for stability (or maybe both) right now?

Thanks!

Q: Can I get your thoughts on earnings from Avalara? What do you attribute the drop in overnight price to? Would this be a good point to be starting a position?
Thanks to 5i for all that you do!

Q: You frequently describe companies as being "expensive by most metrics." WELL is an example of such a company. Are there companies that you like like for whatever reasons but are not expensive according to the metrics you're using to evaluate them?

Q: Hi 5i,

Invitae just reported results and the stock was down 10% after hours. Can you give your thoughts on the quarter and its prospects going forward? I've held it for awhile and plan on continuing to hold for 3+ years.

Thanks!

Q: Is there a potentially worthwhile option in the Canadian market for a company that's working on a vaccine, even indirectly?