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: Hi 5iResearch.
Folks thank you for such a wonderful service.

Thoughts on this business, my friends on another website say the ROIC is around 16% on average over the last 5 years. The Operating Inc. is 22M over a market cap of 212M - so the earnings on enterprise value is ~ 10%..... Very low capital requirements and such a healthy ROIC.......this rate must be beating the company's WACC.... whats your take ?

Good business, cheap and creating value for shareholders when I put my monacle on my right eye........
Read Answer Asked by Patrick on October 16, 2018
Q: Please comment on my perspective below. Am I wrong?

A bond matures and you get a known amount of principal back (on top of the distributions paid out along the way). As such it provides a safety component in your portfolio. The safety comes from NOT being at the mercy of the market (all you have to do is wait till it matures).

A bond ETF does not do this. The principal you put into it is eternally at the mercy of the current market price of that ETF. Even when any bond matures, the ETF just goes out and buys more bonds at current market prices. Therefore it does not return a known amount of principal as a bond would. The whole concept of "maturity" or "yield to maturity" disappears. So these ETFs are a lot more like equities than bonds. If people are following advice about the percentage to allocate between bonds and equities, in my opinion it is a mistake to treat the bond ETFs as in the bond category.

(The exception to the above being "target date bond etfs which do mature and return your principal").
Read Answer Asked by John on October 16, 2018
Q: Hi Peter,
Jim Keohane from Hoop was on BNN Friday and was explaining his absolute return strategies he uses to run the HOOP Pension plan. He was explaining the approach for lower risk vs return vs a equity only approach. Is it better ? Are there any strong funds like this available to the average guy ?
Thanks, Paul
Read Answer Asked by Paul on October 16, 2018
Q: I owned ICC Labs which got a take over offer from Aurora to be paid in ACB shares. ACB price has gone crazy while ICC is still trading below the offer price. I must be missing something cos I cant figure out why everyone isn't buying ICC shares to give them up in exchange for ACB shares valued at the time of the deal. Thanks!
Read Answer Asked by Martin on October 16, 2018
Q: While your comments could apply to both our Canadian and US markets it is interesting that your slant appears to lean toward US markets rather than Canadian even though the bulk of your research covers Canadian based companies. Sure the US markets are still up this year but it is quite a different picture when looking at the Canadian markets. We are ' not still up' this year but down since January. Interest in the Canadian equity markets is waning for various reasons, taxes, regulatory hurdles, etc. So could you perhaps add some comments that address our markets and investment environment.in the context of our recent performance and future expectations. Thanks.
Read Answer Asked by John on October 16, 2018
Q: i am concerned about the above 2 stocks, they are thin traders especially covalon.
in covalons case you are the only one following it, so when markets sell off a lot of investors panic and head for the exits.
with goeasy it trades a little more on a daily basis but it has just been killed lately, even though it is up on the year and their earnings announcements surprise to the upside it has gotten slaughtered,maybe again small investors are heading for the exits with their 25 shares, i am being sarcastic but i think your membership moves markets especially in these 2 . can you comment. dave
Read Answer Asked by david on October 16, 2018