Investment Q&A

Q: it looks like crh beat earnings and revenue big time, your take. dave

Q: Should be interesting, can you comment on the earnings when they come out. Thx

Q: Hi5i,
If I hold GIC's in a TD webroker account.
$100,000.00 BMO
$100,000.00 RB
Am I insured on each GIC or $100,000.00 for total account.
Thanks Dave

Q: Hi 5i Team,

Do you know who or what APP Research is? The person BNN had on this morning certainly did not hold back on HCG. In case you missed it, he mentioned liquidation as a distinct probability. Unfortunately, I still hold the stock.

Thanks for your comments.

Q: Great article: The Other Side - April 19, 2017 by Michael Batnick
http://theirrelevantinvestor.com/2017/04/19/the-other-side/

See/Insert graph:
http://theirrelevantinvestor.com/wp-content/uploads/2017/04/12.jpg

Excerpt:
...
If I were in the business of picking stocks, I would do two things: I would try to exclude the worst stocks rather than attempt to pick the best, and I would focus on value, which are really two sides of the same coin.

While the best performing stocks from year-to-year are all over the map, from deep value to high beta and everything in between, the worst performing stocks over time share similar characteristics. So maybe it’s not such a bad idea to be a closet indexer after all, except you should try to be in the closet that screens out stocks that are highly levered, have growing accruals, inventory build, or whatever metrics you prefer.

Investors are drawn to glamour stocks because the payoffs can be huge. But while they have great possibilities, they also have bad probabilities, as Patrick has shown. The best performing glamour stocks outperform by 112% on average, but the median result is underperformance of 11%. The best performing value stocks on the other hand, saw a 78% average excess return, while the median saw a 5% average excess return.
...

Comments? As usual, thank you for sound advise.

Q: What is causing this 7% drop today?

Q: What is causing the price slide???

Q: According to Webbroker, it has an operating margin of 61%, ROE 16%, payout ratio of 9.8% and no debt. It looks like a quality company that's down about 28% on panic. If it's as good as it's stats appear to be it's on sale. What do you think of it's quality and prospects? Thanks.....

Q: Thoughts on this pullback and would you be buyers here?

Thanks,
Dave

Q: With goeasy's large drop today, assuming it's due to a sideswipe of the HCG debacle, is this a time to add to GSY. I know you like this company's growth prospects and have recommended it recently, but my concern is if there is a strong possibility that government may take a closer look at the 'alternative' financial practices given HCG's meltdown. Thanks for your take on this evolving situation!

Q: SBC is going through some moves - issues preferred shares, giving holders of capital shares more shares, etc. Could you explain what is going on? I own 500 A-shares. Thank you!

Q: Does the $2 billion LOC that HCG is hoping to secure today completely negate the run on deposits? It looks like the deposits were roughly $1.4 billion. Are these the only deposits taken by HCG or are there other subsidiaries that are also about to get the same treatment?

Thanks, Peter

Q: Do you think HCG's "problems" could spread to FN?

Q: SHOP was downgraded by RBC today. Should we be concerned.

Q: What happened to Veresen today. It dropped like a rock! Time to sell? - Thanks, Ted

Q: Hello, My wife and I have GIC's at Oaken Capital and Oaken Financial (not the exact names but the two banking divisions of Home Capital). We have slightly less than 100K in each of the two laddered GICs. Thus, we assume they are insured. Would Home Capital's fate have an impact on Oaken? Should we be worried? Guess there is not much we could do about it now anyway. Hope we don't have to make an insurance claim. Your thoughts?

Q: What would you do if you were invested in this stock?

Q: Could you draw up a list of publicly traded companies that do not provide share based compensation do their employees ?

Q: I don't own HCG, so I think I'm objective. Don't you think this is a big black eye for the Canadian market? Why doesn't the regulator step up and make clear that the violations committed by management does not mean the company is not viable? Or do they know this, after what, a year and a half of investigating? Instead it allows a publicity-seeking chicken farmer to spread innuendo and essentially create a run on the bank? Just a complete screw up by all involved, IMO.

Thanks,

Alex

Q: How much faith would you put in Morning Star ratings for mutual funds and ETFs? Thank You Ron