Latest Stock Buy or Sell? Make More Informed Decisions!

RGTI is in the quantum computing space so it is getting a lot of attention currently. Revenues are fairly low with $11 mln expected next year compared to the market cap at $2.5 bln. The company is losing money currently. We would view it as high risk and speculative.and we would consider it one to watch only. The quantum computing space is the current 'hot' sector, but commercialization is years awy. RGTI has  massive negative cash flow. It does have $80M cash. We would consider it very very risky at this point. If quantum is going to be 'the next big thing' there will be lots of time to buy this. We would like to see higher revenues and cash flow at least getting towards break even. Certainly the stock could still move higher on momentum and speculation, but we cannot justify purchase on any fundamentals.
Unlock Premium - Try 5i Free

At 13X forward earnings and having a steady growth and margin profile over the years, we think it is getting interesting. It still has some issues to work through related to their Argentina business but this is likely getting priced in at these levels. 
Unlock Premium - Try 5i Free

Markets are seeing some new weakness, so buyers might have a bit of time here. We think $57 would look good. 
Unlock Premium - Try 5i Free

The Value in Avoiding a Loss: Multiples Needed to Breakeven from Drawdowns

One of the most often misunderstood concepts in investing is the difference in percentages from a drawdown against an increase. For example, if a stock declines by 10%, a subsequent increase of 10% will not bring the investor back to breakeven, but rather an 11% increase in the price is required to break even. For example, a $10 stock declines by 10% to $9, a subsequent 10% rise from $9 brings the stock up to only $9.9. Below we have listed various drawdown percentages in increments of 10%, and the subsequent percentage increases needed to break even, along with their respective ‘multiples. For example, a 90% drawdown in the price of a $10 stock requires a 10X to bring the stock back up to $10. 
Unlock Premium - Try 5i Free

The new year could start off slowly after such a strong two year market in the U.S. but there is a mood of optimism in the U.S. Bitcoin is over 100 000 after the Trump election. Interest rates are the determining factor with the Fed having started cutting rates, but now likely to keep rates higher for longer with the possibility of inflation returning. He likes the picks and shovels stocks that make all of technology flow. The learning curve with AI should be faster than the one with the Internet as we figure out how to monetize it.

It is one of original private equity companies and is still in that space. There are fewer and fewer public companies, 400 to 500 fewer in Canada than in the year 2000. There is less debt funding to the tech sector. There should be growth in the short to medium term.

The question was about the energy sector. He doesn't think tariffs will be brought in at 25% and quoted the saying that we should take Trump seriously but not necessarily literally. There is way more energy up here and the U.S. will still need Canadian energy. With plans to increase energy production in the U.S. they will become more self reliant.

The question was on Iamgold and Teck Resources. IMG has declared some good news from its Quebec mine and Teck has more copper production with gold as an add-on. However both operate in some places that are less politically agreeable. He likes the gold sector but prefers bigger and more diversified companies in more stable countries including the U.S., Canada, Mexico and Chile. Following along this theme he owns both Kinross and Agnico Eagle.

The question was on Iamgold and Teck Resources. IMG has declared some good news from its Quebec mine and Teck has more copper production with gold as an add-on. However both operate in some places that are less politically agreeable. He likes the gold sector but prefers bigger and more diversified companies in more stable countries including the U.S., Canada, Mexico and Chile. Following along this theme he owns both Kinross and Agnico Eagle.

Trump 2.0 should be good for pipelines. The situation for Canada remains to be seen. There is need for more and better pipelines and to access more blue water.

It is one of the big companies which he owns along with CNQ. It has done a lot with costs and will do well if energy does well.

He did own it but not now. He likes the picks and shovels companies that provide semi conductor companies. It should do well over the long term. He has owned CSU for a long time.

The question was on the outlook for Bitcoin over the next four years. Crypto currencies are likely to stay and he has invested in crypto exchanges. There is excitement in this area because of the Trump administration. If you want to get into this field you should by buying just a little bit and then easing into it.

He sold it in the summer. He likes the aero-space part and is interested in other companies in this field.

It makes AC units which are needed for AI systems. He still owns and feels there is still lots of room to run.