Peter Hodson: “We Like These Stocks Due to the Big Insider Ownership Stakes”

Jessica Vomiero | October 19, 2015 | SmallCapPower

“In the industry, everybody giving you advice has got another agenda,” said 5i Research Inc. CEO and majority owner Peter Hodson about brokerage-based stock research. That’s exactly what he didn’t like about his previous job as chairman of Sprott Asset Management LP, and the reason he decided to try something different. He describes his current position as CEO of 5i Research Inc. as much more fulfilling. He feels like he’s advising people in a more relaxed environment that doesn’t force him to sensationalize the facts.

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“It’s been very rewarding personally because now, we’re actually helping people. We’re not trying to take their commissions, we’re not trying to get all their money. We offer a service, you can take it or leave it,” says Hodson.

He goes on to say that as part of every investment cycle, investors and analysts must be able to weather erratic market behaviors. He describes the most recent crash on August 24th as a minor event in the history of stock market declines. Although the Dow went down 1000 points in a matter of minutes, he states that this didn’t even make the Top 20 in terms of market crashes.

“1000 points is a big number, it catches a lot of attention and the violence of the decline was very, very pronounced. But I think it was unusual in the fact that China has been slowing down more or less for four years. The Fed has been talking about interest rates going up for seven years.”

He argues that the best thing to take away from this is to invest for the long term. This is especially important for small-cap companies, which tend to get hit particularly hard during a market decline.

Watch the full interview to hear Mr. Hodson’s in-depth analysis of the latest crash and the consequences of selling too soon HERE >>

Questions or comments? Email me at Jessica Vomiero