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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: In response to Justin’s question about the short leash for XBC I wonder if you could comment on my rationale for holding onto this stock despite also being down about 50%. I agree with 5i’s principle of the longview of 3-5 years for growth stocks if no material change presents itself. As for XBC I remain positive for the following reasons: it seems much of the difficulty is COVID related, the board has taken concrete positive steps to rectify weakness, the business model has diversified significantly, the sector is just getting started and there should be years of tailwinds. In following your advice to invest for the long haul in growth, not get emotional about the volatility that presents itself in this space and the feeling that markets in Canada tend to overreact to news much more so than in the US, could you make the case for those like me that would like reassurance that XBC remains a viable position to hold based on valuation and potential.
Read Answer Asked by Warren on October 21, 2021
Q: I've been on the fence with this stock and was trying to decide what to do with it....I go to the 5i website and boom you've upgraded to A-. I was coming to ask if it was time to move to another tech name. I am a balanced portfolio follower slowly moving to income follower so was considering selling my ENGH and buying SYZ. I bought at $65 so am down about 15%. I take it the upgrade means you have faith even if it isn't a name you hold in the portfolios.
Read Answer Asked by Tom on October 20, 2021
Q: In September you considered it a hold but are not adding to your position. Based on the last growth portfolio update, it has a weighting of ~1.2%. You have also indicated that there will likely be some tax loss selling.

I am down ~45% in my TFSA on this one and makes up 1.1% of all holdings.

What discussions are going on with 5i in regards to your position with the growth portfolio. Is patience wearing thin? Are you looking to remove it because its stuck in "show me" mode and management fails to improve margins? I am trying to decide whether to cut my losses and move onto something with better growth, execution, and conviction.
Read Answer Asked by Justin on October 20, 2021
Q: Hi 5i,
A problem I have is selling winning stocks when I think they've reached their zenith, only to watch them continue to rise. Right now the "SELL ATZ" voice in my ear is pretty insistent and I need some counselling.
Given ATZ pays no dividend, the only reason to continue holding is more capital gain - do you think that's in the offing or do the underlying numbers and market circumstances suggest it's at or close to its zenith now, at 50 bucks?
Thanks for your thoughts,
Peter
Read Answer Asked by Peter on October 19, 2021
Q: I've been watching ATZ with interest, and fear. Do you have any information on the present shipping chain tangles that are affecting so many shipments from Asia? If ATZ suddenly finds itself waiting for stock to arrive, quaterly figures could quickly deteriorate and stock prices could tumble. Or am I just seeing imaginary problems? Does ATZ have a Plan B if shipments of stock are delayed at point of shipment? To open a partial position now or wait for shipment problems to be resoved ... that is the question? Thanks for your continued help, Elmer.
Read Answer Asked by Elmer on October 18, 2021
Q: This company BRP is very well run and has reported continuous growth, as well as seemingly never misses earnings.

Anyway my only concern is, in the current economic climate, with a company making "expensive toys" like BRP, how much of that likely downturn will affect its sales (and then directly on share price)?

I try to research back to 2008 (the last major economic crisis) but nothing goes back that far on line. Of course the forecast published by the company and selected analysts, though mentioned the current economy issues, still paint a very rosy picture for the near future.

Is my concern about the potential downturn and its effect on BRP valid? What is your take on this? Thanks.
Read Answer Asked by Victor on October 18, 2021
Q: Good Morning Peter & Team,

Morgan Stanley called MG an auto supplier standout. MG reports first week November. Are you able to give us an idea what to expect? Positive or Negative???? ... considering the supply chain concerns (now [hopefully] waning) and of course the ongoing chip shortage.

Thanks for all you do

gm
Read Answer Asked by Gord on October 15, 2021
Q: I have been tempted to buy Lightspeed to put in my tfsa, as i see it falling. It is hard for me to judge, though, whether a fairly new stock, like this and quite volatile is appropriate for a retired person. I have a moderately high risk tolerance. But is this too risky for that demographic, do you think?
Thanks as always
Read Answer Asked by joseph on October 14, 2021
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