Investment Q&A

Q: I am a multi-year owner of this company. I read your recent report and was surprised to see that Mawer owned such a large position (must have missed it previously). I consider them one of the better money managers out there so on the one hand, I consider their position a plus. But it does make wonder about a few things.

Is it common for a fund company to own such a significant position in a small cap name? CXI is a very thinly traded stock so how does Mawer exit other than through a takeover since selling out their position would likely decimate the stock price? Would this have been their plan all along or have they accumulated this position over the years suggesting they are believing in the story more and more? Would Mawer be an active or at least "very interested", party as to how the company is run? In sum, does having Mawer own so much change or affect how we should view this stock?

Appreciate your insight.

Paul F.

Q: I went on holiday and forgot to buy it, so missed the run up in this stock. Do you think its still worth buying here. My timing on stocks is not usually great. Buy half now and half on a pullback?

Q: I halved my holdings some time ago and it's continued to drop to the point that it's too small a part of my overall portfolio to have much impact one way or another. Because I bought it early on, I'm still ahead, but I'm wondering what I should do. Buy more to bring it up to say a half position again, sell it, or let it ride. I'm looking to make my portfolio more conservative and low maintenance in my later retirement.

Q: Does the bigger than average volume in the middle of may give us any clue to the direction this company may be heading, should it be viewed as good or just another blip, could it represent support.

Q: Hi 5i,
What do you attribute the recent weakness in NFI?

Thanks!

Q: Curious what you thought of the earnings. Also in your report on CXI you have an sentence that is hard to parse: ... "and lots of along..." Say what?

"The fundamentals at CXI continue to look strong with no debt and lots
of along with strong and consistent returns on equity on an annual basis."

Q: RBC direct investing is offering a private placement at $76.15 while the last trade was at $78.24, does it make sense to place an expression of interest. Secondly what does the following mean. " Please be advised that if you participate in this new issue offering, RBC Direct Investing will receive a selling concession equal to C$1.43 per share"
If i expressed interest in owning 1000 shares would i actually get less? Please help me understand the math and logic behind this?

Q: HI 5i,
I purchased ($1.90) Photon from analysis of this company, I'm very pleased with my purchase (THANK-YOU). My question to you here is, my position is just considered a toe in position, do you think taking a bigger position or adding more at this time is prudent?

Q: I'm not complaining, believe me, but why does CSU keep going up and up? Is it because "everyone" is waiting for it go down? Any specific reasons? Thank you.

Q: Which of these two would you choose for a long term hold for income?

Q: Hello 5i team,

Today's Globe & Mail:
http://gold.globeinvestor.com/servlet/ArticleNews/story/RTGAM/20180531/ellipsis_OK5KOAGTGVAVZNM33Q4DTLYU4U/stocks/news

Two analysts re-rated Descartes Systems following release of 1st Qtr earning. One analyst (Laurentian Bank), re-rated the stock to "Hold from Buy" on valuation concerns and a slight miss on adjusted earning while all other metrics were higher than analysts' estimates, and then went on and commented on the company's strong potential growth going forward and increased his target to US $32.50. The other analyst (Canaccord), rated the stock a "Buy" and increased his target to US $35.00 from US $34.00. The analyst commented on the company's consistency, M&A activity providing the company's with faster growth segments with expected EBITDA growth of 15% suggesting the stock deserves a premium. Meanwhile the market reacted by selling down the stock with a mid-day drop of CAD $2.00. What gives? Please help me understand what drives markets in the short term and what is your recommendation on Descartes going forward.

Thank you!

Q: Hi Peter
What your thoughts on BNS acquisition .Heavy discount on the stock $2.09 from todays close after a discount from this weeks earning release total 4 plus$ heavy hit for shareholders .
I am very interested in your opinion on this acquisition
Kind Regards
Stan.

Q: Hi Peter,
Ten Peaks comprises approximately 2% of my portfolio. I am down approximately 10%. I am wondering whether I should sell and take my loss or hold on to it. I like to invest for the long term and don't mind carrying the stock if there's a chance that it will recover.
Looking forward to your advice.
Jane

Q: I see this name seldom mentioned when asked about your favourite stocks. Do you still like it after it’s massive run up? In what decile would you rank it amongst the 5i stock coverage universe ?
Thx
Karim

Q: Hi there,
DSG has quietly reached all time highs. I am concerned that the stock is ahead of its growth profile and earnings. It has always been expensive but i have it showing at 88X current earnings. Your thoughts on this one?
Cheers

Q: Peter and Team:

After a year or so I am sitting even on CXI. I have been pleased with the recent run, and was surprised to see it downgraded in your report. I hope this doesn't result in a significant share price drop as we have seen in the past (how does it feel to be a market mover).

Anyhow I was wondering what you would think about a move to GC. There has been a really good run as of late (I was looking @ $32) but hopefully this is just the start. Your article on CSU was great and helps put things in perspective.

Thanks for all you do

Phil

Q: This was rated a B approximately a year ago. Since then there have been a lot of material changes and the stock is trading at an even lower share price. What is your outlook on this stock? is it a buy?

Q: Mr. Hodson, in light of your confidence in GUD, which is now at $8.12, would you advise
loading up on the stock if one can do so right now ? GUD issued stock at $10 in the past, so adding more at this time would seem a good deal. Makes sense, or do you have
reservations in this regard ?

Q: What is the Q1 consensus for revenue, ebitda and normalized diluted eps please.

Q: Is GUD any good?