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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: 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!
Read Answer Asked by Joseph on June 01, 2018
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





Read Answer Asked by Phil on May 31, 2018
Q: Sylogist has been buying back shares in the market. I really don't see a big benefit in this seeing how the stock is already so illiquid, and we are already so late in a cycle. Is it really that hard to spend some of the 30million cash on something accretive where it is more beneficial to be buying back shares? Has the company stated in a conference call what they plan on doing with the cash and if they are looking to deploy it soon?
Thanks.
Read Answer Asked by Jordan on May 28, 2018
Q: On May 2 on BNN,Peter's TP were GC & TSGI---great results.On May 24,one of Ryan's tp was GC.On May 11 5I prefers TSGI over GC if have to choose,but OK with both.So today I like to ask: Is it better for me to buy both @ these elevated prices or pick one;if the latter,which one?
Read Answer Asked by Peter on May 28, 2018
Q: Hi, I am having trouble deploying some cash but have thought that GUD would be a good place to park it. My concern is that it is currently a laggard, and when it does finally decide to make a play that pushes the stock higher, are we looking at enough of a gain to cover any upward momentum the company may not be participating in currently?? How significant would you expect a the move to be/ what's the reward versus the risk here?
Read Answer Asked by Jordan on May 28, 2018