Investment Q&A

Q: Any sense of how low they can go and does the current 30%+ decline reflect real issues with the company and their revenue reporting etc or just a lot of panic selling? It is painful to watch and wondering if they are likely to be topped out for an extended period of time.

Q: I should have known better, having lived thru SHOP's short attacks, but i bounced out of LSPD.

At what price would you feel comfortable going back in?

Thanks,
Mark

Q: Hi 5i Team - Does Lightspeed have the fundamentals and resources to survive a continued short attack, Secondly do you have any concerns regarding its business model going forward. Thirdly from what I have read and heard many restaurants are struggling to hire enough staff to continue operating on a full schedule even though indoor dining is now allowed in many jurisdictions with vaccination passports. As a result some are reverting to takeout only. Since Lightspeed serves the hospitality industry, is this a concern?

I have a relatively large position in lightspeed and need to trim. The question is how much. Your response to the above questions will help me with my decision making.

Thanks again for the excellent service and Happy Thanksgiving to all!

Rob

Q: Hello Team,
I am over weight with SHOP at the moment and very small LSPD holding. Would you recommend selling some SHOP and buy LSPD to balance? or Am I increasing the risk by doing that?
Thanks!

Q: I'm sure I'm not the first to ask, but with DND's news release this morning where does this put the company now? I held throughout. Do you still like this as a tech stock with long term potential?

Q: The active North American Oil Rig count has been steadily rising week after week according to reports. Shouldn't this be a good predictor for what is to come for Questor Technologies' core business over the next several quarters. Is it good time begin to accumulate the stock again given its strong balance sheet and if you have a longer investment horizon?

Q: Both SU and PKI have under performed. I am considering selling my small position in PKI and buying SU as it may have more potential, and right now a similar dividend. Thoughts?

Thank you.

Q: HI 5i, What are your thoughts regarding this company? A couple of months ago this company sold 2billion dollars of shares to another company. With the funds they were going to pay out a special dividend of $7.50 per share to shareholders. I would like to know when I will receive this dividend?
Look forward to hearing from you.
Bob

Q: Hi,

GSY has done very well in the past year going from ~$70 to current value of ~$186. In your opinion, does it still have decent runway ahead? Or am I too late to the party on this one?

Thanks,
Rob

Q: What three companies in the growth portfolio would you have no qualms of starting a position today?

Q: Hi folks!

Not a question, more of a comment on the attack on LSPD.

Correct me if I am wrong, but when SHOP got attacked by citron back then, I don't recall them coming out with any statement whatsoever to defend themselves? They pretty much ignored it and went on with their business!

If that "Media clown" Cramer would have invited the CEO of SHOP to defend themselves, I highly doubt he would have gone on. Unless he did and I did not see the show? Not like I watch that hyper active show.

The best way to beat a short attack and have them go away is to post strong quarterly numbers...point final!! Isn't that what SHOP did? They kept quite and beat all estimates which squeezed all the juice out of citron! (Citron is french for lemons :)

Ignore the noise people!!

Thanks

Q: After market close today, SYZ announced purchase of MIssion CRM which closed today Oct 6. Please comment, Txs for u usual great services & view

Q: I bought REAL in juin 2020 and have averaged down on the way, ending with a large loosing position. Lesson learned about averaging down!

How do you consider the outlook for REAL? It missed estimates, but how do you like the growth, the balance sheet and the valuation actually?

Im wondering if i hold longer or if i trim around 1.5%?

Im considering the lower market to average up LSPD, GSY, ATA, WSP or BYD. How would you rank those today?

Q: goeasy. is my largest position and i have held it for years,and i know its one of your favorites, it come of 30 dollars from its high on zero news.
and again today its down 8.5 at this moment.
would you buy more, is it still your favorite and am i missing anything. dave

Q: Hi 5i
Been looking at XBC to add as it consolidates.

During my review I found something unsettling and since I can not get the sound to work on the earnings webcast, I can not confirm whether someone asked about this or not.

It has to do with the margin squeezing contracts that are restraining profitability. In the most recent commentary the CEO includes the words "long-term" when referring to the contracts and indicates margins to recover in subsequent quarters.
He never referred to the contract as long-term in previous communications.

It was my belief the negative contributing contracts would roll off in a couple quarters - not many. The statement leads me to believe there will be a longer effect than just a couple quarters.

Do you have a sense of run-off period?
Do you know if anyone asked about the run-off period length?
Was "subsequent quarters" more clearly defined in the Q&A?
Given the new size and make-up of the company, is the magnitude of negative contracts worth concern?
5i has indicated investors should not average down on this name at this time. What is it that will change your view on this position?

Thanks
Dave

From CEO Current Market Outlook (Q2 2021 Earnings)
While consolidated gross margins continue to be impacted by the previously announced loss making long-term, production-type RNG contracts, the company expects that this impact will be tapered down in subsequent quarters.

Q: sold all my lspd when short report came out.
i agree with you 100% that cramer is in the entertainment industry, i also think he is a little off upstairs but he is extremely bright and a very hard worker.
my question is why wouldn’t dax disilva go on his show and answer each negative in the short report-if there is nothing to hide this could only benefit the stock and remove the monkey on lightspeeds back. it makes no sense and something does not add up.i value your opinion .dave

Q: On Sep 23-24 huge $306m Insider selling. ATD.A Amours co-founder sold 3.412m shs @ $48(remaining shares balance 12.3m) . ATD.B Ex Chair & director 1.2m @ $48 (57m). Fortin,co-founder 1.8m @ $48 (NIL). Your view please. Txs for u usual great services & views

Q: I have read all the questions regarding LSPD. It has been a huge winner in both of our TFSA’s, and I decided to continue to hold after reading your answers.

However Cramer really bodyslammed the company today as you probably know.

He cited the company’s response to the short report as “inadequate” …. And made more of a big deal about the company not agreeing to give Mad Money an interview since he had had the CEO on his show fairly recently.

Would any of that change your perspective on LSPD?

Thanks for your help with this important decision.

Q: Apologies in advance for yet another question on Lightspeed, and not sure if you caught Jim Cramer's show this evening, but he slammed Lightspeed - seemingly went out of his way, for a prolonged period of time - to embrace the short report as gospel, and to sell, sell, sell.

Obviously there will likely be an enormous hit in the morning. But in your estimation, is this game-over for this high-flier? The company turned down an invitation to defend themselves on-air, likely a wise choice given Cramer's current sentiment towards the firm, but given his wide appeal (and I'm assuming influence) is it possible to overcome this negativity? Or just wait, and the numbers will - or not - speak for themselves. I think I know you'll say that I answered my own question, but given this mess, I wanted your sound judgment.

Thank you as always...

Q: Is there any credibility in the recently published short seller’s report? One would wonder given the sell off in the stock.