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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: Hi, Could you please post earning estimates for these companies for the quarter. Thanks
Read Answer Asked by rajeev on August 05, 2020
Q: Hello 5i, I have a large position in LSPD, and I am finally breaking even. Today its up over 7% . I have not been able to find any news. Do you have any info? is it the fact that it may report good numbers on Thursday? or takeover chatter? or up on market trend?
Thanks for your great service,
Carlo
Read Answer Asked by Carlo on August 04, 2020
Q: Hi, I was wondering why BAM.A suddenly dropped 4% on Friday? Thanks.
Read Answer Asked by Esther on August 04, 2020
Q: Hi 5i Team - I have held Shopify in two accounts for several years now and although I have sold much of it over the past couple of years at a substantial profit (thanks to your advice) there is still some left which it seems becomes more significant each passing month. I find myself, however, unable to describe it's business with any degree of confidence to other people. Could you provide me with a simple description of exactly what it does in plain terns that I could relate to others.
Who are Shopify's customers and clients - do these terms mean the same thing - and how many are there. Do they have other relationships with large corporations beside Amazon and what exactly is that relationship with Amazon. I feel I should have an understanding of all of this but it very limited.
Thank you.
Read Answer Asked by Rob on August 04, 2020
Q: LSPD on US today closed @ US$33.94 + $5.77 on 135shs(4392 sh , av/3mos) on no apparent news.On July 31,CIBC issued a report expecting a good Q1 with a outperform & C$47 TP. PI has a C$43 TP On July 30 it announced a launch of new features to drive digital transformation of retail smbs. Do you have other news? Reporting on Aug 6 before open.What is the estimated EPS & Rev. Txs for u usual great services& views
Read Answer Asked by Peter on August 04, 2020
Q: I've been considering Dollarama for a small position. You seem generally positive about it.

I found it to be the only company among the ones I researched with a negative shareholder equity. Investopedia tells me this is a warning sign, indicating the companies liabilities exceeds its debt.

Can you explain Dollarama's situation and advise as to whether this is a company to avoid?

Thanks as always.
Read Answer Asked by Kevin on August 04, 2020
Q: I am a long term CSU shareholder. I have full confidence in management but less confidence in their growth prospects at this stage. The types of slow or no growth software businesses that they acquire are in secular decline and CSU has no organic growth.

Is 5i’s confidence in CSU’s business prospects misplaced at this point??? Should we stay put to see if the “inevitable” decline materializes or try to anticipate this and step out of the way?

Thanks for your awesome guidance.
Read Answer Asked by Joel on July 30, 2020
Q: What should we expect from the 3 quarter results coming tomorrow from real. And it looks like that lightspeed will have their's on April 6 2020. These 2 companies have had a pretty good ralley the last couple of weeks, i would expect strong results. Do you see the same here?
Read Answer Asked by wilson on July 30, 2020
Q: This is an observation on Knight after your response to Cheryl's inquiry and your revised position stating you are getting edgy about this company.
One aspect of investing I have learned from my time with 5i is to have patience with a company and to not react to one quarter results.
Regarding Knight, we waited and waited and finally they did a solid acquisition which closed at the end of November 2019. 5i indicated it was a good deal for Knight.
They have not completed the deal as they are still pursuing the 48% from BTO shareholders. This is an unusual way to buy a company and it taking a long time.
However, after they pay everything, they will have no debt, lots and lots of cash and have repurchased over 12M Knight shares. They are presently doing a second NCIB with the intent of buying another 10,8M shares. So, they are buying 20% of the floating shares, enhancing shareholder value. Should they have started a dividend instead? I think that was too early and approve of their share repurchase. However, does that mean they don't see any future deals on the near term horizon? I do not know but they will still have a few hundred million...
They have now reported one quarter. The sales met one analyst's estimate but fell short with the other two. Not exactly a disaster considering it is a new company in new and faraway countries during a pandemic. The company says the virus is a non-factor but many in South America, and everywhere, are more reluctant than usual to seek medical treatment that is not absolutely necessary because we want to stay home and that has to hurt drug sales.
I think this company's share price will be double by this time next year and will be approaching $25 - $30 by the end of 2023. Considering the high valuations in the market today, this seems like a prudent investment. If they have not performed by December 2023, I will sell my large position and take the bath. However, I am not buying any soap today.
Do you have any update on whether they have purchased any shares on the second repurchase? And, they were late reporting the last quarter so when do they report again?
It is almost unthinkable to differ from your opinion on any stock because you are all so smart. We'll just have to see on this one but I think it's too early to expect so much after waiting so long...
Thank you.
Read Answer Asked by Steven on July 29, 2020
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