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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: I've seen you mention a few times that KXS and DSG are in the logistics business in one form or another. How much do their businesses overlap, and would it be okay to own both and still have a some diversification? Or is it best to stick with one and diversify elsewhere.

I'm largely asking b/c I'm looking for exposure to great Canadian companies (limited opportunities far as I can tell) and these are two that I'm interested in (already own KXS).

Cam.
Read Answer Asked by Cameron on April 08, 2020
Q: In October, you recommended the above ten companies as best in Canada to own. Are they still the best ten...most peaking in February and then falling like all stocks, some more than others? If I wanted to invest in your best three choices, which would you recommend and is now the time or wait another month? Guessing the bottom is impossible. Thanks
Read Answer Asked by William on April 07, 2020
Q: Hello 5i Team !
I received today a Management Information Circular of the TSGI and Flutter Entertainment PLC all-share combination and Notice of the special meeting. My worry is if I keep my shares in TSGI, I will receive 0.2253 of a Flutter share for each Common Share I hold at the time of completion of the deal. If I want to sell my new Flutter Entertainment shares in the future, which trade on the London Stock exchange, it would cost 125 $ and up to sell these 135 shares. Should I sell my TSGI shares before the closure of the deal and buy a similar company such a Great Canadian Gaming (GC-T) or which ever company you might recommend ?

Stay safe and thank you for your sound advise.

Elaine
Read Answer Asked by Elaine on April 07, 2020
Q: What do you think of today’s press release regarding further share dilation? Do you think they might have a big acquisition up their sleeve? They had 23 M in cash at Jan 20 and now they are doubling their cash balance. It’s frustrating to see stock issued at such a low price considering a little over a month ago the stock was $10.
The company appears to be consistent with their dilution. Is this someone that we should consider with regards to selling?
Any thoughts or how you view this as someone who has been in the business a while would be great. Thank you.
Read Answer Asked by Ken on April 07, 2020
Q: I’m so thankful to be able to call on your expertise, perhaps you can give me some guidance. Your service lead me to purchase several thousand shares of Boyd at a price in the teens for which I am great full. With the deemed sale at $202, and sizeable taxable cap gains. Would it be to my advantage to sell shares now at around $137 a share, take the loss, raise some cash for my war chest and repurchase Boyd when I feel comfortable with the economy? You may tell this is a question for my accountant but I would be interested in you take.
Read Answer Asked by David on April 06, 2020
Q: I starting purchasing LSPD last August and I have continued up until late last week. My average price is close to $32.

The question that I have to myself is: Do I double down or hold - I am not interested in selling. I had a full position 30 days ago but it has been reduced by more than 50% this past 30 days.

After rereading your answers, looking at LSPD website and news feeds. I gathered and summarized the information below.

Money in bank - lots - greater than $300 million - NO Debt!
15 years of cash at current spending rate.
Large institutions bought at $37.30.
IPO $16.00

Last quarter financial information.
Revenue was a slight beat at $32.8 million.
Met ebdita projections with a loss of $5.25 million.
Book valve is $2.35.
Growth was above 60% yoy to plus $32 million.
Recurring revenue was growing at 58%.

Institutional investors have 49% of the float, with Caisse owning 37%.
They have business in more than 100 countries.
There will be less restaurants in future, maybe 20% less.
The restaurants that are remaining will be financially stronger and have less competition. They will seek out SaaS that can reduce operating expenses while increasing revenues.
Lightspeed has good management.
It is a long term hold for me - 2 to 5 years - maybe forever.
Lightspeed has less than 0.1% of market, I like growth companies.
Lightspeed retailers grew over six times faster than industry average.
Products by Lightspeed: Retail, eCommerce, OnSite, Restaurant, Delivery and Loyalty. Also Lightspeed Payments. Rolled out #lightspeedlocal

They recently bought: Gastofix (Germany), Kounta (Asia Pacific), IKentoo (Swiss) and Chronogolf (Montreal),

A few competitors through a google search, of which I don’t know whom will survive due to many reason ( like lack of money): Shopkeep, Revels, Toast POS, Touch Bistro, Sapaad, Cake, Springboard, Square, Vend, Upserve, Lavu, Clover, AccuPOS, Harbourtouch, POSguys, Touchsuite, ) these are some of the top 20.

Strengths: the bank account; they don’t have to worry about paying operating expenses for many years due to its financial strength; significantly more room to grow; Quebec pension company support and Quebec government support; their source of revenue is across the world; good management; the good management will quickly use its financial strength for growth; growth into other areas that have weak or low market share systems.

Weaknesses: their competitors may have deeper pockets and will grow more quickly dwarfing LSPD and the other competitors; no sales people; how much of their current POS businesses will not be in business in 90 days; others?

That being stated I plan on doubling down in the next 4 weeks by buying when stock in under $13.

Am I missing anything?

Clayton
Read Answer Asked by Clayton on April 06, 2020
Q: Since bam is preferred over others, is now the time to start nibbling to get a 5% position or wait for things to get
a little more stable.
Read Answer Asked by Maureen on April 06, 2020
Q: Hi 5iR Team, I know that LSPD is a software development company, that has developed an ecommerce platform so clients can manage inventory, sales, customer needs, etc.. My question is: who exactly are their customers, in particular their largest customers? My concern is if restaurants form a significant part of their customer base then perhaps I should be avoiding LSPD, no matter how much money they are sitting on??
Thanks Team. Cheers, Chris
Read Answer Asked by Chris on April 03, 2020
Q: Hi group what the heck happened with BYD bottom fell out please give new target price to purchase along with explanation. Same with LSPD this is beyond belief. You tell us when to buy some stock but seldom tell us to sell BYD + LSPD a are examples of that. I suggest that you need to start giving out target prices (in a range at least). A lot of these so called blue chips are getting hammered was the low on the DOW + TSX 2 weeks ago or are we going to see more downside?. We need help to rebuild our losses so start to think about target. prices selling + buying . Thanks PS deduct credits as you see fit
Read Answer Asked by Terence on April 03, 2020
Q: Good morning
What hapened to bam this morning is this a good buying opportunity
Thank you
Guy
Read Answer Asked by Guy on April 02, 2020
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