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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 believe rates in Canada have hit their ceiling, alternatively the consequences get dire for many reasons. With this belief what would be your top 3 stocks for the next 12-24mths, particularly as rates begin to decline. Thank you as always.
Read Answer Asked by Chris on September 07, 2023
Q: Is AAPL price expected to fall further? I sold off 10% a week ago. It went back up to $189 but down again 4% overnight to USD 176 due to China not approving iPhones as work phones.

Would it make sense to sell AAPL stock now and buy it again when the price stabilizes? What would be a decent entry price for AAPL?
Read Answer Asked by V on September 07, 2023
Q: Good morning 5i,

I’ve been reading up on the Telesat/MDA story and find it fascinating. I wonder if it could also be lucrative for a small investor such as myself?

From reviewing the financials (to the limited extent I understand those documents) and other materials relating to MDA, my impression is that it presents a real investment opportunity. It does real business and it appears from its recent contracts that its revenues over the next few years could rise significantly. At its current revenue base it appears its debt is well covered and its balance sheet looks healthy.

Telesat, to me, is less clear. It seems the recent announcement that MDA will build the satellites for the Telesat Lightspeed project at significant savings to the previous plan is propelling the recent steep increase in share price. But beyond that euphoria, is the company on solid footing?

The MD&A of March 2023 states:
“After decades of developing and successfully operating our geosynchronous orbit-based satellite services business, we are now poised to revolutionize the provision of global broadband connectivity by developing what we believe will be the one of world’s most advanced constellations of LEO satellites and integrated terrestrial infrastructure, Telesat Lightspeed.
Leading into 2023, we remain focused on increasing the utilization of our existing satellites, the development of our global Telesat Lightspeed constellation, and identifying and pursuing opportunities to invest in expansion satellite capacity all while maintaining our operating discipline.”

Nowhere though have I been able to find any prediction of the revenue that will accrue to Telesat from deployment of the Telesat Lightspeed constellation. A service I subscribe to notes that future earnings can’t be reliably calculated by extrapolating past data or using analyst projections (there aren’t any) and it doesn’t look like management has offered anything either. Who are Telesat’s customers and what are they going to pay for getting aboard the Lightspeed train?”

Telesat’s balance sheet appears highly leveraged and its debt isn’t well covered by operating cash flow. If Telesat Lightspeed is a truly transformational project I’d have expected to see something, somewhere, discussing the money it will make for Telesat and how it will reduce the debt and increase shareholder value, but as far as I can tell – nothing but crickets.

I would greatly appreciate your advice regarding MDA – are there risks/concerns that I might be overlooking?

Regarding Telesat, do you know of any revenue projections that I’ve overlooked and, if not, is it odd none are being made? Also, any other comment you have regarding Telesat would be appreciated. Is something really big about to happen here? It seems the process should be far enough along, given that billions of dollars have been committed by lenders, governments and the company itself, to answer that question. But maybe not, and maybe it's all still highly speculative ...?

Thanks, 5i, and please deduct as you see fit.
Peter
Read Answer Asked by Peter on September 07, 2023
Q: Hi
Wondering about your latest addition to the growth portfolio. Curious as to this selection as the fundamentals are awful, with negative cash and operating flow and negative EPS. I assume this is a mock portfolio but do any of the contributors of 5i have any skin in the game especially in a high risk name such as GLXY?
I assume a 1.5% holding would be $1500 in a $100,000 portfolio.
Thanks
Jeff
Read Answer Asked by JEFF on September 06, 2023
Q: These stocks are all down substantially
Would u see any of them as a buy for 2 year hold
If so pls rank in order with a possible entry price
Can u comment on possible downside from here?
At present I don’t own any so this would be new positions
Thank you
Read Answer Asked by Indra on September 06, 2023
Q: Sorry for another inquiry about CSU. This was listed in my brokerage account.

WTS CONSTELLATION SOFTWARE INC EXP 03/31/2040
INC EXP 03/31/2040 EXP 03/31/2040 SPINOFF ON 28 SHS ***CONSTELLATION SOFTWARE INC REC 08/24/23 PAY 08/30/2

What does this mean? Are these the rights or the warrants?
Can I do anything with them yet? If yes what and how? Im with a banking brokerage firm so independent of any personal advisor/broker.

Thanks
Jeff
Read Answer Asked by JEFF on September 06, 2023
Q: Hello 5i Research,
I have read the recent questions and answers about CSU rights. I have some interest in becoming a CSU debenture holder. I'd like to know what strategy you recommend: selling the rights I've obtained or buying them on the secondary market? How do you assess the value of the rights? Are they overvalued, undervalued or well valued? Or, given the low price of $0.53, do I buy as many rights as I need to buy as many debentures as I want to hold? Thanks for your help, Eric
Read Answer Asked by Eric on September 06, 2023
Q: One of the thing most analyst covering CSU along with 5i is how they have not issued new shares since going public. The stock is up over 15,000% and seems to be more growth ahead. If they have not issued any shares hows the stock up 15,000%? is this just new investors buying the limited shares that are traded at higher and higher prices and holding on to them?
Read Answer Asked by Sal on September 06, 2023
Q: Fortinet dropped 25% after poor billings guidance. Based on that, and the fact that Palo Alto announced around that time that it would report on a Friday, Palo Alto stock dropped 20%. But after Palo Alto reported earnings, the stock jumped, so net Palo Alto is down around 5%. Yet Palo Alto also projected a slowdown in billings. Why did investors like Palo Alto’s earnings report and not like Fortinet’s earnings report? Thanks.
Read Answer Asked by Kim on September 05, 2023
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