Investment Q&A

Q: Hello,
Can you comment on earnings from Sharplink and Bitmine Immersion please? Also, can you explain , how BitMine revenue of $6.1 M can generate Net Income of $348 M, "Bitmine Immersion Technologies reported full-year results with revenue rising to US$6.1 million and net income jumping to US$348.58 million, a sharp reversal from a net loss the previous year, and also announced appointments of a new CEO, Chi Tsang, and three new independent directors to its Board." Thanks very much.

Q: corweave and nebius both got hammered in november, i know you had nebius as a top pick when you were on bnn.it went straight up then straight doen.
which do you prefer now and why.would you buy both or stay away. dave

Q: How is Celestica's current valuation, after this AI related pullback, last week ?

What is the level of debt and is it sustainable ?

What is the risk/reward to own/add shares at these levels ?

Thank You

Q: Between these two companies, if only one is to be owned, which would you select for a long term hold? Which company has a bigger "moat" and is less likely to be disrupted?

Thanks.

Q: Hi 5i Team,

I have been researching the financing models of neocloud operators. It appears that these companies are financing their GPU infrastructure investments at capital costs that significantly exceed their return on invested capital (ROIC). In other words, their cost of capital is materially higher than their ROIC, resulting in a value destruction dynamic where each dollar of new capital deployed actually destroys economic value rather than creating it.

This situation raises questions about sustainability:

1. How are CoreWeave, Nebius, and similar operators financing these substantial infrastructure buildouts, given the mismatch between capital costs and ROIC? Is this model sustainable in the long term, or does it rely on continuous refinancing and favourable market sentiment?

2. Considering Galaxy Digital's recent announcements regarding data center partnerships and infrastructure initiatives, how exposed is Galaxy Digital to these neocloud operators? What percentage of GLXY's revenue or growth expectations is tied to these relationships?

3. If the neocloud financing model proves unsustainable, meaning operators like CoreWeave or Nebius encounter difficulties with refinancing or solvency, what impact would that have on Galaxy Digital's business and financial projections?

I would appreciate your perspective on whether this concern regarding capital structure is reflected in GLXY's valuation, or if it poses an underappreciated risk for investors.

Thank you for your continued insights and research.

Best regards,

Matt

Q: Goodmorning
What are your thoughts on veev results they looked good but the market does not seem to like them?
Thks
Marcel

Q: For a five to ten year hold, which of these two gave the best upside, in your opinion? thanks

Q: Would you recommend taking a small position in AI at this point, and if so what would be your first choice in a stock and/or ETF?

Q: What do you think of LMND as a long term buy and hold business... they seem to be more effectively using their AI software to generate improved financials...

Q: I am considering selling CSU and LMN to realize tax losses and then buy them back after 30 days. Do you see much risk in these companies gaining significantly in 30 days? Thank you

Q: Hello team,
Based on a bit of research I have done, I would like to buy these companies in the following order: ASML, SMCI, ANET, AMD, AVGO, SITM, ARM, PWR, PLTR

I am buying them to further focus my portfolio on AI for the next 5-10 years. I already have the hyeprscalers and the usual AI suspects but, somehow, I missed on the companies listed above.

Please deduct as many credits as needed for the following questions:
What do you think of this list?
Would change the order based on their resent declines/Valuation?
Would you drop any of the above based on their excessive valuation which may not meet the expected growth in next 5-10 years?
Would you wait a bit more before you buy or just proceed today?
Is there a better company that can substitute any of the above based on moat in AI? Any other company that you think I should also consider?

Thank you as always for your invaluable help and insight. (Without you I would have quit investing a long time ago!)

Q: In light of Seema’s question today… “Please share your suggestions for 3 best index funds for TFSA as of today and non registered account for 5-10 yrs. What are your thoughts on CSU, GLY , SHOP to add as individual stocks. Thank you” …what do you think of keeping it simple and just contributing to XIT? XIT’s combined weightings of SHOP, CLS, & CSU is approx 70%, so this may be another reasonable way to invest in Canadian tech.

Q: After being beaten down for several weeks, Lumine and Topicus shares jumped, Today (Tuesday), by 15% and 7%, respectively. Volume was not huge, but price action appeared to be good.

Do you think that this could be a sign of year end tax loss selling abating ? What would confirm this thesis ?

In theory, should it also help Constellation Software stock regain some strength ?

Both LMN and TOI are still down over 50% from their highs, but at least, it looks like a positive sign, as long as it does not reverse course.

Thank You

Q: Hello, I am looking for a reason to keep my ENGH holdings. It's trading at $19 ( and I paid $31 orignially).

Would a pullback in prices of the massive U.S. A.I. companies affect ENGH's price? I understand that investors are questioning the high valuations of companies like Nividia.

Could a pullback in the A.I. industry valuations create buying opportunities for ENGH?

I am hesistating to sell ENGH at this point because it is profitable, has a good balance sheet, and the dividend is still attractive. But, if management continues to stay on the sidelines for investing its cash for much longer, I am concerned that the stock price will continue to fall.

Q: Hi,
As everyone is looking towards Wednesday and NVDA's earnings, I have considered whether to hold, sell half or sell all. In doing so, I came across Granite Shares 2x Short NVD ETF which does not appear to be a listed holding in your database. What are your thoughts going into earnings, and if you are thinking of trying to hedge against a sharp downturn, would you use such an ETF? Is there something else you would consider? Happy to hear your thoughts - always!
Thanks!
D

Q: What percentage of LMN does CSU actually own and control, and what does their ownership stake represent in terms of CSU's own market cap?

Q: your read on the quarter?

Q: Water cooler talk at my son in law’s employment at one of the Mag 7 companies was strongly in favour of the notion that CSU’s price decline is largely due to a drying up of companies for them to buy. Do you attach much, if any, credibility to this thesis?

Appreciate your insight.

Paul F.

Q: Hi. I've built positions across the digital asset and payments ecosystem that I'd appreciate your perspective on. My current holdings include: direct Bitcoin ownership (DCA monthly for store of value), FETH (smart contract infrastructure exposure), GLXY (institutional crypto services plus AI compute optionality), and PYPL (established fintech playing multiple angles; PYUSD stablecoin, BNPL, crypto trading, traditional payments, and I use PYPL quite a lot myself). I do also own JPM.

I'm considering adding CRCL but struggling with the valuation at 79x forward earnings (although it is 31x 2 years forward). My thesis is that I already capture stablecoin growth multiple ways; FETH captures a lot of stablecoin volume, GLXY services institutional stablecoin users, and PYPL's PYUSD gives me direct issuer exposure with less regulatory risk since they have diversified revenue streams.

CRCL feels like paying growth multiples for what I think might become a "utility-like" business earning regulated fees. Also, if stablecoins become critical infrastructure the regulatory hammer could fall hardest on pure-play issuers like Circle versus diversified players.

I think my current portfolio seems to cover the bases; Bitcoin for macro crypto adoption, Ethereum for DeFi/Web3 infrastructure, GLXY for the picks-and-shovels institutional play, and PYPL for the mainstream fintech integration angle (+ maybe JPM).

Am I missing something by passing on CRCL? I'm interested your thoughts on whether CRCL offers unique exposure I'm not getting elsewhere? Or if there is something I am overlooking?

Q: Peter Thiel's hedge fund and SoftBank Group Corp. have sold off their Nvidia shares.

What is your opinion on this.

Would you be selling too?

Thank you.