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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: As a follow up to my previous question on OTEX, I would also ask that you comment on analysts downgrades related to OTEX moving towards organic growth and away from growth by acquisition. Isn’t this simply a function of its low stock price relative to earnings and cash flow? If a growth-by acquisition company like CSU bought OTEX then it would be immediately accretive to earnings because CSU trading at a high PE multiple. The same analysts would applaud CSU for its ability to grow by acquisition and call the stock a buy. I am not saying that CSU is a bad company, far from it, but I am wondering if analysts would better serve investors by focusing more on the organic growth of a company and not on what it might acquire in the future.
Read Answer Asked by David on November 04, 2024
Q: Both the Ceo and Cathie Wood's Ark have recently sold shares just prior to Q results on Nov 4 though each still hold lots of shares. Please inform the no. of shares each are holding after sale.Reportedly it has recently signed many contracts,both commercial and governmental,and Dan Ives has a $45 TP and called it the Messi of Ai YTD,it has increased some 154% and many analysts consider it very expensive.It is volatile especially after Q results.I have some 100% profit.and thinking of taking profit especially before Q results.Please provide u opinion.Txs for u usual great services & views
Read Answer Asked by Peter on November 04, 2024
Q: By my calculations, OTEX is trading at 8X forward earnings and 10% FCF yield. At current price it has a 3.5% dividend yield. According to TD Cowen's analysis the stock could see a 33% return over the next 12 months if it meets the low end of its forecast. So why are all the buy side analysts downgrading the stock or maintaining their hold rating? Isn’t it time to buy when there's blood on the street and you feel sick in your stomach? Has anything changed in its business fundamentals?
Read Answer Asked by David on November 04, 2024
Q: Hello Peter,
Unless i misunderstood, the results for Topicus were good when compared to Lumine Group, yet Topicus barely moved a needle and Lumine Group actually went up .. Could this be due to Topicus European focus and investors are not as comfortable with European markets? Thanks very much
Read Answer Asked by umedali on November 04, 2024
Q: Good Morning,

All things considered, would you rate SMCI a hold or sell today?

What do you think the likelihood is of it being de-listed from the Nasdaq? Would you wait to make a hold/sell decision until after next Tuesday's scheduled business update, or do you think there's not much that management can say to change the market's perspective on this stock?

Thanks,

Brad
Read Answer Asked by Bradley on October 31, 2024
Q: Regarding SCMI, how badly would their accounting have to be misstated before it was not attractive based on fundamental reasons? Looking at the current and forward P/E, it's relatively cheap for a good business in a great part of the market.

What if a company with a different name produced a quarterly report that showed SMCI's numbers in terms of growth and earnings but without any of the baggage and negative perception? What would 5i value this other entity at with current financials and for fun, what would 5i value it at if the numbers are revised to be 25% worse.

Thanks
Read Answer Asked by Tim on October 31, 2024
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