Investment Q&A

Q: An American stock, but if you have views, may we hear them?

Thank you!

Q: I currently have a weighting of 8 % Canadian tech companies. For diversification I hold CSU, OTEX, SYZ, ENGH and KXS. My largest holdings are in the larger companies, specifically CSU at 5% and OTEX at 3%. I would like to diversify my portfolio into international stocks. To this end, in the high tech sphere I have started to buy XQQ. Since XQQ is an ETF, and so is diversified, I plan to bring XQQ up to 10%. Note that I currently have 20% in VFV. So my US exposure would be 20% VFV and 10% XQQ. Do you see any downside to this plan? Note that XQQ is hedged, are you aware of a US tech ETF that is not hedged?

Q: Hi Peter and Ryan,
Pls give your thought and update assessment on
Lumentum Holdings after Department of Commerce in US banned some of the communications equipment company from dealing with Chinese company ZTE.
What degree of business would affect LITE?

Thanks for your help.

Q: Could you give an updated assessment of this company please? Thank you.

Q: I have done very well over the years with csu ( thanks to you) and still have about 8% in portfolio. thinking about selling half and buying csco
My thinking is csco is ready to move. good idea?

Q: ANET getting killed this morning down over 10 percent. probably in part due to the downgrade. Is growth story still intact or is competition killing it? still a buy/hold or is it time to sell?

TIA!

Q: A recent article in the Globe was citing an RBC analyst as saying it was time to go underweight on tech stocks.
I have the following weightings in my portfolio -
ENGH - 6% ; SYZ, KXS and DSG 4% each.
Do you see any of these as being seriously overvalued? I have very good gains on all and have taken profits on all except KXS as they have moved up.
Any comments are appreciated.

Q: Hi team,
It looks like questions are slowing down these days with the volatile markets so I think it is time for me to use another credit. I am a tech guy and read your answers on SPOT with interest. I am tempted to pull the trigger but have been holding back. Years ago, I held Netflix but sold out way too early as the earnings and subscriber metrics were all over the map (look where it is today). The main problem I had with Netflix was that it was paying all these movie/TV companies for access to content. These days it is creating its own movies and TV series and now has some control over it, despite the billions it is spending on it each year.

I have the same issue with SPOT but more so. SPOT has to pay all the musical artists in order to broadcast their songs. How can SPOT overcome the content hurdle like Netflix is doing? I can not see it hiring bands to compose songs and hope the songs become popular.

In your SPOT answers you say it is a sitting duck for NFLX and maybe DIS, AMZN, GOOG, AAPL and others. I was really surprised by the takeover spin as you have never in the past offered that up as a reason for purchase a stock.

I am confused on your buy thesis for SPOT.

Thanks again,
dave

Q: Good morning5i team,
I am thinking about buying Amazon, especially following the positive way in which you view it. I am wondering about the timing, though. I noticed on a number of questions recently asking about the best US stocks to buy at the moment, that Amazon is not on that list. With it's recent fall I am a bit surprised by that. Is there something in particular about Amazon at the moment that would prevent you from adding it to such a list?
thanks

Q: Keysight was a top pick on BNN yesterday. It looks like a good company with good fundamentals. Do you have any more information on this company? I'm looking for a tech company (not software) for at least a medium term hold.

Q: I have US $ Portfolio: FB,SHOP,CGNX,AMZN,NVDA,SQ,NFLX,MA.
Yesterday I sold all of CCGNX because of down trend and Dead cross on
EMA50 & EMA200. I have around 20 K US$ from the sell.
Please suggest some some US stocks to replace CGNX that you would buy
right now or should I wait for change of trend to up to repurchase CGNX.
Andrew

Q: Your thoughts on swapping goog out for msft OR 1/2 a position of goog to msft.

Thanks

Q: Which do you think are the best companies in both Canada and the US to invest in for artificial intelligence and robotics.

Q: Is this a good time to add tech? If so, do you see one or two stocks that you would recommend now? I was thinking of a mix of CSU, OTEX, and KXS.

Q: Peter, if you became a fund manager again starting this week, what would be the first stock you would want to buy?

Q: Kulicke and Soffa KLIC.us, a provider to the Semiconductor industry, looks interesting. I wonder about its vulnerability to cheaper imports. Does KLIC have a domestic SERVICES business insulated from foreign companies? Does it have good free cash flow and manageable debt? Is KLIC subject to cyclicality as extreme as foundries are? I hold LAM Research LRCX so would I be duplicating with KLIC, do you think?

Q: What do you make of Citron Research's comments on NVIDIA today?

Q: MU taking a hit today on UBS sell rating and a $35 target price. Could I have your evaluation of this. Should I sell and if so what would you replace it with. Thanks

Q: Hello,
At some point 5i seems to have changed direction with Amazon. Earlier on you thought the p/e ratio was just too high. For instance, this was your objection to buying Amazon in July 2014:
5I RESEARCH ANSWER:
We think Amazon is a great, well-managed company, with excellent potential and a solid niche that it continues to develop. Clearly the leader in the space, it further consolidates its position nearly every day. It has $5 billion net cash. We like the 'company' for sure. However, the stock trades at 279 X forward earnings estimates, and we simply cannot get our heads around its valuation. It is a high beta stock, but this year the market is up and it is down 12%. We think there are better growth companies to own.
According to Yahoo Finance the P/E ratio is higher now than it was then. I am interested in buying Amazon amidst its current troubles but the cost really makes me question that decision. I am curious as to what exactly were the elements that brought 5i to become much more favourable towards buying Amazon?
thanks

Q: Now that SPOT is trading and up 25% do you still reccomend 1/3,/1/3,1/3?

Or has the activity changed your entry strategy?

Thanks

Sheldon