Investment Q&A

Q: What do you make of Panw announcing earnings on a Friday. The consensus seems to be bad news is in store. Thanks.

Q: hi,
can I get your current thoughts on Lumine group as a long term investment-management-debt-earnings etc.... IPO was 16$, now trades higher? usually price goes to at least half IPO price? can you explain this price action? also, I think you have mentioned you like management, can you elaborate a bit, im having trouble understanding why by reading the company website.
cheers, chris

Q: A question on Telesat
What are your thoughts on the recent news and run up in this stock... I have always been interested in this and MDA and others in the space sector. Can you provide and updated view on Telesat considering the MDA contract and huge cost savings and specifically the TAM for the LEO satellites seems to be Massive.
Also what other companies would be classified as competitors specifically for Telesat's focus on non-consumer enterprise, government, aviation industries? Starlink is eventually going to offer those services but they focus on residential currently. Thanks!

Q: Hi,

Given the recent news on Telesat Lightspeed, what are your views on the company for a longer term hold (say 5 years or more)? Do you see further upside after the recent share price increase?

Thanks
Paul

Q: I do not fully understand the special dividend announced. One warrent for each share held? Exercisable when the company exercises their redemption right on the series 1 debenture? Please explain.

Q: Hi,

Can you please compare these two stocks? Which do you prefer today? I realize you do not follow wix as closely, but it seems like they have very similar business models and product offerings while wix trades at a lower multiple.

Thanks,

Q: Seth Klarman's fund reported a recent trimming of Alphabet and a new purchase of Amazon. Since he is a renowned value investor how would you explain that trade from a value investor's perch? Could it be that a company like Amazon which operates many global businesses and that may be poised to move into several others meaningfully (healthcare, etc) and potentially dominate in those cannot be traditionally valued because it provides future growth opportunities like no other company can and because of that isn't able to be predictably valued? Could it be that someone like Mr Klarman is investing in Amazon for the long term because he sees no company that compares with its potential, not even an Alphabet? Could it actually be reasonably priced as a "one-of-one" company? Would like your opinion on this "analysis" of Amazon. Thank you.

Q: Between AAPL and CSU, which company do you feel has the best growth prospects over the next 5 years? Thank you.

Q: US Cyber Security stocks seem to consolidate lately and form a bottom. Wich one do your prefer for a balance of growth, quality of management, history and balance sheet?

Thanks

Q: Thinking of jumping in to Nuvei. It looks like this company is set to report cash flows of more than $300+ million in 2024 and then growing more than 20% annually. Their net debt is low. They are growing sales despite the loss of a large customer. Additionally, they acquired Paya in February which has $250 million in revenue and is net earnings and cash flow positive. Paya is based in the US, and in verticals that are new to Nuvei, and less cyclical than their traditional verticals.
Is it just me or is this a screaming buy here on valuation and future growth prospects? It is only 1.5X sales and 10X forward earnings.

Q: Thinking of buying a new mattress with a concealed side zipper. I find it hard to believe that a stock that trades in the USA and Canada can in one month lose 50% of its value because of a slight miss in earning and its outlook. Why?

You have strongly recommended NUVEI for quite some time and I was hesitant after involvement with LSPD. However, when another reputable investment newsletter (with a very conservative outlook), recently recommended this loser (NUVEI), I decided to take the plunge and pull the trigger. Boom, down 50%.

My question is about warning signs. How can one detect such things in advance? Obviously, nobody did, but for company to loss 50% of its value in less than one month, there must be something? No insider selling (or buying) unless it was done another way. The insiders must have known that they were going to lose half of their investment. Maybe they don’t own much? No idea?

I think something stinks here.

Anyway, I am off to Sleep Country.

Q: Is it timely to buy Goog? Ai is the big game nowadays.What is a good entry point?.Txs for U usual great services & views

Q: May I please have your thoughts/comments on LICY (Li-Cycle holdings)?

Knowing that it is early days and the related costs for scaling a business such as this are expensive up-front, can you also please comment on:
1). Is there a market for their product?

2). What is their competition doing in comparison?

3). Is it somewhat of a moat business?

4). How long until the up-front costs of establishing the business begin to pay off?

5). What is inside ownership like?

In past questions related to this company you felt that it was too early to consider investing in the company. Do you still feel that way?

If so, at what point does it become a company to invest in? What are the tell-tale numbers that someone should be looking for?

Thank you very much!!

Q: What do you think about SMCI’s valuation compared to growth for a three year hold here?

Q: Your thoughts on their 1/4ly report please.

Q: On July 6 U trimmed Toi to 3.5% @ $106.95 after big rally from below $70.On July 12,U consider it as a attractive buy when it was some $98. On july 11,it was $103.46 + 0.84%. Add,Hold or Trim. It appears that U now prefer Lmn due to its potential better upside, Txs for U usual great services & views

Q: If you didn't have any shares in these companies wouldn't this be a good time to buy and slowly add over the next couple years. My thinking is CTS just has to go back to three dollars and your up 20%. They are buying back shares, dividend, huge ebitda etc. Board makes a few tweeks and sentiment and direction changes. I understand if you have a position to hold. Do you generally agree with the above.

Q: Are any of these three buying opportunities right now? Any you would sell? Looking at a 3 - 5 year time frame.

Q: Sorry for another NVEI question.
In the responses on NVEI, 5i considers it a HOLD. I'm down 60% in a taxable account and will probably sell for tax reasons. My plan was to buy it back after 30 days.

What would it take for your recommendation to become a "buy" or "add to an existing position"? On the other hand at what point does it become a "sell"?

Are you considering the same "hold" status for the growth portfolio of will you be making changes with NVEI?
Thanks

Q: Do we know which large customer did NVEI lose? At what cost?

We often see sell/buy transactions with no divulged details. Being naïve, shouldn’t the investors know these details, when they could impact the financials. Do analysts know more than we do? I’m aware we are talking private companies and their competitors, but it is a bit frustrating.

Thanks for your work.