Investment Q&A

Q: is the recent substantial jump in the stock price due to something more than the corporate buy-back in shares??
ed

Q: What do you think of their quarter? The CEO states they are just getting their sales team increased and starting to get their next-level technology out there. Thanks.

Q: Hi Peter and Team,

I enjoyed Sylvia's question and your answer about Constellation CSU and other "high-tech" stocks. I realize that Sylvia didn't include Kinaxis KXS in her question, but I found a link to a Canadian Business article that describes the type of technology that KXS is involved with, and lists some of their high-profile clients. Perhaps Sylvia and other readers may benefit from the article.

http://www.canadianbusiness.com/lists-and-rankings/most-innovative-companies/kinaxis/

Q: Is your team still ok with overweighting in Cdn tech stocks? Which are your top five picks based on reliable strong growth, reasonable valuation and healthy balance sheet?
I currently own CGI (gain) and Intertain (30% loss). I am thinking of selling some CGI and all IT to switch to the top picks. Thanks.

Q: Hi Peter and team,

I own Enghouse in my TFSA and with the pullback have considered adding to the position. Could you compare it with KSX in terms of growth potential and which one you would recommend.

Q: How risky is this company? Saw them featured on ctv and the marijuana breathalyzer seems like a cant lose as long as they don't get beat to market.

Q: Hi Peter and Team, The last question asked was on Dec. 24. Since the Dutch Auction, the shares have steadily declined (surprising?) and I'm beginning to lose patience, as I unfortunately bought it at a peak. Are there any compelling reasons to hang on, or would a switch to something like OTC be a better move to stay in the same space? ABT is held in my RRIF.
Thanks.

Q: Hi Peter and Staff. I have very small positions in the stocks below and have a small amount to add to 2 of them. Sector allocation is not an issue..could both be in same sector and not matter in my weightings. Which two would you pick and why?

CCL,DHX,KXS,MSL,OTC,PLI and TNC

Thanks for all you do

Q: Sandvine stock price dropped on report of a patent troll filing against the company. How successful are these troll companies, I am thinking this drop is a buying opportunity but is the street worried about expensive legal costs to fight this patent infringement.

Q: Cubic has had a bad year and its share price has tumbled to the point where the company is now so ugly that it seems rather pretty today. 5i likes momentum, which of course works in both up and down directions. Cubic thus has momentum going against it. But in my dumb emotional reptilian brain, I can’t help but be attracted to it. I like its business model. Perhaps I didn't get the biz model (?) (My history has some litter of past mistakes)

Before I back up the wheel borrow and fill it up with Cubic stock , I seek your opinion , hoping it shall be based on substance , on some depth of data , combined with your own thoughts. Trailing data on Cubic is off-putting. But I believe you use data , both trailing type, and forward looking. I expect to have to wait two or more years before any positive movement occurs on Cubic share price. The near noise is inevitable and is not an important factor provided you agree the business model is sound. Cubic would be for a TFSA.

In your opinion what are Cubic’s prospects? I seek an opinion based on your own thoughts plus analyses by reliable types working at the more reputable sources.

Q: Recently Citi’s chief US equity analyst, Tobias Levkovich, responded to the current no growth school of thought by suggesting, that virtual and augmented reality will be a very strong driver of growth over the next decade. His estimate is for $650 billion invested over that period. He expects it to be transformational and to impact all sectors of the economy.
He suggests that “ current infrastructures will require major upgrades to handle the virtual world given more limited installed computing and graphics capabilities versus the new technology’s requirements”

I am wondering what Canadian companies you think will be able to take advantage of this?

Also, it suggests major expenditures by the telecoms, and I would appreciate your opinion on which of the “homegrowns” are best positioned to take advantage?

Many thanks
Mike

Q: Kinanxis earnings look strong with solid revenue and adj. EBITDA increase. Could you please comment on these numbers and Adj EPS. 2016 guidance seem to be in line with expectations. What's your take on the results and does it support current valuation. Thanks

Q: Hi Peter;
please comment on KSX numbers and the outlook for 2016.
Thanks,
Ron

Q: Good afternoon, 5i, do you still think this ETF is fine for diversified exposure to tech? Is there an unhedged version?
Thank you

Q: Hi Peter

What is take on Shopify after the numbers this morning

Good job people

Thanks Mike B

Q: Hi 5i, I would like to add a new position to my granddaughters' trust accts ( 2).

They currently hold:

REIT ( KMP and AX.un)
Bank ( BNS and RY )
Insurer ( SLF and MFC)
Pipeline ( PPL and IPL )
Oil ( ARX and VET)
Utility ( BEP.un and NPI)

Could I get your top 2 suggestions in the following sectors:
tech
telecom
consumer staples
consumer discretionary .

Timeline would be 5 to 7 years.

Thanks for a such great service! You really help to remove the DREAD from investing

Q: Hi Peter/Ryan and Team, can you please clarify your earlier response on Shopify, 'There was also concern about the stock lock up coming off, putting more shares on the market'. When and how many are coming off lock up please? Also, because of this, in your opinion will there be more down side pressure on the stock when it reports results next, which is when? Can you please provide details of forward looking earnings, cash flow, sales, etc and consensus?
Thanks!

Q: Good Morning Peter, Ryan, and Team,
I have been looking at ESL, CSU, SYZ, and OTC and comparing them using the metric "Free Cash Flow Yield" (Trailing 4 quarters of operating cash flow, minus capex, divided by shares outstanding, divided by yesterday's share price) According to my very crude calculations ESL = 9%, CSU = 8.7 %, SYZ = 9%, and OTC = 14 %. OTC in particular looks to be getting pretty cheap. Is this a good way to look at these types of companies and what other metrics do you use in your analysis of info tech businesses ?? Thank you for your sage opinion. DL

Q: Let's revisit Shopify. It's trading below the IPO price from last year, but it seems like a great cloud-based software that keeps growing and is "sticky". What is your opinion on this company and when will they be able to stand on their own feet (i.e. profitable)?

Q: Hello 5i team,
In my previous question, I asked for names of Canadian ETFs or Mutual Funds that invest in US New Techs; I specified "Canadian" because I did not want to pay a 40%+ currency premium. You gave me FDN (a US ETF) instead.
I look forward to your response
Antoine