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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: Hi Peter, I was wondering what your thoughts are regarding CSU, TOI and LMN as it relates to Artificial Intelligence. What role do you think software will play in this revolution and do you think that part of the move in CSU, TOI and LMN has been a result of the AI positioning by investors in these software companies. Canada has a smaller tech space than the US. Are these companies in the early innings of this AI theme and do you see higher prices for all three. I
Read Answer Asked by Frank on May 31, 2023
Q: I still own SYZ and have a 1.6% weight and would you see this as a buy if I wanted to increase my weight? If I choose to sell what tech stock would you replace this with?
Thanks
Read Answer Asked on May 25, 2023
Q: Hi Peter and Team,

I have had ENGH for awhile and while having the dividend has been nice the performance over the last bit has been flat. What are potential replacements for it, regardless of sector.

Thanks.
Read Answer Asked by Marvin on May 19, 2023
Q: Good morning,

In this group can you tell me which one to keep, to hold, to sell and add at this moment.

Thank you

Marty
Read Answer Asked by Martin on May 18, 2023
Q: With an emphasis on growth and a 5 year outlook, what would be your 12 recommended stocks if I were to start today?
Read Answer Asked by Rick on May 08, 2023
Q: Hello, With 5i decision to increase the Lumine weight, from 0.15% to 1.50%, can we follow the lead and take it as your nod to bump up the holding in our personal portfolios, at current price $19. ( Noted that CSU weight was trimmed by 0.5% and the logic to participate in future growth in LMN from these levels ). Of course, with the caveat that portfolio weights are still our personal decision.

Thank you.
Read Answer Asked by rajeev on May 08, 2023
Q: Hello, I note that you have recently had quite a number of questions about CSU. I am interested in knowing what 5i's thoughts are regarding the recent very strong stock performance. "Why has the stock price increased so dramatically" is my question. I realize it had a good recent quarter, however the price often settles down after a bit with most companies. Not CSU this time though.
Read Answer Asked by Bob on May 04, 2023
Q: Hello, Thanks for your response to Bill's question on May 2nd. Just to add - If the Hedge fund mentioned is Blacksheep Fund Management Ltd. Between March 24-27, this hedge fund had already acquired 6.1 mln shares of Lumine Group (9.6% of subordinate voting shares) and on March 28, purchased additional 753k shares, in the market at an average price of $14.66, increasing their ownership to 10.79%, triggering a full public disclosure. It is possible that, during the initial 3 days of listing, while Vanguard and other ETF's were offloading LMN shares, Blacksheep was building up this position.

This situation, to me, looks similar to TOI, when another Investment Group AKRE Investment built a large position in TOI, during initial weeks of its trading ( $74 ). AKRE, I believe, continues to be the largest public Institution/Fund owner of Topicus.
The difference is that while AKRE is a very large Investment group, Blacksheep, appears to have a fairly modest AUM ( $500 mln appx ), so LMN position could be a significant holding for them. (13F for March 31, not verified)

Here is the NR from Blacksheep of April 6, 2023.

" DUBLIN, April 6, 2023 /CNW/ - Blacksheep Fund Management Ltd. ("Blacksheep") announced today that on March 28, 2023, Blacksheep, in its capacity as investment manager on behalf of Blacksheep Master Fund Ltd. (the "Fund"), acquired (the "Transaction") an additional 753,130 subordinate voting shares ("SVS") of Lumine Group Inc. (the "Issuer").

Immediately prior to the Transaction, Blacksheep, in its capacity as investment manager of the Fund, had control or direction over 6,114,274 SVS, or 9.60% of the issued and outstanding SVS (assuming 63,671,170 issued and outstanding SVS), all of which were beneficially owned by the Fund. Immediately following the Transaction, Blacksheep, in its capacity as investment manager of the Fund, had control or direction over 6,867,404 SVS, or 10.79% of the issued and outstanding SVS (assuming 63,671,170 issued and outstanding SVS), all of which were beneficially owned by the Fund.

The SVS purchased in the Transaction were acquired in market transactions on the TSX Venture Exchange at a price of C$14.66 per SVS for an aggregate purchase price of C$11,041,036."
Read Answer Asked by rajeev on May 03, 2023
Q: I have recently acquired shares of Constellation Software and done some reading about this company. I looked at it a number of years ago and didn't buy it because of the "frightening" P/E ratio. Every time I looked at it or read analysts reports about it they would say the same thing "great company with terrific growth but too expensive. Wait for a better entry point. We can see how that has turned out. 10 years ago it was trading at about $130 now it's $2700. There is an article in the globe today about Topicus. To paraphrase it says that Topicus is the size CSU was 10 years ago and looks good but it's too expensive.
Is there a good reason to think that there might be an opportunity here that I missed 10 years ago with CSU?
Thanks for your ever helpful insight!
Read Answer Asked by Richard on May 03, 2023
Q: Hi 5i Team - Could you give a brief explanation of what VMS is. Also is this the main component of all three: CSU, Topicus and Lumine. I have some understanding of the operations of these three companies but am still somewhat confused as to their differences from each other. Are there any major competitors and if so could you name a couple. Thanks.
Read Answer Asked by Rob on April 28, 2023
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