Investment Q&A

Q: Hi 5i,
Thank you for your answer to my question about LMN the other day. I have one (perhaps two) more:
Does LMN acquire public companies, or does it restrict its acquisitions to those in private hands?
If LMN does acquire public companies, do you think Sylogist would be a potential or likely target?
Thanks 5i,
Peter

Q: Hi 5i,
Please explain what I am missing about LMN, which is a name I know you are high on, and which has obviously done well as far as share price appreciation is concerned.
When I review its numbers nothing jumps out at me as a reason to buy - in fact, the opposite: EPS is -1.73; Revenue is substantial but no earnings that I can see - in fact pre-tax profit margin is -210.10%. ROE, ROA and ROC all seem meh to me, while price to sales and price to book seem high.
If it wasn't for 5i's recommendations regarding LMN, based on the numbers I don't think I would give it a second look.
I'm not adverse to owning it, especially given that lots of others seem to want to, and are willing to pay dearly for it. But why would I -or why would anyone else? Is it solely because its a CSU spinoff?
Please enlighten me. Thanks!
Peter

Q: I hold a number of Small/Mid Cap stocks. Some have done really well and others have done good. Given that Small/Mid caps in general have had a good run would you be trimming these positions? Position suze is not an issue.

Thanks
Tim

Q: Looking to add 2 names to this group. Please provide top 5 mid caps that make sense for a 15 year hold. Thanks as always.

Q: Given a 3 to 5 year holding period, what order would you buy the above stocks?

Very much appreciate your service.

Howard.

Q: Topicus and Lumine shares are hitting all time highs, which is Awesome !!!

But, at the same time, the parent Constellation Software stock has been struggling to break back above $5,000 level and still trading well below its high of $5,332, reached in May, this year. CSU shares seemed to have lost momentum, right after its last earnings release and have n't recovered, since.

What has caused the recent sluggish pattern with CSU ? Do you consider this trend, simply short term ? Are there any near term catalysts ?

Also, curious, what percentage of Constellation's market cap comprises of its ownership in TOI and LMN ( present and any future conversions ) ?

Ignoring any personal advice, would you be comfortable and consider an ownership of CSU,TOI and LMN at 10%, 4% and 4% levels, respectively, as a decent mix, in a Balanced Portfolio with a Growth bias ?

Thank You

Q: When will institutional investors be more able to buy Topicus and Lumine? If the companies decide to list on the TSX ? Thx

Q: Hello,
Any idea why Lumine Group and Topicus are surging? Lately Arc resources has been going down and is it simply due to the price of natural gas? Also, i was thinking i am down alot on brookfield energy partners from the time i bought it, should i stick to it for long term or take a loss and move the monies into the parent company? Thanks very much

Q: Lumine stock has been firm over past few days and seems to have broken out to new highs Today. ( Relative to TOI and CSU ). Is there any news, you are aware of, or, it's the stock technically coming out of consolidation ?

Thanks

Q: CSU has grown too large a position in my portfolio, and I am very reluctantly (sadly even) forcing myself to sell a portion.

Along with some additional free capital, I am considering adding four new positions.

I am indifferent to industry, size or region. This is all about growth.

I am willing to hold for many years, but I want companies that are proven winners and very well-positioned to grow aggressively in the long term. Ideally, companies that are standouts in their industry.

How would you rank the above positions in terms of risk (1-10), short-term growth (1-10) and long-term growth (1-10)?

If you have additional suggestions not on my list that may be more suitable, please include them in your analysis.

Thanks for your outstanding service. I owe the bulk of my financial success to you and your team.

Subtract as many credits as needed.

Q: I hold these equities in my grandson's RESP. He will need to access funds in 2 years. He will enter grade 11 this September. I just sold half of the CLS holdings at 120% gain. Above % represents post sale. I am thinking of putting cash into BEP.UN or BIP.UN. what additional adjustments would you make at this time?

Thanks for all your help.

Mike

Q: PNG questions:

- What was the catalyst in mid-2024 that finally created a break-out in stock price?

- Why is it such a high-conviction 5i Research stock now compared to back a few years ago ?

- Do we know anything about the quality of management?

- What is the quality of the balance sheet ?

- How out of line is the current valuation of this stock ?

- Does it have similar runway potential that a LMN and TOI might have (with reference to success of CSU) ? ......acknowledging of course that they are in different sectors.

Q: Hello,

I read with interest this passage from a big fund quarterly report:

“We sold our smallest holding, Lumine, a small vertical market software business spun off from Constellation Software and still controlled by it. We’ve had trouble getting too excited about these spins from the mothership as we previously sold Topicus, another Constellation-owned business. These spinoffs tend to be nice businesses, but tiny and illiquid. Plus, Constellation continues to control the business economics and voting rights. It makes more sense for us to concentrate our research focus on Constellation.”

Is it fair to say that large funds often face challenges in initiating or maintaining meaningful positions in spinoffs like Lumine or Topicus, particularly due to limited liquidity and the ongoing control exerted by Constellation Software?

Thank you in advance for your insights.

Q: Hi Team,

Are these both buyable at their current prices?

Do you see better opportunities?

Q: BN is sitting at 7.5%, AXON - BKNG are 5% and the rest are 3% positions totaling approx. 83% of my stock assets. I have some 1-2% positions in my cash account (GSY, ATZ, PRL, CLBT, HPS.a, BNS,SU, TMDX, TVK and CNQ. I'm heavy tech, financials and industrials going into H2 2025. Would you add to, remove or change anything is this was your account (assuming you're 52 and plan to retire in 8 years). Not looking for a person allocation but rather if it was you, what might you be looking to adjust, if anything. Note I have no utilities currently. Thanks and have a great weekend.

Q: I hold all these tech stocks as part of a well diversified portfolio with weightings below. Tech stocks are 25% weight in my overall portfolio. The issue I'm having is determining how many to hold in this sector and what weight to allocate each. All new names that I see on my potential watchlist with high growth seem to be all tech names as well (CRWV, CRCL, SRAD, GENI, RDDT, etc..) but I'm hesitant adding more tech if my holdings are already high quality unless one of them is dragging its feet. I'm trying to balance between holding long term compounders like CSU, LMN, TOI vs high growth shorter term names like NBIS, VRT, CLS that are benefitting from AI tailwinds which could turn quicker. Do I hold 5 companies at 5% or 10 companies at a mix between 2%-5%.

Do you see any overlap here in names that could be combined? If you had to rank these names based on growth and risk/reward, what would they be currently for the next 5-10 years? What is the high level process you go through when trying to determine between candidates for a sector? Thank you!

Constellation Software Inc. 5.60%
Lumine Group Inc 5.04%
Shopify Inc 3.02%
Crowdstrike Holdings Inc 2.20%
Topicus.Com Inc 2.17%
NVIDIA Corp 2.07%
Cellebrite DI Ltd 1.58%
Vertiv Holdings Co 1.41%
Celestica Inc 1.32%
Descartes Systems Group Inc 1.00%
Nebius Group NV 0.39%

Q: Dear 5i
Which one of the above five stocks would be your preference for in a TFSA account ?
What would be your overall order of preference ?

Thanks
Bill C

Q: Could you please recommend five moderately conservative stocks that you believe will prove to have been a sensible buy 5 to 10 years down the road.

Q: Do you see the above as a buy today? If so in what order and at what price? Would these stocks be suitable for a 10 year hold?
Thanks again for doing the heavy lifting for us.
Dan

Q: These are my 4 roughly equal weighted stocks in my TFSA which represent approximately 2% of total reg.and non reg. accounts. I have taken a barbell approach to this portfolio with EIF and GLXY anchoring the ends.
I have held WELL for several years waiting for that sustained breakout expected ( any day now ? ) and am down 20%. How much more time do I give it ? They seem to be getting all the pieces together and management is respected but I am getting itchy to sell and move on. Wait another quarter ? What will make it move higher without retreating ? What would YOU do if your portfolio ? Finally please provide 3 growth alternatives ( with reasons )should I decide to pull the plug .
Thanks. Derek