Investment Q&A

Q: What supply chain software companies are the winners and losers in regards to Amazon's Supply Chain Services (ASCS) announcement. Specifically please comment on whether or not you think it will have a material impact on the prospects and share price of Descartes and Kinaxis.
Thank you.

Q: Can you provide thoughts on earnings after conference call. It looked like a good quarter. What lies ahead?

Q: In my TFSA I've been hit by the drop in CSU, DSG, TOI, LMN, and SHOP. Offset a bit by gains in TD, ENB, and SIS.

I have 12% in cash and am looking to rebalance and make some changes. I maintain 20% to 25% of the account in WXM. I like to follow stocks in the portfolios, mostly balanced, and those that you have reports on. I let things get a bit heavy on the software stocks, so looking for 5 or 6 idea's outside of that sector.

Can you make some suggestions? Thanks very much.

Q: Hi 5i team,

I’m reading about a thesis and would love your view on it.

The idea is that today’s AI compute scarcity is temporary, kind of like the telecom/bandwidth bubble in the late 1990s. As inference costs keep falling over the next few years, I think the real value will shift from the infrastructure layer (GPUs, hyperscalers, data centers) to the application layer.

However, not every application-layer company will benefit. The ones whose moat is the AI itself could actually get hurt as models become cheap and everywhere. The real winners should be companies with moats that don’t depend on model quality — things like regulated workflows, payment rails, proprietary data, deep system integrations, or network effects. For these companies, cheaper compute should expand margins instead of creating new competition.

Two questions:
1. Does this thesis make sense to you, or do you see any flaws in the logic?
2. In your coverage universe, which names best fit the idea of “moat is the workflow / data / distribution, not the AI itself” and which names’ AI itself ‘might get hurt?

Thanks,
Matt

Q: All the above stocks are at a loss in my portfolio. some I've held for years. Which stocks are worth weeding? Thinking that BYD and WELL are lost causes for a while. Please give comments on each stock, why to hold or sell. I have many credits and please take them for a thorough answer. Once again, I'm counting on your feedback!

Q: Vertiv or Kinaxis for growth, which would you prefer please.

Q: Hello 5i

Would you think a switch from KXS to CLS be a better long term winner.
CLS prospects seem to be gaining strength again.

Cal

Q: Would you endorse selling KXS and TOI to start positions in MU and TER in a TFSA? I, like many others, have held KXS for many years and am growing tired of it. I have CSU family represented in other accounts. Thanks, Janet

Q: Hello, I would like to get your thoughts on a possible switch from KXS to MDA in my TFSA. My patience seems to be wearing thin with KXS, and I would incur a small loss if making this transaction.

Thank you kindly.

Q: The market seemed to like KXS earnings. Do you have any comments to add to previous ones based on conference call? What do you see for KXS going forward?

Q: It's been a while since you've been asked about this company specifically.

I don't really want to sell companies hit by the software scare, but I am thinking of opportunity cost and perhaps switching the money in KXS to something in the same sector with more upside potential (eg. CSU).

Can you comment on KSX and, if you would make this move, one or two companies to switch into.

Q: Of these beaten up software stocks, which 3 or 4 stocks would you choose, keeping in mind greatest return potential and not too much overlap between the picks. Thanks

Q: please rate these companies in order of best buy for 5 year hold.
thanks
don

Q: What to do with $10864 in TFSA? At 74 years I exist on a public sector DB pension.

Transitioning my TFSA to be more growth focused. 14 holdings currently, major ones being BN, TRI, TFII, TVK, KXS, TOI, EQB, LMN, DSG, PNG, DRX, REAL, S, EGLX. Also have 41 equities in much larger balanced dividend growth non-reg account but Brookfield Group is pushing 15% of total portfolio with overall 65% Canada exposure. Overall below sector targets in consumer cycle, health, RE, Industrial, Utilities as well as International exposure.

Realizing you cannot get personal but I am looking for another viewpoint on how to use the funds in TFSA this year besides adding more Brookfield or software or financials. With available funds could only add 4 units of CSU anyway.

Q: If you had to sell DSG or KXS to raise cash, would you trim from both or just sell one?

Q: Hi Peter and 5i Team,

I manage my son’s TFSA. One of his holdings is Kinaxis KXS, which has been held for a long time. The average cost per share is $49.56, and the last time I looked, KXS is trading at $136.59.

Noticing that, based on answers to other members, 5i is becoming more frustrated with this company, so I’m wondering if any action should be taken.

Please advise if there are any other TSX-listed companies or ETFs (other than the CSU family) that have better prospects than KXS going forward, or would be wiser to “stay the course”?

Thanks for your insight.

Q: Good afternoon,

I’ve a question on KXS that isn’t quite answered in the res ent history. I owned this stock in the past and sold out because it did nothing after getting to $200. The stock is cycling between the low-mid $100’s and $200, now ducking below $150.

What is causing the downtrend? Has this stock reached the lower threshold for a buy rating or do you expect further decline? It is getting intriguing, yet it is also frustrating.

Thanks,

Dave

Q: When do these companies next report earnings and what is expected? Do you see them beating estimates?

Q: Do you have a more recent update on DOCCKS than January 2025

Q: Strong market today but KXS drops over 3%. It's been a lacklustre performer for some time. How serious a threat is AI? How strong a product do they have? KXS has been identified as a potential good performer in 2026 by some analysts. What is your take on the company? Is it worth keeping?