Investment Q&A

Q: With interest rates rising, companies with heavy debt loads may suffer somewhat.
Can you please offer 5-10 top picks with large cash balances and low debt w/best bets in each Cda and US? also which big cap sectors would you stay away from due to large debt holdings? many thanks...

Q: Hello, as a Canadian, does it make sense to buy SHOP:US using US funds that exist in a TFSA investment account VS buying the equivalent SHOP.CA from a CDN TFSA account ?

Q: Is SHOP attractive to you today at the current price or do you think there is still plenty of room for the market freefall to pull it down further?

Q: Hello Peter,
On yahoo, i get a pe of 32 for shopify. Does this make sense ? What are the metrics one should use to evaluate good value for shopify? Given that there is competition for shopify, do you think the company deserve a full weighting of 5 percent? I am just concerned about what happened with black berry (RIM in early days) when apple and samsung came along.. can this happen to shopify as well as there is competition building.. Much appreciated

Q: When I compile your recent responses in the current January market, these two stocks popped out as looking like reasonably good buys now. Is my complier working okay (its pretty old)? Did I miss one or two better ones? Thanks as usual. Dan

Q: I own LSPD in a registered account and am just breaking even. Considering swapping it out for SHOP, which I suspect may be lower risk and a sounder investment going forward. Given the wild ride both companies have had recently, which do you believe will perform better in the long term (3-5 years)? Thanks.

Q: We recently initiated a TFSA for a family member (long-term buy & hold); the 10 securities purchased (in approximately equal amounts) were: Aritzia (ATZ), Unilever (UL), GoEasy (GSY), SunLife Financial (SLF), BAM (BAMa), WSP (WSP), Algonquin Power (AQN), Telus Int'l (TIXT), and an ETF called XUSR. Still have ~15% capital (~$12,000) to invest. Which 3 or 4 of these would you have greatest conviction to add to? And/or is there another security which would complement the above?

Ted

Q: Good day guys:
Can u provide a few names that are in oversold territory during this painful time in the markets .. I own well , lightspeed , and converge and I feel they are oversold and I am holding on .. I would appreciate your professional opinion please
Thx
Mark

Q: I have TTD, PLTR, NVDA, PLTR, NVDA, CRWD, APPS, UCTT, CELH, AFRM, MTTR, UPST, VEEV, in my US account, and LSPD, SHOP, EGLX, TIXT in my Canadian (and holdings in other sectors, but these are the holdings in question). I don't need to sell anything, but don't have new funds to deploy in the low market. I had a lot of positions in tech going in and already thinking about consolidating the sector when the market turned. I wonder if you see anything that should be sold, and added to something else to maximize growth when the market turns good again, or if it is better not to shuffle at this point.

Q: Any Good buys you see in these turbulent times with a 3-5 year horizon.....

Q: Hello, after doing some research i have come to understand that Shopify has a PE of 32. Is that correct? Seems like that can’t be right. Would you buy now or wait? Thanks

Q: Good Morning,
Apologizes as I know you've been asked this question or various of a million times but here it goes. At this point in time please list your 5 favorite stocks for a 10 year hold in each of your RRSP account and your TFSA account.

Q: Hi team,

I didn't see a question on this partnership (shop and JD), but is this not a relatively significant deal in your opinion?

Q: With the recent market correction, there are a lot of stocks are deep in red. Which stocks are the compelling buys, after the market settle a bit?

Q: Hi, all

I'm down 40% on SHOP. Continue to hold? It's tough to hold when it keeps dropping day after day.

Robert

Q: A follow-up question on Shopify. If someone has already asked, disregard.
What impact will/did the news have that the company was terminating fulfilment contracts with some providers? In your opinion, is this a positive or negative? Maybe a positive that they have found a better way to do it (themselves) or a negative that things aren't working out as planned? Should the company have anticipated the reaction to the news and had a better prepared statement to deflect some of the price reaction? Finally, do you consider this a gradual buying opportunity?

Q: I would like to increase my tech holdings during this sell off and I have a long term horizon and willing to take on risk.

Can you rank the following in order of preference: Shop, NVDA, Topicus, Xebec , Unity, Lightspeed, Enthusiast Gaming.

Are there any in that list that should be sold off?

Q: In terms of recovery, would it make sense to sell light speed and buy shopify, if so, when should one do that

Q: In a January 21 answer to a member’s question on SHOP, you stated that the P/E for SHOP was well over 100x, whereas the poser of the question thought it was close to 30x. I think the confusion is rooted upon 5i basing its calculation on adjusted earnings, whereas the member was likely considering GAAP earnings. I raise the point only because I have recently seen others state the P/E of SHOP as in the 30s as well, including in the G&M, and I think it would be helpful for 5i to be clear about which earnings it is using for its calculation. (I hope I am not wrong in my understanding of the situation).
Personally, as a DIY investor, the P/E is often one of the top 2 or 3 data points I use when making a buy/sell decision, and I would be tempted to guess this is true for many other members. For what it’s worth, I agree that the adjusted earnings are more relevant in the case of SHOP. I would very much welcome any further comments or blogs by 5i that discuss adjusted vs GAAP
earnings.
Thank you for your more than excellent service. Hardly a week goes by where I don’t at some point read all the Q&A , reports and updates on your site. I have learned much.

Q: What is your view on the downfall of Shopify? It's dropping way more than the market weakness. I believe the fundamentals are solid but this market and shop's performance makes one think twice. What is your take on what's happening? What support level will kick in and stop the bleeding? When does it report next and what does it need to report to be classified as good results? What do you anticipate? I have a small position that is getting smaller each day and am thinking of increasing my position.