Investment Q&A

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.

Q: What do you guys think of the crazy fall of SHOP ? When will the knife hit the floor ? All there fundamentals look fantastic there P/E is down to about 30.

Q: For the aggressive part of my portfolio I have 1 to 2 percent positions in TTd, crwd and unity. You mentioned these are still expensive and I was wondering about taking that 5 percent and allocating it to shopify now that it has been cut in half and it’s PE is in the 30’s? Could we still see the possibility for significant drawdowns on Veev and apps, or could one or both of those be options for a less aggressive play for some of that money as well? There always is the option to do nothing with the rest of my portfolio being balanced. These moves would all have no tax consequences being part of a registered plan. Thx as always

Q: Hi, There are lots of high growth companies out there with little or no free cash flow. Growth investors accept this because these companies invest aggressively in their own growth, development, market position, etc.

While it's understandable that high growth companies focus on their own growth now, presumably they will eventually need to switch to other forms of capital allocation. I am wondering if you have any insight into how much confidence we should have in which of these management teams will act in the best interest of shareholders when the time comes to maximize shareholder value via other forms of capital allocation. For example, if a company reaching maturity throws most of their resources into R&D despite diminishing returns it would not be in our best interest.

I realize the answer to this isn't completely knowable, so also interested in your general thoughts on this topic.
Thanks

Q: Having held SHOP (TSX) for a number of years, it's discouraging to watch it whither away. While this downturn plays out, would it make sense to short the US version of the stock? Obviously, there are considerable risks involved and it would require close attention for entries and exits, but it seems like this might mitigate some of the losses. Or is this a dumb idea? Thanks.

Q: What would be your #1 stock pick for a TFSA for an 18 year old starting out in the investing world?

Q: At this time, what are your top picks (5 CDN, 5 US) for a 3-5 year hold in a registered account for an investor willing to take on an above average level of risk (but not high)? Sector does not matter. Thanks.