Investment Q&A

Q: I am about to triple the size of my investment in the portfolio above and give equal weighting to all. Virtually all of this new money will be in non-registered accounts. In total, this self-directed portfolio will represent 20% of my holdings; I also have 40% in a growth-focused pension fund, and 40% in a mix of ETFs through a robo-advisor.
Do you have any suggested changes to the list of names? I am primarily focused on growth, with a 3-5 year horizon.
Do you recommend a different weighting e.g. heavier on some, lighter on others?
What are your thoughts regarding timing? I am tempted to put all of the new money in now, betting on the sustainability of the recent recovery. But I understand that a phased approach will reduce risk.
Thanks for your help.

Q: Hi,

What are the top 3-5 Canadian tech companies that you think still undervalued, have potential to recover their heights and to grow beyond that?

Q: Hi 5i,
Based on your input, I'm looking to stack up on Industrials, Tech, and C. Discretionary. I have a 5-10 year+ timeframe and have a huge focus on outsized YoY revenue growth / returns for my portfolio. I can tolerate a lot of volatility and risk.

1. For Canadian industrials, what would be your top growth picks? Also looking to get one aviation exposure, what would be the best one out of AC, CAE, EIF?

2. For Canadian Tech, I currently have SHOP, KXS, LSPD, REAL. As you can see I'm aiming for outsized YoY Revenue Growth. Can you suggest other names? How does PHO and STC compare with them?

3. I have BYD, DOO, and GOOS. Can you name two MUST HAVES for Consumer Discretionary/Cyclical in the US?

Please subtract credits as you find appropriate. Thanks!

Q: SHOP dipped today on the issue news - would this be a good time to buy, or could it dip again - perhaps more deeply considering the issue price - next week when the issue closes? Thanks,
Kim

Q: i predicted shop would do a secondary and sold all my shop 2 days ago.
and i now predict kinaxis does a secondary any day now. i also sold all my kinaxis.
please comment
dave

Q: Hi, Do you have details of 1.85 mln secondary offering of Class A subordinate shares, like offering price, closing date etc. Thanks

Q: Hi 5i:
Just a comment for Mark who asked about a good way of arranging a charitable donation of SHOP shares with a big embedded capital gain. He might check out the CanadaHelps.org website as they facilitate this sort of thing, have a very broad range of charities to donate to, and make it relatively easy. It is flexible so with something like SHOP you could donate several shares and distribute it to a number of different charities, one share apiece if you want to. The tax receipt is great because it is for the full market value of the shares at the moment of the actual transfer and comes electronically from CanadaHelps. There is no tax on the capital gain that you are giving away. You can share your contact info with the recipient organizations, or not if you’d prefer anonymity over junk mail.
Cheers for the giving!

Q: Hello 5i Research
I have less then a 5% position in both or these stock , is it still buyable after the price increase today ?
Thanks
Claudio

Q: Comments on SHOP earnings please. Looks like a good beat on top line sales. Is this enough to sustain its recent performance?

Q: I have these companies in my high revenue portfolio. It has been performing well. In these changing times, I find myself switching to companies that have high revenue growth and will not be affected by closure. Any expert thoughts or input would be appreciated.

FRPT - Freshpet is not in your database.

Q: Shopify has grown to be 12% of my portfolio ( thanks to 5i ) and as a result I need to sell some shares. I was wondering what companies you would recommend as a replacement . Would also appreciate your comments on MDF Mediagrif and TCS Tecsys.
Great work through these interesting times.

W

Q: Good Day

I have journaled over 1/2 of my SHOP position to the US side of my TFSA. I was contemplating selling to accomplish a few things, lock in some gains(1300%), reduce my overall portfolio weight and to increase my US exposure. Considering a basket of TEAM,MICROSOFT,VISA and AMAZON to replace. What is your opinion on this move and would you recommend anything else to add?
Thank you for your continued guidance.

Q: When does SHOP next report? What is the consensus? Based on what's happening in the world today, what numbers do you see for SHOP? Is the market expecting a big beat and has this already been priced in?

Q: Hello Peter,
From your reports, Shopify has an inside ownership of 7.4 percent whereas Lightspeed only has 1 percent. Could this somehow be viewed as Lightspeed's management does not have the same confidence in the company as Shopfiy's? I am looking at LIghtspeed as potentially smaller version of Shopify's and am reluctant to put more than 1 percent given the inside ownership.. Please comment. Also, from the cannabis companies, would Organigrams be decent one at this price? Thank you

Q: Hi!

I believe 5i has correctly stated in the past that in a recovery the bigger, stronger names will bounce earlier and more powerfully than smaller and perhaps more speculative names. Companies like TTD and TEAM have either bounced or held up better than names like RUBI or YEXT which fits your comments. SHOP vs LSPD in Canada would be another example. My question is not about these names specifically but if you could please list 4-5 names in the USA space that are well capitalized (can survive) and undervalued (haven't bounced like you might have thought yet). I am not looking for value stocks but growth themed stocks that have been unfairly punished or neglected in the recovery.
Thanks so much!

Q: What is your current best pick (or top 5) for pure growth over 1-3 year term?

Q: SHOP did an offering at $137US on Feb of 2018.
They also did one at $154US on Dec of 2018 which is 9 months later.
8 months later they also did an offering at $317.50 SEPT of 2019.
Add another 8 months and we get to May of 2020.

Do you think this is a perfect chance for them to do another offering at these high prices? Are we due to have one?
Thanks

Q: I am wondering how to assess SHOP going forward based on its recent runup. If the increase is due, in large part due to perceived success during COVID, the next quarterly earnings report will only partly reflect their success/failure for this period. Are you then looking for the guidance they give, the quarterly results they post or will you be continuing to value the company based more on what you know about them from having followed them for some time? I guess my question is valid for all companies during the next 6 months but this one has run up so much, I am wondering if I am being unduly cautious as to how much I continue to hold.

Appreciate your insight.

Paul F.

Q: Shop has become one of the top 3 companies in terms of market cap in Canada. Past companies such as BlackBerry, Valeant etc when they took the top stop their fall was epic. Do you think this time is different and investors are ready to have tech lead over banks? In the US we see tech as these trillion dollar companies but in Canada we still value to banks as the biggest companies. I think the tide might we changing.

Q: Hi there,

Shopify appears that it will not continue it's rise. Sell now or buy more?
Berkshire Hathaway A seems to be, in essence, a pricey mutual/ETF fund but one that has fallen and history would suggest will rebound. Buy now or is it your thinking that Buffet and Monger are elderly and this increases risk and/or the Canadian $ too weak and/or stick with B and diversify. Or none of the above? Thank you.