Investment Q&A

Q: I am wondering how you would categorize these companies (V, SQ,PYPL) in relation to one another and if you had to pick 2 to invest in for growth over 10 plus years which ones would you pick? I liked the digital payments theme prior to COVID-19 and think it will clearly accelerate the move to less cash and more digital payments (in-store or online) more e-commerce.
VISA is the largest payment processor in the world (according to your information under stocks profile page) so they process the most payments right now online and in-store.
SQUARE is obviously not as big as Visa but they would be similar in being in both markets (online and in-store payments processing), but Square would be more of an all in one solution for e-commerce, payment processing for Small and Medium sized busineses plus CASH APP and investing etc.
PAYPAL would seem to be similar to Visa in that it is mainly a payment processor (with Honey acquisition maybe adjusting this course somewhat?) but would be essentially be ONLINE payment processing only, so maybe more of a pure play online payment stock? and any main reason why Visa has such great margins compared to Paypal? on its earning call Paypal said "On May 1st, we had our largest single day of transactions in our history, larger than last year's transactions on Black Friday or Cyber Monday." which was extremely bullish to me...

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: Good morning,

Thx as always for your terrific insight. With the recent move in SQ, would you use a move to STNE being a decent move seeing that it has not recovered nearly as well? Worth holding both?

TIA

Q: Hello Peter,
While SQ holds the promise when the retailers open, it does not really matter for PYPL. Which one would you suggest.
In your presentation at the MoneyShow yesterday you mentioned DXCOM in the healthcare sector with an increasing demand, company raising guidance and now being included in the index.
If I were to take a position in it, I will not be able to have positions in both SQ and PYPL. Which of these two would you suggest I let go.
Or would you suggest I hold them both and take a pass at DXCM instead.
As always, your opinion is appreciated.
Regards.

Q: Could you please comment on their results and outlook?

Thanks,
Milan

Q: From a risk profile point of view, please classify each of the above companies as:
Low risk, average risk, high risk or speculative. Charge as many questions as you feel appropriate.
Thanks. RAM

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: Clearly high tech and e-commerce companies are doing much better than the general market. What would be your recommendation among cloud computing companies including those in the US. Thank you for your great service.
Peter

Q: Hi Team,
I am wanting to buy both VEEV and DOCU as both long term growth plays, and to play into their current momentum. I don't have any free cash right now, so have to trim from a couple other stocks to do this. I was considering trimming half of my SQ holdings to buy DOCU, and trimming half of my TWLO holdings to by VEEV. Do you see any issues with these moves? Also, being that VEEV and DOCU are in high momentum right now should I wait for a pullback or would it be OK to buy these at current levels? Also...do you see VEEV and DOCU holding up after this covid scare is gone, or do you see risk of these momentum stocks falling on their face once the virus scare diminishes? Thanks for your advice!

Shane.

Q: Good morning folks
I bought more SQ at $39.00. I shaved a bit on the up. Raymond James downgraded it to a SELL with a future price of $41.00. What is your take on the near term ( 1 to 2 years)? If it does drop I will buy a bit more. Yes..I am putting on my "trading Hat".
Thank you for your guidance during these troublesome times. Stay safe ..

Q: Hi Team,
I am holding TWLO, and down 12% on it as of today. It has been showing some strength lately with the other tech names, but perhaps not as much as some others. What do you think of this companies growth potential? I am wondering if I should hold it, or if you would recommend switching the holding into a different US tech growth stock that you are much more convinced of (was noticing ROKU or DOCU)? I currently already hold NOW, AYX, CRM, SQ,TTD,FB. Thanks for your advice.

Shane.

Q: Hi Team,
I hold the following stocks in my TFSA: AYX, FB, LSPD, SQ, TTD. Lightspeed is by far my worst performer so far in this group (-50%). I was thinking of possibly "Doubling down" on lightspeed in order to lower my average price, and also with the thought being since its sold off the most in this group, that it may have the highest potential return in a time frame of say a couple yrs. But.. I hold no cash in this account for the most part, so I would have to trim one or 2 of these holdings in order to raise the cash required to buy more LSPD. I am a bit hesitant to do this as I am a firm believer in the other holdings as well. If you were to trim, which would it be from out of the list of stocks given, in order to buy more LSPD? Or would you consider doing this at all given the prospects of the other stocks in this list? Note that I would not have to trim alot from the other ones as LSPD is currently down so much that it wouldn't take too much to double down on it. I am using my TFSA for high growth, and not overly concerned with weightings as long as the holdings are of quality and high growth potential. Thanks for the advice.

Shane.

Q: Hello 5i,

Imagine that you already have a diversified portfolio you are happy with and plan to keep intact with no changes over a 10+ year investment horizon.

Now, you've watched the recent few months of meltdown sitting with $50,000 of cash that you're considering putting to work, representing maybe 6-7% of your total overall portfolio value/net worth.

Give absolutely no consideration to sector/position weightings, geography (CDN or US or gloabl), or risk tolerance. The only consideration is a 10+ year time frame. You're investing in things for the long term. No trading.

Imagine this was YOUR $50,000. You show up to the office on Monday, April 13. What do you buy today, if anything?

Thanks for all your advice. Read the questions daily. Your takes on this current meltdown I have found to be quite insightful and of far more value than most financial news out there. For this alone I consider my subscription to be money well spent.

Keep yourselves and your families safe!

Ryan

Q: I have no real undersatanding of this Co I purchased shares few months ago when it was flying high. then I read it got hurt badly when a star lead person left abruptly. Since then it was recovering slowly.
I read now they applied for relief under the new stimulous bill .
How imp is this for SQ. how do you see the company future path

Q: The current volatility and fear in the market has lead me to believe there will be some companies that will unnecessarily be punished/caught in the crossfire and therefore offer a great risk/return
could you please list out companies in your mind that have decreased significantly unfairly and/or offer a compelling risk/return in the US or Canadian Markets
thank you

Q: Hello 5i
PayPal or Square for growth? Why?
Thanks
Dave

Q: Can you please comment on SQ revised guidance. What other similar tech companies could be effected likewise. Thanks

Q: I managed to do well during this down market. I got out early and have put 83% in DOG, 15% in cash and have 2% in TSLA with and avg price of 189.

I am going to slowly start selling some DOG and deploying some cash. Can you recommend 3 to 5 stocks that I can start small positions in. I have a high risk tolerance and a time frame of 10 years or longer.

Thanks in advance.

Q: What US stocks is 5i staff currently buying and why?

Q: Knowing that you have recommended these stocks in the past, would you buy them now (with a short reason why)? Are they good candidates for a bounce?

Please take as many credits as needed. Thanks.