Investment Q&A

Q: With the recent acquisition, it seems that Sangoma is issuing 22 million shares now, and then an enormous number of shares (88 million) issued in slow quarterly chunks between 2022 and 2026 to the acquired company. How will this affect the share price in the future, ie. are these going to be quarterly share price dilutions that current shareholders need to dread? Or overhangs? Please explain.

Q: Hello Peter,
What does the acquisition do to the stock price in the short term? The share count nearly doubles. Do the newly minted shares lead to some selling pressure specially by the new owners or the promise of future drive the price higher immediately?

Q: Is there a stock issue/dilution as part of Sangoma’s latest purchase. I would be interested in buying any of a share issue but can’t locate any details. Can you gauge the SP reaction when it resumes trading?
Thank you

Q: There are a lot of small to medium sized Canadian technology companies, some of them fairly new to the stock market, that have seen very good stock price appreciation in the last year or two. Many/most of these companies are not profitable, and obviously this is a fairly speculative segment of the market. Today, I heard Darren Sissons talking about JDS Uniphase which went from $2 to $1,000 and back to $2 in the tech bubble 21 years ago. I'm wondering about how many of these small to medium sized Canadian tech companies might suffer a similar fate, and how many will succeed. Of the following list of stocks, what would be your estimate for the % of them that will succeed 5 - 10 years down the road at becoming long term successful businesses, with strong profits and a substantially higher stock price than now, and what % will fall by the wayside, failing to become good profitable businesses, and seeing their stock price drop off substantially. There are no doubt others that could be included in this list, but these are the ones I have picked out. Not asking which ones will succeed, just trying to get an idea of general potential for success/failure for this type of company/stock. ADCO, AT, CTS, DCBO, DND, KSI, LSPD, MVP, NVEI, PHO, QUIS, STC, WISH.

Q: Peter; Can you comment on the acquisition today? Thanks.
Rod

Q: First of all, thanks for the service you provide. I have found it extremely useful since becoming a member. Second, I apologize for the number of stocks covered in the question. If it is too many, please do not respond / post.
Within the last 12 months, I have purchased the above stocks strictly for growth or as momentum plays.
I would like to know which ones you would sell, either because their momentum has likely peaked, or because their share price growth prospects are poor. Please deduct as many credits as required. Thanks

Q: Do these two companies essentially provide the same services? It appears STC is currently profitable and TWLO is not. Do you think STC is misunderstood by the street?

Q: Recognizing that STC, (Sangamo Technologies) and XBC ( Xebec Adsorption) are in two entirely different fields, which of the two would you recommend for a 2/3 year hold and why.

Thanks
David

Q: Good Morning,

Could I get a selection of your favorite small and mid-cap tech stocks that you'd want to start a position in today and build over time.

thanks!

Mark

Q: Hi, I feel my Tech. Sector 30+% is getting too big, in case a correction is in the future.
T- 3.5 - Kxs- 5 - Lspd- 4.4 -Pho -4.3 - Real -4.1
Csu- 3.5 - Syz - 3.4 - Stc- 2.1 -Bce - 3.4%
Would you consider all these Tech. Stock? I like to keep my sector allocation to 9 or 10 sectors for simplicity ,but I do know there are sub- groups.
Would you sell any of these positions ,or trim all or some? Thinking a 18-22% sector weight, would you agree?
Thanks

Q: Thanks for all your excellent work. Having recently moved to the US and opted to convert my young-ish Nova Scotia pension account to an RRSP and a LIRA, I’m looking to invest the ~100k in these accounts. Horizon: at least 5 years, but probably much more (I’m 40). Having narrowed down a tentative list of names (see below – tech-heavy, I realize), and with a focus on growth, I’m hoping to sort out the best buying strategy. Specifically: (1) At this moment, does the conventional wisdom to buy each stock gradually makes sense to you as good rule of thumb (e.g., over the course of a year, for each stock, adding a quarter of the total intended position once every few months or so)? (2) Also: I’d greatly appreciate seeing a ranked list of, say, which five of these stocks you think it would be especially wise to start with (i.e., buy now, or buy more of sooner) and which five you think I should wait to buy. Feel free to dock me for two questions! Thanks a ton, Chris

CSU, SHOP, LSPD, XBC, SYZ, BEP.UN, PHO, KXS, ENGH, WELL, GUD, EGT, SJ, BNS, WSP, STC, ATZ, LAC, BYD, REAL

Q: Hi 5i - what are your 5 top growth stocks for a 10 year hold across the portfolios? Im looking at XBC, WELL, LSPD, SHOP and STC, but interested in your favorites right now. Thanks, Neil

Q: Hi 5i,
'Pop' quiz - I've got a bit of cash burning a hole in my TFSA pocket. Which one (if any) of the above for a quick pop?
Thanks and Happy Holidays,
Peter

Q: Would you view this Ransomware announcement as a blip and also a buying oppurtunity, or could it speak to a problem with the company and would you just wait and see how this transpires?

Q: Hello Team 5i,
I own the companies listed above within a TFSA
REAL is smallest holding at 11% of this account = approx 12k
I will add 6k to TFSA in Jan 21

I am considering four options
Keep REAL and BUY more REAL with 6k
Keep REAL and BUY more XBC, STC, ATA and/or WELL with 6k
SELL REAL and BUY NVEI with 18k
SELL REAL and BUY more XBC, STC, ATA and/or WELL with 18k

-sector allocation not a consideration
-transaction costs not a concern
-concentration (# of securities) within TFSA not a consideration

Your thoughts please?

All the best to all the people at 5i who provide such a wonderful service.
Steve P

Q: Thanks to your excellent recommendations 2020 has been a record year for my family’s portfolio. Thank-You.
However, I feel like I need to consolidate some of the tech companies I own so when their prices rise I will have more torque. Which of the above companies would you suggest I merge, drop, or even add? Growth is my only objective.
Enjoy the holidays.

Q: Why the big jump with Sangoma recently?

Q: Hi Gang
What would be your top pick in small cap Canadian tech stock under 5 dollars at this time
Thanks Mike B

Q: I have room to add one of these to my TFSA now and another in January. I see 2 of these are in your model portfolios. In what order would you purchase these 3 or am I getting too picky ? SCORE had a huge recent run up; would you wait for it to settle down. I like it’s theme and strong insider ownership Thanks
Derek

Q: What % gold should you hold in your portfolio?