Investment Q&A

Q: I have a portfolio that I am happy with the mix of companies. I have in the past added to loosers and sold winners which I see is not your philosophy. I have half positions in both AIF and SYZ, I am down 8% in SYZ. Which would you add to with new cash and why?

Q: SYZ continues to drop - is there something "wrong"? Is it time to bail (ie. "stop loss") and buy something whose stock is increasing such as SHOP? Selling low (SYZ) and buying high(SHOP)is often not a good strategy unless the low is going lower and the high is going higher. Your thoughts on doing this trade.

Q: In reference to a question from Peter concerning Enghouse and Boyd, when or how do you determine winners(former?) are no longer winners? I have a few positions in which I have done quite well and despite nothing materially changing in the company, the stock price has stagnated or has been range bound for months.
I am reluctant to change companies just for the sake of change or to try to chase returns but often I am enticed by companies that seem to have momentum But this often throws off sector weighting?

Q: It appears SYZ has recently been covered by Morningstar with an overvalued rating, S&P Capital IQ with a buy and Thomson Reuters with a 4 out of 10. This might be contributing to some weakness in the share price of late.

Q: Hi there Bought a bit more of SYZ after what I thought were excellent quarterly results. Since then share price has been dropping steadily. Other than inside selling any other idea why this might be occurring? Another question I pondered about was how an insider sold 500000 shares in a couple days when the stock is so lightly traded. Do you think that was a single block trade - a prearranged transaction?

Thanks

Stuart

Q: I'm overweight in Technology.
If you could only keep one the following companies,SYZ (Sylogist)
OTC (Open Text) and CSU (Constellation Software),which one of these companies would you keep and why?

Thank you

Q: Hi 5i
Any thoughts on company exec buying 5000 shares in December and then blowing out 500,000 in January?

Dave

Q: On Jan 26, there were two big insider trades. CEO Wilson sold 500,000 shares and Director Elder 200,000. Any concerns? Comments please?

Q: Hi 5i, any insight into the huge spike in volume for Sylogist today? Huge volume and a 2 percent bump, should we take this as a good sign? Rob

Q: Looking through Sylogist's annual report I have a question for you about how you think they are running their business in regards to use of cash. Total Cash declined meaningfully (but was high to start) and the use of cash was largely to buyback shares. Cash flow from operations, when also considering the change in working capital, was roughy equal to the dividend payments. Therefore, the company seems to be betting against its ability to find future opportunities for investment (either organic or acquisitions) that provide at least an IRR at least equal to its current ROE otherwise it would be 're-investing' some of its cash flow back into the business would it not?

Also, I see comments in the member's questions indicating that insiders are buying? Is that truly the case or is it part of their incentive compensation scheme? Management bonuses and equity based compensation in each of the last two years was equivalent of all of the G&A expenses of the company. Do you know if anyone has analyzed the share purchases to determine if they exceed the equity portion of the insider compensation?

Cash and use of cash by insiders is so important to understand. Thanks in advance for the response and, as always, the good work.

Q: SYZ looks to be net buyers of their stock recently and insiders are buying. I have a half position and would like to add. Any concerns other than the small size of the company. I follow the BE portfolio mostly with a few income stocks as well.

Q: Good Morning
I am doing a bit of fine tuning to my TFSA. Regardless of sector/business which stock would you pick today and why? Sylogist or High Arctic Energy Services?

Q: I have in my tfsa the above stocks in a weighting of 5 to 10% with 10k in cash. Which of the ones listed would you add to or would you recommend one or 2 others stocks that would fit in this portfolio. I also have other rrsp and trading accts. thks marcel

Q: Good Day, I own these three in the same portfolio. would like to diversify, what would be your top two choices for a long term hold?
Have been considering MG or CTC or L as possible replacements, what would be your top choice between these. Thanks, Lavern

Q: Hello Peter and Team,
This is more of an observation than a question concerning companies that own great metrics and show excellent results, but get little volume or shareholder appreciation. I picked up ITC ( Intrynsic Technologies) just previous to you including it in your own portfolio, and have seen nothing but SP deterioration since. This, in spite of a very good last quarterly, and also the anticipation of strong upcoming growth in 2017. The word on the boards is that the company does little to promote itself to the investment community and is basically flying way below the radar. Another example is SYZ ( Sylogist); I am very interested in taking a position in SYZ, but despite its posting of a remarkable fiscal report, ( Revenue up 31%, Adjusted EBITDA up 53%) there has been very little, to no volume since. Volume of 600 as of noon today. There was substantial appreciation in the share price over the last couple of years, but the stock has been basically going sideways for the last 6 months. In your experience, what is the typical catalyst for SP advancement on these types of illiquid stocks, and do you feel that that these two are still ``in play``?
Thank you kindly,
Rick

Q: I am considering consolidating at least one of my tech stocks as some seem to be in similar businesses. Which tech stock of the above would you recommend to sell at this time. If something is sold, which one might you recommend to buy more. Or just best to do nothing. I have about 2% - 2.5% of my total equity portfolio in each. Thanks.

Q: I have listed the tech stocks I currently own. As much as I like all of them, I am very over-weight in that sector and need to re-balance my portfolio. I think I should sell 3 of them. Which 3 would you suggest?

Thank you, Peter

Q: Results look good. Did they beat?

Q: I have the listed companies in my TFSA($60k). I haven't been too concerned with portfolio weightings due to the portfolio size and have let the winners run. As a result close to 50% of the portfolio is held in just 2 stocks (CCL.B and CRH) I have nice gains in the others except DBOX and SYLOGIST which are both flat and I have considered switching out. Two questions I have are 1. Do you think it is a prudent strategy to stay this course or would you rebalance keeping in mind these weightings are not that out of whack when you consider my other portfolios? 2. What name(s) would you consider adding to this mix for my 2017 contribution of $5500.

Thank you and Merry Christmas to the entire 5i staff for your outstanding service.

Q: I hold the above stocks in my RRIF and plan on transferring 'in kind' one of the stocks into my non registered account. Which one do you consider most appropriate and why?
Thanks and enjoy your time off. RAM