Investment Q&A

Q: When higher interest rates eventually actually happen in the US, what do you think the initial reaction will be for semiconductor stocks? Will the first reaction be a dip, or perhaps they might move higher?

Are there any other events, such as an invasion of Ukraine, that you think would significantly impact the semiconductor stocks in the short term?

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: Hi...do you put much stock in the "death cross"? I see the 50mda has dropped below the 200mda for each of PBH, WSP and XIT (ya, I know technicals aren't as reliable when applied to ETFs). What is your opinion on both the "golden cross" and the "death cross"? Are either or both reliable?

I trimmed all three on the way up (in keeping with my asset allocation target ranges). I have already added a bit to XIT, with more planned next month. I was considering adding to PBH and WSP once things settle down in a week or two.

Your thoughts?

Thanks...Steve

Q: What are your thoughts about these comments posted by an analyst on BNN Bloomberg yesterday? Is it a speculative buy?

"Quarterhill was formerly called Wilan and owns an IP patent licensing portfolio that continues to generate lots of cash. The company has been using this cash to acquire companies in the intelligent transportation systems (ITS) industry. For example, they recently acquired ETC, which processes 17 per cent of all electronic toll lanes in the U.S. through its cloud-based platform, and they also acquired International Road Dynamics, a world leader in weight-in-motion technology and traffic data collection.
The exciting news in December is that Quarterhill announced a strategic review to sell its IP patent portfolio and become a pure play ITS company. We believe that the IP patent portfolio alone is worth what the stock is currently trading at now, and that the ITS business is worth at least another $2.50 per share. So, the stock should be trading at around $5 versus $2.60 today. We really like the upside on this stock and the fact that there is a big catalyst coming to unlock value."

Q: Hi guys: If stagnation did appear later this year, what would be your top 5 U.S. and Canadian stocks?

Q: Hi Everyone at 5i! Me again. With your crystal ball on the table , how do you anticipate our Canadian dollar doing over the next few years?
Cheers, Tamara

Q: I am thinking of buying one of the two stocks. Do you think the current price is a good entry point? Which one is a better buy today disregarding sector?
Thanks.

Q: Do you recommend the use of Canadian Depositary Receipt (CDR)? What are Pro's and Con's?

Q: In terms of recovery, would it make sense to sell light speed and buy shopify, if so, when should one do that

Q: Peter; Would RCH be a takeover candidate- not sure of there is a controlling shareholder? Thanks, Rod

Q: what 5 dividend stock today would you call winners . thanks!

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: Appreciate the uncertainty @ the moment. That said, how do you feel about the next 5 years for this company? Is the current valuation as attractive as it seems to me?

Q: Hi All at 5i! Was the market run up in 2021 in anticipation of the pandemic being over, now contracting because the recovery is dragging on? Cheers, Tamara

Q: Hi Peter/Ryan as an investor and not a gambler who's tried to make a buck over the years doing what's right, investing in good companies having a properly balanced portfolio to not risk loosing it all, what chance do we have when this Jeremy Grantham comes out and makes a statement about the stocks collapsing. That alone can cause people to panic and sell, no? Thanks, Nick

Q: Hi 5i Team - There has recently been a lot of attention paid to Jeremy Grantham's prediction that the S&P 500 will drop to half its value and that we have been in a super bubble. Apparently he has predicted the collapse of this type of bubble before. Could you please comment on Jeremy's statements and predictions. I'm not sure we have been in any kind of super bubble and the sell-off at least in growth stocks has already been happening for some time. I find these types of statements disturbing since they create even more fear in a market that already has a good dose of it. Thanks.
Rob
P.S. I much prefer to read your comments on market volatility. They're level headed and take a common sense approach that I'm sure is much appreciated by your subscribers, including me.

Q: Do you see a level where Topicus is attractive.?It’s been pounded badly

Q: Hi Peter, & team,

Thank you for that timely "One of the hardest things" message banner on the member page. I was going to ask that very question. I am going to read that thing every time I want to press the sell button.

Thanks.

Q: My only oil/gas exposure is via the pipeline stocks listed. I am virtually at a break even point on PPL and up on TRP and ENB. I am thinking that some exposure to a oil producer is a good thing. I am thinking of selling PPL and using the proceeds to buy SU. Thoughts?

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.