Investment Q&A

Q: I've been waiting to initiate a position in either AC or CAE for a minimum two year hold but I can't decide on which one. My brain tells me this is a good time to enter either or both, but I am concerned about the sector in general.

Can you give me some reasons for both companies why one should buy today and some reasons that gives one pause on the names?

Of the two, does 5i have a preference and would you start a position today in either name?

Thank you.

Q: Main question: Is there a sense of roughly how long it will take 'clear' the class action suits being brought against LSPD?

Also:
- Do you have a sense of what a defense would cost? 5-10 million?
- Are these lawsuits enough of a distraction to *impact performance* or will they simply be an exercise for accounting and a few of lawyers?
- Lastly, what is the success rate of these sorts of lawsuits in extracting compensation?

Thanks!

Q: Hi Team,
With index's near record highs it is very frustrating to have my portfolio down 20% over the last quarter, and still dropping (holding mostly growthy tech). I have read recently that even though the index's are hitting records, nearly half the underlying stocks in the index's are down 20% or more from highs. My question is now..do I keep holding or make the switch to the interest rate increase "friendly" stocks. My initial thoughts are that since my holdings are already down 20-50% on some of these names and the stories in the companies have not changed (other than the short reports on LSPD and NVEI), is it better to simply hold at this point and wait for better days, or should I be selling into the weakness and re adjusting my portfolio? Or...should I buck the trend and add to these dips. Seems like many long term opportunites come from adding to beat down names in times such as this. I am overweight tech, mostly 5i tech favourites.

Also, taking everything into consideration; what are some of your top ideas for 2022 TFSA contributions as of today that you would be looking at, either US or Cnd. My timeframe is 10yrs plus until retirement. Thanks

Shane

Q: Is there an etf that deals with electric vehicles? And if there are multiple, which do you recommend and why?

Q: Admittedly I emotionally attached to BYD given the stellar gains over the time I've held in my kids RESP. I see that they have their challenges and seem to be out of favour with the market. At what entry price to you see a good opportunity?
and since the growth is expected by capital appreciation, do you recommend the stock be held in a RSP or TFSA account?

Q: The stock has perfermed extremly well but it's on a downward trend from a peak last October near $265 and now it's at $195. What's the reason for the decline and should this stock be retained as a hold within a portfolio?

Q: Any reason why CSU has held up so well as compared to other Canadian tech companies?

Q: Under present circumstances I find it difficult to determine at what stage we are in the business cycle. Could you overlay the business cycle and market cycle and indicate where you think we are and how this will influence one’s investment thesis?

Q: any thoughts on the dutch auction offer?

Q: I dont see any questions on backblaze. Could you provide an overview of this company and comment on their prospects for growth in the Cloud services

Q: Please rate in order picks for dividend income and growth

Q: hello
can you recommend what types of bonds should be held in a rising rate environment and can your recommend some ETFs?
thanks

Q: Your answer to a member's question on LSPD and NVEI being "expensive stocks" and your interpretaion they are still considered expensive ones inspite of selling at roughly 1/3 of their peak prices, is not understandable as there are many non software companies whose stocks are selling at around 15-20 times their sales. Why don't we admit that it is the short attack as the only reason for this decline instead of beating around the bush.

Q: Hi 5i,
I sometimes have trouble following your metrics. Yesterday, in an answer to Steve, you said that LSPD and NVEI were still expensive at 9x and 8x sales respectively. That makes sense and with little difference in the two. When I look at the 5i members’ database, I see LSPD at 16 x sales and NVEI at 6x sales. Here, NVEI is clearly the cheaper of the two. This makes it difficult sometimes to assess a company. Why the differences?
Thanks again.
Dave

Q: Like many here I am nervous about buying fixed income in the current situation. You often mention that most people will be sorry when things turn around and stocks fall. Well, I get that. Even though we would have enough to survive even with a fairly large drop in the value of stocks. But, I realise that it would not be fun. So, what to get in terms of fixed income. I have mentionned in other questions that I would be inclined to get something completely sure for this component of a portfolio. Unfortunatly, it is likely to lose money, when inflation is considered. So, is it worth it to go further afield and enlarge the fixed income space? Here is what a popular blogger writes about this question. I would appreciate it if, with your experience and judgement, you could comment on it:

Another fallacy to dispel is that the 40% of a 60/40 should be in bonds. Nope. Many govy bonds suck and will be creamed as rates rise. So this is a really bad idea. That fixed income portion of the portfolio should be made up of short-duration bonds, some corporate invest grade issues, a floating-rate bond ETF and a healthy weighting of rate reset preferreds, which rise in value along with the prime.

thanks as usual for the great service

Q: Given policies recently introduced in many countries (US, Europe, Japan, etc.) aimed at encouraging legacy car manufacturers to switch to making battery electric vehicles and given that many of these manufacturers have since announced commitments to doing just that, setting aside Tesla, which of the major car makers do you see as having the best potential to profitably achieving these goals? I'm more interested in identifying the best among the big players: Ford, GM, Toyota, BMW, etc.

Q: Some stocks you recomend from recent tax sale.(OVER BITTEN)

Q: Any thoughts on DoorDash? I know they aren't profitable yet, but for companies like Dash and UberEats, do you think they'll ever get to unit or even whole company profitability?

Q: Has your opinion on Cloud MD changed with recent contract wins including Empire Life and Sun Life. It would seem the company is gaining acceptance and market share. Your analysis please.

Q: My portfolio is the following:
Tech: 41%
Financial: 11% (GSY/BAM)
Communication: 10% (GOOG, ROKU)
Industrial: 9% (TT, XYL, WSP)
Health care: 9% (VEEV, DXCM, WELL)
Real estate: 3% (EXPI)
Cons Cycl: 1% (ATZ)

Tech holdings:
LSPD 2.6%
TOI 5.4%
SHOP 2.5%
NVDA 13.4%
PLTR 0.9%
CRWD 4.1%
SQ 3.8%
APPS 4.7%
U 3.8%

Looking for advice on which tech stock if any I should cut loose. I am clearly overweight in this sector, and would appreciate some guidance on how to better allocate my money?

I’ve heard you mention LSPD and SHOP somewhat overlap, but selling LSPD at a loss right now simply does not make sense in my view.

If selling a portion of my tech is ideal in your view, please provide alternative stocks in other sectors. Thanks

Happy Holidays!

Nick