Investment Q&A

Q: SHOP still dropping Tuesday am. Only news I see is the following but I think it would be a positive. What are your thoughts? Any idea why price continues down?

12:42 PM EDT, 09/18/2023 (MT Newswires) -- Klaviyo, a marketing automation company, lifted the proposed price range of its upcoming initial public offering, according to a filing on Monday.
The firm said it estimates its IPO to be priced between $27 and $29 a share, up from the previous range of $25 to $27 announced last week. It plans to offer 19.2 million common A shares, including 7.7 million shares from selling investors. The selling stockholders have granted underwriters a 30-day option to buy an additional 2.9 million shares.
The company expects to have 251.9 million of series A and B shares outstanding following the offering. The company's common A shares will trade on the New York Stock Exchange under the KVYO ticker.
Klaviyo said its investors including certain funds and accounts managed by BlackRock (BLK) and companies affiliated with AllianceBernstein have indicated an interest in buying up to $100 million of series A shares at the IPO price. Its investors include Canadian e-commerce firm Shopify (SHOP), which already owns about 11.2% of Klaviyo's B stock, the filing showed.
The company estimates net proceeds of roughly $296.2 million from selling series A shares, based on the midpoint price of $28 per share. It aims to use the proceeds for general corporate purposes and to finance growth strategies. It said a portion of the amount raised may be used to satisfy the anticipated tax withholding and remittance obligations of about $62.3 million related to the settlement of its restricted stock units. Klaviyo will not receive any proceeds from the sale of the shares by selling stockholders.
For the three-month period ended June 30, Klaviyo reported net income of $10.9 million, swinging from a loss of $11.7 million a year earlier. Total revenue came in at $164.6 million, compared with $109 million in the 2022 quarter.
Online grocery delivery firm Instacart on Friday lifted the per-share price of its planned IPO to between $28 and $30 from the prior range of $26 to $28.

Q: What are your top 5 Canadian growth picks for the next year? Please rank and explain why each is a strong choice? Also, what are US choices?

Q: Hello, may I please have your current thoughts on SEDG? The current price action is terrible. I understand from your August 17th response that recent guidance was weak. Just wondering where you see the stock bottoming and what catalysts may trigger a recovery.

Thank-you,

Stephen

Q: Hello Peter,
Do you still see both Topicus and Lumine Group as long term holds or should i just buy CSU and add more to my existing shares? If oil companies decide to privatize, how would the investor share price be reflected? Does the company buy out our portion of shares and at what price (current price of market).. Lastly, any comments on baytex would be appreciated. Thanks

Q: I am considering adding to a number of these Income Generating names. I know you are generally not a fan of averaging down but is there an entry point that you would add to these names in the current market.

Thanks
Tim

Q: Hi 5i,

My current communications holding (VZ:US/Verizon) only amount to 3.5% of portfolio and should be at about 8% according to Portfolio Analysis.
1. Would you continue to hold VZ?
2. Either way, could you recommend some additional/better opportunities?

Many thanks

Q: Good morning 5i - could you please provide an updated opinion on SEA (Seabridge Gold). I am interested in a short/medium term hold for capital gain in a TFSA account and this seems to fit the bill. RBC recently initiated coverage suggesting a key to success is a partnership; which is being sought now. Thanks for your insights.

Q: You have mentioned a few times that you are not a fan of PFIA’s higher fees. Is there an alternative Fund you would prefer?

Q: Down 28 percent. Is it a hold or sell and buy a different stock. I can also add more if the future prospect is good.
It is in my rrsp.
Thanks

Q: Hi Everyone!
I have all of the above and am underwater on all but Nvee . I am cleaning up my portfolio. I am not in need of the money at the moment , but are any of the ones listed not worth keeping or do they have a good chance of recovery.
Cheers,
Tamara

Q: I own CP, CNR, ENB, BCE, in my Rif account and was thinking about selling these to buy UMAX to increase income and keep me in these sectors. They are about 17% of that portfolio and I don't think I am adding risk by doing this but I will be increasing income significantly. Does this move make sense? Thanks, James

Q: I have owned this company for yield for over a decade but with the share price breaking through the $10 mark on the downside I am considering an exit. May I have your views?

Q: ALA BOM CM CPX CSH EMA ENB FRU FTS NTR TRP

Which are your Top 3 and Bottom 3 choices based on total return over what you consider a longer term?

Thanks

Q: I'm trying to understand how safe the preferred shares of Brookfield Office Properties (BPO) are as they are selling at a big discount to par. I understand that obligations of BPO preferred shares are guaranteed by all of the companies within the umbrella of the Brookfield Property Partner L.P. (BPP) group but am not clear whether the obligations of BPP are guaranteed by its parent .
Any information and views you have on this issue would be welcome.

Q: Hello Peter,
In order of preference for long term, can you please rank the names? Much appreciated.

Q: Hi Team,
With the recent weakness (since the end of July pretty much) it seems like growth stocks, tech have been weak. Do you see this as the start of another "free fall" in the market like we had in 2022 for growth names? I find it odd that the central bankers are telling us how "hot" the economy is running and continuing to raise rates, yet the CEO's all speak of the current "challenging economic period". Sometimes I question the job numbers as being highly manipulated. I heard the other day Canadian jobs were high, but immigration was also at record highs and only half the immigrants got jobs which means the other half are a drain on our economy. I am seeing headlines that credit card debt is at record highs. Consumer spending numbers the government pumps out makes it look good but if that is all credit card debt spending then that's just a crisis in the making. I see today a headline of BMO shuttering indirect retail auto loans due to bad debt. It almost seems like right now that there are no catalysts in sight to support stocks. My portfolio has came up nicely this year but is still a far cry from its 2021 highs being that I was tech heavy. And now I feel like we are headed for another big drop or crisis. What's your take on this and is it time to head for the hills and take risk off the table? Thanks for your input!

Q: I hold the Series 1 Debentures and am quite content to continue to do so, also the rights to purchase Series 2 which I intended to let expire. Should I or is it advantageous to sell Series 1 to switch?

Q: How does the stock look today for a long term investment? Any comments on their Dojo supercomputer and implications in the AI space.

Q: What is your current view of FIVE? I am thinking of initiating a new position. Can you comment on some of its various characteristics.?

A large number of analysts view it favourably with a significant higher target price but...

- some of its financial matrices seem worrisome, a P/E of 33 and a P/B over 6;
- its chart seems to show bad momentum, with a new low for this calendar year;
- some of their competitors have also fared poorly, so is it a bad space?

Would it be better to wait to get into this stock? Many thanks

Q: Hello 5i,

This is a sector allocation question. Portfolio Analytics indicates I have about 14% allocated to Real Estate and should only have 4%. My 3 real estate holdings are DLR:US, DIR.UN:CA and GRT.UN:CA. Would you suggest selling one of these 3 or trimming a bit from each?

Thanks