Investment Q&A

Q: Dear 5i,
who would be worthy competitors to TSM's business? Can you please rate who you think is best to worst including TSM. Can you also comment on whether you think they are fairly valued at this time. My concern withTSM is the sovereignty risk with China. Can you offer an opinion regarding China and Taiwan?

thanks

Q: Can you comment a new US start up company FORG? Their business looks very similar to OKTA, Can you provide some comparison between these two companies?

Thanks,

Q: A general question about shipping/transport that may affect the consumer stocks. I'm increasingly hearing about shortages of truckers and back ups of containers in many major ports around the world. Fuel shortages in England (due to too few transport drivers), weeks of back logs at ports in NY and CA. Costco's recent comments on this topic...

All this has me wondering if there will even be enough goods to sell to meet expectations - and what will happen to high flyers (SHOP, AMZN), when sellers/merchcants simply can get stuff to sell.

Simply put, how significant is the driver/transport shortage and should we expect worse?

C

Q: Hello, I'd appreciate hearing your take on Verde Agritechs Sept 27th update regarding revenue target, sales, and plant construction.
Thank you.

Q: What are your thoughts on CTS, latest acquisition which markets doesn't sem to like and lower momentum as of late.
Cheers, Chris
Thanks for all your help over the years.

Q: Hi 5i,

Thanks for the great work. Can I please ask your opinion on Gold Royalty (GROY)? I've watched several interviews with the management team and am looking for a 2nd opinion.

Part of the company's value proposition are large shareholders who are major players in the industry and will help provide access to deals. Do you see this giving any competitive advantage over industry stalwarts like Franco-Nevada?

When I check SEDI none of the insiders jump out as adding to positions (beyond option grants) and am trying to figure out what Gold Royalty's edge will be vs existing players like FNV.

Thank you!

Q: Hi Peter,

SKLZ has been on a freefall for some time now. Its starting to look interesting to me, but i could be totally incorrect.

Its trading at ~6.1x EV/sales, has no debt and has about $1.72 in cash per share. It seems to be growing revenue quite well each quarter and has a high GP Margin of 95%.

Is this a quality stock that is now at a decent price? May I please get your take?

Thanks,

Q: Swiss Re seems poised to dramatically improve its earnings from its current seemingly modest Price to book and Price to Sales valuations. Can you please comment re: its prospects per future growth/dividend reliability? Thanks!

Q: Greetings 5i members
I have been thinking about increasing my reit exposure. I know that you like tcn and Granite reit. There is also a US reit that you have mentioned from time to time. I tried to look it up on the site by going through the questions. But nothing rang a bell. I am quite sure you will know the company I am talking about. Out of the two mentioned and the so far unknown US reit, which would be your favourite and why? I cannot see either any advantage in holding a Canadian reit in a registered account. Nor can i see a disadvantage in holding a US reit. Do you see any advantages or disadvantages one way or another?

Thanks as always for the great service you provide

Q: What is your current thinking regarding “clean” energy? Would you go with an ETF like ICLN (or other) or individual stocks that have good long term prospects?

Q: I cant find any fault in this company and it is still having a hard time hitting it's 52 week high back in March. Is patientance needed or do you feel it has peaked.

Q: Good morning Team have been holding real matters for quite awhile it has been on a steady downward slope as you know do you see a bottom anytime soon or a suggestion to switch it out to a more positive investment thanks Norm

Q: Hello 5i Team,

I've done very well with Methanex, thanks to its recent strength.

I don't view it as a long-term hold, but I am prepared to let it run it a bit longer.

What's your take on the company and methanol looking ahead the next 3 to 6 months?

As always, appreciate your insights.

Marc.

Q: Hi 5i
Been looking at XBC to add as it consolidates.

During my review I found something unsettling and since I can not get the sound to work on the earnings webcast, I can not confirm whether someone asked about this or not.

It has to do with the margin squeezing contracts that are restraining profitability. In the most recent commentary the CEO includes the words "long-term" when referring to the contracts and indicates margins to recover in subsequent quarters.
He never referred to the contract as long-term in previous communications.

It was my belief the negative contributing contracts would roll off in a couple quarters - not many. The statement leads me to believe there will be a longer effect than just a couple quarters.

Do you have a sense of run-off period?
Do you know if anyone asked about the run-off period length?
Was "subsequent quarters" more clearly defined in the Q&A?
Given the new size and make-up of the company, is the magnitude of negative contracts worth concern?
5i has indicated investors should not average down on this name at this time. What is it that will change your view on this position?

Thanks
Dave

From CEO Current Market Outlook (Q2 2021 Earnings)
While consolidated gross margins continue to be impacted by the previously announced loss making long-term, production-type RNG contracts, the company expects that this impact will be tapered down in subsequent quarters.

Q: Down 30% in AT with an original 2% investment. I don't like to sell into negative momentum especially with a company that has solid growth prospects, and no negative news or issues. I need your assessment. What could turn the price momentum around to positive? And how likely is this to happen in the near term. I don't want to hold this stock down below $6 per share. I could sell now and repurchase later. Any additional thoughts please.

Q: sold all my lspd when short report came out.
i agree with you 100% that cramer is in the entertainment industry, i also think he is a little off upstairs but he is extremely bright and a very hard worker.
my question is why wouldn’t dax disilva go on his show and answer each negative in the short report-if there is nothing to hide this could only benefit the stock and remove the monkey on lightspeeds back. it makes no sense and something does not add up.i value your opinion .dave

Q: Are there Healthcare ETF's in Canada and in the U.S. that you might recommend? Thank you.

Q: Is the time right to buy all 5 CND chartered banks now or should I wait until all the prices come down? If wait, what approx % price decrease should I wait for?

Q: I need to diversify my portfolio. I am too North America centric. What geographic areas and sectors do you like over 3-5 years? I am 72 years old, have a good pension and have medium risk tolerance.

Thank you.

Mike

Q: Hi Team,
I am holding the following stocks at a loss. BABA (-52%), MED (-30%), TT(-4%),EGLX (-33%), MG (-8%), SWKS (-20%), U (-1%), PINS (-33%).

My question is, should I continue to hold the line with all of these? Or are there any that stand out to you as being better off to sell and swap out with a different holding of which you suggest? Or any of these I should be selling, and adding to another one of these? I thought perhaps after yesterdays sell off there might be some moves I should be making. (Although the market is already recovering nicely today on alot of these names). Suggestions here would be appreciated. Thanks!
Shane.