Investment Q&A

Q: Hi, There are lots of high growth companies out there with little or no free cash flow. Growth investors accept this because these companies invest aggressively in their own growth, development, market position, etc.

While it's understandable that high growth companies focus on their own growth now, presumably they will eventually need to switch to other forms of capital allocation. I am wondering if you have any insight into how much confidence we should have in which of these management teams will act in the best interest of shareholders when the time comes to maximize shareholder value via other forms of capital allocation. For example, if a company reaching maturity throws most of their resources into R&D despite diminishing returns it would not be in our best interest.

I realize the answer to this isn't completely knowable, so also interested in your general thoughts on this topic.
Thanks

Q: Hi 5i,

Question regarding Well. Do you possibly have any info. (or know where we could find any info) on how their purchase of CRH Medical is going?

It seems like CRH's CEO (Tushar Ramani) left the company last month (Dec). Is there any information explaining this and/or any information relating to their revenue trends?

Thanks very much!

Q: I see that WELL is planning to initiate a buyback program to take advantage of the drop in share price. Are you confident in management's assessment that the share price in undervalued? The price has still more than doubled in the past two years which is a steep increase. Also debt is almost 40% of it's market cap and they aren't currently showing any earnings. How will they fund future big acquisitions to continue this growth?

If we are confident with their assessment of value and their ability to execute going forward, should we not want the share price to drop further to make the buybacks more effective? In which case, why are they releasing material to pump the share price back up?

If the answer is that they need the share price higher to help fund acquisitions by diluting shareholders then the buyback program seems misleading.

Q: Do you believe todays news release was intentional by managements to stop the bleeding. There is nothing new materially mentioned. That said the business model looks great.

Q: Hi guys never lost so much so fast what are the chances of this stock being delisted at zero value
Kind regards
Stan

Q: Hello!
What is the likelihood of WELL needing cash giving the share price drop, potential acquisitions, and value returning (or not) to the sector. Are we taking on unnecessary risk holding it at these levels under water? I really like the execution team and their strategy, but sometimes there are things the business cannot control. Would love to see them continuing expanding paying penny on the dollar, I don't see any insider selling so far at glance, encouraging.
Thank you!

Q: Not so long ago I didn't think it could drop below 6. Then I was shocked to see it go below 5. Today on a market rebound it dropped again below 4. Would you sell and wait to see where it settles before buying back in. Can you see it going below 3.

Q: Hi Team,
I am an aggressive investor, which paid off lovely in 2020, but now am being crushed. I hold the following stocks (with weightings in brackets) in total in my brokerage accounts. Could you have a quick look and tell me how this basket looks "In general"? And if you see this basket doing well over the longer term (say 5-10yr hold), pointing out any suggested changes you would make, if any are "sells" or worth switching out. Note that if I sell any GSY it would incur tax (the weighting is large because the position has grown and have been a firm believer in the company as its valuation still looks cheap and am collecting a nice div off it as well). I am 42yrs old so retirement is a ways away and my goal is maximum returns with reasonable risk until retirement. Please deduct credits as required. Thanks
ATZ(3.2%)DOO(1.3%),GSY(24.7%),NVEI(6.3%),TOI(8.6%),WCP(2.8%),SQ(3.5%),APPS(2.5%),RBLX(2.7%),BAM.A(1.7%),LSPD(3%),FB(8.2%),TTD(2.9%),U(2.2%),ABNB(2.4%),CRWD(2.4%),NVDA(6%),PINS(1.7%),CRM(2.9%),NOW(2.7%),SWKS(1.7%),TWLO(2.4%),VEEV(1.4%)WELL(2.5%).

Q: in the small cap growth space ..please give me your top 5 stocks in orderthat you would call winners regardles of price fluctuations thanks

Q: can you compare the 3 in terms of growth debt ande managment thanks

Q: I get that there is money moving out of growth (tech) and into other areas of the market. However, all the mentioned names here have CAGR of > 25% amongst other great fundamentals (free cash flow, equity,...). So long as fundamentals don't change, I can't see any reason to sell - only to add to these names on this opportunity. So long as business grows (and >25% is huge!) all these should be winners in the long term, no?

I've experienced significant whiplash with most of these stocks but am optimistic that with a longer timeline I should be okay.

I'm hoping for two things in your response:
1. Giving me comfort that my thinking is correct and if I hold on I should be okay, and;
2. Of the list, the one stock you would add to today.

Thx for the comfort,

Cam.

Q: I have a small position in these companies, can you rate them a Buy, sell or hold.
Take as many credits as required. Thanks.

Q: Whats your outlook for both of these companies.

Q: Which of these names would you prefer to top up today? Do you view any as sells?

Thank you!

Q: There is usually over a million shares traded on this daily. It doesn't seem like the sellers ever dry up. Most people don't day trade. Could this be manipulation. My thoughts are this would be the worst time to sell and most people/institutions already have.

Q: Which of these two companies would you add to today?

Q: Dear Peter et al:
You have built a stellar reputation by choosing some very fine winners. SHOP/LSPD/PBH/KXS and others which have gone to become multi baggers to use Peter Lynch's phrase!

From your new picks, your holdings in Growth portfolio and from your watch list which do you think are your next multi baggers? Can you gaze into your crystal ball and share your insights? I won't hold you to your predictions!! :) You may speak freely!! Once upon a time articles used to appear in financial magazines titled, "Next Microsoft is here"!! :)

I am asking this Question specifically to buy with new monies for TFSA/cash in RRSPs and some in non registered accounts. If not stocks , ETFs would be fine too.
Many thanks in advance.
Mano.

Q: Hello. I have the above stocks in my TFSA and I have 6000.00 to add. Can you suggest any other stocks to add to this list or should I just add to the existing list? I have a 5-10 year time frame and I'm retired.

Thanks so much,
Louise

Q: I have ERF, LSPD, LSPK, NVEI and WELL in my TFSA. I would like to add one or two more equities to my holdings. What other Canadian stocks only should I consider. Please rank in order of purchase and provide three or four names. Thanks

Q: Hi!
WELL is looking more and more delicious!
Would you be able to give a rough valuation so that I can have a sense of margin of safety?
I wonder if a takeout is likely?