Investment Q&A

Q: Hi Team,
Previously (I believe it was sometime in 2020) in your answer to questions on US estate tax payable by Canadians, it was pointed out that the threshold for US estate tax is US$11.2M (to be reduced to US$4 or 5M in 2023?), meaning no US estate tax is payable if value of world-wide assets is under US$11.2M. Amounts in excess of this threshold is subject to US estate tax with some credits allowed as per the Canada-US tax treaty.
Please confirm if your previous statement regarding US estate tax is still applicable.
Cheers,

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Read Answer Asked by Harry on February 05, 2021

• Constellation Software Inc. (CSU $4,469.90)
  • $4,469.90 P/E (TTM): 113.58X Cap: $97.10B
  • View CSU Profile
  • View Questions on CSU
  • View Reports on CSU
• Enghouse Systems Limited (ENGH $20.88)
  • $20.88 P/E (TTM): 14.73X Cap: $1.15B
  • View ENGH Profile
  • View Questions on ENGH
  • View Reports on ENGH
• Kinaxis Inc. (KXS $188.02)
  • $188.02 P/E (TTM): 160.54X Cap: $5.36B
  • View KXS Profile
  • View Questions on KXS
  • View Reports on KXS
• iShares S&P/TSX Capped Information Technology Index ETF (XIT $81.31)
  • $81.31 P/E (TTM): 1.29X Cap: $683M
  • View XIT Profile
  • View Questions on XIT
• Absolute Software Corporation (ABST $15.20)
  • $15.20 Cap: $807M
  • View ABST Profile
  • View Questions on ABST
  • View Reports on ABST
• Topicus.com Inc. (TOI $174.01)
  • $174.01 P/E (TTM): 85.63X Cap: $14.87B
  • View TOI Profile
  • View Questions on TOI
  • View Reports on TOI

Q: Hi Peter, Ryan, and Team,
This is a two-part question, so please feel free to deduct enough credits.
(1) In Portfolio Analytics, is it appropriate to enter zero for the cost basis? After all, we didn't pay anything for these shares. (Thank you 5i)
(2) In our combined accounts, prior to the spin-out, we were already overweight in Technology, holding ABST, CSU, ENGH, XIT, and KXS. In order to balance our accounts, what, if anything, would you recommend we do? It would be costly to reduce all the holdings which I'm reluctant to do.
Thanks in advance for your valued advice and opinion.

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Read Answer Asked by Jerry on February 05, 2021

• CrowdStrike Holdings Inc. (CRWD $426.15)
  • $426.15 Cap: $106.28B
  • View CRWD Profile
  • View Questions on CRWD
• Mitek Systems Inc. (MITK $9.93)
  • $9.93 P/E (TTM): 30.06X Cap: $453M
  • View MITK Profile
  • View Questions on MITK

Q: Good afternoon 5i Team!

I would like to get your opinion on Mitek versus Crowdstrike. If you were to purchase one of these today for a one-year hold, which would you prefer?

Thank you.

Brad

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Read Answer Asked by Bradley on February 05, 2021

• Algonquin Power & Utilities Corp. (AQN $7.76)
  • $7.76 Cap: $5.96B
  • View AQN Profile
  • View Questions on AQN
• Boralex Inc. Class A Shares (BLX $27.95)
  • $27.95 Cap: $2.86B
  • View BLX Profile
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Q: For a long term investment, do you have a preference for Algonquin or Boralex? Do you have other favourites in the renewable energy space?

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Read Answer Asked by Gary on February 05, 2021

• iShares Core Canadian Government Bond Index ETF (XGB $19.51)
  • $19.51 Cap: $1.62B
  • View XGB Profile
  • View Questions on XGB

Q: Hi, is the reason for the downward trend in XGB due only to the fact that there is increased optimism with equities? Are there other factors at play?
What would be the reasons for the downward trend to continue for the XGB fund?
I'm considering ZCM as well which will provide another percentage point return.
Thanks.

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Read Answer Asked by Dan on February 05, 2021

• PayPal Holdings Inc. (PYPL $66.11)
  • $66.11 P/E (TTM): 14.68X Cap: $64.66B
  • View PYPL Profile
  • View Questions on PYPL
• Affirm Holdings Inc. (AFRM $86.30)
  • $86.30 P/E (TTM): 715.67X Cap: $28.79B
  • View AFRM Profile
  • View Questions on AFRM

Q: I feel the “buy now, pay later” stocks are going to really take off? Any thoughts and recommendations on this?

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Read Answer Asked by Sandy on February 05, 2021

• BMO Equal Weight US Banks Hedged to CAD Index ETF (ZUB $35.86)
  • $35.86 P/E (TTM): 12.21X Cap: $351M
  • View ZUB Profile
  • View Questions on ZUB

Q: Good Morning
A report issued today by the Bank of America is bullish on Canadian banks. Can you say the same for the American banks?
I own ZUB and I will appreciate your views on this ETF going forward. Do you advise, at this stage, to switch to the unhedged version which is ZBK ?
Thank you for your insight.
Terry

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Read Answer Asked by Terry on February 05, 2021

• Real Matters Inc. (REAL $7.15)
  • $7.15 Cap: $518M
  • View REAL Profile
  • View Questions on REAL
  • View Reports on REAL

Q: At one time was up35% in real and am now down 10%. Wondering if I should sell it now as I'll only have about 3-4 years to hold it.
Thanks for your great advice.

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Read Answer Asked by Bonnie on February 05, 2021

• Pinterest Inc. Class A (PINS $35.27)
  • $35.27 P/E (TTM): 13.56X Cap: $24.81B
  • View PINS Profile
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Q: Could you please comment on their results and outlook?

Thanks,
Milan

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Read Answer Asked by Milan on February 05, 2021

• Constellation Software Inc. (CSU $4,469.90)
  • $4,469.90 P/E (TTM): 113.58X Cap: $97.10B
  • View CSU Profile
  • View Questions on CSU
  • View Reports on CSU
• Topicus.com Inc. (TOI $174.01)
  • $174.01 P/E (TTM): 85.63X Cap: $14.87B
  • View TOI Profile
  • View Questions on TOI
  • View Reports on TOI

Q: I never own CSU before but with TOI is being published. Would you recommend to own TOI for 10% of the portfolio?

Thank you,

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Read Answer Asked by Kay on February 05, 2021

Q: I missed your talk on the money show. Would you be able to provide a link please?

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Read Answer Asked by Steven on February 05, 2021

• Electrameccanica Vehicles Corp. Ltd. (SOLO)
  • Cap: $25M
  • View SOLO Profile
  • View Questions on SOLO

Q: Hi 5i,

I hear lot's of hypes around Solo, last review was Nov 2020 with now support from your group, have your perspective changed?

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Read Answer Asked by Frederic on February 05, 2021

• Enbridge Inc. (ENB $67.18)
  • $67.18 P/E (TTM): 23.46X Cap: $146.08B
  • View ENB Profile
  • View Questions on ENB
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Q: Do you still consider Enbridge as a long term hold?

Thanks
Paul

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Read Answer Asked by Paul on February 05, 2021

• Constellation Software Inc. (CSU $4,469.90)
  • $4,469.90 P/E (TTM): 113.58X Cap: $97.10B
  • View CSU Profile
  • View Questions on CSU
  • View Reports on CSU
• Topicus.com Inc. (TOI $174.01)
  • $174.01 P/E (TTM): 85.63X Cap: $14.87B
  • View TOI Profile
  • View Questions on TOI
  • View Reports on TOI

Q: Hello 5i team,
Now that TOI is trading: could you compare CSU and TOI valuation in terms of p/e, p/s, debt/equity, p/editda multiple? Are these about right according to your expectations? If not, what would you expect?
Thank you for your collaboration, Eric

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Read Answer Asked by Eric on February 05, 2021

• Open Text Corporation (OTEX $48.50)
  • $48.50 P/E (TTM): 13.83X Cap: $12.06B
  • View OTEX Profile
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Q: Please comment on the quarter reported Feb 4.
An extraordinary charge results in a loss .

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Read Answer Asked by Doug on February 05, 2021

• Beyond Inc Com (OSTK)
  • Cap: $760M
  • View OSTK Profile
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Q: Hello 5i
Could I have your assessment of OSTK please?
Also who are their peers/competitors?
Thank you
Dave

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Read Answer Asked by Dave on February 05, 2021

• Meta Platforms Inc. (META $755.90)
  • $755.90 P/E (TTM): 27.3X Cap: $1.92T
  • View META Profile
  • View Questions on META
• QUALCOMM Incorporated (QCOM $157.69)
  • $157.69 P/E (TTM): 15.48X Cap: $171.19B
  • View QCOM Profile
  • View Questions on QCOM
• Block Inc. Class A (SQ)
  • P/E (TTM): 59.56X Cap: $53.89B
  • View SQ Profile
  • View Questions on SQ
• Snap Inc. Class A (SNAP $7.08)
  • $7.08 Cap: $12.30B
  • View SNAP Profile
  • View Questions on SNAP
• The Trade Desk Inc. (TTD $46.82)
  • $46.82 P/E (TTM): 62.69X Cap: $25.62B
  • View TTD Profile
  • View Questions on TTD
• Unity Software Inc. (U $43.85)
  • $43.85 Cap: $19.22B
  • View U Profile
  • View Questions on U
• Topicus.com Inc. (TOI $174.01)
  • $174.01 P/E (TTM): 85.63X Cap: $14.87B
  • View TOI Profile
  • View Questions on TOI
  • View Reports on TOI

Q: Following the recent pullback in a few of these stocks, for a 3+ year time horizon, which order would you purchase at current levels in a TFSA account? Thanks

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Read Answer Asked by Antonio on February 05, 2021

• NVIDIA Corporation (NVDA $177.95)
  • $177.95 P/E (TTM): 54.29X Cap: $4.14T
  • View NVDA Profile
  • View Questions on NVDA
• QUALCOMM Incorporated (QCOM $157.69)
  • $157.69 P/E (TTM): 15.48X Cap: $171.19B
  • View QCOM Profile
  • View Questions on QCOM
• NXP Semiconductors N.V. (NXPI $221.08)
  • $221.08 P/E (TTM): 26.88X Cap: $56.39B
  • View NXPI Profile
  • View Questions on NXPI

Q: Hi,
Can you please tell me which companies make EV chips?
Thank you.

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Read Answer Asked by Thomas on February 05, 2021

• Greenbrook TMS Inc. (GTMS $0.97)
  • $0.97 Cap: $45M
  • View GTMS Profile
  • View Questions on GTMS
• Facedrive Inc. (FD)
  • P/E (TTM): -1.8X Cap: $73M
  • View FD Profile
  • View Questions on FD

Q: Can you be kind to comment on Greenbrook TMS recent activities. Bought it approx 2 years ago, it went down then recently up 20 % from where I bought it. Today it consolidated 5 to 1 share and apparently will be listed on the Nasdaq. Should I keep it.
Also Facedrive was up 27 % today. Are you still reluctant to own this company & why. Thank You

Michel

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Read Answer Asked by Michel on February 05, 2021

• Sangoma Technologies Corporation (STC $7.60)
  • $7.60 Cap: $257M
  • View STC Profile
  • View Questions on STC

Q: Please comment on Q2 results released after market closed today. Stc remains halted with a $4 bid/ask.Please advise who & how the bid/ask is set. Hopefully the situation will be resolved favourably. Thanks for u usual great services & views

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Read Answer Asked by Peter on February 05, 2021