Investment Q&A

Q: Lightspeed is now 17 billion market cap. There is talk that this could be the next shop. Is it realistic to see LSPD as 100 billion market cap company?

Q: We are looking to create a 'growth' portfolio using our TFSA accounts. This portfolio will represent a small portion of our overall investments. The portfolio will hold ~10 Canadian and ~10 US stocks. All purchases in the portfolio will be made with the intent to be long-term holds (10+ years).

Using the 5i research reports, model portfolios and Q&A section, we've selected the listed Canadian stocks. Please rank these stocks and suggest any tweaks, additions or subtractions, you might make. As well, please suggest a companion list of US stocks. Thanks!

Q: Hi, Over several years now, Tech holdings have grown to be over 45% of our portfolio. Balance of our funds are invested in decent dividend paying companies - Banks, utilities, industrial and ENB. Largest tech weightings are : CSU - 15% and SHOP -11%, with other like LSPD - 6%, TOI- 5%, NVEI-4% and KXS-3%. Except, LSPD, a fairly large portion of all others shares are held in a Non-Regd account. We have already trimmed SHOP and CSU, over past 2-3 years, but still % weight keeps growing and their ACB is very low ( $300-$400 ).

We are approaching our retirement years and are trying to avoid large capital gains to our Estate, while still continue to own a large stake in these tech companies, over time. The plan is to trim highest % Tech holdings, in the Non Regd account, in a phased manner, each year, for next 15-20 years. In addition to a fairly large stream of dividend income, we also wish to supplement our cash flow/cash from sale of Non Regd Tech holdings. ( Our TFSA accounts are already loaded with LSPD, part SHOP/CSU). We really like CSU over SHOP for its steady-eddy growth/stable profile, although, both companies are unique and hold strong growth potential, we believe.

Questions:

1. Does it sound like a decent strategy, given our life stage/taxes ?
2. Is 45% Tech ownership reasonable for retirement years ( even if we are comfortable) ?
3. Is it reasonable to have 15% weight in CSU?
4. What would you suggest to trim each year - CSU or SHOP or any other companies above, and your reasoning, please.

Please deduct as many question credits, as needed.

Thank you so much.

Q: Hi Folks,

I am looking to add to my TFSA which is growth oriented - I am looking at NVDA, TOI and LSPD - which would you suggest?

Thanks

Q: The landscape of tech stocks in Canada seems to be rapidly evolving, with several impressive IPO's of late, and some very strong growth stories emerging. In a well diversified portfolio, how would you rate the desirability of holding each of the following tech stocks on a scale of one to ten, with 10 being a must own, 1 being a definite "no", and 5 being something OK, but nothing special. 5+ year holding period.

CSU, CTS, DND, DSG, ENGH, KXS, LSPD, MAGT, NVEI, OTEX, TIXT, TOI

Q: Can you please rank above stocks based on the valuation and growth?

And which one would you be comfortable adding today?

Q: Hi 5i team,

Can you please rank listed stocks above based on valuation and current price?

Thanks,

Q: Can you please give me your current view on MDF, it's latest results along with it's Periscope acquisition?
Is this company worth holding or would you suggest a switch to LSPD or NVEI?
Thank you!

Q: I am looking at a TFSA in which the funds will be withdrawn in about 5 years. I want to replace RY with something with a greater return potential, and will accept some risk for that hopeful gain in total return. Staying in Canada.

I am stuck picking between TOI, GSY, WELL, LSPD, ATZ and DOO. You seem to like them all. Which one or two would you pick today? and Why?

Q: Looking to use 5% of my portfolio for momentum plays. What would you pick today? I prefer Canadian but US is fine too.

Thanks. Nick.

Q: Hi 5i,
I'll preface my question by saying I'm not well versed in analyzing the ins and and outs of quarterly reports and financial statements.
That said, I hope you can help me understand the great difference in the share price of LSPD and CURA, both of which i own and which I therefore want to understand better.
As i read them, the most recent quarterly reports of the two companies disclose that LSPD had revenue of 116 million to 312 million for CURA. LSPD loss per share was .38 and CURA's was .01. LSPD has 2.2 billion in total assets of which 807 million is cash and 1.266 billion is said to be made up of goodwill. CURA has 3 billion in total assets, of which 333 million is cash and 538 million is goodwill.
According to the metrics in 5i's digest for each, CURA leads in all the profitability ratios and in every management effectiveness category. Price to sales for CURA is 10.93 and price to sales for LSPD is 40.90, while CURA's price to book is marginally better than that of LSPD..
Assuming I have the foregoing stats correct or nearly so, why does LSPD trade for nearly 8 times more per share than CURA, and why is LSPD considered such a good growth prospect? While I recognize they are clearly apples and oranges, given that LSPD seems to have so far to go just to catch up to the numbers a less favored company like CURA has already reached, is it way overpriced?.
Thanks,
Peter

Q: Hello 5i team,

What are your 3 best ideas today for multi-bagger return for a 5 year hold assuming a well balanced portfolio and risk isn't an issue. Thank you,

Wes

Q: Hello 5i Research
Why do you think Light Speed is changing it’s name ? Thanks for your great service.
Thanks

Q: Everyone,
A BIG thanks for recommending: SHOP, LSPD and NVEI. I am up 40x times on my original SHOP investment - only recently sold a small piece to by CSU. LSPD is now 4x my original investment after two years and I will not sell. And only up 70% for NVEI investment since I bought it this spring.
Thank you!
Clayton

Q: An article in today's TorStar indicated that the company will sell 7.7 million shares at a price of $93per share. The underwriters have been granted an over allotment option up to 1.155 million shares.

It's not clear that the dollars quoted were in U.S. or Cdn dollars. If it's in Cdn. then the Monday closing price of $116.57 is within range. Can you confirm? Thanks.

Q: I have 1.4% of my total portfolio in AMZN in a TFSA. I realize this isn't much of a commitment and am tempted to sell and invest the money instead in one of my other TFSA holdings (all of which are around 3%): LSPD, NVDA, APPS, ADBE or GOOG. Your advice, please.

Q: Good morning 5i
My tech sector within a RRIF is over 20% of CSU, LSPD, TOI, and KXS. KXS has been at a loss until today. Would this be an opportunity to trim back and what other sectors would you consider as buy opportunities going forward next 3-5 years. The RRIF is otherwise well balanced after following your growth and balanced portfolios.
Thanks for all the excellent advice.

Q: I'm not seeing the pricing in their press release, do you have something?

Q: Lightspeed’s big drop after it’s Public Offering much of a surprise? What do you think of the timing?
Thanks

Q: I would like to start a Growth portfolio, with 60% US and 40% Canadian stocks. I have approximately $300,000 for this account and a long term view. Would appreciate some suggestions. thanks