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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: At a business university event in Miami on the beach with Jim Kramer as the speaker entertaining questions from business students (held on Feb 3), 2 of many stocks they had done their homework on were ABNB and PTON and Kramer agreed with them and so I bought ABNB the following Monday. They do not look as good as these students thought they were. I have looked at ABNB from a previous question on 5i, but that was over a month ago. Do you still like ABNB. I have not noticed anything on PTON lately. What are your thoughts? Your thoughts are appreciated as always.
Read Answer Asked by Dennis on February 13, 2023
Q: Hi,
In your recent blog on 5 investing principles, you say it is important to distinguish between permanent and temporary market losses. However, you do not say how to do that. DOCU, PTON and NFLX all did great in the pandemic. All are floundering now. So, do you view the market losses in DOCU, PTON and NFLX as permanent or temporary and why?
Thanks.
Read Answer Asked by Dave on September 14, 2022
Q: Both Zoom and Docusign stocks sold off after earnings were announced. I'm looking for a list of a half dozen stocks that shined during the panemic and the date that they will next report earnings.
Read Answer Asked by MATHEW on December 06, 2021
Q: PTON Given the fact that life looks like we will be returning to a pre-covid world hopefully not too far, what are your thoughts on this company for a long-term hold? Do you think it will become something like Lululemon? Is it a good time to initiate a position now?
Read Answer Asked by David on October 12, 2021
Q: Lately, I've been researching companies that sell their products or services directly to consumers such as Angi, Pinterest, Fiverr and Pelaton to name a few. I dig up at least a dozen articles and opinion pieces from various investment-related websites, including yours truly, 5i Research. In the case of the above-mentioned companies, there hasn't been much in the way of negative facts that would lead me to take a pass on any of the above companies,. But, when I go to review websites such as TrustPilot, etc., the percentage of negative comments from consumers of these products or services is extremely high, anywhere from 20% to 70% with ratings of 0 or 1 star. More worrisome is the fact that the number of reviews is in the hundreds which leads me to think that the negative comments do not originate solely from competitors. How much importance would you give these reviews when weighing the pros and cons of an investment in a consumer-facing company?
Robert
Read Answer Asked by Robert on May 10, 2021
Q: What are your best HIGH Growth ideas in Canadian and US stocks.
I'm willing to accept high volatility and RISK.

Thanks
Read Answer Asked by Valter on October 13, 2020
Q: Can I get your thoughts on these two companies? How do they compare in fundamentals, valuation and growth prospects? Honestly I didn’t think PTON would do this well because of the price point and if Covid didn’t come, I don’t think the stock would be where it is today. PTON been growing lots lately and with LULU buying Mirror recently, do you think this theme of convenience at home fitness will continue into the future after things return to normal? Would you be a buyer now and which one would you buy and why? Half or full position? Looking for long term growth. Thanks!
Read Answer Asked by Keith on July 10, 2020
Q: Hello 5i team. Trying to make some money on the home fitness hibernation trend. Looking at Nautilus which has quadrupled (how did I miss that ?!?!?) in the last 6 months for my TFSA. The bride says pass, that I should go with Peloton instead, which has a higher profile, whose shares are also on an upward trajectory and which she believes trumps Nautilus in 'the cool factor'. Your insights are always appreciated.
Read Answer Asked by Asher on May 16, 2020
Q: Hi,

Which would you buy for the long term or is there a better choice? I'm surprised at the low beta of both ATVI and TTWO as I don't like volatility.
Would you wait or buy now?
Read Answer Asked by Graeme on April 17, 2020
Q: Hi 5i,

What do you think of this company? When I first heard about it and the IPO I laughed. and laughed hard. Fast forward 6 months later and a lot of reading, I'm beginning to think there might be a business behind this. I almost equate it to an Apple or Tesla: premium product with a potential cult-like following? What are your thoughts on the company and the business?

TIA!
Read Answer Asked by Wayne on February 11, 2020
Q: Any thoughts on Peleton as an investment?

My understanding is that they are not yet profitable, but they are still expanding their exposure in North American households through an increase in their subscriber base. A recent BNNBloomberg article also indicated that they have made plans to improve the breadth of their exercise machine catalog, through offering multiple price points on the exercise bicycles that they sell (I also see that they sell treadmills in the US, but it seems as if they have not added this as a purchase option on their Canadian website at this time), as well as potential plans to offer rowing machines in the future. I have read separately that they made a recent purchase of a Taiwanese company by the name of Tonic, in order to secure their supply chain for equipment, and that they have established a relationship with a company by the name of Affirm, in order to offer monthly payment plans for their equipment.

The company is now trading at $27.86, about 4% below its IPO price of $29. I would imagine that the most meaningful revenue source for Peleton would be from its subscription base rather than its equipment sales, as subscriptions are recurring and maintaining video/interactive conent would probably not require as much in terms of input costs per dollar of revenue as would manufacturing exercise machines for sale.

My main concerns regarding this company is that the potential for competition is profound (both in terms of manufacture and sale of equipment, as well as in their subscription program for fitness training). On the positive side of things, they have built up brand recognition and loyalty, which is not easy; and goodwill is an important part of any company's valuation.

I would be using the proceeds from the sale of my holdings in Cineplex to fund this investment (about 2% of portfolio), so it would not change my exposure to the Consumer Discretionary sector.

As always, I look forward to your response. Thanks so much!
Read Answer Asked by Domenic on February 10, 2020
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