Investment Q&A

Q: Hi Peter,

Some time back i asked a question about DND having a so called "position of power", whereby, they could raise prices as get away with it as there is not much competition. Your response was along the lines of : that they should be careful in raising prices as there are other options out there. Your words are reading like a prophecy.

The Globe and Mail reports in its Friday, Nov. 12, edition that Dye & Durham has told about1,000 B.C. firms that it was sharply increasing the price of the software they use to handle real estate transactions. The Globe's Sean Silcoff and Jaren Kerr write that as of this Friday, they will be charged $199 per file, up from the $30 to $75 they have been paying since the last increase in 2017. The ultimate cost will be passed on to their customers, home buyers. Dye & Durham has made a string of acquisitions in the legal software space. It now faces little competition. Outraged conveyancers, notaries and lawyers inundated Dye & Durham with calls. Moderators of two Facebook groups for B.C. real estate professionals told The Globe that 50 of their members had complained to the Competition Bureau of Canada. Bureau spokesman Amy Butcher said the bureau would start "a thorough examination of the facts to determine if an investigation is warranted." Eight B.C. real estate legal professionals who spoke to The Globe said many of their colleagues shared their negative views of Dye & Durham price hikes. One conveyancer said, "Everybody is really angry, really disappointed."

Does DND have a monopoly and what are your views?

Thanks,

Q: Hello, I own equal amounts in ATD.B. DOL, WSP, TFII, ATA and NVEI. If you were to sell 2-4 and replace them with higher growth stocks like LSPD, GSY, BAM.A, or DND, without taking into account portfolio weighting, what would you do?

Thanks,

Q: I read your answer on DND this morning and you noted they missed EPS expectations.

I was trying to figure that out after the earnings were released yesterday but it seems pretty muddy to me with the shares, debentures, diluted eps/non diluted etc. The EPS expected on the TD site was 21cents and if you take shares outstanding (listed on TD at 68.1m) I get 32cents EPS on income of 22.1m.

So to break that down what did you see as the expected EPS and on what basis was it?

Also I cannot find any information on the debentures (other than the amount raised and the nominal denomination) and at what rate/level they are convertible. Do you have that information?

Q: Hi,

The quarterly results looked great to me.

Could you please share your brief overview?

Thanks,

Q: Would you start a position in Dye & Durham

Q: Hi Peter snd Staff

Building on a ranking question yesterday I own DND in my tech basket but not CTS

I’m not worried about a couple of $9.99 charges and taxes are not a consideration

Can you please expand on CTS over DND

Thanks for all you do
Dennis

Q: The stock has been declining and ask why and what are your recommendations for this company?

Q: How would you rank these Canadian small cap tech stocks for (a) new money now and (b) future growth prospects?

Thanks!

Q: I hold TTD In a growth focused portfolio at a small profit but looking for more torque. Would you swap it out for AT?

Same situation for a position with ECN and adding those funds to small positions of DND and EGLX.

Q: Looking at some recommended company's that are near 52 week lows that have a lot of future growth and years of multiple upside. Can you suggest your top 5 companies that fit this criteria(and why you believe the upside potential). I would like to set and forget(for years) for my next few purchases. thx for the great service

Q: Given DND is not going private, at what price were stock options granted, who gets them and when can you convert. I am trying to decide whether I should invest now at around $35 or wait for a better entry point closer to the end of tax loss selling season. Do stock options align management with investors?

Q: All of the above are existing positions in my TFSA. Which three would you suggest adding to today?
Thanks

Q: Have the fundamentals for Dye&Durham changed? Would you add to a 2% position today.
Thanks for your outstanding advice over a challenging year.

Q: Looking for buys in the upcoming tax loss selling season. Please rank the attached list. Thank you. Greg

Q: Hi Peter,
I have been holding onto DND. After the news on the decision to remain a public company, I was glad indeed at the decision made.
If management was willing to take the company private at $50.50 and now the committee that was formed decided that there is more value over and above the $50.50, I am surprised that the stock is selling off . It’s actually now on sale as far as I am concerned and I have been happily adding to my position.
Could I get your thoughts?
Thanks

Q: So what happens now with DND. Price is dropping more than I would have expected. Are fundamentals still intact? What do you expect the stock to do going forward?

Q: I know you like ADT.B as a company and its management but the stock hasn't done much over the past couple of years. At some point does the lack of share price growth warrant removal from the portfolio?

Savaria is another one, and despite all the potential for a reopening trade Air Canada isn't 'taking off'. Do you think these two should be considered for replacement with something else that can provide better growth?

Please deduct credits accordingly.

Q: Hi 5i with the recent pull back is DND a buy as I have only a 1/2 position; or should I stay away and wait for better momentum?

Q: I'm sure I'm not the first to ask, but with DND's news release this morning where does this put the company now? I held throughout. Do you still like this as a tech stock with long term potential?

Q: NO PROFIT... NO PROBLEM...

This is a story in the Globe and Mail dated Sept 25th 2021. The article made all lot of sense and there seems to be a disconnect with growth at all cost with no profit. Maybe this is how things are done just look at how our government is run.

I don't have a specific question to any of the companies mentioned above but with LSPD in the news lately maybe it will apply. I know there has been a short report put out on LSPD and from some of the comments that I am reading from 5i that they are false.

My question is how do you know?

We don't know the real workings of a company and what we get from them is what they want us to hear. Take for example XBC, that wiped out all of value from investors because we didn't get the correct information from Management. It's what they wanted us to hear and we believed them.

I think there should be some healthy skepticism with regards to what Management says and does and investors should take away that capital preservation is paramount.

If LSPD or any company that gets shorted and can't explain the reasons for the discrepancy in a respectfully dialogue then maybe there is some truth to it but like I said we don't really know.

Who is right? The short trader or the Stock promotor?

Until we get all the information it will always be Buyer Beware and don't fall in love with any stock.

Sincerely.