Investment Q&A

Q: Thoughts on the quarter please? Thx

Q: Hi Team,
Hypothetical question. I have read certain clips or articles of people thinking that Topicus can have more potential growth wise than Constellation in the long term because they are perhaps more aggressive. Is there any truth to this? Also, your best educated guess... do you think eventually TOI will be able to end up with the same market cap (todays numbers) as CSU within the next 10yrs or so? Just trying to guage the real long term potential of this company. Thanks

Shane.

Q: This is a follow-up to our question from last week (see: https://www.5iresearch.ca/questions/140708).

Based on your response that nothing in the list gives you much cause for concern, we would understand this to imply none of the 30 stocks would be considered a "sell" today.

Please divide the 30 stocks into a pair of ranked (best to worst) lists, one of "buys" and the other of "holds". As well, for each of the "holds" indicate the principal rationale for caution.

Q: CSU: Down ~ -10% @ 9:30AM this morning; now -6% @ 9:35 AM. Shocking for this stock! Any news, or just following the Tech meltdown du jour?

Thank you.

Q: I have some new money to invest in my TFSA. I am well diversified in my other accounts, and am now wondering what to add to my TFSA. I am a senior so I would say about a 5 year time frame that this would stay in the TFSA, maybe more.
Any suggestions you have would be helpful.
Thanks so much for your help in the past, it has always proved very lucrative.
Shirley

Q: What does the market expect for this quarter?

Thx

Q: Can you give me 2 or 3 of your favorite management teams. I'm starting to think that's what I should put the most weight on. I'm going to use this as my deciding factor for picking growth companies.

Q: About 1 year ago we created an equal-weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases are made with the intent to be long-term holds (10+ years). As well, we intend to increase our investments over the next 2-3 years, and then adjust over time as needed. Currently the amount invested represents ~40% of the eventual total.

Although a goal is to keep the portfolio roughly equal weighted, of the 30 companies, the following 14 were acquired in 3 purchases (full position) and currently have weights in the 2.31% (SHOP) to 5.00% (ATA) range for an average of 3.71%: CSU, MG, GSY, WSP, LNF, ATD, ATA, SLF, BAM.A, BIPC, FTS, DOO, SHOP and TFII. The remainder were acquired in 2 purchases (2/3 position) and currently have weights in the 1.98% (BEPC) to 3.17% (TCN) range for an average of 2.56%. So, overall, the weightings currently range from ~2% to ~5%.

Over the next 6 months we will invest another ~25% of the eventual total. As we make additional purchases, we need to strike a balance between keeping the weights roughly equal while taking advantage of market opportunities. Please provide some broad guidance/wisdom.

Of the 30 companies in the portfolio, which 10 would you have the highest conviction in today? Please rank them.

Are there any of the 30 that you might consider as candidates to be replaced because there are better options, and if so, what replacements would you suggest and why (disregard tax considerations)?

What additional 3 Canadian companies might you consider adding to the portfolio and why?

As always, thanks for the great service!

Q: The Technology sector has seen a dramatic valuation reset. Would this be a catalyst for growth of CSU and TOI since the companies they look to acquire may now be more reasonably priced? Would this apply to other high quality growth by acquisition technology companies?

Q: Can you define "secular compounder" and list a few Canadian companies which meet that definition and which you would find attractive today?

Thanks,

Q: Hi 5i.

I have studiously avoided investing in tech companies, largely as a result of not taking an interest in/understanding their businesses. (This is similar to my reason for never investing in crypto, which I can see only as a load of hogwash.)

With the recent drawback in tech prices, I now have some interest in putting some money into a couple of tech stocks that have a good growth outlook in the near- and mid-term. With that as the goal, simply some growth over the next few months or year, what 2-3 names, Canadian or American, would you suggest? (NB: I am thinking of putting no more, and probably less, than 10% of my portfolio into this play.)

Thanks for your help.

Q: I hold the following IT equities and ETF and am reviewing them for duplication. Please advise which of these you would sell; ASGN, RBLX, UCTT, META, LOGI, MSFT CSU, XIT, TOI, STC. Thanks very much.

Mike

Q: Hi Team,

Can you please provide the current P/S for these company and which you perceive as the best value today?

Thank you

Q: Favorite (hammered) growth stock that pays a divy? Bit of bottom-fishing for a long term hold. Thanks Ron

Q: With technology stocks presently going out of favour with buyers what 5 Canadian and 5 US technology stocks would i5Research recommend for a long time hold in a TFSA. Thanks … Cal

Q: What would be your #1 stock pick for a TFSA for an 18 year old starting out in the investing world?

Q: Hi 5i:

Having sold my US tech before the pandemic (???) and Canadian tech 2 months ago (???) I am considering jumping into the Canadian tech space again. Would please advise me on your 3 favourites and rational for each. Potential growth and "safety" long term are key considerations. Thank you for always great direction.

docsinc

Q: Follow your balanced portfolio. Have money to top up a few stocks in portfolio. Please rank in order I should add money to.CCL ATD ATZ ENB TD AEM CSU BYD SU.
Also looking for dividend income your picks between fortis, BCE,or telus.
Thanks Steve

Q: As with many of your members, im considering some portfolio adjustments and deployment of TFSA contributions to start the year.

What names in Canada and the US are you most excited about in 2022/2023 that you view as meriting consideration?

Q: Hi, Technology is the largest weight at about 45% ( even after the recent sell off) in our investment portfolio. Most of these holdings have been down 25-50% from the highs, over past 2-3 months, following the general market trend of indiscriminate selling in High multiple Tech stocks. LSPD and NVEI, of course, saw much steeper losses.
We do have the rest of the portfolio invested in Cdn large cap banks, industrials, utilities and telcos, generating decent dividend income.
We recently retired and as a part of portfolio planning/risk management, would like have a strategy to reduce the Technology weight to less than 35%, over next 2-3 years. The plan could be executed in phases, once the current tech rout is over and valuations have recovered.

From the perspective of risk, growth, stability and valuation, what would be the recommended/desired weighting for each company, balancing these factors. What would you suggest to be order of priority for the purpose of initiating sale of each stock. Also, it would be really helpful, if you could provide a reasonable price range for sale/trimming of these companies, based on price history and future expectation over 2-3 years.

CSU 14.5%
SHOP 9 %
TOI 5.2%
SYZ 3.5 %
LSPD 3 %
KXS 2.5%
NVEI 1%
US Large Cap Tech ( AAPL,AMZN,MSFT,MA,V,PYPL etc) 8% (we want to keep as is)

Thank You for your insight, which we value so much.