Investment Q&A

Q: Hi group what you feeling on the big tech stocks at present are they a buying opportunity or a value trap? also is oil an attractive entry point right now or is it just a blip to the upside thanks for your insight. what your favorites in tech / energy or should i just stay away till everything settles down

Q: Hi, We have 3 TFSA accounts, where we sold some SHOP, last year and made cash withdrawals. As a result, this year, we have available contribution room between $30-40k, in each account. We like to wait for an opportunity for a Growth stock to transfer from our Non Regd accounts ( there are separate accounts for each) for an in-kind contribution. Present allocation in the TFSA accounts is as follows.
CSU 25-30%
SHOP 35%
LSPD 30%
NVEI 10%

We are not worried about concentration, as TFSA funds are less than 5% of our Total Investment Portfolio, which is fairly diversified. Objective is to optimize Growth stocks in a TFSA setting. There is sufficient quantity in Non regd accounts, for all the five stocks listed in the question.

We were planning to add SHOP, with today's 10% decline and some TOI, as we have none in TFSA's.

What would be your recommendation ?

Thank You

Q: At what price would you add to a core CSU position?

Q: In my TFSA, I’m holding ATZ,CSU,GSY,TOI and LSPD. I’d like to split this year's $6000.00 allotment in January between two of these 5 stocks. At this time considering a 3-5 year hold, what would you suggest and why? Thanks and btw, it’s because of 5i that I’ve been able to achieve an 85 per cent return in my TFSA. The advice and info I glean from the questions, portfolios and reports are invaluable. Keep up the great work on our behalf. Best investment I’ve ever made is joining 5i.

Q: There's news today (Dec.31) affecting both companies that CSU is creating a venture capital fund to be run by the resigning CEO of Topicus, which gets a new CEO. I suspect that the $200 million funding is too small to affect CSU but how does this news impact TOI?

Q: Good day and best of the season to you. I am trying to get my ducks in order for tax time. I understand that initial TOI shares are a dividend from CSU. Do you know the value of this dividend? Also, do you know the cost base of these shares for calculating capital gains from TOI? Thanks.

Q: These names have A to A- ratings in your reports over the past 1 year.
Looking for good upside for small position in TFSA with lowish risk of downside for 3 to 5 year hold. Which of these would be your first and second top picks?
Thanks so much.
Best of the season to all at 5i and all my 5i co-clients.
Tulio

Q: A tale of 2 companies. CSU is acquiring companies at a record pace and ENGH says everything is too expensive. Thoughts please?

Thx

Q: Good morning
I have some cash in my TFSA that i would like to put to work before the end of the year and then in early January to complete the position with my contribution for 2022.
What are your 3 favorite picks for a TFSA in 2022 in Canada and 2 picks in the US?
Thks 5i for all your help over the years and a MERRY CHRISTMAS to all at 5i
Thks
Marcel

Q: Are you aware of any companies like CSU that have a tight float and respect of shareholders and dont get killed in a market correction like some other public tech companies?

Thx

Q: Hello 5i,
My investments have grown nicely in 2021: thank you!
I’ve categorized the above assets into three buckets:
Technology: nvda,kxs,toi,csu =12.8%

Communication: goog,apps,kind =6.5% (goog is 5%)
Consumer discretionary: appl,shop,lspd =8% (lspd=<1)
Total= 27%
Please comment on outlay and provide ideas for improvement. Am I being too cute with my categorization buckets?
Many thanks for your opinion.

Q: Any reason why CSU has held up so well as compared to other Canadian tech companies?

Q: Hi,
Currently holding around 25% tech exposure, long term growth investor. If I wanted to de-leverage my portfolio and rebalance to some other sectors, how would you rank these tech stocks?

Do you have any fundamental concerns about any of the names held or is this a good list? NVDA is on my list of names to own as well. Thank you!

Q: My virtual 'conservative growth' portfolio has the above 10 stocks in equal wights. What two stocks would you add to round it out please? Please assume that I have 45% outside of this portfolio in fixed income. Are 12 stocks enough in your view? I know there are many factors but please answer the best that you can ... maybe assume it is you.

Q: Of these 2 stocks, which would you recommend for a 3-5 year hold. Also, feel free to suggest a more preferred pick if you have one. Thanks

Q: Hi 5i team,

I recently opened an RESP DI account with Questrade for my 1 year old son. Could you please give me couple suggestion to invest on at current level? I am okay with either EFT or single stock and I have long term time horizon 10+ years.

Thanks,
Irene

Q: Can Constellation Software be considered the "Microsoft of Canada"?

Like MSFT, can CSU still reach new highs by acquiring better software companies to it constellation?

Q: Do you consider Constellation Software to act like a “tech stock” if interest rates rise, ie. would it have much of a valuation contraction compared to other tech? It seems to have a different business model than most tech companies, and I am wondering if it is safer in a sense.

Q: Hello -

I understand the attractiveness of TOI stock - the management, the CSU model, growth projections, etc. However, I can't understand the current valuation. Even after the recent pullback to $108 (at time of writing), has the company's fortunes really increased by 72% within the last 10 months to reflect the increase to today's price compared to the beginning of Feb. last year? I realize stock price / fundamentals don't follow exactly in parallel, but that is quite an increase.

My other related question is on the sector itself. There just seems to be so many software companies out there. Is there an ever increasing need for software in the world to today that matches the increasing number of companies that offer it? In the U.S. there is a history of 3000 automobile companies at one time or the another. Only a tiny fraction exist today. I know this is an apples / oranges comparison industry-wise, but hopefully you understand my concern.

Thanks for your comments.

Q: Hello 5i,

Could you please list your top 10 stocks (rank in order 1st to 10th) in Canada and the US to purchase now for a 3-5 year hold when considering current and future values?

Thank you
Cheers,