Investment Q&A

Q: Looking for stocks based on the same business model as CSU AME and TDG - collection of entrepreneurial businesses in same sector growing organically and by acquisition, leaving managers and ulture intact [provide corporate support] with siognificant market share and pricing power. I think that describes these 3 companies. Please identify others and rank all with initial buy prices.

Q: Everyone, I will need to allocate funds to: CSU or LMN or TOI. I am already overweight in CSU ( I have held the stock since $110) and LMN. My preference is still CSU and I am not afraid of being over - overweight in the best stock in Canada).
Your thoughts.

Q: Could you explain what rights are and the difference between them and warrants. Is it beneficial to own these and how does one buy or obtain them?
Thanks
Jeff

Q: In a recent question you answered " we think one of the most important skills for investors who choose to own high-quality compounders is the willingness to hold them through thick and thin, even in periods when they appear to be fully valued (or slightly overvalued)."
With this in mind could you please give a list of canadian high-quality compounders that you would recommend initiating a position in and holding through thick and thin.
Could you please include their sector designation and yield.
I am interested and low yield ones for a non registered account but would also like to see your higher yield ones too.
Thanks

Q: If you have been this today do not bother answering this question. The rights issued by CSU as a special dividend. Why is CSU bothering with financial engineering rather than just running the company. This appears to be a wasteful cost and use of company brain power for no fundamental gain.

Q: Hi 5i,
These holding are all in my RRSP, 12 months from retirement, I'm planning to sell 80% of TOI, LMN, NVDA (not now) waiting for "better time" if it's possible to catch it. Can I have 2 or 3 suggestions for income + a bit of growth.
thank you 5i for all your great work!!!

Q: Hi Team,
For an 18 year old who just opened their TFSA and starting with $6500, what stocks or ETFs (CDN and/or US) would you start with? There are no trading fees so there is no worry to buy 10 names if that is the best way forward.
Thanks

Q: CSU never dropped to the extent of these stocks in 2022. Why might that be?

Thx

Q: Could you explain what warrants are, why are they issued and how they help the company/ and or shareholders? I
I don't have any debentures so I gather from a previous question we don't do anything about them.
Thanks
Jeff

Q: I identified 9 companies that out performed the TSX 60 plus 3 energy companies that I believe have a bright future. All 12 failed the MACD. 5 are trading at double digit discounts to their 52 week highs; dsg,shop,l,tou and cve. P/E range from 85 to 6 etc, etc. Please pick your diversified top 6 for a 5 year hold, with consistent profitability, no crazy volatility and suggest a great entry price. Thank you

Q: As a follow up question to August 18, when you say the market is treating TOI and LMN as a current day CSU, is this a good or bad thing wrt to growth prospects? Does this mean there is less runway for growth, for TOI and LMN, then CSU had in the early days?
Thanks
Jeff

Q: Hi
Wondering if these two companies are moving along on much the same pathway as CSU was in its infancy, wrt valuation metrics, trading volumes, share price, market cap etc?
Also why is LMN trading twice as many shares per day then TOI given TOI market cap is 8x LMN? Is it more well known even this early? Why is the volume so low?

Thanks
Jeff

Q: Upon reading and re-reading the announcement by CSU of the “warrant dividend”, I am still confused and have several questions. I like to understand what I am buying and/or being given, and I don’t fully understand that in this case.

1. Do these warrant dividends cost me anything? I am fairly confident the answer is NO, but please confirm.
2. Is there anything that I need to do, or will the warrant dividends magically show up in my account one day?
3. Once I get the warrants how will they appear in my (RBC) investment account. They won’t be listed on the TSX or any other exchange until the “Company Redemption Right” is exercised so I am not sure what to expect to see.
4. If the warrant dividends are not trading, what value can you ascribe to them? Just use the nominal fair market value of C$0.0001?
5. When the dividend warrants can be traded, will they be traded like a regular stock?
6. When I sell a dividend warrant in a non-registered account, are the proceeds from the sale considered a dividend, interest, or a capital gain? I guess since it is a type of dividend, I speculate it would be treated as dividend income.
7. Is this something that is good, bad, or indifferent for a CSU shareholder?
8. Is it possible to give an example of how this would work from the point of view of a CSU shareholder and the debenture holder. Assume today’s price of CSU and CSU.DB
9. Based on your experience with this type of situation if I could sell my warrants today, what price range would you speculate they are worth?
10. Have you seen this done with other companies? If yes, which ones, and how successful was it for the warrant dividend holder.

A lot of questions, but take as long as you need to answer them.

Thanks,
Paul

Q: I am holding 200 units and 130 units in registered and cash accounts respectively. Recently a special warrant dividend will be given to each unit of CSU share holders. I do not own the series 1 debenture and have difficulty to comprehend the debenture matters.
Please advise what are the appropriate actions to be taken for unit holders. Thank you for your great service. Bill.

Q: Hello, what would be a reasonable entry point for CSU ?

Q: I do not fully understand the special dividend announced. One warrent for each share held? Exercisable when the company exercises their redemption right on the series 1 debenture? Please explain.

Q: Between AAPL and CSU, which company do you feel has the best growth prospects over the next 5 years? Thank you.

Q: Your thoughts on their 1/4ly report please.

Q: Understanding that portfolio weights are personal, how high of a weight would YOU be comfortable letting CSU run?

Q: According to the July 18 news release from CSU:

"The Company’s quarterly results will be disseminated via press release and made available on the Company’s website ( www.csisoftware.com ) and SEDAR, after markets close on Friday, August 11, 2023."

Is it normal for companies to release their results after market close ON A FRIDAY?

Politicians want to release bad news at the end of the day on a Friday, especially before a long weekend. So I am wondering if a company would follow suit by releasing bad news at the end of the week after the market closes.

I am not expecting bad news, but I can't recall a company like CSU releasing their results after the markets are closed on a Friday.

Your comments?