Investment Q&A

Q: Please comment on earnings. Would you add to a position?

Q: I own both these companies in my Tfsa and I notice that they both report their earnings this week.
Could you explain why Toi was only 2% while Csu was up 14% in July?
Is Toi restricted only to Europe while Csu is worldwide?
Which is your favourite of the two?

Q: Hi, With recent recovery in the Tech sector, many stocks have seen nice bounce in their depressed share prices. Tech Companies with solid fundamentals, strong cashflow and low/no debt have been favoured by investors. CSU has also seen good strength lately, which is really encouraging. Topicus share price also has seen a mild recovery from its recent lows, but still continues to languish around $74- 75 level. Could you assign the possible causes of lack of investor interest in TOI, which was a darling, not so long ago and follows the same business model as its parent Constellation Software ? Do you foresee some catalysts to break this trend which could help the stock to recover sooner to let's say $90-$100, and if so a possible/reasonable time frame. Thank you

Q: What does the market expect from these 2 next week?

Thx

Q: Can you please rank the above tech stocks looking out 2-3 years. I am looking to drop a couple and add to ones you like better as some have become much smaller after dropping this year.
Thanks

Q: Looking to reposition out of Oil&Gas. The noted companies have been beaten down. How would you rank for a 3 year horizon. Highest to lowest. Any other names you would add to this list?

Q: Hi there,

I'd like to start a concentrated version of your balanced equity portfolio that is focused on growth. What are your top 6 ideas from the portfolio are you most bullish on, sector agnostic? The purpose would be concentrated growth.

Thanks!

Q: I have some money to invest and looking for growth over the next 5 to 7 years. Between the 3, which one would you side with at the moment. If you have a better suggestion, feel free to give your insight. Thanks !

Q: You mentioned that Topicus operates in $USD. Did you mean that they make their acquisitions using this currency, or is it the currency utilized by their operating groups on a day to day basis? Thanks.

Q: Hi, ServiceNow stock, a large US Enterprise Digital Solutions provider company, dropped 12%, Today, after CEO's comments, last evening on Mad Money, warning about the macro headwinds faced by a continuously extra strong US Dollar, by Technology companies, particularly those with large enterprise customers, around the world. Some of the comments are as below:

" You’re at 41-year high inflation. The dollar right now is the highest it’s been in over two decades. We have interest rates rising. People worried about security. You’ve got a war in Europe. So, the mood is not great,” McDermott said in an interview that aired on “Mad Money” after the closing bell on Monday.

“You’re going to see the headwind of the dollar right now against well-known technology brands,” the CEO added. “No one’s going to outrun the currency right now.”

Shares of ServiceNow, which helps companies and organizations digitize their workflows, fell 13% on Tuesday after McDermott’s comments, which were meant as an overall industry observation, not ServiceNow-specific news due to the company being in a quiet period ahead of reporting its latest quarterly earnings on July 27. "

“When you think about energy, and the dislocation caused by the war in Europe, and this reprioritization I’m talking about, you’re going to see longer cycles [to close deals] in Europe. We saw that,” McDermott said. “But this doesn’t fundamentally change the narrative that tech is the only way to cut through the crosswinds.”

The reprioritization he’s referring to is the increase in demand for a fast return-on-investment — another symptom of cautiousness in the current environment.

“There’s a new level or prioritization in the enterprise. And I have seen this, actually since we last met, Jim, hitting a new gear. Where companies are first saying ‘which platforms do we want to bet on,’” and then try to sort their priorities, McDermott said.

“There’s one filter on all of this now. And that is fast return on investment. And if you can’t put an architecture in there that gives the customer a fast ROI, chances are, you’re going to get postponed,” he added.

Stifel said in a note on Tuesday that it believes the company is “likely” to lower their expectations when it reports earnings, citing McDermott’s comments on reprioritization. The investment bank also expects other companies across the industry to follow suit in the coming weeks.

There was chatter that Today's 4.10% decline in MSFT and 4.61% in Sales Force, which was ugly, was not company specific but in reaction to this macro warning,

Most large Technology will start reporting in a few weeks time.

Some strategists were seen on CNBC talking about the" Generals" being the last to drop and MSFT's sharp drop today was noticed by many.

Do you agree with above comments/sentiments ?

We are trying to assess, if these companies, in your view, are likely to be faced with similar headwinds - CSU ( worldwide revenues), TOI ( Europe) and SYZ ( >55% US rev ), for all those reasons. And if you think, they are not immune to this, is there any caution warranted, or is it prudent to reduce our exposure to a more reasonable level, at this time.

Thank You

Q: Please provide the earnings date for DIR.un and Toi. Thanks Valter

Q: Good Morning 5i Team,

I hold TOI, CTS, ENGH in one account as my small cap technology allocation. Price action of course has been brutal since last fall. Would you continue to hold all three names or would you recommend getting rid of one or more ?? Would you add to any ?? Do you have any alternatives that may have better risk / reward in an eventual tech recovery ?? Thanks very much for your help. DL

Q: I bought NVIDIA years ago and have been considering trimming as I’m overweight, and now want to take advantage of stocks that have recently dropped. I am a long term investor focused on growth with medium-high risk, what 3-4 stocks Canadian and U.S. do you recommend to help compliment my holdings? My US holdings are GOOG, COST, ISRG, V and my CAD tech holdings are CSU, TOI, KXS, and STC.

Q: Hi Team,
TOI has had a rough couple days. Today as of writing down another 5%. At $62 a share today would you consider this a great buy? Is there any news that is making the stock drop extra bad today compared to some other tech stocks that are rallying some today? Also...even though oil is more in favour in todays market, would you consider selling some of either WCP, BTE, or TVE to buy into TOI weakness? And would you consider TOI a better long term hold than an oil stock?Thanks

Shane.

Q: TOI is at a 52 week low despite having a good quarter on its latest report.
It is dropping on higher volume than normal.

Yes it is a tough market for growth stocks but the high volume scares some.

Thanks

Q: ? Over a 5 day period this stock has went from $75 to $64 as of June 14.
Thanks

Q: Hi 5i - at current prices, how would you rank the following Canadian tech stocks: SHOP, KXS, TOI and LSPD?

Thanks, Neil

Q: Of these four stocks, Lightspeed seems to be the most volatile. Jumps the most on good days and drops the most on days like Monday.
My son's RESP needs a quick boost - he is going into second year.
Would you buy all four or just Lightspeed and hope for the best? No diversification concerns, just an outright roll of the dice.
Thanks.

Q: What Canadian stocks would you be picking up today in this selloff?

Q: I have the above companies in my TFSA which, due to the tech sell off, are now down to about 1/3 of a full position. I do not require any money from my TFSA for at least 10 years so have a long timeframe. I also own a full position of CSU in my wife’s TFSA which I will continue to hold.
I am thinking of selling one of these positions and distribute the proceeds in the remaining positions.
Could you rank upside potential of these companies?
Or should I just leave it alone and let time be my friend?