Investment Q&A

Q: Is Topicus in the fable pounding buy zone yet?

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: I would like to increase my tech holdings during this sell off and I have a long term horizon and willing to take on risk.

Can you rank the following in order of preference: Shop, NVDA, Topicus, Xebec , Unity, Lightspeed, Enthusiast Gaming.

Are there any in that list that should be sold off?

Q: Do you see a level where Topicus is attractive.?It’s been pounded badly

Q: Looks to me that it's time to start looking in the 'bargain bin' for some heavily discounted companies. I like to find good solid companies that have been taken down with the market but through no fault of their own. They also are so good at running their businesses that I need to wait for times like these to purchase them. I'm an investor who can accept medium risk and dividends are always welcome. Please focus on Canadian companies.

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: On a scale of 1 to 10, what value would you give to both risk and long term growth prospects for each of these companies. Feel free to provide a brief qualitative comment instead if you think that would be more beneficial.

Q: At this time, what are your top picks (5 CDN, 5 US) for a 3-5 year hold in a registered account for an investor willing to take on an above average level of risk (but not high)? Sector does not matter. Thanks.

Q: Hi Team,
I am an aggressive investor, which paid off lovely in 2020, but now am being crushed. I hold the following stocks (with weightings in brackets) in total in my brokerage accounts. Could you have a quick look and tell me how this basket looks "In general"? And if you see this basket doing well over the longer term (say 5-10yr hold), pointing out any suggested changes you would make, if any are "sells" or worth switching out. Note that if I sell any GSY it would incur tax (the weighting is large because the position has grown and have been a firm believer in the company as its valuation still looks cheap and am collecting a nice div off it as well). I am 42yrs old so retirement is a ways away and my goal is maximum returns with reasonable risk until retirement. Please deduct credits as required. Thanks
ATZ(3.2%)DOO(1.3%),GSY(24.7%),NVEI(6.3%),TOI(8.6%),WCP(2.8%),SQ(3.5%),APPS(2.5%),RBLX(2.7%),BAM.A(1.7%),LSPD(3%),FB(8.2%),TTD(2.9%),U(2.2%),ABNB(2.4%),CRWD(2.4%),NVDA(6%),PINS(1.7%),CRM(2.9%),NOW(2.7%),SWKS(1.7%),TWLO(2.4%),VEEV(1.4%)WELL(2.5%).

Q: Happy new year, 5i team,
I’ve read TOI Q&A back to around Sept ‘21. It seemed a sound strategy for me to buy them as my first tech stock, when priced at $140; just 40 shares. They’re non-registered so as to fit my goal of future tax advantages of capital gains if I ever needed to sell some. I was thinking that periodically I’d buy more to increase my tech weighting as well, overall in all accounts.
Reading your reply on price for ‘good, great and table pounding’, I am wondering if I totally misunderstood this stock. Did I overpay, or is the last 3-4 months drift down simply the manifestation of a higher risk stock. Your reply to a reader on your predictions on future P.E.s , TOI at 200x made me think that how this fairly new stock is doing is just what this kind does, and why a hold for 5+ yrs is best.
Do you have guidance if what I’ve written shows a big gap in my understanding please?
Would you buy more today?

Another note (please deduct credits)- when an investor is growing their portfolio and goes from say 5 stocks to 10 stocks, then to 20 stocks, the weights could be 20% each then drop to 10% each, then eventually get to the 5% max you advise, as more stocks are added. To me this seems logical and realistic, then I paused that maybe one must buy less of more stocks so one is closer to the 5% from the start of the journey rather than seeing that as the goal (say at the end of a 4-5yr period). Which strategy is better, does it not matter so long the investor eventually gets there, or, is this related to one’s risk profile?

Much appreciated as always :)

Q: Please classify each of the above companies as one of the following:
LOWER RISK
MEDIUM RISK
HIGHER RISK
Thanks for your great service - use as many questions as you wish. ram

Q: I have these companies in my TFSA, which ones would you recommend adding to

Q: You mentioned there is now one other analyst for Topicus. Can you tell me who it is, and what their 2022 Revenue, earnings and price targets are? Thx.

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.

Q: Hi Team,
I am down over 50% on each of PINS and EGLX. I was considering giving up on them and moving the remaining funds in to TOI; something of perhaps "higher quality growth" that is also down considerable from its highs with a stronger conviction of future success. Would this be a move to be endorsed, or should I just ride out this pain for potential recovery in EGLX and PINS? Thanks for the advice.
Shane

Q: I am considering adding LSPD or TOI to my TFSA. I know that you are favourable on both and that LSPD is higher growth, higher risk. I would appreciate that being quantified: what is the future % revenue growth and forward sales multiple for each company and at their current price, which do you consider the better risk/reward choice.
Also, when are they each scheduled to report earnings?
Thanks...Glenn

Q: I am a little overweight techs in a well diversified portfolio. Considering valuation contraction where do you see a new normal forward P.E. the S&P in 2022 and for those stocks highlighted?
Please provide forward P.E. and multiples for those that make profits and guestimate where the low end could be for the others.

Thanks

Yves

Q: Which in your opinion has the best long term upside from current prices and which has higher risk?

Q: Hi Team,
Following the CSU model, if TOI does not issue new shares to finance acquisitions and its cash flow was negative at the end of its 3rd quarter, do they finance acquisitions solely with debt? Thanks

Q: I have 3 securities (TOI, GSY, WSP) in my TFSA (in approximately the same amounts), and have added $6000 cash to that brokerage account for 2022. Would it seem reasonable to add to each of the 3 positions with the newly added cash, or would you feel I should prefer one or the other security(ies) among the 3?

Ted