Investment Q&A

Q: What would be your top Canadian tech picks to survive or thrive in a recession.

Q: Hello 5i
As a long time holder of CSU I'm wondering about what % of CSU TOI and LMN one might own. Without giving me specific guidance can you comment on the pros and cons of an equal weighting of each (ei 33% of each).
Thanks
Dave

Q: I liked the answer you gave to one of the members today on how to deal with volatility. Buy good companies run by good people at attractive valuations and hold for the long term. My question is:
What Canadian companies would you consider best fit the bill today? If you can give me 10 companies that would be super helpful.

Q: Hi Peter, I was wondering what your thoughts are regarding CSU, TOI and LMN as it relates to Artificial Intelligence. What role do you think software will play in this revolution and do you think that part of the move in CSU, TOI and LMN has been a result of the AI positioning by investors in these software companies. Canada has a smaller tech space than the US. Are these companies in the early innings of this AI theme and do you see higher prices for all three. I

Q: I am wondering why when Topicus was spun out in January 2021 the book value was ~ $ 61 determined by my brokerage firm, yet when Lumine was spun out the value was determined to be .01?
Also when does Lumine report their next quarter? Thanks
Jeff

Q: Hi,
I need to sell all the stocks in my non-registered account to access the cash in the next 2-5 years. I will be selling many of the stocks listed, in the next few weeks. Can you list them in SELL order with a few comments on the rationale.
Also, please list the top 10 Canadian stocks (from this list or others) for longterm holding, since I will buy some of them back in one of my registered accounts (RRSP, TFSA), likely over the next 2 years.
Thank you,
Camille

Q: As much as I’d like to buy all three, I can only buy one right now. In what order would you purchase for a two to three year hold?

Q: I still own SYZ and have a 1.6% weight and would you see this as a buy if I wanted to increase my weight? If I choose to sell what tech stock would you replace this with?
Thanks

Q: Hi Peter and Team,

I have had ENGH for awhile and while having the dividend has been nice the performance over the last bit has been flat. What are potential replacements for it, regardless of sector.

Thanks.

Q: These digital solution providers seem to be pioneering Ai partnerships .
Which would be the ones to invest in and the ones to avoid ?
Thankyou .

Q: Can you provide the fair value of the following stocks: TSLA, SHOP, BN, GOOG, ATZ, NVDA, WELL, GSY, TOI, KXS, ECN, RCI.B ?

Q: Could you please describe the differences between these three companies and would it be sensible to hold all three?
Thanks
Jeff

Q: I am currently down about 25% on Telus International. Would you support selling Telus International and purchasing Topicus?

Thanks for the great support.

Q: Hello Peter,
Any idea why Topicus is not moving the needle much on the upside given the decent results? The number of shares traded is quite low as well. Any comments would be appreciated. Thanks very much

Q: I would be interested in your critical opinion of the latest financials release on TOI?In particular any shortcomings in the business model that concern you?

Q: Hello, I note that you have recently had quite a number of questions about CSU. I am interested in knowing what 5i's thoughts are regarding the recent very strong stock performance. "Why has the stock price increased so dramatically" is my question. I realize it had a good recent quarter, however the price often settles down after a bit with most companies. Not CSU this time though.

Q: Hello, Thanks for your response to Bill's question on May 2nd. Just to add - If the Hedge fund mentioned is Blacksheep Fund Management Ltd. Between March 24-27, this hedge fund had already acquired 6.1 mln shares of Lumine Group (9.6% of subordinate voting shares) and on March 28, purchased additional 753k shares, in the market at an average price of $14.66, increasing their ownership to 10.79%, triggering a full public disclosure. It is possible that, during the initial 3 days of listing, while Vanguard and other ETF's were offloading LMN shares, Blacksheep was building up this position.

This situation, to me, looks similar to TOI, when another Investment Group AKRE Investment built a large position in TOI, during initial weeks of its trading ( $74 ). AKRE, I believe, continues to be the largest public Institution/Fund owner of Topicus.
The difference is that while AKRE is a very large Investment group, Blacksheep, appears to have a fairly modest AUM ( $500 mln appx ), so LMN position could be a significant holding for them. (13F for March 31, not verified)

Here is the NR from Blacksheep of April 6, 2023.

" DUBLIN, April 6, 2023 /CNW/ - Blacksheep Fund Management Ltd. ("Blacksheep") announced today that on March 28, 2023, Blacksheep, in its capacity as investment manager on behalf of Blacksheep Master Fund Ltd. (the "Fund"), acquired (the "Transaction") an additional 753,130 subordinate voting shares ("SVS") of Lumine Group Inc. (the "Issuer").

Immediately prior to the Transaction, Blacksheep, in its capacity as investment manager of the Fund, had control or direction over 6,114,274 SVS, or 9.60% of the issued and outstanding SVS (assuming 63,671,170 issued and outstanding SVS), all of which were beneficially owned by the Fund. Immediately following the Transaction, Blacksheep, in its capacity as investment manager of the Fund, had control or direction over 6,867,404 SVS, or 10.79% of the issued and outstanding SVS (assuming 63,671,170 issued and outstanding SVS), all of which were beneficially owned by the Fund.

The SVS purchased in the Transaction were acquired in market transactions on the TSX Venture Exchange at a price of C$14.66 per SVS for an aggregate purchase price of C$11,041,036."

Q: I have recently acquired shares of Constellation Software and done some reading about this company. I looked at it a number of years ago and didn't buy it because of the "frightening" P/E ratio. Every time I looked at it or read analysts reports about it they would say the same thing "great company with terrific growth but too expensive. Wait for a better entry point. We can see how that has turned out. 10 years ago it was trading at about $130 now it's $2700. There is an article in the globe today about Topicus. To paraphrase it says that Topicus is the size CSU was 10 years ago and looks good but it's too expensive.
Is there a good reason to think that there might be an opportunity here that I missed 10 years ago with CSU?
Thanks for your ever helpful insight!

Q: Hi 5i Team - Could you give a brief explanation of what VMS is. Also is this the main component of all three: CSU, Topicus and Lumine. I have some understanding of the operations of these three companies but am still somewhat confused as to their differences from each other. Are there any major competitors and if so could you name a couple. Thanks.

Q: can you explain the differences between LMN and TOI does each company provide the same products but serve different markets also please confirm the degree of ownership by CSU. thanks Richard