Investment Q&A

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

Q: With 2 year investment window, please rank the following : NVEI, ATZ, SHOP, BN, DSG,SLF,TOI,GSY, Googl

Would you maintain the same ranking for a 5 years window

Thanks

Q: I currently own DSG,NVDA,SYZ,TOI AND TIXT. I am thinking of adding DCBO and wonder if there is is any overlap with the tech stocks that I already own or would be ok to add to this one as well?

Thanks

Q: I have some cash to deploy in various accounts. What do you suggest for income (divvy) in a cash account? to be held 3-5 years?
For capital gains to be held 2-3 years?
longterm (10-20 years) in a tax sheltered account?
Looking mostly for Canadian stocks but also a couple of US ones (but not for income)
Please take as many credits as fair. TIA

Q: For this 10-stock all-equity TFSA portfolio (for 30-yr-old Albertan), which has 40% cash available to invest:
(a) which one or more of the 10 stocks would you suggest adding to?
(b) which new stock ideas do you feel would complement this portfolio (please suggest 5 or 6)?
NOTE: The philosophy is long-term buy & hold with minimal trading.
CURRENT HOLDINGS (weight in portfolio)
TD bank (13%)
Suncor (13%)
TC Energy (12%)
CPKC Rail (11%)
Amazon (10%)
Nutrien (10%)
Visa (9%)
Aritzia (9%)
Air Canada (8%)
Copper Mountain (6%)

Ted

Q: Hello Peter,

I have shortlisted 5 stocks for a new position in TFSA of my wife and mine. I am thinking of 3 full positions or I could divide amongst 4. Could you help me eliminate one from my list and would appreciate if you could rank the other 4 in order of our preference - best first?
Thank you for your help.
Regards
Rajiv

Q: Your current view on the company, its future prospects, and your comment on the latest quarter, please? Thank you

Q: I have very small positions in these companies. I can add to one, which do you think has the best long term potential.

Q: The above holdings are in my TFSA for long term growth. Looking to add another stock to the account. Can you share a few that would be good additions for long term growth. If adding to an existing names make makes sense; open to that as well as none of these are a full position.

Q: I have small positions in Chorus Aviation, North West Health Care, Lightspeed and Topicus; I'm down in all - and wondering how much patience is warranted - and considering Nuvei. Could you rate these in terms of possible upside and when one might expect this?

Thanks,

Q: Hi Peter, Ryan, and Team,

A 5i member (Rajeev) stated in a recent question that he had an overweight core ownership of Constellation Software. We agree with you about the benefits of keeping the "free" TOI and LMN shares we received from these CSU spinoffs. However, does your answer imply that since we are presently overweight in Technology (largely because of CSU) should we consider reducing exposure to CSU? This would be a very hard thing to do, so it's a dilemma, to say the least!

As always, thanks for your insight.

Q: Hi, What % of TOI and LMN common shares are owned by CSU ( including any preferred or other class to be converted to common, in future ). Also, what % of market capitalization of CSU, the two companies make up, respectively, based on current values. I guess, what we are trying to assess is that, to what extent and why it makes sense to own TOI and LMN shares, while already having an overweight core ownership of Constellation Software. Thank You

Q: Which one would you prefer between NVEI & TOI if you have to choose one and why

Thanks for the great service

Q: I have 3 positions at a total equity weight below 0.5%. Which one I should consider selling or increasing position size?

TOI (Size 0.39%, small profit)
MG (Size 0.41%, small loss)
GSY Size 0.54%, substantial loss)

This is in a well-diversified portfolio.

Thank you.

Q: 1. When CSU spun out TOI, it was considered a “mini European CSU”. What would consider the recent spinout of LMN i.e., a “mini xxxxx CSU”? If applicable.

2. I am thinking of unloading LSPD from my RRSP at a significant loss. Where would you suggest the funds go? I am thinking either SHOP or LMN or is that just setting up a double whammy? if yes, alternatives please.

Thanks as usual.