Investment Q&A

Q: Good Morning,

My daughter's RESP has the following stocks. I have added some CSU because I simply can't pass up the buy opportunity on this weakness. I am overweight in IT now, what would you recommend for an 8 yr horizon please.

Current holdings:
BNS, CSU, DSG, DHX, ENB, ECI, HR.UN, KBL, MUX, RHT, STN, SLF, TSGI. She also has 3 ETF - US Dividend, Emerging Markets, Nasdaq Indexed all equal weight.

Thanks for all you do!!

Eric

Q: Hello 5i team,

Today's Globe & Mail:
http://gold.globeinvestor.com/servlet/ArticleNews/story/RTGAM/20180531/ellipsis_OK5KOAGTGVAVZNM33Q4DTLYU4U/stocks/news

Two analysts re-rated Descartes Systems following release of 1st Qtr earning. One analyst (Laurentian Bank), re-rated the stock to "Hold from Buy" on valuation concerns and a slight miss on adjusted earning while all other metrics were higher than analysts' estimates, and then went on and commented on the company's strong potential growth going forward and increased his target to US $32.50. The other analyst (Canaccord), rated the stock a "Buy" and increased his target to US $35.00 from US $34.00. The analyst commented on the company's consistency, M&A activity providing the company's with faster growth segments with expected EBITDA growth of 15% suggesting the stock deserves a premium. Meanwhile the market reacted by selling down the stock with a mid-day drop of CAD $2.00. What gives? Please help me understand what drives markets in the short term and what is your recommendation on Descartes going forward.

Thank you!

Q: Hi there,
DSG has quietly reached all time highs. I am concerned that the stock is ahead of its growth profile and earnings. It has always been expensive but i have it showing at 88X current earnings. Your thoughts on this one?
Cheers

Q: Could I please have your thoughts and analysis on these two companies recently announced earnings. Thank you.

Q: A recent article in the Globe was citing an RBC analyst as saying it was time to go underweight on tech stocks.
I have the following weightings in my portfolio -
ENGH - 6% ; SYZ, KXS and DSG 4% each.
Do you see any of these as being seriously overvalued? I have very good gains on all and have taken profits on all except KXS as they have moved up.
Any comments are appreciated.

Q: Good day...I hold both kxs and dsg and other 5i tech stocks ...my overall tech allocation is 17%...my question is whether it makes sense to hold both kxs and dsg as their software tends to be similar but different ...could you please help me with this concern....Eugene

Q: Hello Peter, Ryan and Team,

Which 5 management teams are currently the best capital allocators in your view. I am guessing CSU would be up there. Who else?

Thank you,

Wes

Q: Hi there,

Outside of your Balanced Equity Portfolio, what would be your top 5 ideas for growth today?

Thanks!

Q: Hi Peter
RE: reducing weight in Financials and adjusting to non dividend companies.
I am very overweight in Financials and well balanced otherwise in other sectors except Gold and Energy. I would like to trim the former into opportunities for growth.
Can you suggest 3 companies that have been had some "correction" but remain good picks for future growth ? (prefer non-dividend)
Thanks,
Peter

Q: Please comment on their earnings. Thanks

Q: I would like to buy one of the above companies. DSG's share price is expected to go up nicely in the next year, but it does not appear to have the push the other two have. What would you recommend?

Q: Hey guys,

Nice dip on DSG which leads me to my question after reading that it was removed from the portfolio. I wrote awhile back about it being a top pick and asking what the expected catalysts were. I understand that since then we have seen an acquisition which was among the reasons for expected increases. My question then is two fold

1. In light of the removal from the portfolio, would you guys walk back the inclusion as a BNN top pick or would you make that pick again today?

2. Would you have expected the recent acquisition to create a leg up if it had not fallen in the midst of a grumpy market? Did that acquisition make it more or less appealing?

Q: Good day 5i,

Can you comment on the acquisition done by DSG a few days back.

Thanks,
Dave

Q: I am trying to trim my portfolio from 38 equity holdings down to about 30. Largest # of holdings is in the Tech Sector which is 19% of my total portfolio. They are:
SYZ, OTEX, ENGH, DSG (held in my 'balanced' RRSP)
ABT, ET (held in my RIF for income)
ITC,PHO,SHOP (held in my TFSA for growth)

All are between 2% and 4% of my total portfolio with the exception of ET at 1.7% and ITC @ 0.7%

I would also like to purchase KXS !! I am turning myself into knots trying to decide what I should drop in order to buy it (if you think it would be beneficial ?) . Plus what other stocks could I sell/increase/purchase in order to trim the # of holdings and still have a robust tech portfolio.
Any suggestions would be appreciated... Thank goodness you are there as an experienced and wise sounding board !!

Q: I want to add one of these two names to my portfolio for a five year time frame. Which of these two securities would you recommend and why? Thank You

Q: can you compare similarities and differences between DSG /OTEX. also compare prospects to BB

Q: AVO (Avigilon),DSG (Descartes Systems Group),if you were to choose one of these stock to add to a portofolio which one?

Q: Hi Peter and Team,

Greetings for 2018!

For my daughter's RESP, I am trying to decide between 2 tech stocks, Kinaxis (KXS) or Descartes(DSG)? Which do you recommend? What is the optimal number of stocks to hold in the RESP, 5 to 6 stocks?

Thanks.

Q: What is the real difference between CTC and CTC.A?
And what is your opinion about DSC for the next year?
Thanks
Margita
Thanks
Margita

Q: I saw Ryan's pick of Descartes on BNN and wonder if you can comment on what catalysts you see for this to go a leg up? My admittedly basic technical analysis doesn't suggest any upward movement so I assume this is underpriced based on fundamentals. My question then is when do you expect it to move and what factors will cause the stock to move upwards?