Investment Q&A

Q: First and foremost Season's greatings and thank you very much for the support.

Following up on Joel's question from December 15th. I agree that subsidiaries will seek to integrate the use of AI into their processes in order to maintain and perhaps ultimately improve their margins, but this will have a direct impact on short-term profitability (e.g., one year). How can Constellation justify the multiple they are currently supporting with declining margins? The only way I see to improve profits would be to substantially increase accretive acquisitions during the transition. For my part, Constellation was my largest position and has lost a lot of value, even though I'm still up 200%. I'm really worried about what to do with my investment. How many quarters do you think I should wait before knowing more?


Thanks for your help.

Yves

Q: What should your members be looking for with the CSU family of stocks that the worst is over, Are there technical signs volume washouts or other signs the market negativity is declining?

Thx

Q: Hi I hold the following positions
CSU overweight
CLS overweight
GOOG overweight
BN overweight
GLXY
NBIS
NVDA
ISRG
AXON
SHOP
AMAZON
HOOD
VOO
URI
PNG

Would you add to existing positions or choose to buy others?

Please list your top 5 other stocks, and a brief reason for each ? Cnd or US

Thank you

Q: A question for the 5i team that will likely be of interest to a lot of us do it yourselfers. With 2026 in the headlights and big gains in the TSX where do you see opportunity going forward. 1-Could you make recommendations on sectors you think will out perform or under perform. 2-Which markets do you see with the best potential. 3-Your three top picks in growth and three top picks in income. I have a lot of built up questions that you are welcome to, hoping for a good in-depth response as per the norm. Crystal ball gazing but better you than I!

Q: I have 26 positions in a combination of your growth and balanced funds and have liquidity to add 3 or 4 new positions or add on's to what I have. Without listing my positions, is it fair to ask you for your 'fav' 5 or 6 undervalued equities that I could add while there is tax loss selling?
Grazi,

Q: High level and subjective question about CSU. They historically bought mature slow growth SASS businesses with very little organic growth. Now the market perceives a risk that AI will disrupt their businesses. CSU will need to innovate rapidly to meet this challenge, BUT, CSU does not have a culture of innovation. Do you think CSU can rapidly become innovative at scale when that is so far from their core competency? Do they have the DNA to innovate AI into their businesses?

Thanks.

Q: I am down on these two companies in my TFSA, and am thinking of selling in favor of another Canadian growth company. I already own ELVA, FTG, GRID, KITS, PNG, VNP and ZDC. Which would you add to, or do you suggest adding another growth company.

Q: Yesterday (Dec 10) I submitted the following question:

“I had an order in today to buy 3 CSU shares at $3251.00. I noticed that at least 4 times today the stock fell below that price. The low for the day was $3250.00. My order was not filled despite being above the low for the day on at least 4 occasions. Can you explain why my order was not filled? If the reason is because I am buying only 3 shares, then how do I buy such a small amount if my order is being ignored? I am reluctant to place a market order when the trading volume is relatively low.”

You asked what time the order was placed. It was Dec 10th at 10:24:43 am ET using RBC Direct Investing.

After the market closed yesterday I did call RBC DI to get an explanation. The person gave a few answers that just didn’t make sense, and said it was the first time he had a call with a question like mine. He tried to deny that there were any trades below $3252.00 and that’s why my order was not filled, then finally admitted he saw a trade for 4 shares below my bid price, and would have to investigate further.

Today (Dec 11), I placed another day order to buy 3 CSU shares at $3250.50. The same thing was happening this morning. The price was trading below my buy price and still my order was not getting filled. I called RBC DI and spoke to a licensed trader who gave me this explanation. An order for 3 shares is an odd lot, and odd lots go to a different exchange, and it depends on the shares available for sale on that exchange. She also said a lot (100 shares) gets priority (which I thought was not an issue anymore).

Does that explanation make sense to you?

Maybe others who have placed odd lot orders have experienced this problem.

p.s. By the way, while I was on hold at RBC DI, my order got filled at a lower price than my bid price. She told me my order went to the CBOE exchange.

Q: Gentlemen

As we approach the end of tax loss selling, which of the above companies would outperform going forward?

Q: Having erroneously believed that momentum runs in a straight line, I purchased both of these equities in a 'new' account, earlier in the year, near their lofty heights. Are either of both considered a reasonable candidate for a tax loss sale? To be re-purchased a month or so later per your recommendation?

Q: Many software stock, such as CSU, sold off hard last quarter because of concerns about disruption by AI. Now that the these companies have all reported Q3 earnings, were there indications that this fear was misplaced? Or that AI is actually improving their earnings? Or is it simply too early to draw any preliminary insights?

Thanks

Q: Hello 5i,

We have listed a few Ugly Ducklings of the year below. Please rank the following stocks for purchase today with a longer-term view on growth.

CRM, MRVL, TRI, CSU, LMN, CROX, UNH, HD, GSY, FOUR, AVAV

Thank you for your sage advice.

D&J

Q: Similarly to the question asked by David regarding your Income portfolio, for B-E portfolio, what would be your top 10 stocks in the order you would buy. Based on anticipated total return (dividends + stock price increase) for the next five years expectations. I would also appreciate if you could add to these stocks your return expectations and risk ratios on the scale of 1 to 10, with 10 being highest. Thanks.

Q: How would you know when CSU's price action has "settled" and that it is safe to add in? What indicators would you look for?


Price today is $3321.04. Morningstar gives CSU a fair value of $3,744.01. And it is a rare event in its history that CSU's price falls below its fair value.

Would you add to it today?

Q: Hello,

I've noticed in recent exchanges a renewed interest in the CSU family. For a relatively conservative investor, wouldn't it be more prudent to focus on the parent company rather than spreading capital across all three companies in the group?

Thanks

Q: Hi. I have tried a couple times to submit this question now...

My kids have a family RESP. Oldest child will be starting post-secondary in 9 years.

Currently have GLXY, BN, SIS and T.
What will be good holdings to add to this? If sector diversification is not taken into consideration, what will be good to add?

Thank you.

Q: I currently own all of the above in various porfolios. In a concentrated TSFA which 3 from your balanced portfolio would you buy for long term. Currently own GLXY and PRL at great loss in TSFA would you add?
Thank you.

Q: Thank you for the recent flash update on several companies that have experienced a large decline in the last few months. Your reports reaffirmed the solid foundation of these companies. Also nice to see a bit of a bounce upward of these companies,
Thanks Stephen

Q: want to raise some cash(tech breaking down technically) in what order would you sell the above listed stocks bearing some are winners and some are losers so what your recommendation sell winners or losers first without getting in to too much specifics. CSU as an example sell now to claim loss or then buy back after 30 days FFH on the other hand is up 60% so sell now and hope to buy back later at lower price. what would you do? Remember i want to raise cash so how would you approach this rebalancing ...thanks for your help

Q: I am considering selling CSU and LMN to realize tax losses and then buy them back after 30 days. Do you see much risk in these companies gaining significantly in 30 days? Thank you