Investment Q&A

Q: In answer to another reader's question, you recently recommended the following 4 US tech stocks (NVDA, QCOM, GOOG, CGNX) and four US industrials (FLIR, LLL, UTX, ITRI).

If you had to narrow it down to two in each of these categories (tech and industrials), which would you pick at this time?

Q: Good morning team. What do you think of NVDA quarterly results last night (Thursday)? My holding has grown to 3.5%. The after hours market looks neutral. I'm not sure why. Much thanks for all you do.

Q: I have about 22% of my portfolio in tech and would like to trim back. QCOM makes up about 3.1% of the total and NVDA, 4.3%. At this point would you sell one of these or sell some of each?

BTW, my other tech holdings are: CSU (3.8%) KXS (2.4%) SHOP (4.2%) GOOGL (3.5%)
Thanks for everything you do!!

Q: I have listed the tech stocks I currently own. As much as I like all of them, I am very over-weight in that sector and need to re-balance my portfolio. I think I should sell 3 of them. Which 3 would you suggest?

Thank you, Peter

Q: I am just looking to expand my breadth of knowledge in the 'self driving car space.' With the exception of Texas Instruments (which I already own). Are there any other companies with exposure to this area that look like interesting investments?

Thank you,

Q: This is the thesis you offered in early July, on NVDA. It is really about gaming and virtual reality. Its chips have one of the best reputations for speed and quality, both very necessary for these industries. Itis expensive at 25X earnings, but growth should be 40%+ this year. It has $3 billion in cash and generates very strong free cash flow. Revenue growth looks good and it has a solid record (7/8) of beating earnings estimates. It looks like chip applications are widening, as NVDA is also showing good growth from the data centre industry. Autonomous cars are another growing market for the company. It pays a small dividend and we think it is very well managed."

I'm having a very difficult time seeing that anything has changed. If anything, NVDA should be on the cusp of something even better, and yet the Citron thesis says "all the easy money has been made." How can this be? If the easy money has been made, that would suggest that NVDA will be grinding to a halt soon, and yet with the ever-increasing demand for all the areas of technology it covers, I'm at a loss on Citron's approach.

Notwithstanding your usual advice that there are always two-sides to a trade, there still has to be someone who is "more right" ... and I think it's you, and the position you offered in July. Is this still worth a 3 year hold ... my ultimate time frame for this particular account.

Thanks as ever. Happy New Year! ... Thanks for another great year of superlative service!!

Q: You've said this stock is expensive. What do you think of the citrus tweet which dropped it so much on Wednesday? If you were going to shift money to a different stock in the sector (aside from AMD which I also own) where would you put it?

Q: I am up about 70% in a relatively short period. Time to sell?

Q: I know US is not your focus but someone called Davuluri on BNN yesterday says that Nvdia is seriously overvalued and that it is a market sell with a downward trend to $38 a share. That is a huge prediction drop as the stock is trading closer to $100.
Is one too late to the party? I know it has a huge p/e but other analysts seem to think it is justified based on going forward.
Why would this person risk his reputation on a call like that or is it the case: hope you sell sucker so I can buy it?

Q: Hi 5i,

Although not in your coverage I have watched NVDA frequently over the past year and not moved on it thinking there was a little too much hype, too early. The latest results are telling me the hype was actually underestimated by many. You always seem to be fairly positive on the future of VR, AI, and self-driving cars. Just wondering if you believe these latest results are a sign of good things and some sustainability in the future of their business?

Thanks,

Joe

Q: 5i,
From all of us who purchased Nvdia on your enthusiasm THANK YOU!
Now from a portfolio management perspective, with the stock up 114% year to date, and perhaps popping in the 20% range today, should investors take some off the table (as 5i did with some of its winners in the summer) perhaps to purchase more in the future. IT stocks are otherwise getting trimmed in market and the NASDAQ facing pressure. It looks as though the growth prospects for NVDA are good, but seem tied to TESLA. Stocks like Tesla may face pressure with a Trump presidency.

When last asked about weighting, 5i suggested 15% for Info. Tech (Sept 26), with the usual "weighting is a personal/situational decision". For the average 5i (model portfolio style investor) what would you suggest today for an info. tech weighting based on this evolving US investing environment?

thanks for the great service, kathleen

Q: Hi Peter & team,
Now that QCOM is acquiring NXP,if I have to choose just
one, between QCOM and NVDA, what is your recommendation?
HG

Q: Is NVDA still one of your favourites and could you please tell me when it will report quarterly results? I have a small position and am thinking of adding to it. Many thanks, Peter

Q: Was wandering your thoughts on this company for a 3-5 year hold,good entry point now or wait for a pullback they seem to be involved in all the"sexy" sectors and performing quite well thanks in advance

Q: Hello 5i,
Which would you choose for greater growth over the next 2-3 years NVDA or QCOMM?
Thanks
Dave

Q: I am well diversified. I plan to buy either NDAQ,EBIX,or add to the NVDA I already own.I also came across PRTS which looks interesting. Would you please give me your reasons for buying or ignoring these stocks. Many thanks.

Q: Re Sierra Wireless.. please tell your opinion an reasons for:
1. How 'safe' this stock is
2. What probality it has for price increase
3. What is the PE today and projected and how significant this is
4. What growth potential it has
5. What slice of the 'internet of things' business it has and
6. What other similar stocks are similar but better for price & growth
Thank you. I much appreciate your insights

Q: I was hoping to buy more NVDA, but it keeps going up!! Is it getting too expensive? Any other ideas of US upwardly mobile stocks in any sector?

Q: I had purchased both Amazon and Netflix in equal weighting for my US holdings, at 2.5% each. I rode the wave of Netflix to top $130 only to see it tumbling down right to where I started. No harm, no foul. The question is, though, is the long-term growth of Netflix intact, notwithstanding its recent slowdown? I tend to have faith in these behemoths re-inventing themselves, but it doesn't always work out. Would it make sense to move this money to Amazon, or does it make good investment sense to hang on. (The other position I was thinking of adding to instead of Amazon is NVDA, now held at 2.5%, roughly.) Thanks, as ever, for your sound advice.

Q: Good Morning, you have recommended Nvidia as a momentum play couple of days ago. Could you please provide your thesis for this stock?