Investment Q&A

Q: Could you comment on Lightspeed's historical earnings, growth performance vs stated forecast, etc?
In other words how reliable has their pitch been?
As I understand, they report in a few weeks and with the Sprucepoint gun to their heads, highlighting the soft spots, this may be a critical validation day.

Thank you

Q: LSPD's SP continues to be very volatile daily while under the current short attack. Can we assume such attack will not end until the company reports its next quarterly results - assumed to be in the first week of November - based prior reporting history

The assumption is, after LSPD reports publicly as required by law, the short's accusations would either be proven correct, or partially correct (after all the best lies are the half truths), or just vicious rumors used to destroy LSPD's SP for their own profit.

If the accusations are without merit, do the indemnified parties, such as us common small retails, can seek restitution from the short seller? Has that happened before and how successful are they in seeking such compensation based on past history?

I've been in the market for almost 20 years and find the practice of short selling morally unethical. What legal protections do the investors have against such shady practice from the market sharks with big capital? Please enlighten us.

Thanks.

Q: DO YOU KNOW IF LIGHTSPEED IS UNDER AN INVESTIGATION FROM THE COMENTS THAT WERE MADE ABOUT THEM. AND AGAIN WITH LIGHTSPEED I KNOW THEIR QUARTERLY REPORT COMES OUT ON NOVEMBER 4, ANY NEWS ON HOW THEIR REPORT WOULD BE IF IT WILL BE POSITIVE LIKE LST ONE OR NEGATIVE. THKS AGAIN GUYS

Q: Any sense of how low they can go and does the current 30%+ decline reflect real issues with the company and their revenue reporting etc or just a lot of panic selling? It is painful to watch and wondering if they are likely to be topped out for an extended period of time.

Q: I should have known better, having lived thru SHOP's short attacks, but i bounced out of LSPD.

At what price would you feel comfortable going back in?

Thanks,
Mark

Q: Hi 5i Team - Does Lightspeed have the fundamentals and resources to survive a continued short attack, Secondly do you have any concerns regarding its business model going forward. Thirdly from what I have read and heard many restaurants are struggling to hire enough staff to continue operating on a full schedule even though indoor dining is now allowed in many jurisdictions with vaccination passports. As a result some are reverting to takeout only. Since Lightspeed serves the hospitality industry, is this a concern?

I have a relatively large position in lightspeed and need to trim. The question is how much. Your response to the above questions will help me with my decision making.

Thanks again for the excellent service and Happy Thanksgiving to all!

Rob

Q: Any particular reason Toi has been a bit weak of late?

Q: Hello Team,
I am over weight with SHOP at the moment and very small LSPD holding. Would you recommend selling some SHOP and buy LSPD to balance? or Am I increasing the risk by doing that?
Thanks!

Q: What is the reason for CCL's anaemic performance over the last 4-5 years? What is your outlook on the company? How would you you view a switch to RPI or IFX in today's market environment?
Thanks

Q: If you where to buy one energy stock, what would it be? The only one I have, that is close is Enbridge. Do you think it is even worth buying any energy at all, as it is so cyclical. Every time I buy one, I loose money on it?? My timing is never right.
Thank you. Shirley

Q: Hi,

GSY has done very well in the past year going from ~$70 to current value of ~$186. In your opinion, does it still have decent runway ahead? Or am I too late to the party on this one?

Thanks,
Rob

Q: After market close today, SYZ announced purchase of MIssion CRM which closed today Oct 6. Please comment, Txs for u usual great services & view

Q: goeasy. is my largest position and i have held it for years,and i know its one of your favorites, it come of 30 dollars from its high on zero news.
and again today its down 8.5 at this moment.
would you buy more, is it still your favorite and am i missing anything. dave

Q: Good morning Team have been holding real matters for quite awhile it has been on a steady downward slope as you know do you see a bottom anytime soon or a suggestion to switch it out to a more positive investment thanks Norm

Q: Hi 5i
Been looking at XBC to add as it consolidates.

During my review I found something unsettling and since I can not get the sound to work on the earnings webcast, I can not confirm whether someone asked about this or not.

It has to do with the margin squeezing contracts that are restraining profitability. In the most recent commentary the CEO includes the words "long-term" when referring to the contracts and indicates margins to recover in subsequent quarters.
He never referred to the contract as long-term in previous communications.

It was my belief the negative contributing contracts would roll off in a couple quarters - not many. The statement leads me to believe there will be a longer effect than just a couple quarters.

Do you have a sense of run-off period?
Do you know if anyone asked about the run-off period length?
Was "subsequent quarters" more clearly defined in the Q&A?
Given the new size and make-up of the company, is the magnitude of negative contracts worth concern?
5i has indicated investors should not average down on this name at this time. What is it that will change your view on this position?

Thanks
Dave

From CEO Current Market Outlook (Q2 2021 Earnings)
While consolidated gross margins continue to be impacted by the previously announced loss making long-term, production-type RNG contracts, the company expects that this impact will be tapered down in subsequent quarters.

Q: sold all my lspd when short report came out.
i agree with you 100% that cramer is in the entertainment industry, i also think he is a little off upstairs but he is extremely bright and a very hard worker.
my question is why wouldn’t dax disilva go on his show and answer each negative in the short report-if there is nothing to hide this could only benefit the stock and remove the monkey on lightspeeds back. it makes no sense and something does not add up.i value your opinion .dave

Q: I have read all the questions regarding LSPD. It has been a huge winner in both of our TFSA’s, and I decided to continue to hold after reading your answers.

However Cramer really bodyslammed the company today as you probably know.

He cited the company’s response to the short report as “inadequate” …. And made more of a big deal about the company not agreeing to give Mad Money an interview since he had had the CEO on his show fairly recently.

Would any of that change your perspective on LSPD?

Thanks for your help with this important decision.

Q: Cramer did a number on LSPD on his show Mad Money last night and was criticizing management for not coming on the show to defend their position.

I see you've said to do nothing but that is trickier when trying to protect a profit. In that case would you be a seller?

For new money, would you be buyers right now?

Q: Apologies in advance for yet another question on Lightspeed, and not sure if you caught Jim Cramer's show this evening, but he slammed Lightspeed - seemingly went out of his way, for a prolonged period of time - to embrace the short report as gospel, and to sell, sell, sell.

Obviously there will likely be an enormous hit in the morning. But in your estimation, is this game-over for this high-flier? The company turned down an invitation to defend themselves on-air, likely a wise choice given Cramer's current sentiment towards the firm, but given his wide appeal (and I'm assuming influence) is it possible to overcome this negativity? Or just wait, and the numbers will - or not - speak for themselves. I think I know you'll say that I answered my own question, but given this mess, I wanted your sound judgment.

Thank you as always...

Q: Between TOI and CSU, which one is better buy today in terms of long term growth/return and which one has lower risk?