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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: TFII: a lot of debt., low PR @ 25%, excellent ROE of approx. 22%, diversified company. I own nothing in this space. Everything is up a lot this week - who would have figured with all the negative media news (what's new)? They report later this month. I do not know a lot about this company? I assume transportation of goods, courier services etc.? Low fuel prices is certainly helping their bottom line as this would be a huge expense. 1000 shs would be a full position for me - maybe buy 500 now? Is the dividend safe (high debt.)?
Read Answer Asked by James on April 13, 2020
Q: Hi

I know you have recommended this in the past based on valuation and it has recently rebounded almost 100% off the lows.

As someone with a 5 year+ time horizon, but concerned about capital preservation, is this a good place to be right now

My concern is that if people are struggling to pay bills, rent, buy food, these loans will fall first.

A secondary concern given the present environment is government intervention to reduce the interest rates GSY can charge which would fundamentally impact the business.

Thoughts?
Read Answer Asked by Justin on April 13, 2020
Q: Considering a 5 year time frame, what would be your allocation toward cdn oil (xeg), cdn ag (ntr), utilities (zwu), fixed income (hfr) and US (zwa & xqq). Above average risk tolerance seeking yield and capital gain. Are there any other suggestions....LSPD would also be a holding. thanks.
Read Answer Asked by Curtis on April 09, 2020
Q: Hi,

I am trying to wrap my head around Shopify.

With all the craziness in the market due to COVID 19, how is it that this stock has held up.
It is up 12.7% YTD and a return of 118% in one year.

What is so special about this stock that it’s held up so well while other stocks within the same industry/sector are down 50%-60%.?

Thanks,
Read Answer Asked by ilie on April 09, 2020
Q: Based on the following from G&M today, and my horizon of 5+ years, can I have your opinion on continuing to hold:

"NFI Group Inc. (NFI-T)

On March 25, Adam Gray, who sits on the board of directors, invested over $10-million in shares of this company. He acquired 1-million shares at a price per share of $10.85 for an account in which he has control or direction over (Coliseum Capital Management LLC), raising this account’s holdings to 3,206,246 shares.

On March 25, director and the company’s former president and chief executive officer John Marinucci invested over $105,000 in shares of NFI. He bought 10,000 shares at a cost per share of $10.51, lifting this account’s position to 145,500 shares."

Thx
Chris M
Read Answer Asked by Christopher on April 08, 2020
Q: please list your 5 favourite Canadian moat stocks with strong balance sheets list your preferences in order of one to five thanks Richard
Read Answer Asked by richard on April 08, 2020
Q: Hello,
What are your thoughts on a comapny like GDI at a time like this? On an up market day like today the stock had no movement (which may be a good thing as it may not be correlated to the market). Do you think they could have liquidity issues? I am starting to buy this slowly. DO let me know your thoughts. Thanks.

Regards,

Shyam
Read Answer Asked by Shyam on April 08, 2020
Q: Hello 5i Team !
I received today a Management Information Circular of the TSGI and Flutter Entertainment PLC all-share combination and Notice of the special meeting. My worry is if I keep my shares in TSGI, I will receive 0.2253 of a Flutter share for each Common Share I hold at the time of completion of the deal. If I want to sell my new Flutter Entertainment shares in the future, which trade on the London Stock exchange, it would cost 125 $ and up to sell these 135 shares. Should I sell my TSGI shares before the closure of the deal and buy a similar company such a Great Canadian Gaming (GC-T) or which ever company you might recommend ?

Stay safe and thank you for your sound advise.

Elaine
Read Answer Asked by Elaine on April 07, 2020
Q: What do you think of today’s press release regarding further share dilation? Do you think they might have a big acquisition up their sleeve? They had 23 M in cash at Jan 20 and now they are doubling their cash balance. It’s frustrating to see stock issued at such a low price considering a little over a month ago the stock was $10.
The company appears to be consistent with their dilution. Is this someone that we should consider with regards to selling?
Any thoughts or how you view this as someone who has been in the business a while would be great. Thank you.
Read Answer Asked by Ken on April 07, 2020
Q: I’m so thankful to be able to call on your expertise, perhaps you can give me some guidance. Your service lead me to purchase several thousand shares of Boyd at a price in the teens for which I am great full. With the deemed sale at $202, and sizeable taxable cap gains. Would it be to my advantage to sell shares now at around $137 a share, take the loss, raise some cash for my war chest and repurchase Boyd when I feel comfortable with the economy? You may tell this is a question for my accountant but I would be interested in you take.
Read Answer Asked by David on April 06, 2020
Q: I starting purchasing LSPD last August and I have continued up until late last week. My average price is close to $32.

The question that I have to myself is: Do I double down or hold - I am not interested in selling. I had a full position 30 days ago but it has been reduced by more than 50% this past 30 days.

After rereading your answers, looking at LSPD website and news feeds. I gathered and summarized the information below.

Money in bank - lots - greater than $300 million - NO Debt!
15 years of cash at current spending rate.
Large institutions bought at $37.30.
IPO $16.00

Last quarter financial information.
Revenue was a slight beat at $32.8 million.
Met ebdita projections with a loss of $5.25 million.
Book valve is $2.35.
Growth was above 60% yoy to plus $32 million.
Recurring revenue was growing at 58%.

Institutional investors have 49% of the float, with Caisse owning 37%.
They have business in more than 100 countries.
There will be less restaurants in future, maybe 20% less.
The restaurants that are remaining will be financially stronger and have less competition. They will seek out SaaS that can reduce operating expenses while increasing revenues.
Lightspeed has good management.
It is a long term hold for me - 2 to 5 years - maybe forever.
Lightspeed has less than 0.1% of market, I like growth companies.
Lightspeed retailers grew over six times faster than industry average.
Products by Lightspeed: Retail, eCommerce, OnSite, Restaurant, Delivery and Loyalty. Also Lightspeed Payments. Rolled out #lightspeedlocal

They recently bought: Gastofix (Germany), Kounta (Asia Pacific), IKentoo (Swiss) and Chronogolf (Montreal),

A few competitors through a google search, of which I don’t know whom will survive due to many reason ( like lack of money): Shopkeep, Revels, Toast POS, Touch Bistro, Sapaad, Cake, Springboard, Square, Vend, Upserve, Lavu, Clover, AccuPOS, Harbourtouch, POSguys, Touchsuite, ) these are some of the top 20.

Strengths: the bank account; they don’t have to worry about paying operating expenses for many years due to its financial strength; significantly more room to grow; Quebec pension company support and Quebec government support; their source of revenue is across the world; good management; the good management will quickly use its financial strength for growth; growth into other areas that have weak or low market share systems.

Weaknesses: their competitors may have deeper pockets and will grow more quickly dwarfing LSPD and the other competitors; no sales people; how much of their current POS businesses will not be in business in 90 days; others?

That being stated I plan on doubling down in the next 4 weeks by buying when stock in under $13.

Am I missing anything?

Clayton
Read Answer Asked by Clayton on April 06, 2020
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