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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: Management is considering a spin off. Ranges of values are provided. If they do this what would you expect the spin off to trade at and what would the trading value of BAM be after spin off. What % would the sum of the parts be above the current trading value of BAM pre spin off.
Read Answer Asked by Doug on February 16, 2022
Q: Hi 5i Team. I am just saying thanks for your advice over the years. Diversification in point. I once subscribed to an online investment advice site by G.P. called IWB. It has some very good portfolios, but I think one good lesson on diversification will be in one IWB portfolio i.e., the Growth Portfolio where it often boasts of huge double digit returns since inception but never on an annual basis. Its Growth portfolio has 8 stocks with about 51% Tech and 38% in just two i.e., SHOP (23.5%) and ARKK (14.5%) as of Feb 2021. Yikes. I stopped keeping track about 6-months ago but an update is due this month (maybe in the G&M). It will be interesting to see if diversification is mentioned in the next update. In fairness, the IWB does warn of the risk of investing in the growth portfolio, but it seems your growth portfolio is much more diversified and reporting annual performance is very helpful. Thanks again. Please publish if you think useful.
Read Answer Asked by Danny-boy on February 15, 2022
Q: What are your thoughts on acuity ads at this time. I believe it was set up to do well but didn't live up to expectations?

Through my current business i know understand what they do and it is a very interesting space in which i could see a lot of growth potential.

Thanks.
Read Answer Asked by Colin on February 15, 2022
Q: I went back to Constellation Software’s old reports to compare results to Topicus’ current results. Constellation had similar revenue ($891m USD) in 2012 to Topicus in 2021 ($846m USD).

Here are the revenue growth rates for those years:
CSU : 15%
TOI: 50%

Here are the acquisition amounts in those years:
CSU: $141m USD
TOI: $385m USD

By the numbers, it would seem that Topicus is significantly more aggressive in terms of growth by acquisition than Constellation was when it was the same size back in 2012.
My question is can Topicus keep this rate of acquisition up over the next five years or so, or are they picking off the low hanging fruit and things will get much more difficult down the road? Thanks
Read Answer Asked by Michael on February 14, 2022
Q: DND has taken on debt for acquisitions. Is there a legitimate concern that anticipated profit may not materialize, setting up a potential death spiral for the company? Quite separate from the general tech meltdown, would this concern explain some of the profound share weakness in the past few weeks? We have seen this scenario play out with other Canadian companies that over-payed for acquisitions that did not generate the anticipated profit, costing equity holders dearly.

Thanks.
Read Answer Asked by Joel on February 14, 2022
Q: Hi Peter and team,

Do know where I can find institutions, such as Canadian Pension, etc, are buying LSPD or any other stock at current level? I heard some institutional buying LSPD, could you please confirm and have more information and list a few of such buying?

Thanks a lot
Read Answer Asked by Jinlong on February 11, 2022
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