Investment Q&A

Q: For a new purchase of CSU is it better to wait till after the Tropicus spin out in order to avoid the dividend tax hit from the Spinout? Then buy both companies in the market.

Thanks.

Q: What are you thought on Suncor? What are your mediumand long term thought on the industry?

Q: Hi 5i,
Will the CSU spin out of Topicus be a taxable event? I hold CSU in a taxable account with an as yet uncrystallized capital gain. I would prefer it if there were a way for me not to have to take the entire capital gain in the current tax year. Thanks.

Q: Hi 5i:
The quote about Latin America below is from today's Washington Post. Given that dire analysis, can you advise how you think the situation in Latin America will affect BNS's overall business, its share price and ability to cover its dividend for the foreseeable future.
"In Latin America, the economic disaster may be just as acute, if not more so [than in other hard hit places such as India]. Leading U.N. officials warn of a “lost decade” in the region, with spiking poverty and entrenched recessions. The ILO [International Labor Organization] pointed to a “stimulus gap” between rich and poorer countries. “Just as we need to redouble our efforts to beat the virus, so we need to act urgently and at scale to overcome its economic, social and employment impacts,” Guy Ryder, the ILO secretary general, said in a statement. “That includes sustaining support for jobs, businesses and incomes.”
Thanks,
Peter

Q: Today I believe is Bam.a investor day .Have we learned anymore about why this name should be owned .The stock has been very disappointing .

Q: hi folks:

this might be a big ask, yet do you know what percentage of this asset (BAM) is exposed to 'big city' real estate ie. new york, toronto etc

been watching both BPY and BAM underperform and i wonder if it is partly/solely due to the underlying exposure to big city real estate

current prices of those assets (BAM, BPY) may not be fully reflected in the share price (ie. down)

thanks as always

Q: Hi Folks,

Looking for your sage opinion please. I've owned CCL Industries for a few years and have done very well - up about 150% in a taxable account (thanks for making me aware of the company years ago). It's not a big holding (2.5% of my equity portfolio). CCL.B seems to be struggling and at one point I was probably up closer to 200%.

My question is should I lose confidence in the company at this point, sell the shares and pay the capital gains tax (I have a fairly low marginal tax rate right now), or should I hold? I do note CCL.B has the early appearance of turning the corner to better results.

Thank you for your opinion and also for the significant investment gains I have made for several years now with 5i's support. Because of you I have done really well on CSU, SHOP, FNV, WSP, ATD.B, IWO as well as others.

Michael

Q: I own LSPD which I understand to be point of sale provider to retail, golfcourses, and restaurants. What advantage do you see they have going forward over Square, Touch Bistro, and Shopkeep? What tailwinds and headwinds do you anticipate?

Q: I just read an article on China’s Aging demographic causing a market for in home elevators.(Mobility). Would Sis be positioned for this or are their present China market opportunities too small too make a substantial change in their Overall sales. I’m looking for plus growth companies that have a solid base. Thanks
Terry

Q: By mistake I used US dollar to buy CSU, it now shown in my US investment account. Do I need to do anything with CSU , ( sell then buy in Canadian account ? ) regarding to the TOPICUS spin out. Thanks for your excellent service.

Q: I already own DOO, GUD, KXS, LSPD, PHO, REAL, STC and XBC from your growth portfolio. If i would buy 5 more titles from this portfolio during this fall, which one would you recommend the most regardless of sector concentration? I own other titles in different sectors.

Is there any titles we are better to wait before entering. For exemple, QST looks really cheap, but only going down since june.

Q: Hello,

Parkland issued a news release relating to "on the run" license purchase for use in most of the US. Can you explain in simple terms what benefit accrues to PKI and who holds/held the rights prior?

Q: In the balanced portfolio, there are 25 Companies. Of these companies, which do you anticipate raising or restoring their dividends, and which companies do you feel are ripe for M&A, either way, to buy or be bought?

I see that TFII has been active, as well as SIS raised the dividend by 4.3% yesterday.

Thanks for taking the time to provide the insight.

Q: With very low interest rates forecasted for the next 2 or 3 in North America, what is the growth prospects for this company?
Thanks again for the great service!

Q: Hi,
I'd like to know how you would view debentures on SHOP, how the balance sheet is holding up and where the estimates for revenues going forward are. I am concerned about today's drop and whether or not it is worth holding, or ditching prior to the announcement regarding price for the secondary issue and debentures. Is there anything about SHOP I am missing here? I'm kind of curious as to why it has experienced a 22% decline in the last 3 to 4 weeks, when the tech sector in Canada is down just over 11% in comparison - does this indicate SHOP is falling out of favour compared to its peers? I noticed that in the US, ETSY has had a similar drop, but AMZN, EBAY are less. I had been under the impression that with SHOP's recent work with WMT and many small businesses moving online recently any pullbacks would be less, but maybe SHOP is just that volatile? As always I appreciate any thoughts or comments you have.
Dawn

Q: PHO has just added a South Korean partner. Is this a tuck-in or a meaningful addition for PHO which seems to be languishing since reporting its earnings ? I always appreciate your advice.Thanks
Dave

Q: In your response to Leonard today regarding the potential CSU spinout of Topicus you mentioned that CSU shares will likely drop to reflect the value of the spin out. Does that imply that shareholders of CSU would receive shares of Topicua? Thank you.

Q: As per my portfolio analysis I have reduced my position in tech and industrial. One area Where I don’t have an investment I.e. communication services I’ve taken A partial position in BCE. I need to add health care. What is your opinion of the above? What would be your top pick in this area.

Q: Hi, Any insight into pricing of 1.1 miliion shares secondary of common shares and $800mln convertible notes offering by Shopify ? Thanks

Q: Two part question about CSU: some time ago there was an announcement of a transaction where a company acquired by CSU would be "spun out" to CSU shareholders. Can you provide details of what is to happen? when is it to happen? do you expect CSU's share price to decrease as a result? What tax consequence will there be to CSU shareholders?
Secondly, I recently read the following:
"Our Strong Sell is based on our conviction that it
is difficult to create shareholder value by
continuing to add shrinking legacy software
businesses to 100’s of other shrinking legacy
software businesses. With organic topline
contraction and fading operating leverage, we
see CSU’s “never-ending roll-up” finally hitting
hard limits. In our view, CSU is too reliant on the
assumption of customer stickiness for legacy
apps with expensive support contracts in
dozens of niche/vertical markets. We see these
apps increasingly dislodged by less expensive,
more inherently agile, cloud alternatives. A
Covid-19-driven economic downturn would
likely intensify this competition, as it is our
experience that, rather than preserving the
status quo, tough times drive customers to
overcome inertia and accelerate paradigm
shifts in enterprise IT."
What is your assessment of this?
Thank you for your excellent service.