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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: Hello, I note that you have recently had quite a number of questions about CSU. I am interested in knowing what 5i's thoughts are regarding the recent very strong stock performance. "Why has the stock price increased so dramatically" is my question. I realize it had a good recent quarter, however the price often settles down after a bit with most companies. Not CSU this time though.
Read Answer Asked by Bob on May 04, 2023
Q: Hello 5i, I know you like CRWD as a cyber security company. Over the last 3 years FTNT has increased by 190% whereas CRWD has increased by 61%. I know that past performance is not a guarantee for the future, but if you had to buy just one today which one would you buy? Would you sell CRWD and replace it by FTNT? Thank you
Read Answer Asked by Gervais on May 04, 2023
Q: Hello, Thanks for your response to Bill's question on May 2nd. Just to add - If the Hedge fund mentioned is Blacksheep Fund Management Ltd. Between March 24-27, this hedge fund had already acquired 6.1 mln shares of Lumine Group (9.6% of subordinate voting shares) and on March 28, purchased additional 753k shares, in the market at an average price of $14.66, increasing their ownership to 10.79%, triggering a full public disclosure. It is possible that, during the initial 3 days of listing, while Vanguard and other ETF's were offloading LMN shares, Blacksheep was building up this position.

This situation, to me, looks similar to TOI, when another Investment Group AKRE Investment built a large position in TOI, during initial weeks of its trading ( $74 ). AKRE, I believe, continues to be the largest public Institution/Fund owner of Topicus.
The difference is that while AKRE is a very large Investment group, Blacksheep, appears to have a fairly modest AUM ( $500 mln appx ), so LMN position could be a significant holding for them. (13F for March 31, not verified)

Here is the NR from Blacksheep of April 6, 2023.

" DUBLIN, April 6, 2023 /CNW/ - Blacksheep Fund Management Ltd. ("Blacksheep") announced today that on March 28, 2023, Blacksheep, in its capacity as investment manager on behalf of Blacksheep Master Fund Ltd. (the "Fund"), acquired (the "Transaction") an additional 753,130 subordinate voting shares ("SVS") of Lumine Group Inc. (the "Issuer").

Immediately prior to the Transaction, Blacksheep, in its capacity as investment manager of the Fund, had control or direction over 6,114,274 SVS, or 9.60% of the issued and outstanding SVS (assuming 63,671,170 issued and outstanding SVS), all of which were beneficially owned by the Fund. Immediately following the Transaction, Blacksheep, in its capacity as investment manager of the Fund, had control or direction over 6,867,404 SVS, or 10.79% of the issued and outstanding SVS (assuming 63,671,170 issued and outstanding SVS), all of which were beneficially owned by the Fund.

The SVS purchased in the Transaction were acquired in market transactions on the TSX Venture Exchange at a price of C$14.66 per SVS for an aggregate purchase price of C$11,041,036."
Read Answer Asked by rajeev on May 03, 2023
Q: Please comment on the review from a new book from Michio Kaku and how the coming of quantum computing would affect companies in the SOX index such as NVDA. Are there any public or private companies at the forefront of this advance?

"The runaway success of the microchip processor may be reaching its end. Running up against the physical constraints of smaller and smaller sizes, traditional silicon chips are not likely to prove useful in solving humanity's greatest challenges, from climate change, to global starvation, to incurable diseases. But the quantum computer, which harnesses the power and complexity of the atomic realm, already promises to be every bit as revolutionary as the transistor and microchip once were. "

Apparently the auto industry and medical research areas are already using it.
Read Answer Asked by Jeff on May 03, 2023
Q: Does the earning real ease by Qualcomm suggest that there may be a slowdown with Broadcom that reports later? Do you view Broadcom as a hold, buy or sell? And, would you consider a switch to AMD that had a significant drop is it’s share price today? Which semiconductor stock (Broadcom or AMD) is a better buy right now especially given potential growth in the future due to AI?
Read Answer Asked by Gerry on May 03, 2023
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