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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: Good day,
I own NVDA, which is down quite a bite, as is the case with all tech stocks. However, I came across this report in Entrepeneur which I thought was worrisome. Now, I know nothing about this magazine. I'm wondering if you might comment on it. I noted that you did answer a question on November 23 that partially addressed these issues.

"For the fiscal 2023 third quarter ended October 30, 2022, NVDA’s revenue declined 16.5% year-over-year to $5.93 billion, and its gross profit fell 31.4% year-over-year to $3.18 billion. Its total operating expenses increased 31.4% from the year-ago value to $2.58 billion, while its non-GAAP operating income declined 54.6% year-over-year to $1.54 billion.

In addition, NVDA’s non-GAAP net income and non-GAAP EPS decreased 51% and 50.4% from the previous year’s quarter to $1.46 billion and $0.58, respectively.

In terms of forward EV/Sales, NVDA is currently trading at 13.43x, 420.8% higher than the industry average of 2.58x. Its forward EV/EBITDA multiple of 58.10 is 364.6% higher than the industry average of 12.51. In addition, its forward Price/Sales ratio of 13.47 is 429.4% higher than the industry average of 2.54.

Analysts expect NVDA’s EPS to decline 39.3% year-over-year to $0.80 for the fourth quarter (ending January 2023). Its revenue estimate of $6.02 billion for the current quarter is expected to decline 21.2% year-over-year."

Thank you for all your excellent work.
Read Answer Asked by jeff on January 09, 2023
Q: Hi and Happy New Year!
question 1: We've managed to get through 2022 with about 25% cash on hand and are starting to deploy it now. Mostly choosing dividend paying stocks that are in the favoured industries (defense and industrial) at the moment, but also looking at some long term holdings that are below water in registered accounts, such as GOOG. I know you're not fans of adding just because a stock is down, but would GOOG be an exception, given it's moat, cash flow, etc? I am guessing it needs to confirm a double bottom, possibly get back above 95.00 in order to look like it might be turning. Would that be a plan, or is it time to just buy it now? Growth investor, able to withstand higher risk. Own AAPL, MSFT, and sadly still holding CRWD.

Question 2: is the recent downgrade on MSFT reflected accurately in the price, or has that been overdone, do you think? The downgrade by UBS indicated a shift to neutral with a target to 250 or so, I think.

Thanks for the infinite patience you exhibited over the past, very difficult year!

Dawn
Read Answer Asked by Dawn on January 09, 2023
Q: Hi Team,
My thoughts are on what to do with a portfolio that was caught "tech heavy" before the recent fallout. My opinion is...that if the holdings were "winners" in the previous environment, and will survive until the next cycle up for the sector happens, then at this point it is best to just hold on to the positions, as opposed to try to sell for big losses and diversify at this point when the entire portfolio fell 50% in 2022. My hopes are to wait for a big recovery in my holdings at least somewhat...then after that diversify to more appropriate levels. Am I wrong in this thinking? Tough call I know...but what do the odds point to here? Thanks!
Read Answer Asked by Shane on January 05, 2023
Q: Good morning, Can you see a turning point after bottoming out for growth stocks of this nature this coming year for company's like Shop, Nuvei and Lighrspeed, just to name a few, thanks?
Read Answer Asked by Pat on January 04, 2023
Q: I currently have the following positions in the "FAANG" stocks: GOOGL (5%), MSFT and META (each less than 2%), AAPL (less than 1%).

Not interested in NFLX since I already have positions in DIS and ROKU, but I'm open to AMZN (although I have a small position in SHOP, less than 2%).

I want to reduce the number of stocks I own, so I'm looking to consolidate my FAANG positions. In what order would you rank the FAANG stocks at today's prices for potential future returns?

I have a long time horizon (decades) and a very diversified portfolio, so not worried about short-term declines in share price.
Read Answer Asked by Patrick on January 03, 2023
Q: Merry Christmas and Happy New Year all at 5i
This is another crystal ball question. I have a sizable loss on Shopify and today is the last day to claim it for this year. I am caught in the headlights a bit, though, thinking that January could be a very good month for stocks and that i would be better to wait until towards the end of January. What kind of chances do you give it for rising a lot in January?
Thanks
Read Answer Asked by joseph on December 28, 2022
Q: Hi 5i,
I’m working through an audit of my technology positions for year end. Would you rate each position as a buy, sell or hold for your own portfolio today?

Thank you!
Read Answer Asked by Greg on December 22, 2022