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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: I am considering the above companies. Are there any that you would not purchase at this time. Would you kindly order them in terms of quality and potential growth.
Read Answer Asked by Catherine on September 14, 2023
Q: Hi 5i,
Thanks for the great work. Can I ask your opinion on Tiny in the small cap space (https://www.tiny.com/)? Recently I've seen a number of articles highlighting the business as a Warren Buffet/Berkshire approach for 2023 with a focus on tech and software.

Thank you in advance!
Read Answer Asked by Greg on September 13, 2023
Q: Good morning, I hope you and the office are enjoying the last full week of summer. I would like your 30+ years of insight on this "largest monopoly trial in modern era" with the DOJ and Google. Is this something to be concerned about? Haven't we been here before ?

Thanks
Read Answer Asked by Kolbi on September 12, 2023
Q: Am looking at adding some QQQ (or similar) in my TFSA but am wondering if now is the best time. Also, I am not as familiar with Invesco and usually go with iShares. They have XQQ but it is in Canadian dollars and hedged. Would IYW be similar to QQQ? Are you quite comfortable with QQQ? Would you be able to suggest an entry price for whichever one you recommend? Thank you.
Read Answer Asked by Kim on September 11, 2023
Q: Hi 5i, and would welcome your review of the recent Quarterly results from SentinelOne, and whether you would consider it as a buy/ hold/ or sell. Do you see any red flags or concerns with the future business prospects or in achieving their march to eventual profitability, and the merits as a long-term hold and any competitive advantage that they may hold in the cybersecurity space. Thanks kindly.
Read Answer Asked by Michael on September 08, 2023
Q: I believe rates in Canada have hit their ceiling, alternatively the consequences get dire for many reasons. With this belief what would be your top 3 stocks for the next 12-24mths, particularly as rates begin to decline. Thank you as always.
Read Answer Asked by Chris on September 07, 2023
Q: Is AAPL price expected to fall further? I sold off 10% a week ago. It went back up to $189 but down again 4% overnight to USD 176 due to China not approving iPhones as work phones.

Would it make sense to sell AAPL stock now and buy it again when the price stabilizes? What would be a decent entry price for AAPL?
Read Answer Asked by V on September 07, 2023
Q: Good morning 5i,

I’ve been reading up on the Telesat/MDA story and find it fascinating. I wonder if it could also be lucrative for a small investor such as myself?

From reviewing the financials (to the limited extent I understand those documents) and other materials relating to MDA, my impression is that it presents a real investment opportunity. It does real business and it appears from its recent contracts that its revenues over the next few years could rise significantly. At its current revenue base it appears its debt is well covered and its balance sheet looks healthy.

Telesat, to me, is less clear. It seems the recent announcement that MDA will build the satellites for the Telesat Lightspeed project at significant savings to the previous plan is propelling the recent steep increase in share price. But beyond that euphoria, is the company on solid footing?

The MD&A of March 2023 states:
“After decades of developing and successfully operating our geosynchronous orbit-based satellite services business, we are now poised to revolutionize the provision of global broadband connectivity by developing what we believe will be the one of world’s most advanced constellations of LEO satellites and integrated terrestrial infrastructure, Telesat Lightspeed.
Leading into 2023, we remain focused on increasing the utilization of our existing satellites, the development of our global Telesat Lightspeed constellation, and identifying and pursuing opportunities to invest in expansion satellite capacity all while maintaining our operating discipline.”

Nowhere though have I been able to find any prediction of the revenue that will accrue to Telesat from deployment of the Telesat Lightspeed constellation. A service I subscribe to notes that future earnings can’t be reliably calculated by extrapolating past data or using analyst projections (there aren’t any) and it doesn’t look like management has offered anything either. Who are Telesat’s customers and what are they going to pay for getting aboard the Lightspeed train?”

Telesat’s balance sheet appears highly leveraged and its debt isn’t well covered by operating cash flow. If Telesat Lightspeed is a truly transformational project I’d have expected to see something, somewhere, discussing the money it will make for Telesat and how it will reduce the debt and increase shareholder value, but as far as I can tell – nothing but crickets.

I would greatly appreciate your advice regarding MDA – are there risks/concerns that I might be overlooking?

Regarding Telesat, do you know of any revenue projections that I’ve overlooked and, if not, is it odd none are being made? Also, any other comment you have regarding Telesat would be appreciated. Is something really big about to happen here? It seems the process should be far enough along, given that billions of dollars have been committed by lenders, governments and the company itself, to answer that question. But maybe not, and maybe it's all still highly speculative ...?

Thanks, 5i, and please deduct as you see fit.
Peter
Read Answer Asked by Peter on September 07, 2023
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