Investment Q&A

Q: Hi 5i,
I have been following Sierra Wireless since mid May when it reported results that significantly beat expectations. It has moved steadily higher and today on above average volumes, it was up 6.45% on a down day in the market and hit a 1 year high and closed slightly below this high. I am wondering if SW will be a big beneficiary of the Federal Governments initiatives for a new telecom framework for resiliency through mutual assistance and emergency roaming? Would appreciate your thoughts on this perspective and what other companies could be beneficiaries?
Thank you

Q: Good day ,
Do u guys plan on doing a report on this name any time soon ..,and in a years time do U expect this story to be much higher then it is today .. certainly tested ones patience owing names like this
Thank u
Mark

Q: Hi, ServiceNow stock, a large US Enterprise Digital Solutions provider company, dropped 12%, Today, after CEO's comments, last evening on Mad Money, warning about the macro headwinds faced by a continuously extra strong US Dollar, by Technology companies, particularly those with large enterprise customers, around the world. Some of the comments are as below:

" You’re at 41-year high inflation. The dollar right now is the highest it’s been in over two decades. We have interest rates rising. People worried about security. You’ve got a war in Europe. So, the mood is not great,” McDermott said in an interview that aired on “Mad Money” after the closing bell on Monday.

“You’re going to see the headwind of the dollar right now against well-known technology brands,” the CEO added. “No one’s going to outrun the currency right now.”

Shares of ServiceNow, which helps companies and organizations digitize their workflows, fell 13% on Tuesday after McDermott’s comments, which were meant as an overall industry observation, not ServiceNow-specific news due to the company being in a quiet period ahead of reporting its latest quarterly earnings on July 27. "

“When you think about energy, and the dislocation caused by the war in Europe, and this reprioritization I’m talking about, you’re going to see longer cycles [to close deals] in Europe. We saw that,” McDermott said. “But this doesn’t fundamentally change the narrative that tech is the only way to cut through the crosswinds.”

The reprioritization he’s referring to is the increase in demand for a fast return-on-investment — another symptom of cautiousness in the current environment.

“There’s a new level or prioritization in the enterprise. And I have seen this, actually since we last met, Jim, hitting a new gear. Where companies are first saying ‘which platforms do we want to bet on,’” and then try to sort their priorities, McDermott said.

“There’s one filter on all of this now. And that is fast return on investment. And if you can’t put an architecture in there that gives the customer a fast ROI, chances are, you’re going to get postponed,” he added.

Stifel said in a note on Tuesday that it believes the company is “likely” to lower their expectations when it reports earnings, citing McDermott’s comments on reprioritization. The investment bank also expects other companies across the industry to follow suit in the coming weeks.

There was chatter that Today's 4.10% decline in MSFT and 4.61% in Sales Force, which was ugly, was not company specific but in reaction to this macro warning,

Most large Technology will start reporting in a few weeks time.

Some strategists were seen on CNBC talking about the" Generals" being the last to drop and MSFT's sharp drop today was noticed by many.

Do you agree with above comments/sentiments ?

We are trying to assess, if these companies, in your view, are likely to be faced with similar headwinds - CSU ( worldwide revenues), TOI ( Europe) and SYZ ( >55% US rev ), for all those reasons. And if you think, they are not immune to this, is there any caution warranted, or is it prudent to reduce our exposure to a more reasonable level, at this time.

Thank You

Q: Which one will have the most bounce if market recovers, Jim Cramers said market will bottom tomorrow, your thought please , thanks

Q: These six companies comprise my “Small Cap Canadian Technology” holdings. As I like their long term prospects, I am content to hold all of them for their recovery potential over the next few years. However, I would like a second opinion from you: would you agree they are all good companies worth holding, or would you switch any of them out for better quality names? If so, what would be your suggested replacements and why?

Q: can you comment on dnd and acquisition offer being refused but looking for a higher price. how material is the deal to dnd's valuation. what do you see happening.

Q: Hello:

Wondering if TXF is beaten down enough to provide a good entry point. Is there a better ETF for similar exposure in CAD?

What are 5i's thoughts on HHL for weathering the next year or two with possible recession and general market uncertainties? I expect healthcare may see less volatility but would like your perspective, please.

Thank you for your great service!

Q: Thoughts on VQS?

Tks.

Q: I noticed LSPD is trading three dollars below it's book value. How should an investor take this as far as importance.

Q: SOXQ What would be your suggestion(s) of a proxy for a tax loss sale of this ETF?

Q: As a long term hold (5+ years), do you see one/both of these businesses as having strong growth potential? I hold small positions in each, and am looking to potentially add to one (or both). Thank you.

Q: I love NVDA but it just won’t love me back. Does it make sense to sell NVDA and buy AMD if it is only to harvest a tax loss that would only be used after 3 or more years? If yes, the idea would be to keep AMD i.e. NVDA would be bought back only if it remains in the doldrums after 30 plus days, failing which keep AMD for long term. (2) Would you in fact buy AMD or do you have another semi you prefer?

Q: Hi there, I'm thinking of adding the following stocks to my portfolio to make up a total of 3% to 5% of my overall holdings - so a relatively small amount overall. Can I please have your thoughts on them and if you'd rate them as buy, sell or holds? And if sell or hold, which names would you replace them with?

Thank you!

Q: Hi Peter/Ryan, I have $1000.00 I can invest in my TFSA and was considering adding to either my 15 shares of NVEI or my 75 shares of SHOP. Is it a good time to add to these and which would you be more likely to add to at this time. Thanks

Q: Dear Peter et al,

Your answers seem to indicate that the bottom is near but will take sometime to get up to speed. You seem to suggest that a 3 to 5 year time horizon is a reasonable time frame to expect a recovery. (I am paraphrasing here!)

With this in mind which group of stocks would you choose. ARKK or FAANG group. I see that ARKK doesn't have the big names in FAANG except TSLA which some people don't include in FAANG!

An impressive bounce in ARKK , almost 10% makes me ask this question.

Q: Dear 5i team.

I'm taking another look at QTRH, but I'm confused by the last year or so of Q+A.
In the latest Qtr, they reported what looked like breakout numbers. But, as I look fwd to next qtr, revenue goes back close to previous running rates. Can you explain what's causing the lumpy numbers? (did they sell wilan?)
In previous questions I believe the estimate was 1.50/share in cash? Is this still the case? If so, at 1.75 today, looks like a screaming buy with a 2.5% yield. What am I missing please.

Many thanks for your help.

Q: Could I please have your thoughts on an article in the Globe and Mail (july 4)with regards to CEO compensation in particular Shopify CEO with more than $25 million in salary and another $25 million in stock options in a year when the stock has lost 75% of its value. On a positive note I see CSU Mr. Leonard still owns more than 1 billion dollars in stock with no stock options.

Q: Just curious your thoughts on getting tech exposure. Could you please provide your preference (not individual names) on a basic etf like TEC or the covered call strategy? Pros and Cons of each one if you could please.

Q: If you go back in time anywhere from today to a few months, a lot of stocks have a previous low whereas with NVDA and AMD it is not the case, they continue to make lower lows for a lot longer than a few months ago. Have you got a reason why? SW has been performing very well for quite some time but I didn't buy it because 5i has not been too fond of it. Is this still the case? Thank you

Q: Good Morning. In your response to Mike this morning you stated: "NVEI is slightly cheaper than a large-cap tech name such as GOOG (one of IYW's top holdings), but NVEI has a much stronger growth profile, but at the cost of longevity uncertainty." Did you mean that NVEI has a much stronger growth profile than GOOG or IYW ?
Thank you,
Dennis