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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 feel that management deceived their shareholders. "The Company has agreed to the buy-out of the contractual bonus compensation arrangements with the CEO". He took a huge payment. "These executives will remain in their respective positions, with current base salaries and benefits continuing, along with a new bonus plan." That is an outright lie. No sooner did he get his huge payment then the CEO announces his retirement. Really deceitful. Time to hang up on this company?
Read Answer Asked by Joel on March 16, 2020
Q: First off I just want to say thank you so much for your special report you issued last week. For a young investor like myself who has never been through events like we currently are experiencing your advice has been extremely valuable to help navigate these uncharted waters.

I have been sitting on some cash and would like to increase my technology (both Canada and the US) exposure as it is low right now. I am comfortable with moderate risk. I have a few questions on this subject so feel free to subtract as many credits as you see fit:
1) For Canadian tech companies, after reading your special report and the Q&A's, it seems you like CSU, KXS, DSG, and SHOP. Would you recommend buying these individual companies (or others?) or would XIT be a reasonable alternative with these 4 companies composing ~61%? Or is there another tech etf you would suggest?
2) For US tech companies (or any US company for that matter), with the Canadian dollar being low, would you recommend looking at specific US companies or a Canadian ETF that holds US tech companies? I am worried the exchange would eat into possible returns. Do you have any recommendations (e.g. I have seen you mention XQQ for an etf, SKYY highlighted in etfupdate, and companies like MSFT, GOOG, TEAM, etc)?

Thanks for all that you do.
Read Answer Asked by Justin on March 16, 2020
Q: I'm looking for some diversity in tech as well as yield, Cisco looks like a potential candidate. Considering the exciting times we just got into, would you see it as a solid buy if the yield hit 5%. I'm looking for good yield, good growth, low debt, and high cash. You know, the kind of investment we don't deserve.
Read Answer Asked by Larry on March 12, 2020
Q: Hi 5i Crew,
I have the funds to purchase a position in one of either NVDA, TEAM or TTD (in a fairly diversified portfolio). Considering the recent pullback and economic deterioration due to covid19, what is your take on these companies short and long term? Would it be prudent to jump in now with depressed valuations? Thanks in advance.
Read Answer Asked by Bob on March 12, 2020
Q: what opinion can u give on this company, it has grown in size rather rapidly and the nature of the business, would u buy into it
Read Answer Asked by richard on March 12, 2020
Q: Hello Peter and Team,

Like most others, I'm licking my wounds tonight and strategizing how I might eventually make back some of the ground I've lost today. Thank you for the updated report and shopping list suggestions provided.
As well, I was thinking that there may be some good recovery opportunities within electronic transaction companies. I realize that interest rates, volume of transactions, etc., are some of the factors that will affect valuations, but the corona virus could be a boost for these companies if more of the world's consumers (especially in developing countries) move to a cashless society. I read that China is burning or disinfecting a lot of their paper money to help curb infection spread. Do you agree with this thesis, and if so, could you suggest a list of companies that could benefit? Could there also be boost to bitcoin adoption? Thanks.

Brad
Read Answer Asked by Bradley on March 11, 2020
Q: Currently own some Kinaxis and Shopify, both about 2 percent each.
Would like to add more tech. Close enough to retirement that need more conservative stock. Is OTEX the best option here i.e. lower risk (with some dividend and reasonable growth?)
Can you contrast the two top choices?
Thank you.
Read Answer Asked by Tulio on March 11, 2020
Q: I would like to buy one more tech in my corp account. Your special report recommended DSG and I like that it has no debt and does not pay a dividend. However, the past, 5i has also stated that you would be most comfortable sitting and holding ENGH for the long term compared to other techs and I am looking at 10 years. I already have some LSPD, KXS and QST in the account and some CAE and LSPD in another account. What would you recommend for max tech in my single portfolio? Thank you!!
Read Answer Asked by Grant on March 10, 2020
Q: Acuity Ads down along with the market. Very small cap I can understand why.
There sales in my opinion are not virus or oil related and I see this dip as a buying opportunity. Your thoughts would be appreciated.
Also, in a prolonged economic downturn do they have the balance sheet capacity to "weather the storm".
Thanks
John
Read Answer Asked by John on March 09, 2020
Q: I have a question about Avalara after reviewing its Annual Report on line on its website. . The audit notes a Material Weakness in Internal Controls over Financial Reporting on page 70 - 71 as follows - "The Company has a material weakness as it does not have adequate controls to effectively design, implement, and operate process-level and information technology controls to sufficiently mitigate risks of material misstatement associated with certain complex business processes and changes in those processes or applicable accounting standards."
On page 68 - 69 is another note by the auditors to the Board on what they call "A Critical Audit Matter" regarding the audit of company revenues as follows - "The processing and recording of revenue, including interfaces between systems and databases, is both manual and automated, and therefore the Company uses a complex set of procedures and systems to generate complete and accurate data to process and record its revenue transactions." As a result much time was spent on verification and they had to bring in professionals with expertise in data analytics to assist with the audit.
I know Avalara is a young company, but should such warnings give me reason to not invest at this time?
Read Answer Asked by Dave on March 09, 2020
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