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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: A recent article in the Globe was citing an RBC analyst as saying it was time to go underweight on tech stocks.
I have the following weightings in my portfolio -
ENGH - 6% ; SYZ, KXS and DSG 4% each.
Do you see any of these as being seriously overvalued? I have very good gains on all and have taken profits on all except KXS as they have moved up.
Any comments are appreciated.
Read Answer Asked by Robert on April 13, 2018
Q: Hi team,
It looks like questions are slowing down these days with the volatile markets so I think it is time for me to use another credit. I am a tech guy and read your answers on SPOT with interest. I am tempted to pull the trigger but have been holding back. Years ago, I held Netflix but sold out way too early as the earnings and subscriber metrics were all over the map (look where it is today). The main problem I had with Netflix was that it was paying all these movie/TV companies for access to content. These days it is creating its own movies and TV series and now has some control over it, despite the billions it is spending on it each year.

I have the same issue with SPOT but more so. SPOT has to pay all the musical artists in order to broadcast their songs. How can SPOT overcome the content hurdle like Netflix is doing? I can not see it hiring bands to compose songs and hope the songs become popular.

In your SPOT answers you say it is a sitting duck for NFLX and maybe DIS, AMZN, GOOG, AAPL and others. I was really surprised by the takeover spin as you have never in the past offered that up as a reason for purchase a stock.

I am confused on your buy thesis for SPOT.

Thanks again,
dave
Read Answer Asked by Dave on April 13, 2018
Q: Good morning5i team,
I am thinking about buying Amazon, especially following the positive way in which you view it. I am wondering about the timing, though. I noticed on a number of questions recently asking about the best US stocks to buy at the moment, that Amazon is not on that list. With it's recent fall I am a bit surprised by that. Is there something in particular about Amazon at the moment that would prevent you from adding it to such a list?
thanks
Read Answer Asked by joseph on April 12, 2018
Q: I have US $ Portfolio: FB,SHOP,CGNX,AMZN,NVDA,SQ,NFLX,MA.
Yesterday I sold all of CCGNX because of down trend and Dead cross on
EMA50 & EMA200. I have around 20 K US$ from the sell.
Please suggest some some US stocks to replace CGNX that you would buy
right now or should I wait for change of trend to up to repurchase CGNX.
Andrew
Read Answer Asked by Andrzej on April 11, 2018
Q: Kulicke and Soffa KLIC.us, a provider to the Semiconductor industry, looks interesting. I wonder about its vulnerability to cheaper imports. Does KLIC have a domestic SERVICES business insulated from foreign companies? Does it have good free cash flow and manageable debt? Is KLIC subject to cyclicality as extreme as foundries are? I hold LAM Research LRCX so would I be duplicating with KLIC, do you think?
Read Answer Asked by Adam on April 06, 2018
Q: Hello,
At some point 5i seems to have changed direction with Amazon. Earlier on you thought the p/e ratio was just too high. For instance, this was your objection to buying Amazon in July 2014:
5I RESEARCH ANSWER:
We think Amazon is a great, well-managed company, with excellent potential and a solid niche that it continues to develop. Clearly the leader in the space, it further consolidates its position nearly every day. It has $5 billion net cash. We like the 'company' for sure. However, the stock trades at 279 X forward earnings estimates, and we simply cannot get our heads around its valuation. It is a high beta stock, but this year the market is up and it is down 12%. We think there are better growth companies to own.
According to Yahoo Finance the P/E ratio is higher now than it was then. I am interested in buying Amazon amidst its current troubles but the cost really makes me question that decision. I am curious as to what exactly were the elements that brought 5i to become much more favourable towards buying Amazon?
thanks
Read Answer Asked by joseph on April 05, 2018
Q: What do you think about Fisker and its new battery ( is it true ? ) Its a private co so far any rumor of an IPO ? Thanks
Read Answer Asked by Deborah on April 02, 2018
Q: I am reaching for YIELD and at 9% the yield on QYLD is very appealing.
If the tech sector falls out of favour and drops like FaceBook did this week, what are the implications for the dividend? Would the share price drop too?
As a long term "HOLD" I can live with a lower share price because it would most likely recover over time.
But what about the dividend? Can I count on it holding at current levels or possibly even increasing?

Thanks.
Read Answer Asked by Donald on April 02, 2018
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