Investment Q&A

Q: HI PETER AND STAFF:
I AM HOLDING SOUTHERN PACIFIC RES. CORP-STP-AND PRESENTLY SHOWING A LARGE LOSS. IS IT WORTHWHILE KEEPING THIS COMPANY OR SHOULD I TAKE MY LOSSES AND SELL?
ALSO, DO YOU KNOW THE CANADIAN COMPANY THAT MAKES THE CHIPS FOR CREDIT CARDS AND/OR THE CREDIT CARD READERS? THE USA IS NOW INTRODUCING CREDIT CARDS WITH CHIPS. PRESUMABLY THERE WILL BE
A LARGE DEMAND AND SUBJECT COMPANY MAY BE DOING WILL.
THANKS FOR YOUR REPLY.
KLAUS SCHMIDT

Q: Hi Peter and Team,

What are your thoughts on Sierra Wireless, SWIR. Seems they could be the go too company for the Internet of Things, similar to Cisco was with networks.

Q: A new company called slyce (slc-x) going to start trading on venture soon. There probably isn't much to go on from a numbers perspective and I certainly appreciate the risks involved with such a new unproven company but still curious about your thoughts on its imaging technology app and how you think it might be received by retailer community. Thank you.

Q: Hi Team..Peter - I do hope you are mending. I have sent in a contribution to your cancer ride and have my fingers crossed for you.
First question; I would like to increase my Info Tech holdings to be about 15% of my stock holdings. I own DH Corp, Enghouse, Constellation, Syologist and Avigilon all adding up to 11.6% of my entire 3 PFs (which have most of your 2 PFs stocks and a few extra. Any sugguestions for good growth over the next 2 years or so - small cap is OK! Or I can add to one of the above (which would you suggest?)My second question is I now have 38 holdings including some CBO CDZ ZRE and BYD.UN. Am I now too diversified??
thanks so much for all you do ...get better!

Q: Open Text dipped below $50. It seems likes its been under pressure for a few weeks as Info Tech in general is not doing much lately. Do you think the valuation is compelling right now?

Thanks,
Jason

Q: I was wondering if you can provide your opinion on PTS? Would you consider this a Canadian growth story? As long-term investor of the company, I am interested in hearing your thoughts on their industry, competitive edge, financial performance and long-term value for shareholders. Last note, have you considered doing a report on PTS?

Q: I am considering purchasing one of Evertz (ET) or Avigilon (AVO).
Of the 2 which do you consider as a"best buy" and why?

Q: 5i team:
The wife and I both hold CGI Group (GIB.A) : ~ 20% each
in our TFSA's. We are each up ~ 17% from purchase.
Our approach for our TFSA's is to hold growth Co's.
CGI seems to be lagging lately. Would you recommend we :
1- continue to hold; 2- reduce the % held;
3- or take our profits and look for something to replace.
If 3, could you make a few suggestions.
Thanks,
we greatly appreciate your service.

Q: I have owned SYNA synaptics for a 120% run up. Happy of course. As long as it keeps performing, is this a hold or is there anything to be concerned about the B/S, and perhaps time to look at something else. Any recommendations. Thanks.

Q: I agree with your comments yesterday re BBRY in answer to my question......turning around nicely......one more question if I may.....would you see the stock as a "possible" takeover candidate for ??? now that they are on steadier ground?

Q: symbol: SVC
Hi Peter and Team,
Pls offer your thought on Sandvine Corp. Share price dropped lately, is it buyable at this level.
Thanks as always.
From Pui

Q: Hi Peter, in the tech area we hold AAPL, AVO, CSU, EMC, ESL, ET, and Samsung in ~equal amounts. I'd like to replace Samsung as it's harder for me to follow. Would appreciate your recommendation for a replacement and any other changes you might make. Thank you.

Q: Can you tell me anything about a us company Invensense INVN. A technology company for wearable applications. Would this be a company google would want to buy? Or does it have merit on its own? Comparing JDSU-- JDS Uniphase to INVN, which would you buy or would not buy at all. Thanks.

Q: Any comment re BBRY earnings announcement this morning ?

Q: Hi 5i: I am thinking about Amaya’s (AYA) valuation, at this point with the stock around $17.50ish, and whether it makes sense to add some. Relative to before the announcement, it seems there is now a new risk factor and a counterbalancing potential reward, the balancing of which indicates market approval via the pop to the shares. Presumably the difference between the market price and the equity financing price of 20.00 reflects some deal completion risk, at least in part, along with merged enterprise business risk. Could you comment on what that deal completion risk really amounts to? In other words, if this falls apart, which participant(s) would be most likely to balk and why? If the deal doesn’t close, AYA likely dumps back down into the $9.00 – $11.00 range, all else being equal. The guys financing it at $20 obviously think there is significant upside from $20. Are they likely to be averaging down with public market purchases in the meantime? On the other hand, is there any sense in which a stock price below $20 between now and the acquisition closing date might itself amount to a barrier to the successful completion? Or is the equity financing effectively committed at $20? Thanks for your perspective on these points.

Q: Hello Peter & Co.
Tip of the hat to you guys for having responded to one of my questions on a Sunday; don't you take a break?
My wife's RRIF (portfolio of 11 stocks) has CGI as the only tech exposure; I know it is one of your least favourites. Which of CSU, DSG, ESL, MDA, OTC, SYZ, ET would be a good replacement?
Thanks
Tony

Q: Hi: In the Tech sector I currently have CSU and MDA at 3% each, and ESL,GIB,OTC and DH at 1.5% each or 12% of my total portfolio in Tech stocks. I am thinking of selling one to reduce the number of stocks, while buying more of some of the remaining stocks. Perhaps to increase my overall tech exposure as well.
Your thoughts would be appreciated.
Also, do you consider AYA to be a Tech stock or a Consumer stock assuming the acquisition goes through.

Q: I would appreciate your evaluation of the recent floating rate debenture offering from Constellation Software. The interest rate is very enticing but I understand the CSU can defer interest payments. What do you think of the value and risk of this investment. Thank you.

Q: I currently own Sylogist (SYZ), Avigilon (AVO), Constellation (CSU), Amaya (AYA), Fair Isaac (FICA - Q), DH Corporation (DH)and Enghouse (ESL) and am thinking of adding Evertz (ET). I know you like all of these companies (not sure about FICA) but I have two problems.

First, are they all considered technology companies, even though some are software base, they service different industries and some focus more on haresare? Can a portfolio safely handle 5% holding in each of these companies mentioned or os that way out of whack?

Second, if there is portfolio overlap, which are the "best' ones to own, in terms of long term holds.

Thanks for the superb advice. I am now well on my way to be being able to thank you for a constantly better looking retirement!

Paul F.

Q: Hi Team
I sold my position in Web Tech wireless when approval was given for a share consolidation of 1 for 5.Consolidations from my experience are usually negative for the share price.The company looks decent enough at this price,i believe they are cash flow positive and also have around 23 million in cash.My thinking is that i should be able to re-purchase shares after they drift down for a year or so after the consolidation.Can i have your comments please.
Thanks Gordon