Investment Q&A

Q: I have a question for shopify it looks like there next report will come out on February 16. This company took a beating of $500.00 per share in the last 3 months, i am looking to get my feet wet on this company would you have any idea if they meat or beat their target can you see it taking off again.. And my other thought is i read alot of bartchart and it gives you signals like buy, sell, and hold which i do not follow it to closely but what i do check out on the companies that i am looking to add to my portfolio or if i already have them and that inside trading now i know why the tech's are taking a beating, pretty well almost all of them but not CSU in the last 6 months there is about 10 to 1 ratio that are mostly sellers. Some of these ceo or vp do not believe in their company. Thanks again guys sorry for making it so long you may charge me extra points.

Q: I get that there is money moving out of growth (tech) and into other areas of the market. However, all the mentioned names here have CAGR of > 25% amongst other great fundamentals (free cash flow, equity,...). So long as fundamentals don't change, I can't see any reason to sell - only to add to these names on this opportunity. So long as business grows (and >25% is huge!) all these should be winners in the long term, no?

I've experienced significant whiplash with most of these stocks but am optimistic that with a longer timeline I should be okay.

I'm hoping for two things in your response:
1. Giving me comfort that my thinking is correct and if I hold on I should be okay, and;
2. Of the list, the one stock you would add to today.

Thx for the comfort,

Cam.

Q: Hi 5i:

Having sold my US tech before the pandemic (???) and Canadian tech 2 months ago (???) I am considering jumping into the Canadian tech space again. Would please advise me on your 3 favourites and rational for each. Potential growth and "safety" long term are key considerations. Thank you for always great direction.

docsinc

Q: Which of these names would you prefer to top up today? Do you view any as sells?

Thank you!

Q: In your opinion, is it too late to get out of the higher valuation stocks like SHOP, CROWD, UNITY, APPS, CELH etc.? With 3-4 rate hikes coming possibly, would I be better off in the lower multiples like banks? Or is most of the damage already done?

Q: The Globe shows Shopify's forward PE as around 208 while the current PE is 41x. Does that make sense? Is EPS expected to drop that much next year?

Q: I am constantly mystified by the stock market. SHOP dropped 8 % today on no news. As far as I can see there was very little volume (282,000) shares. My question is why would anyone sell these shares at 8% less today than yesterday when there is no news. What possible reason would there be? SHOP is currently the 2nd largest company in Canada. They provide a internet service for people trying to do business on-line. They have had consecutively better and better quarters. They have a very discernable moat. They have a huge future market. I can't see the downside, at least for the foreseeable future. For me it is like someone selling their Apple shares in 2007 because they felt the iphone wasn't going to succeed. My question is: why do people sell shares in profitable companies, at huge losses?

Q: Sentiment has shifted against Shopify. Stock seems to be free fall some days. Many analysts are lowering expectations. Is this an opportunity to buy? I don't understand all about the company that has made them what they are. What is their strength and what makes them so different? Can you provide a comment on where you see them in 1 year, 2 years, 3 years and beyond from now. Will their past growth continue into the future? What has made them so different and successful?

Q: Hi 5i,
Would you please provide two of your preferred stocks : One CAD one US, for a high risk high growth for the next 2/3 years. Any sector.
Thank you!

Q: Hello. I have the above stocks in my TFSA and I have 6000.00 to add. Can you suggest any other stocks to add to this list or should I just add to the existing list? I have a 5-10 year time frame and I'm retired.

Thanks so much,
Louise

Q: you stated that PINS is looking very attractive right now.Why do you think this is?How is their balance sheet?
Which companies would you think could take them out?
Would you be a buyer here?
Please give me some compelling reasons.
Any companies you prefer better in the US tech sector?

Q: Hi Peter/Mike I've been away from the markets lately and have noticed that SHOP is way down as is my LSPD. My cost for my 5 shares of SHOP is 66.76 and it's 13% of my TFSA acc. My cost on my 200 shares of LSPD is 26.06 and it's 8% of my RRSP acc. Would it be wise to sell at this point and use the gains elsewhere or is it still hold these two. Thanks, Nick

Q: Hi, Technology is the largest weight at about 45% ( even after the recent sell off) in our investment portfolio. Most of these holdings have been down 25-50% from the highs, over past 2-3 months, following the general market trend of indiscriminate selling in High multiple Tech stocks. LSPD and NVEI, of course, saw much steeper losses.
We do have the rest of the portfolio invested in Cdn large cap banks, industrials, utilities and telcos, generating decent dividend income.
We recently retired and as a part of portfolio planning/risk management, would like have a strategy to reduce the Technology weight to less than 35%, over next 2-3 years. The plan could be executed in phases, once the current tech rout is over and valuations have recovered.

From the perspective of risk, growth, stability and valuation, what would be the recommended/desired weighting for each company, balancing these factors. What would you suggest to be order of priority for the purpose of initiating sale of each stock. Also, it would be really helpful, if you could provide a reasonable price range for sale/trimming of these companies, based on price history and future expectation over 2-3 years.

CSU 14.5%
SHOP 9 %
TOI 5.2%
SYZ 3.5 %
LSPD 3 %
KXS 2.5%
NVEI 1%
US Large Cap Tech ( AAPL,AMZN,MSFT,MA,V,PYPL etc) 8% (we want to keep as is)

Thank You for your insight, which we value so much.

Q: Hi gang!

Where do you see support levels on our darling Shopify? I realize this is tough to call, but your thoughts are appreciated!

Many thanks for all you do!

Q: Any further thoughts on companies that are in the NFT space?

Q: Hello,

What would be a good, great, or exceptional price to enter in to SHOP. Please rank them in order
1) Good
2)Great
2) Exceptional

Q: I am a little overweight techs in a well diversified portfolio. Considering valuation contraction where do you see a new normal forward P.E. the S&P in 2022 and for those stocks highlighted?
Please provide forward P.E. and multiples for those that make profits and guestimate where the low end could be for the others.

Thanks

Yves

Q: Bnn had a guest on today saying time to sell shop and he predicts the stock to continue its downward trend to $220. What would your response be to this prediction

Q: Hello,

I’ve always wondered why certain companies let their share price run into the thousands and rarely if ever split their shares. For a small retail investor like myself paying 2000- $3000 USD for an Amazon or Alphabet is simply not possible. I’ve always suspected it may be a philosophy of management and or founders who all still have significant influence in the mentioned companies.

Q: Hi group what you feeling on the big tech stocks at present are they a buying opportunity or a value trap? also is oil an attractive entry point right now or is it just a blip to the upside thanks for your insight. what your favorites in tech / energy or should i just stay away till everything settles down