Investment Q&A

Q: Thanks for quick response to my earlier question on earnings. Can you add comments after the earnings call?

Q: How would you digest SHOP earnings? How did they do on key metrics? What do you see happening to stock going forward over the next 6 months and longer? Is the story still intact and moving in the right direction?

Q: Hi Peter and Team,

SHOP shows in their previous Quarterly release that they have grown free cash flow (good stuff!) but when I look at cash balances, I see they have a reduction in cash and equivalents with a simultaneous increase in "Loans and merchant advances, net."

I am trying to decipher if SHOP is:
1. Actually adding cash (key indicator of health)
2. Vendor financing their customers heavily which ended very badly for the likes of GE.

Is the quality of SHOP's financials showing some cracks here? It seems like this vendor financing theme is taking off in the "tech" stocks.

Q: I have a RESP for 3 grandchildren under the age of 11.
Would you please suggest 3 or 4 stocks to add or swap with any in the above group. Would prefer a bit more growth. Thank you

Q: Hi, Could you please comment on Affirm earnings. Thank you

Q: What does the market expect from Shop next week?

Q: any particular reason for the recent run up in Shopify?

Q: Which of these three stocks have the best potential for growth over the next year or two, disregarding any risks etc. I do realize it's a short time horizon, thanks?

Q: This question concerns the technology sector in a well-diversified Canadian portfolio (~30 holdings), focused slightly toward growth.

The current technology holdings are CSU, SHOP, DSG and KXS. With the exception of KXS, the holdings are all positive. We are considering replacing KXS with LMN.

For a long term hold, which of KXS and LMN would you prefer and why?

Thank you,

Peter.

Q: My wife is thinking of selling a chunk of her SHOP and buying AMZN instead, mostly because she wants to own what she knows.

She asked for my opinion and I, in turn, ask for yours.

Q: Would investing in both Amazon and Shopify be too much overlap?

Thanks.

Q: You responded to an earlier question today about SHOP's decline today with: Yipitdata, a cloud-tracking service, noted it estimated that SHOP gross payments volume growth decelerated 'significantly' over the past week of reporting (to Jan 22). If volume did drop significantly, would this not be something 'significant'? I can see a slight drop that gets washed out over a longer time frame but a big drop all of a sudden isn't a good sign. What would cause a significant drop? Also, how reliable is Yipitdata? I guess what I'm asking is if SHOP is still looked on favourably by 5i? Is there anything to be overly concerned with?

Q: Hi 5i
Shopify seems to be getting hit hard again today... any obvious reason that and should we should be concerned about this ...is this a buy opportunity in your opinion.
Thx

Q: JPM has had a decent run but I'm thinking of swapping it for Mastercard. Can I get your thoughts please?

Palo Alto has also been terrific, but I'm trying to add more AI into my portfolio. I'd like to sell it and find a new name, CDN or US. I own MSFT, AAPL, Salesforce, GOOG, Meta, NVDA, Constellation, Shopify and Kinaxis. I was thinking of Taiwan Semi, AMD or Broadcom, but can I get your thoughts please?

Q: What are your five current favorite stocks for short-term (1 year) gains? They can be either US or Canadian stocks. Thanks,

Q: Dear 5i
Which of the above listed stocks would you place in an RRSP and which in a TFSA and in what order of preference ?
Thanks
Bill C

Q: Dear 5i,
I own CSU (10%), LMN (2.5%) and SHOP (4%) in my TFSA.Is it a good idea for me to increase LMN to 5% and SHOP to 6% to increase weight in the technical sector? Is it better to start a new position(s) such as KXS, DSG, or TOI? This is a small diversified TFSA, and protecting the portfolio with some growth is the main goal.
Thank you.

Q: The following is from a recent article in the G&M:

"Investors typically regard a cheap stock as one with a PEG ratio around 1. By that standard, many of the Magnificent Seven look to be reasonably priced.

Amazon (a PEG of 1.3), Alphabet (1.3), Meta (1.2) are on the borderline of cheap, while Nvidia (0.7) looks to be a downright bargain, according to calculations this week by Robert Armstrong of the Financial Times.

Microsoft (2.6) and Tesla (2.1) are somewhat pricey by PEG’s reckoning but not outrageous. Only Apple (4.6) looks like a true luxury item, perhaps because it’s perceived as a superbly managed, ultrasafe defensive stock."

What are the PEG ratios of SHOP, CSU, LMN, and TOI?

Thanks as always for your expertise.

Q: Hi,
Which one would you pick today ?
Thanks. Alnoor

Q: Many sharp upgrades and sharp downgrades for SHOP in recent days. What do you make of all the divergent views? I know 5i is in the upgrade camp. What do the 'downgrade' analysts see that bring them to their conclusion?