Investment Q&A

Q: My wife and I are looking for growth and have a high tolerance for risk in our TFSA accounts. We have full positions in SHOP, TSGI, KXS, GSY, SIS, PHO, PBH, COV and half positions in RHT, WCP, GC and GUD. These will remain long term holds as long as there’s no material change in any company. We’re considering CSU and TOY. Could you comment on purchasing these at today’s prices and indicate potential future headwinds (China dispute on TOY). As a second question do you have any other suggestions that look particularly interesting to you today? Thanks for your incredibly valuable service.

Q: Hi !

I invest mostly in growth stocks but with 28% of my portfolio in tech, I may be overloaded in this sector. My present holdings are: CSU (2.7%) PHO (2.5%) KXS (3.2%) SHOP (3.5%) ADBE (3.1%) FB (2.7%) GOOG (2.6%) MU (1.8%) NVDA (2.2%) SQ (3.%). If I were to reduce the number of holdings as well as my tech %, on which stocks would you suggest to concentrate, identifying those with most growth potential and those more risky ? Are there any other stocks better suited to my goal ? Or should I stay the course here ?
Thank you for your good attention,
JD

Q: Please rank for current purchase w/reasons. Thank you.

Q: I’m thinking of selling one or two of these holdings, all currently in a RRIF, and re-buying them in a TFSA. I’m thinking that the best ones to transfer would be the most “growthy”. What would you advise? Could you list them in order of expected growth?
As always, thanks for this great service!!

Q: Sold FB and have some US$ to spend, can you provide 3 of your current favorites that may provide short term upside from down south please - higher risk is fine? Of the two I provided, which would you choose and why?

Q: Your thoughts on these 2 co please. If you were to buy one today? Thanks. Alnoor

Q: Hi team,

I have been in SQ now for over 6 months and quite happy. Last night, PYPL bought iZettle, a Swedish payments company that is in competition with SQ. I guess good and bad about this for SQ. The bad part (for me anyway) is that PYPL did not buy SQ as that was speculated as a good possibility for some time. It also makes PYPL a stronger competitor for SQ. The good part I guess is that PYPL’s push into this segment endorses the “bricks and mortar” payments side where others are lukewarm about this segment but SQ has a strong presence. What is your view now about the competitive landscape for SQ and does this make a bid for SQ by another candidate more or less likely? I know you guys don’t like speculating on takeovers (except for SPOT, lol).

Thanks again,

dave

Q: My IT stocks have grown to 24% and I want to scale back to 20%. Currently SHOP 7%; ZQQ 7%; KXS 4%; OTEX 4%; PHO 2%. I am thinking of reducing SHOP to 5%; selling ZQQ and OTEX and buying AMZN 4.5% and SQ 4.5%. Your comments greatly appreciated. I know the valuation of OTEX is much lower than either AMZN or SQ but the growth in these two stocks are much higher.

Q: Your staff is allowed to buy stock on the US exchange.Can you tell me what your people are buying as of late?
What are your thought on Qcom?
You think its a good candidate at this moment and why?

Q: Group - Several weeks ago I asked a question about both Canadian + us banks +Pay pal +Score and so on. The question was that I was watching my profits slowly but surely disappearing in the sector ( I have been heavy into Financials for the last 2 yrs so have done very well) . I wanted to cash out but was advised that with strong quarterly results expected to hold on and everything would work out (I hold 20 % total portfolio exposure). I want to revisit the question now all the companies have reported earning and they continue to drop especially US holdings. Please give me your present thoughts on the sector (both Cad + US Financials+ the overall market its getting ugly and strong earnings are not helping the overall trend downwards. Thanks for your valued opinion . There are several questions here so deduct as you see fit

Q: Please explain if the offering of subscription receipt would cause dilution in PBH
Please comment on the financial result of SQ & SPOT
Thanks

Q: I am largely an extremely long term buy and hold investor. With respect to tech stocks over the next three decades I see the usual suspects alphabet, amazon, facebook and apple as fairly certain bets over that time frame notwithstanding potential government intervention causing breakups. That said, what other US tech companies would you feel have similar potential staying power for the extremely long term aside from Cognex ? Which 4-5 others would you select ?
I continue to spread the good word about this site. You do solid work.

Q: Good Morning Team,

Is it wise to go overweight on Square at these levels given its potential and upcoming earning report? Why or Why not?

Thank you for your continued support!

Q: There is news that SQ acquires Zesty.
What type of co. is this and your thoughts please.

Thank you.

Q: I realize 5i refers to this type of stuff as noise but hopefully you can elaborate a bit about these comments made in the media. Seeking Alpha reported that Amazon might be getting their own type of pay system which will affect PayPal and Square and notice these two stocks dropped off more than the norm on Friday.
MU - Micron - I read the same article as another member about Micron was downgraded with a low target price. The following day, Seeking Alpha posted pictures of Micron's headquarters stating that at this price Micron was a definite buy and they had a good article on all of the great things about it and a high target price I believe of $75.00. Who do you believe?
A regular analyst on BNN - David Price was stating how he felt the market would not hold the February lows and was showing some charts and saying when it got down around the old lows the automated trading would kick in and the market is going to go quite a bit lower. He sees it as a rough couple of months and more or less said that it would be 2019 before things come along. David Price back when oil got down to the $40 mark, some time ago he said oil would be going to $20. He was wrong. Let us hope he is wrong again. Your thoughts.

Q: SQ is getting hit hard here along with the rest, but I don't actually see the objective association here. What I mean is I can see why GOOGL gets hit in relation to FB, but is there something specific in SQ that I am missing, or is it just sectoral? Thanks

Q: Hello Peter,
1. Your reply to a previous question on Stars Group was not very positive yet you indicated it was okay to step in. Please elaborate as the Russian market is a top market, "On the conf. call, TSGI indicated that new Russian banking rules may hinder growth there, one of its top markets. We would be OK stepping in with the decline.
2. Is it better to wait before adding to Shopify? I have about 4 percent position
3. Why is Square surging everyday?
Thank you

Q: Hi 5i team,

Can you help to compare and comment on Square Inc (SQ) and First Data Corp(FDC)? these two company looks working on the similar business and 2 years ago they were similar price and FDC was even higher at some point. FDC revenue is nearly 4 times higher than SQ while market cap is much smaller. Another question is why FDC has so many debt $19.2B, much higher than their total cash of $500M. Maybe this is one of the reason that hurts their stock price ?

Thanks,

Adam

Q: Just wondering what you thought of SQ's earnings, guidance, and current valuation. Is Square in good shape? :)

Q: I can't add to my RIF, I can't put more than $5,500 in my TFSA annually, so my unregistered cash account is holding shares that will mean major capital gains. I have trimmed periodically, but currently ATD.B is up 1,068 %, SQ up 119%, NVDA up 324%, SHOP up 207%, BYD.UN up 118%. I am not complaining. I offer 5i my sincere thanks for your advice over several years that has been so rewarding. I tend to hold overly long , so I am wondering whether I should in future sell when a stock has reached, say 40%, and buy another stock? What to do?