Investment Q&A

Q: Please comment on SYZ's Q4.

Q: Hi, i'am trimming my portfolio and was thinking of selling Crh and Xtc both down 30+% and buying Syz for a full position.Do you sill like Syz or would you sell all. Sector not a issue as I have Gud and Mx.
Thanks

Q: Hi, Sylogist stock price took a tumble on Friday, last week. A reasonable guess is large selling by a number of 5i Research members. Considering that it's been a holding in the Balanced Portfolio for many years and until recently, your advice was to be patient with this stock as it still holds growth potential. Also, it was clarified in your update that there was nothing wrong with company. In Nov/2017, company's guidance for 2018 was for Revenue of $36-38 mln and Adj EBITDA of $ 0.80-0.85 per share, which is much higher than 2017 results. CEO also mentioned that these projections did not include any future acquisitions. So, do you think, Friday's drop of 8% creates a buying opportunity ? Thanks

Q: Upon reflection on your answer about my earlier question concerning thinly traded stocks (SYZ), I would like to suggest a change in how 5i prices portfolios. I don’t think it will be popular with you.

I don’t know how many subscribers 5i has but I’m sure it’s substantial. By what happened this morning on the markets after you made a number of portfolio changes late yesterday, your base is enough to move markets, particularly in thinly traded stocks. Members will never be able to match the stated returns of the portfolios simply for this reason. Members can mimic the trades and keep the exact portfolio composition but we are at the mercy of the markets the following day when we try to make the trades required to maintain the sameness. Two stocks you sold outright were SYZ and ITC. Both traded down at market open (SYZ substantially). Another you bought, RHT, was up on opening on strong buying demand.

5iResearch announces portfolio changes after markets close and uses the previous day closing prices in costing out portfolio changes. But members don’t have this luxury of selling or buying a stock at the closing price of the day before. They line up in queue and do their transaction at the start of the following market day. My suggestion is for 5i to be transparent and price all trades at the opening prices of the following day. That way there is a sense of alignment with what the stated portfolio returns are and what members can expect to get.

5iResearch is a good service. I’ve been a member for years and have benefitted. Are you conflict free? In the traditional definition, you are but you have a vested interested in achieving high portfolio returns. This is your marketing tool. I have no problem with this but feel you need to be open with members and attempt to provide a portfolio return that members have a chance of achieving.

Q: I see that SYZ is down over 5% today. Is this due to the selling by 5i subscribers as a result of 5i removing SYZ from its balanced equity portfolio? This is a solid company with no debt, a good dividend and reasonable growth prospects.

Q: As I dig further, I see that RHT is up 8% as Member selling SYZ buy into your latest recommendation. Would you agree with me that your subscribers should be doing their own research and not blindly following your recommendations?

Q: I see you have removed SYZ from the balanced portfolio. As a thin trader, would you expect the stock to go down as some/many of your followers will 'rebalance' to match your moves? If it does move down, is this a lesson for subscribers to be careful in investing in recommendations that trade thinly? Of course, it works the other way when a thinly traded stock is first recommended.

Q: I am following the BE portfolio. In tech, I already own Constellation, Kinaxis and Photon. If I want to add to technology, which of CLS or SYZ should I choose at the moment? Any particular stock with good momentum? Last time you answered AVO but I was too late in purchasing. Thanks!

Q: Hi 5i team,

I currently owned these technology stocks: Shopify, CGI, Kinaxis. I am looking to add Opentext, CSU, or Sylogist. Which two out of these three are your top picks for earnings growth, financial stability and capital gain? Thanks.

Q: I am following the BE portfolio. In tech, I already own Constellation and Kinaxis. If I want to add to technology, which of AVO, CLS or SYZ should I choose at the moment? Any particular stock with good momentum? Thanks!

Q: SYZ's earnings were mixed with many indicators up a bit but revenue down, or more importantly, not growing. Do you still have confidence that SYZ will get back on track? What will it take to get the stock noticed by other analysts? If this doesn't happen, I'm afraid it will be stale money. Your view please.

Q: Sylogist just released its quarterly earnings this morning. Would appreciate your comments. Any concerns with slightly lower revenue ? Thanks

Q: This list of companies from the Balanced Portfolio were all beaten up a bit last year. Which of these do you now consider buying opportunities? Are any of these on your list to watch & discard if performance doesn't improve? If I were to add some of these to my relatively diverse portfolio, how would you order them in terms of anticipated total returns?

Q: When does Sylogist report? I recall reading that they were to report yesterday but I can't find anything further. Can you clarify this for me.

Q: Following your balanced portfolio. still have not purchased the above stocks. Give me your top 3 from the list above in order. Have a 5 year time frame. Thanks for all your help. Is this a good time to buy?

Q: I own the above companies in my RIF account and want to make an “In Kind” trancfer to my TFSA as well as to my unregistered account. Which one or two do you see as having the best growth possibilities for the TFSA and which one or two would be most appropriate for my unregistered account?
Your advice is always appreciated - RAM

Q: After being a laggard for most of 2016 &2017, Sylogist shares finally picked some momentum after release of last quarterly results in December, probably due to renewed optimism about company's outlook for 2018 and beyond. However, market interest seems to be fading out as reflected in share price falling back to $9.50-9.75 level (below where it started last year). I do understand that no analyst covers the co. and stock has low liquidity. Over past 4-5 years, since we started investing in the company, it has produced decent returns for us including respectable dividend growth each year, but I am wondering if it's time to lighten up (6-7% of portfolio) and deploy funds elsewhere. Unless, of course, if there is a compelling reason/potential to hold. Thanks

Q: Listed above are the stocks i currently have in my TFSA Would you suggest selling any of those listed and what would you suggest adding for 2018? All are approximately equal weight in my portfolio?
Thks for all that you do

Marcel

Q: I would like to add one of the above companies to my TFSA . Could you please rank them for me. Thanks. Ernie

Q: Hello Peter and team:
SYZ has pulled back quite a bit in the last few trading days. Any reason why? Is it still a buy here? Thanks.