Investment Q&A

Q: syz not doing all that well. markets are bad but is there anything particular that is causing deep drop. do you still recommend it. what will it take to get things going.

Q: In SYZ's recent conference call, the CEO suggested that servicing enhanced SAAS offerings would require re-allocating capital currently funding the dividend. How would the market likely react to a dividend cut? Is any part of the current price action attributable to this announcement?

Q: Their recent quarter was very good and since then the sp has come off substantially. Why do you think this has happened.
Perhaps a good time to add?
Do you think that the generous dividend is safe?
Thank you

Q: I have taken a look at my distribution of investments, and determined that I have more room to enter an additional position in the technology space. I was gung-ho on starting a position with Google, until I discovered that Sylogist is currently paying a 6.86% dividend (as of yesterday's closing share price). I currently lean towards investing in more established companies that have been able to maintain market share in their area of operation, and Google definitely fits that description. Would the dividend offer by Sylogist, along with the potential upside, be a more prudent investment with someone who has a five-year time horizon, or is the steady-as-it-goes approach with Google the safer approach? As always, I look forward to your comments and insight. Thanks so much!

Q: Ignoring company size and sector diversification, can you please rank these stocks on a best to worst risk / reward basis for long term hold. I own them all in various accounts with a half position or less so my plan would be to let some go and increase position in others with better potential. Any of them you consider good buy at the moment? Thank you!

Q: Hi,

Could you comment Sylogist's quaterly results ?

Thanks

Q: Hi, Sylogist reports Aug 11. Can you provide street estimates and your expectations, please. Thanks

Q: Hi, Any comments on recent price action .Why Sylogist continues to make new multi year lows, while Tech sector, in general has gained some traction, over past week or so. There was a mention here of stock's long term support at $6.50 - $6.75 level. Why would retail investors keep selling, despite its solid organic growth prospects/possible acquisitions and very low risk to dividend ? based on its history dividend yield is now flirting with 7.50 - 8% - Is there a concern of a dividend cut ? We beefed up our holding along with 5i recently and like the company. What is the next support level and is it worth buying more now? We have owned it for several years and stock has fallen below our ACB of $6.57 and weight has dropped from 5% to below 2.5%. Thanks

Q: Hi Peter

SYZ has declined significantly. I know you have been positive in your recent answers. That’s encouraging.
I wanted to ask why SYZ declined by so much?
They have withstood well in the past 10 year bear markets. What’s different this time that they are on a free fall

Q: Do you have a proxy for SYZ that includes a dividend?

Thanks for your service!

Q: Hi, ServiceNow stock, a large US Enterprise Digital Solutions provider company, dropped 12%, Today, after CEO's comments, last evening on Mad Money, warning about the macro headwinds faced by a continuously extra strong US Dollar, by Technology companies, particularly those with large enterprise customers, around the world. Some of the comments are as below:

" You’re at 41-year high inflation. The dollar right now is the highest it’s been in over two decades. We have interest rates rising. People worried about security. You’ve got a war in Europe. So, the mood is not great,” McDermott said in an interview that aired on “Mad Money” after the closing bell on Monday.

“You’re going to see the headwind of the dollar right now against well-known technology brands,” the CEO added. “No one’s going to outrun the currency right now.”

Shares of ServiceNow, which helps companies and organizations digitize their workflows, fell 13% on Tuesday after McDermott’s comments, which were meant as an overall industry observation, not ServiceNow-specific news due to the company being in a quiet period ahead of reporting its latest quarterly earnings on July 27. "

“When you think about energy, and the dislocation caused by the war in Europe, and this reprioritization I’m talking about, you’re going to see longer cycles [to close deals] in Europe. We saw that,” McDermott said. “But this doesn’t fundamentally change the narrative that tech is the only way to cut through the crosswinds.”

The reprioritization he’s referring to is the increase in demand for a fast return-on-investment — another symptom of cautiousness in the current environment.

“There’s a new level or prioritization in the enterprise. And I have seen this, actually since we last met, Jim, hitting a new gear. Where companies are first saying ‘which platforms do we want to bet on,’” and then try to sort their priorities, McDermott said.

“There’s one filter on all of this now. And that is fast return on investment. And if you can’t put an architecture in there that gives the customer a fast ROI, chances are, you’re going to get postponed,” he added.

Stifel said in a note on Tuesday that it believes the company is “likely” to lower their expectations when it reports earnings, citing McDermott’s comments on reprioritization. The investment bank also expects other companies across the industry to follow suit in the coming weeks.

There was chatter that Today's 4.10% decline in MSFT and 4.61% in Sales Force, which was ugly, was not company specific but in reaction to this macro warning,

Most large Technology will start reporting in a few weeks time.

Some strategists were seen on CNBC talking about the" Generals" being the last to drop and MSFT's sharp drop today was noticed by many.

Do you agree with above comments/sentiments ?

We are trying to assess, if these companies, in your view, are likely to be faced with similar headwinds - CSU ( worldwide revenues), TOI ( Europe) and SYZ ( >55% US rev ), for all those reasons. And if you think, they are not immune to this, is there any caution warranted, or is it prudent to reduce our exposure to a more reasonable level, at this time.

Thank You

Q: These six companies comprise my “Small Cap Canadian Technology” holdings. As I like their long term prospects, I am content to hold all of them for their recovery potential over the next few years. However, I would like a second opinion from you: would you agree they are all good companies worth holding, or would you switch any of them out for better quality names? If so, what would be your suggested replacements and why?

Q: In a recent question you answered that a switch from engh to syz is a good move today. Can you expand on that recommendation a bit more as SYZ doesn't appear to be a clear winner over ENGH.
1. The div is bigger but how secure based on the SYZ high payout ratio.
2. ENGH is bigger and would likely be less risky and equally benefit from the eventual stock market recovery
3. ENGH has historically been a highly rated company by 5i ( still showing as a rarified earth A-)

Unfortunately I hold ENGH in a registered account so cant justify the switch to harvest a loss. But I am wondering if it is time to move on...5 yr hold, hybrid balanced/income portfolio follower who has been slowly shifting from balanced to income. I do like high yield Canadian small caps although I find I am migrating more towards larger more stable names as I near retirement.

Q: In your answer to my previous question on SYZ you said that earnings are expected to decline in 2022 but grow at a faster rate in 2023 .... Can I assume that the Simply Wall Street link I referenced is incorrect in their claim that earnings will decline by 32.4% PER year for the next three years ? .... Which I would assume to be 2022, 2023, and 2024 ...... If this is true I'll likely avoid the stock so I want to verify it's accuracy ......

Q: Hi

Thinking of selling some of my BAM.A and buying SYZ .in my cash account

Why? Apply the loss in BAM.A to my gains so far this year.
The dividend in SYZ is bigger.

Your comments, most welcome.

Thank you
Mike

Q: wondering if you think it would make sense to sell ENGH (cost $15-ish) and buy SYZ at this time?

Q: I find the dividend you mentioned in your latest alert of 7% attractive.

How well is the dividend covered and under what circumstances do you feel it would not be covered.

Do you think that is at all likely?

Sheldon

Q: I hold 1/2 positions in KXS, STC, & OTEX, and a 1/4 position in SYZ.
I have a small gain in KXS and small losses in the other 3.
Would you choose to consolidate or replace with similar any of these holdings at this time and if so what moves would you make.
Thanks, Hugh

Q: Can you please provide your top 10 canadian dividend stocks which can also provide some capital growth. Time frame is 5 years. Is now a good time to start buying or should I wait?
Thank you

Q: With the general sell off in tech stocks, I'm currently down about 40% on each of these companies. However, I remain long term positive on them and would like your opinion as whether now is the time to add to my positions or whether you feel there may be further pain ahead for the sector and I'd be better off biding my time?

Thanks, Rick