Investment Q&A

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: I bought a little SPOT mid April, planning to buy more along the way.
However, it just keeps going up - now over $20 profit. Never bought
an IPO before.

Do you expect this stock to be a big winner? Is it worth the price?

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: Please suggest 2 companies in Canada and 2 companies in the USA you would buy today. No need to worry about portfolio diversity, or sector weighting. Just your 2 favorites in each country and let's say with a 5 year time frame before I would want to access the funds or switch them to income stocks.

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: Hello Peter,
On your april 9th reply to QSR, the dividend that was indicated was above 3 percent; I am seeing a dividend of 1.9 percent on google. Any idea? Also, I am planning to keep QSR , GUD, SIS, ADW.A, Shop, and Spot as long term holds. Any concerns here? My weights range from 2 to 4 percent. Lastly, I I know you have had lots of questions on Knight, but from a shareholders perspective, are we not waiting along time to get some results that are meaningful to increase stock price? What are the analysts saying about Knight as I am sure their clients are not happy with the stock price. Thanks again for the great input.

Q: Hi team,
It looks like questions are slowing down these days with the volatile markets so I think it is time for me to use another credit. I am a tech guy and read your answers on SPOT with interest. I am tempted to pull the trigger but have been holding back. Years ago, I held Netflix but sold out way too early as the earnings and subscriber metrics were all over the map (look where it is today). The main problem I had with Netflix was that it was paying all these movie/TV companies for access to content. These days it is creating its own movies and TV series and now has some control over it, despite the billions it is spending on it each year.

I have the same issue with SPOT but more so. SPOT has to pay all the musical artists in order to broadcast their songs. How can SPOT overcome the content hurdle like Netflix is doing? I can not see it hiring bands to compose songs and hope the songs become popular.

In your SPOT answers you say it is a sitting duck for NFLX and maybe DIS, AMZN, GOOG, AAPL and others. I was really surprised by the takeover spin as you have never in the past offered that up as a reason for purchase a stock.

I am confused on your buy thesis for SPOT.

Thanks again,
dave

Q: I have US $ Portfolio: FB,SHOP,CGNX,AMZN,NVDA,SQ,NFLX,MA.
Yesterday I sold all of CCGNX because of down trend and Dead cross on
EMA50 & EMA200. I have around 20 K US$ from the sell.
Please suggest some some US stocks to replace CGNX that you would buy
right now or should I wait for change of trend to up to repurchase CGNX.
Andrew

Q: A guest on MarketCall mentioned both Hubspot and DXC Technologies.
Please give your opinion of both these U.S, companies.

I was considering SPOT. Would you prefer either of these 2 to Spot?
Thank you.

Take multiple credits.

Q: What are your top 5 stocks with most return potential in the next 12 months, either U.S. or Canadian? Thanks!

Q: Now that SPOT is trading and up 25% do you still reccomend 1/3,/1/3,1/3?

Or has the activity changed your entry strategy?

Thanks

Sheldon

Q: Hi,
Im looking to raise some cash to put towards spotify and dol (post split) and cant decide what (if any) of my holdings should be sold. Generally Im long term oriented and use all available DRIPS to accelerate. Currently I hold aqn, acb, bns, bep, enb, fb, gsy, gud, nvda,pho, sis, slf, vfv, vgg, vee. Right now, I think Im only down on GUD. Do you think any should be sold for any reason (including too much sectoral overlap, loss of long term value etc.) or should I keep them all and look at just adding fresh cash? What do you think about looking to add spotify and dol?
Thanks!

Q: Hi All at 5i! With the tech market taking a bit of a hit and the DPO of Spotify coming out on Tuesday, should I wait to buy some or get in right at the opening bell? I am waffling here because I have never bought IPOs before and have heard that they can start strong, only to lose value within a few day or weeks. Spotify is a DPO, a bit of a different beast. If it were you ( with your cloudy crystal ball handy) how would you handle this?Buy the first day ,wait a while or gradually trickle in? This is for a long term hold and not quick profit. Thank you for your help and have a great long weekend.!

Q: With Spotify coming public through a DPO vs an IPO, can I get your thoughts on DPO’s vs. IPO's and how they have historically played out?
Thanks.

Q: Gentlemen,
With Spotify having it’s I.P.O. on April 03. Is their any way an individual investor like the majority on your site including myself can buy for the issued price? Or is that only a luxury for institutional investors to receive?
Andy

Q: My question is twofold.
1) I am trying to determine if Spotify will be a good investment. It appears to have a lot of positive momentum; however, it has never made any money, there appear to be lawsuits, everybody in the music business is not happy, and over the years I've read on occasion that their business model is not viable (as the artists and/or studios are not properly compensated and the business model will need to change). I do not think that the music industry will ever revert to its former self but possibly pricing/offerings may need to change. Your thoughts are much appreciated on how you see this company possibly making a sustainable profit if the issues are valid. (On a positive note revenues appear to be increasing nicely, their market share is approx twice as big as it nearest competitor. BTW. I have not read the prospectus other than some articles referencing the doc. Anything else to share if you have read it?)
2) If I do want to acquire some shares, how do you proceed? I have read that this is not going to be an IPO but a DPO. This is what I read "In February 2018, Spotify filed for a direct public offering (DPO) — a type of offering without intermediaries". I have also discovered that they will list on the NYSE on the week of April 2nd but there will not be any opening price but a suggested price range ($90-132/share). This seems like Russian Roulette, so do we take a chance and buy at any price (not an intelligent way to invest) or do you recommend that we see what happens by waiting a few days or weeks after the DPO, once things have calmed down.

We have been paying subscribers of the Spotify service for many years, probably from the initial days it was offered in Canada. It has much improved and we like it a lot.

Thanks again.

Q: I have a well diversified CND and US portfolio. I have some US cash to deploy and currently own BAC, BIIB, GOOGL, AAPL, DWDP, FLIR, MS, SWKS and PYPL. I have a high risk tolerance and am looking for growth vs income. What would you top 3 US names be in order and what is your rational for the 3 picks. Thank you - Your advice has helped me become a better investor, GREAT service.
Scott