Investment Q&A

Q: Small caps have always been a focus of mine and the 5i team has helped me build out a nice group over the last year to complement my core holdings. Can you let me know if your thesis has changed (negatively) on any of these names? Any standouts that you would add to either due to opportunity or valuation if I had more $ available?

Thx as always for your valued advice

Q: Hi Peter, Ryan and team,

When Topicus starts trading next week, and with an eye toward a long term hold within a TFSA, how would you rank Topicus when compared to TRI, WSP and WELL?

Thanks.

Q: Hi 5i,

First of all, thanks for your advise to help me understand more for the US & Canadian stock markets. I have a feeling that the US market will end the over 10 years bull market soon and bear market will come in. Due to the issue of GME, BB, NOK, and AMC showing many "NEW" investors involve the US and Canadian market (because of the BB), specially the Reddit social media investor forums is not healthy. I guess the Canadian market may also affected, due to the BB issue. Just in case the bear market will come, what the above stocks need to be sold to play safe. I am thinking to sell KXS, LSPD, and NVEI, those stock prices may not be survival during the big drop in coming. Do you have the same feeling that the bear market will come? Can you please rank the above stocks able to survival during the bear market and please suggest to take off any just in case the worst worst things really happen.

Q: Hope WELL is involved in these Covid treatment methods.
https://www.youtube.com/watch?v=MkpO5CIk6i8

Q: First of all, thanks for the service you provide. I have found it extremely useful since becoming a member. Second, I apologize for the number of stocks covered in the question. If it is too many, please do not respond / post.
Within the last 12 months, I have purchased the above stocks strictly for growth or as momentum plays.
I would like to know which ones you would sell, either because their momentum has likely peaked, or because their share price growth prospects are poor. Please deduct as many credits as required. Thanks

Q: First of all, thank you for your amazing work. Cannot express how helpful my 5i subscription has been. Life-changing in all honesty.

My positions in LSPD (17.3%) and GSY (12.7%) have gotten a little out of hand. I was fortunate to pick them up near their lows in April. I've already trimmed both a couple of times, but I am really struggling to sell more given the positive outlook 5i has of both for the future. I've seen similar questions asked about trimming and selling positions with phenomenal growth and seen your responses suggesting to trim positions to reasonable weightings. I thought I might have an easier time doing so if you suggested some positions to add to or some new ones viewed as favourably as LSPD and GSY.

I have the following companies in a TFSA and have included the weightings only of positions I think might warrant a second look. While I anticipate a comment about weightings needing to be personal what would YOU suggest as the highest weighting for LSPD and GSY? And, again, please suggest some positions to add to or new ones.

Feel free to take question credits as you see fit.

DOO (2.1%), ATZ (2%), AW.UN, BYD
ATD.B
BMO, BRK-B:US, GSY (12.7%)
WELL (4%), VEEV:US (1.3%)
CAE, DAL:US, AC (1%), XBC (3%)
LSPD (17.3%), KXS (7.6%), DSG (3%), CSU, PHO (1.1%), AMD:US, CRWD:US (2.4%), U:US (2.1%), NVDA:US (0.83%), TTD:US(1.2%)
ROKU:US (1.9%), TTWO:US (1.2%), PINS:US (1.5%)
AQN, BEP.UN
REAL

Thank you again

Q: Could you identify your top positions that could suffer from a pullback due to a successful vaccine implementation?

Q: For aTFSA account , could you rate the above three stocks for growth.
Thanks
Thomas

Q: In a question asked by Keith yesterday about position size of small caps, you answered that you would consider 3% to be a reasonable full position within a well-diversified portfolio.

Could you clarify if you meant a full position at the time of purchase or that you would tend to start trimming a small-cap position once it started to exceed that level?

Appreciate your insight.

Paul F.

Q: Can you please provide your top three Canadian or US small cap names for growth, along with a quick blurb on each re: their risks and opportunities? I have no sector preference and very high risk tolerance for this investment. Thanks.

Q: Happy New Year to Everyone at 5i and thanks for all your guidance.
I have just taken profits in XBC (thanks) in my TSFA and would like your purchase a similar small cap growth stock. I already have STC, Well and Pho. Could you please give me 3-4 suggestions.
Thanks
Dave.

Q: I own DCBO and I’m wondering what your thoughts are on the company. I have about a 1/2 position and because it has taken quite a drop lately I’m wondering whether this is an opportunity to add to it or should I hold off until the quarter earnings come out. Has anything changed lately, why the drop? What is your opinion of this company.

Second question—WELL has kind of slowed down in the last three months even though they have purchased one or two companies. Could you give me your opinion whether it would be a good time to add another 1/2 position. What are your thoughts on well?

Thanks for any help you can give me on these 2 stocks. .
John

Q: Thanks for all your excellent work. Having recently moved to the US and opted to convert my young-ish Nova Scotia pension account to an RRSP and a LIRA, I’m looking to invest the ~100k in these accounts. Horizon: at least 5 years, but probably much more (I’m 40). Having narrowed down a tentative list of names (see below – tech-heavy, I realize), and with a focus on growth, I’m hoping to sort out the best buying strategy. Specifically: (1) At this moment, does the conventional wisdom to buy each stock gradually makes sense to you as good rule of thumb (e.g., over the course of a year, for each stock, adding a quarter of the total intended position once every few months or so)? (2) Also: I’d greatly appreciate seeing a ranked list of, say, which five of these stocks you think it would be especially wise to start with (i.e., buy now, or buy more of sooner) and which five you think I should wait to buy. Feel free to dock me for two questions! Thanks a ton, Chris

CSU, SHOP, LSPD, XBC, SYZ, BEP.UN, PHO, KXS, ENGH, WELL, GUD, EGT, SJ, BNS, WSP, STC, ATZ, LAC, BYD, REAL

Q: Some help for Paul asking for ideas to invest in his TFSA. In February (13)?, 2017, 5i answered a request for the top 10 picks harvested from the 5i portfolios. They were as follows: GSY, SHOP, SLF, WSP, GUD, OTEX, SIS, KXS, PBH, and one other I lost track of. Over the 4 years the return, if still held, would be +280%, but even without SHOP or GUD, the return is a respectable +96%. So for Paul and me would you do it again from current portfolio holdings. My New Years resolution is to pay more attention to your picks...........thx. Lionel

Q: Looking for growth companies to increase returns on my portfolio. I have chosen these four companies knowing fully well they can be volatile. Are there any reasons you wouldn't buy any one of them at these levels? My intention is to buy them as a 'growth basket'. If you think others might have more potential, please feel free to suggest them.

Q: Is it okay to buy Well today.Txs for u usual great services & views

Q: I am looking to "trim the fat" from my TFSA, which currently holds 20 stocks: ATD, BCE, BMO, BNS, CCO, CM, ENB, FFH, PDYPF, INO.UN, LAS, NXE, NWC, NA, NTR, PEY, PZA, MJJ, TRP, WELL. Are there any positions that raise red flags with you? In addition, could you suggest 3 or 4 value picks suitable for a long-term hold (20 years plus)?
Thank you!

Q: Hey 5i,
Just looking for some clarification. When you reference your favourite growth companies like XBC, WELL, and LSPD in general or against larger cap stocks you usually say they are “higher risk”.

I understand that smaller, younger businesses are higher risk but when you say this- is this more as a “volatility risk”, “default/failure risk”, “downside risk”, “explicitly relative risk against larger caps but you remain very comfortable with the stock outlook”, etc.?

I’m asking since I am in my late twenties and holding these for long term. I actually enjoy volatility since I’m able to swing in and out of the stocks. I just want to make sure that I have this captured correctly.

Q: Hello Peter,
Constellation Software will give existing shareholders Topicus shares (based on their formula) as part of the spinoff but it does not look like Telus will be doing the same(give existing shares the international arm shares in the form of dividend).. What are the plus and minuses of what both companies are treating the spin offs? I was expecting XBC to surge slightly going to TSX as it the stock would attract more institutional buyers but looks like the stock is taking a pause.. . Well seems to be doing the same.. Any comments on this? Thanks very much.

Q: Hi, This is a list of potential momentum companies that you had suggested to another member. When I go into the 5i profile for each one, they all have negative P/E's except BKNG.
Am I reading this correctly - are they all losing money?