Investment Q&A

Q: Hi there, your thoughts on CTS post results on Nov 12?

Looks like the stock has had a nice run back up to 3.60 from 2.90, is it possible that 3.00 is now established as the bottom?

Anything you found interesting from the results or conf. call that would have the markets push the stock back up from 2.90?

Is it still considered cheap based on 3Q results and 4Q/full year guidance?

Can you please provide adjusted rating upgrades/downgrades by analysts after 3Q results?

Thanks!

Q: In the most recent reply to a question on CTS you mentioned you'd send out an email that same day (Oct 24) providing more information - I haven't seen said email if it was sent?

I've held a while and am ready to move on, but looking for 5i's final comments since the corporate update.

Q: I'm sure others have already asked but clearly the market is unimpressed with today's preliminary Q3 results. Would appreciate your views. Is the decline too excessive?

Thanks as always.

Q: What are your thoughts on Converge's latest quarter? I've held this stock for a long time looking for a win but somehow it always seems to disappoint me. Is it time to move on?

Does it have a significant enough market share that its comments that their data center work has been delayed and cyber security work has doubled that these comments could be a leading indicator to sell data center related stocks and buy cyber security stocks. If so, what stocks would you sell and/or buy? I've not bought into cyber security stocks yet but this information might be the trigger for me. Thanks!

Q: Hello Team,

Are you able to rank the 12 companies listed from 1 to 12 in terms of capital appreciation over the next 2-3 years. I currently hold all of the mentioned stocks but do have some cash to deploy. Thanks.

Q: Do you expect better results going forward with the changes being implemented? What would be a good entry point? Do you foresee any significant headwinds?

Q: Would you sell CTS if you were in a loss position? If you were going to sell CTS, what three choices would recommend as better alternatives in order of preference excluding CSU, DSG and SHOP which I own.

Q: I've owned these for quite a while (KXS 5 yrs; WELL 4 yrs; CTS 3 yrs) but they haven't performed as I'd hoped (KXS +17%; WELL +4%; CTS -1%). Note that I've added to each since the initial purchase.

I understand 'wait time' and that the market sometimes takes a while to respond to fundamentals, but I feel I've given these all a fair chance and yet I continue to believe - and to hold!

Can you offer me any assurances to either continue holding or selling any of the three stocks? Interestingly, when starting a position in KXS I made a decision to purchase that and not Descartes which 5i also supported strongly at the time. Needless to say, I've watched DSG clean up and KXS tread water.

Q: Hello Team,

Looking at updating/rejigging my TFSA account, are you able to rank the above stocks from 1 - 12, looking at a 3 year hold. These are a mix of some I hold and some I want to purchase. Not worried about size, risk and or industry. Thanks.

Q: All three companies came out with decent financials and all are down significantly with these results. GSY was the best and it is down 7 dollars. What if they had been bad results. Seems like you cant win in this enviornment. I feel like cashing out everything and waiting. This was also during very good trading days after the collapse. Does this sound wise because of an impending slowdown.

Q: I cant believe this is at 3.84 after two green days and the quarterly report. It was at this price when it had 190 million more debt and 40 million more shares. What would be a theoretical price based off company metrics.

Q: Questions on CTS:

How similar is its business to GIB.A, if at all? Does it make sense to hold both?

Do you have a good feel for its resiliency (i.e. competition and poor economy)?

Is there any vision or plan on this company growing going forward?

Are there odds of a takeover in the future?

Q: When is the next quarter being reported and what is forecast,could I have your opinion on management,debt,growth and any near (3-6 months)possible catalysts to propel this stock
Thanks

Q: Is CTS still a favourite 5i small cap pick?

Q: Hello Team,

Looking at starting a new position in a few of the 12 companies tagged. Can you rank from 1 to 12 on which companies you think is the best to start a new position in. No worries on size, industry or risk, looking for capital appreciation only over the next 3 years.

Thanks again!

Q: Hi,

Thinking of consolidating two smaller positions into one. Can you give me your preference between Celestica and Converge for a three-year hold, with a brief rationale. Thanks!

Brad

Q: hi, can I get your current thoughts on these 3 from the growth portfolio ( I see they are all down in price since purchase ). buy, sell, hold? cheers, chris

Q: Can you provide a few aggressive names you like Can or US for a TFSA? Thanks

Q: I don't have too many names I want to sell, but lots of names I'd like to buy....

One move I would consider would be to sell CTS to invest in either TMX or ATS. My question is besides the different sectors, long-term which company has the most potential to outperform the others? I'm guessing in order of growth potential it would go CTS, ATS, TMX, with the risk profiles the exact opposite?

Do you see enough potential in CTS to hold it over the other two names? Thanks in advance. - Jeff

Q: Hi 5i,
Just mulling over how to punch up a part of my TFSA that's not done much for me lately and is looking like it might do even less in the next year or so:
Specifically, I'm considering the wisdom of selling all the CTS I hold (at a fairly sizable loss) and replacing it with either NFI (which seems to be trending in the right direction, share price wise) or DCBO (which might be at a good entry point right now) in the expectation that by making this move in a year's time I'll be ahead of where holding CTS would leave me.
So, boiled down, is selling CTS now sensible, and is either NFI or DCBO a good replacement and, if so, which one is likely the better replacement?
And if neither, could you suggest another?
Thanks for your thoughts.
Peter