Investment Q&A

Q: With a PE of 26.5 (and falling), CTS is starting to scream "buy" at me, although 5i has cautioned about declining rates of growth during what may or may not be a recession. Is it's debt (1.8 times EBITDA I believe) a concern, or are there other caution signals (e.g. rising shorts or no recent insider buying)?
Jack

Q: When do you think there will be some definition on what will happen to CTS? What's your timing estimate on the strategic review? At these prices, is it worth buying to see what happens? risk/reward?

Q: hi, like so many of the small caps recommended, this one, CTS, continues it's downward price trajectory. can you provide a brief synopsis on where CTS is today financially ( ie how long until it runs out of money?). is CTS a screaming buy, a hold, or a sell? and can you provide an educated guess as to what other Canadian small caps in your universe are going to zero/near zero in this market? cheers, chris

Q: My small CTS holding is down significantly and not moving, while CSU has a nice gain? Would it recommend to hold CTS or switch to CSU?

Q: Brief thoughts on these weeds I'm looking to pick.

Return and % weight in portfolio now and what I plan:

MGA: -39, 2.13%. Looking to trim slightly down to 1.5%, add to ATZ, BYD, BKNG or SBUX?
ILLM: -87%, 0.14%. So small now its insignificant, roll into GOOG position
CTS: -46%, 0.96%. Hovering at 1 yr low. Aside from strategic review, what's the catalyst?
MED: -61%, 0.80%. Sell and add to ATZ, BYD, BKNG or SBUX?

Toss them, hold them or water them? Thanks!

Q: Could you please name some Canadian companies you think have a good chance of being taken over? Thank you

Q: The above holdings are in my TFSA for long term growth. Looking to add another stock to the account. Can you share a few that would be good additions for long term growth. If adding to an existing names make makes sense; open to that as well as none of these are a full position.

Q: Hi Everyone at 5i!
I am really down on Converge and was wondering if I would be better off selling at a loss and investing in LMN.??
Cheers,
Tamara

Q: Are there reasonable tax-loss proxies for CTS and TIXT that can be suggested? Thank you!

Q: Is there any reason for the recent drop in this stock? It is approaching 52 week lows. Would you consider it a buy today?

Q: Do you think there could be some kind of manipulation on this stock. This has not budged during the surge. I think it is to good a company to be stuck here. Do you think myself and many others get pulled into these conspiracies when really it is just the market doing its thing most of the time.

Q: Good day ,
Would u guys dollar cost average with both of these stories at this point in a declining share price ?
Thx
Mark

Q: Hi 5
2 questions (please use required credits)
1) For the stock list above would you please suggest a HOLD SELL BUY.

2) I would like to consolidate all of the above stocks into: NVDA GOOGLE and
MSFT for a 2 years hold, I understand the stocks are good ones , but I'm only looking at a faster recovery. Would you be om with it.

Thanks

Q: CTS is in the red today and below four dollars. This is on the greenest day of the last month. Do you believe it will be stuck here until they announce their intentions of the review.

Q: Can you name your top 3 small cap growth Canadian stocks that, suddenly, are now looking very attractive and provide the main catalyst for recommending each. Also, name 3 growth stocks that were recommended as being attractive but no longer make the list and why.

Q: Generic question: according to one money manager, a number of stocks are now being priced at “zero” …. clearly not zero , but well below traditional metrics for evaluating stocks.( FRC the most obvious example)

AND also arguing that this has not happened since 2008.

As always I am interested in the 5i perspective, please and thank you.

And can you think of stocks that fall into that category?

Q: As you know, both of these companies are currently undergoing "strategic reviews" which presumably are related to potential buyouts from companies expressing interest. I agree with your assessment that successful buyouts would entail prices at least $2 per share above existing price levels. I am surprised that buyers are not loading up at these prices given the significant possibility of such a price surge withing a 2-3 month timeframe. What am I missing?

Q: Hi 5i,
A couple of somewhat related questions:
I'm curious about the 'expression of interest' someone (or some thing) may have made known to CTS management in the past while. Would a potential purchaser be allowed a peek at the quarterly numbers before they were released yesterday in furtherance of its due diligence research, or have to await the release like the rest of us? My guess is the former, tied to a confidentiality agreement, but I'm not sure if that's the case with a publicly traded company.
And, also wondering: if the numbers were decent - as I thought they were - and no purchase deal gets announced quite soon, is it safe to assume there's likely nothing brewing? Or is it all just a black box until something - anything - is formally announced?
Thanks!
Peter

Q: Has your view changed that CTS could well be $9 in light of their earnings? If so, specifically what has changed? From your comments today, it appears the flavour doesn't quite taste as good now.

Q: Care to comment on CTS earnings? From what i read, they killed it !