skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Have held Visa for some years and possibly one of the best stocks I own .recently I bought Square I guess its doing okay.
I had not paid any attn to PYPL. recentlyone of your answers you out pypl visa and sq on about the same level.
I watched the MadMoney featuring Pypl as your other caller referred to . it was impressive . I don't quite under stand where and how these Companies intersect/overlap. . is pypl encroaching on visas territory.? and SQ where do they come ?
I would love an explanation in layman terms
Read Answer Asked by thambirajah on June 03, 2020
Q: Hey team,

I seem to recall this theme being addressed as it pertains to Shopify but after listening to the PayPal CEO on Mad Money last night I Have to wonder if LSPD would not be a nice add for Paypal? It sounds like they really want to get more directly involved with retail/restaurants and POS to expand how people use their service. Could you foresee this happening and would you consider PYPL a buy today? Their CEO came across well.
Read Answer Asked by Tim on June 01, 2020
Q: Morning 5i,
I'm looking to get my US allocation in my portfolio up to ~40% in the Healthcare, Industrials, and Tech sectors. I have a VERY long time frame, but I'm interested in businesses that have aggressive/high growth in the IMMEDIATE to 2 year timeframe.

Could you please rank the names below in terms of highest short-term growth potential coming out of a COVID world (reopening, new normal).

And if possible, are there any US names that trump these selections instead? Please take as many question credits as required:

Healthcare: VEEV, AMGN, REGN
Tech: TEAM, TWLO, MSFT, NVDA, AYX, AMZN, GOOG, QCOM, PYPL
Industrials: ROP, RTX
Read Answer Asked by Michael on May 26, 2020
Q: Hi, I'm looking to add to the fintech world. I'm sure online purchases and contact-less (cash less) payments only continue to increase.

What is your favorite growth stock in this category (1) overall, and (2) one that is well positioned to succeed in both the physical space (contact less at stores) and online (web payments).

C.
Read Answer Asked by Cameron on May 15, 2020
Q: I am wondering how you would categorize these companies (V, SQ,PYPL) in relation to one another and if you had to pick 2 to invest in for growth over 10 plus years which ones would you pick? I liked the digital payments theme prior to COVID-19 and think it will clearly accelerate the move to less cash and more digital payments (in-store or online) more e-commerce.
VISA is the largest payment processor in the world (according to your information under stocks profile page) so they process the most payments right now online and in-store.
SQUARE is obviously not as big as Visa but they would be similar in being in both markets (online and in-store payments processing), but Square would be more of an all in one solution for e-commerce, payment processing for Small and Medium sized busineses plus CASH APP and investing etc.
PAYPAL would seem to be similar to Visa in that it is mainly a payment processor (with Honey acquisition maybe adjusting this course somewhat?) but would be essentially be ONLINE payment processing only, so maybe more of a pure play online payment stock? and any main reason why Visa has such great margins compared to Paypal? on its earning call Paypal said "On May 1st, we had our largest single day of transactions in our history, larger than last year's transactions on Black Friday or Cyber Monday." which was extremely bullish to me...
Read Answer Asked by Michael on May 13, 2020
Q: Hello Peter,
While SQ holds the promise when the retailers open, it does not really matter for PYPL. Which one would you suggest.
In your presentation at the MoneyShow yesterday you mentioned DXCOM in the healthcare sector with an increasing demand, company raising guidance and now being included in the index.
If I were to take a position in it, I will not be able to have positions in both SQ and PYPL. Which of these two would you suggest I let go.
Or would you suggest I hold them both and take a pass at DXCM instead.
As always, your opinion is appreciated.
Regards.
Read Answer Asked by Rajiv on May 08, 2020
Q: Clearly high tech and e-commerce companies are doing much better than the general market. What would be your recommendation among cloud computing companies including those in the US. Thank you for your great service.
Peter
Read Answer Asked by Peter on April 27, 2020
Q: What US stocks is 5i staff currently buying and why?
Read Answer Asked by Marco on March 24, 2020
Q: Hello team,

Would you please mark (from 1 to 10) each of the above companies in terms of their ability to weather a recession scenario. (the lower the mark the worse the current balance sheet and inability to service debt).

Thanks a whole bunch especially in this crazy times....
Read Answer Asked by Saeed on March 11, 2020
Q: Hello Peter and Team,

Like most others, I'm licking my wounds tonight and strategizing how I might eventually make back some of the ground I've lost today. Thank you for the updated report and shopping list suggestions provided.
As well, I was thinking that there may be some good recovery opportunities within electronic transaction companies. I realize that interest rates, volume of transactions, etc., are some of the factors that will affect valuations, but the corona virus could be a boost for these companies if more of the world's consumers (especially in developing countries) move to a cashless society. I read that China is burning or disinfecting a lot of their paper money to help curb infection spread. Do you agree with this thesis, and if so, could you suggest a list of companies that could benefit? Could there also be boost to bitcoin adoption? Thanks.

Brad
Read Answer Asked by Bradley on March 11, 2020
Q: Paypal looks to be making some very strategic moves from getting access to the Chinese Market, worldwide partnership with Unionpay and a strategic investment in Mercadolibre. I have not really felt a need to add them as a holding but with these moves they are shaping up to be a play on international markets such as LATAM and China without owing companies solely focused on those markets. How does it looking for a long term hold alongside MasterCard, Visa and Square. I like the payment space.
Read Answer Asked by Sal on February 18, 2020
Q: I currently hold the listed equities in my TFSA, advised by a newsletter that will be winding down in a year. When this happens, I will likely liquidate my current TFSA holdings. Understanding that you cannot give personal advice, which of the following strategies do you think would be most likely to generate a longterm annualized return of 10+%?

1) Allocate the proceeds to 30% ZSP, 30% VGG, 20% XEF, 20% VEE, and hold these longterm, rebalancing annually to maintain original allocations
2) Allocate the proceeds in the 5i Growth Portfolio - I am already overweight Canada in general, so I don't really like this option
3) Allocate the proceeds into 5i's favourite growth/total return potential 8-10 US equities at the time, and then periodically ask 5i say, every three months, if there has been any change in this roster of 'favourites', (if you select this, I will ask for specific names in a followup question)

Parenthetically, I would absolutely love it if 5i would add a US-based portfolio to go along with the current three Canadian-focused portfolios, and would be willing to pay significantly more for my annual subscription to access this (reviewing the QandA, one already has a good idea what the 5i ' US favourites' are, it would just be nice to have this presented as a regular growth-oriented portfolio). I reviewed the Investor Suite and don't feel I would make good use of many of the tools, reports, and features offered in that comprehensive suite.

Thank you, and please deduct as many credits as deemed appropriate.
Read Answer Asked by Walter on February 18, 2020
Q: Can you explain how GPN was better than the newer fintech plays like SQ + PYPL last year?

Is this a trend that will continue?

What's going on in this space?

Thanks as always.
Read Answer Asked by Mark on January 22, 2020
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!