Investment Q&A

Q: Could you comment on Lightspeed's historical earnings, growth performance vs stated forecast, etc?
In other words how reliable has their pitch been?
As I understand, they report in a few weeks and with the Sprucepoint gun to their heads, highlighting the soft spots, this may be a critical validation day.

Thank you

Q: Hello Peter et al,

I have had $250,000 in cash for about a year now and have recently bought LSPD, TOI and BBD near all time highs for the 3 companies i.e. approximately 40%, 40% and 20% of the portfolio. Of course since I invested in these securities, they have all declined, LSPD more than the others. I have a high risk tolerance and won’t need the money for at least 5 years. With the yields increasing, is there a higher risk of my investments tanking or should I stay invested? As always, your advice is very much appreciated. Thanks a lot.

Q: LSPD's SP continues to be very volatile daily while under the current short attack. Can we assume such attack will not end until the company reports its next quarterly results - assumed to be in the first week of November - based prior reporting history

The assumption is, after LSPD reports publicly as required by law, the short's accusations would either be proven correct, or partially correct (after all the best lies are the half truths), or just vicious rumors used to destroy LSPD's SP for their own profit.

If the accusations are without merit, do the indemnified parties, such as us common small retails, can seek restitution from the short seller? Has that happened before and how successful are they in seeking such compensation based on past history?

I've been in the market for almost 20 years and find the practice of short selling morally unethical. What legal protections do the investors have against such shady practice from the market sharks with big capital? Please enlighten us.

Thanks.

Q: DO YOU KNOW IF LIGHTSPEED IS UNDER AN INVESTIGATION FROM THE COMENTS THAT WERE MADE ABOUT THEM. AND AGAIN WITH LIGHTSPEED I KNOW THEIR QUARTERLY REPORT COMES OUT ON NOVEMBER 4, ANY NEWS ON HOW THEIR REPORT WOULD BE IF IT WILL BE POSITIVE LIKE LST ONE OR NEGATIVE. THKS AGAIN GUYS

Q: Any sense of how low they can go and does the current 30%+ decline reflect real issues with the company and their revenue reporting etc or just a lot of panic selling? It is painful to watch and wondering if they are likely to be topped out for an extended period of time.

Q: I should have known better, having lived thru SHOP's short attacks, but i bounced out of LSPD.

At what price would you feel comfortable going back in?

Thanks,
Mark

Q: Hi 5i Team - Does Lightspeed have the fundamentals and resources to survive a continued short attack, Secondly do you have any concerns regarding its business model going forward. Thirdly from what I have read and heard many restaurants are struggling to hire enough staff to continue operating on a full schedule even though indoor dining is now allowed in many jurisdictions with vaccination passports. As a result some are reverting to takeout only. Since Lightspeed serves the hospitality industry, is this a concern?

I have a relatively large position in lightspeed and need to trim. The question is how much. Your response to the above questions will help me with my decision making.

Thanks again for the excellent service and Happy Thanksgiving to all!

Rob

Q: I know you like ADT.B as a company and its management but the stock hasn't done much over the past couple of years. At some point does the lack of share price growth warrant removal from the portfolio?

Savaria is another one, and despite all the potential for a reopening trade Air Canada isn't 'taking off'. Do you think these two should be considered for replacement with something else that can provide better growth?

Please deduct credits accordingly.

Q: Hello Team,
I am over weight with SHOP at the moment and very small LSPD holding. Would you recommend selling some SHOP and buy LSPD to balance? or Am I increasing the risk by doing that?
Thanks!

Q: What technology stocks would you recommend investing in right now, US and Canada?

Q: Hi 5i,
I have the following in a non-registered (and high risk tolerance) account:
LSPD (+55%)
GAN (-21%)
XBC (-65%)
QUIS (+21%)
AMY (+28%)
PLTR (-15%)
NANO (-28%)
OPS (+37%)
PLUG (-62%)

1. Is there any names on this list that you would consider selling at a loss and re-deploying elsewhere?

2. I'd like to buy LSPD in my separate registered account considering the sharp drop over the past couple weeks. Is there any limitations on owning the same stock in both registered and non-registered accounts? I am comfortable in my overall position so that would not be a concern.

Please deduct credits as you see fit.

(There is a chance I've submitted this question twice; if so, please answer this one. My browser crashed during my first submission and I'm not sure if the first one went through.)

Thanks for your insight,
Kyle

Q: Hi folks!

Not a question, more of a comment on the attack on LSPD.

Correct me if I am wrong, but when SHOP got attacked by citron back then, I don't recall them coming out with any statement whatsoever to defend themselves? They pretty much ignored it and went on with their business!

If that "Media clown" Cramer would have invited the CEO of SHOP to defend themselves, I highly doubt he would have gone on. Unless he did and I did not see the show? Not like I watch that hyper active show.

The best way to beat a short attack and have them go away is to post strong quarterly numbers...point final!! Isn't that what SHOP did? They kept quite and beat all estimates which squeezed all the juice out of citron! (Citron is french for lemons :)

Ignore the noise people!!

Thanks

Q: Hi Team,
I was debating whether I should sell PLTR to buy MORE of either NVEI or LSPD. Which do you see having more long term potential here? Or should I simply keep holding PLTR? It is a little frustrating watching it go from being up 14% after hours last night to only 1% as I write this. Seems like nothing wants to move the needle anymore with PLTR. Thanks

Shane.

Q: I bought REAL in juin 2020 and have averaged down on the way, ending with a large loosing position. Lesson learned about averaging down!

How do you consider the outlook for REAL? It missed estimates, but how do you like the growth, the balance sheet and the valuation actually?

Im wondering if i hold longer or if i trim around 1.5%?

Im considering the lower market to average up LSPD, GSY, ATA, WSP or BYD. How would you rank those today?

Q: sold all my lspd when short report came out.
i agree with you 100% that cramer is in the entertainment industry, i also think he is a little off upstairs but he is extremely bright and a very hard worker.
my question is why wouldn’t dax disilva go on his show and answer each negative in the short report-if there is nothing to hide this could only benefit the stock and remove the monkey on lightspeeds back. it makes no sense and something does not add up.i value your opinion .dave

Q: NO PROFIT... NO PROBLEM...

This is a story in the Globe and Mail dated Sept 25th 2021. The article made all lot of sense and there seems to be a disconnect with growth at all cost with no profit. Maybe this is how things are done just look at how our government is run.

I don't have a specific question to any of the companies mentioned above but with LSPD in the news lately maybe it will apply. I know there has been a short report put out on LSPD and from some of the comments that I am reading from 5i that they are false.

My question is how do you know?

We don't know the real workings of a company and what we get from them is what they want us to hear. Take for example XBC, that wiped out all of value from investors because we didn't get the correct information from Management. It's what they wanted us to hear and we believed them.

I think there should be some healthy skepticism with regards to what Management says and does and investors should take away that capital preservation is paramount.

If LSPD or any company that gets shorted and can't explain the reasons for the discrepancy in a respectfully dialogue then maybe there is some truth to it but like I said we don't really know.

Who is right? The short trader or the Stock promotor?

Until we get all the information it will always be Buyer Beware and don't fall in love with any stock.

Sincerely.

Q: I have read all the questions regarding LSPD. It has been a huge winner in both of our TFSA’s, and I decided to continue to hold after reading your answers.

However Cramer really bodyslammed the company today as you probably know.

He cited the company’s response to the short report as “inadequate” …. And made more of a big deal about the company not agreeing to give Mad Money an interview since he had had the CEO on his show fairly recently.

Would any of that change your perspective on LSPD?

Thanks for your help with this important decision.

Q: Cramer did a number on LSPD on his show Mad Money last night and was criticizing management for not coming on the show to defend their position.

I see you've said to do nothing but that is trickier when trying to protect a profit. In that case would you be a seller?

For new money, would you be buyers right now?

Q: Apologies in advance for yet another question on Lightspeed, and not sure if you caught Jim Cramer's show this evening, but he slammed Lightspeed - seemingly went out of his way, for a prolonged period of time - to embrace the short report as gospel, and to sell, sell, sell.

Obviously there will likely be an enormous hit in the morning. But in your estimation, is this game-over for this high-flier? The company turned down an invitation to defend themselves on-air, likely a wise choice given Cramer's current sentiment towards the firm, but given his wide appeal (and I'm assuming influence) is it possible to overcome this negativity? Or just wait, and the numbers will - or not - speak for themselves. I think I know you'll say that I answered my own question, but given this mess, I wanted your sound judgment.

Thank you as always...

Q: Is there any credibility in the recently published short seller’s report? One would wonder given the sell off in the stock.