Investment Q&A

Q: Hello Peter,
Is Well health technologies taking a hit due to the financing that was lower than the current price? If so, is it a good time to add to it.. Why are companies like fortis and other utilities and telecoms taking a hit . I thought lower rates would favour utilities and with work from home, companies like BCE would benefit as more people use the network. Lastly, do you feel it is time to add to LSPD or take a break given recent surge.. thanks very much

Q: Hello Team,

I was hoping to get your opinion and tickers on the next upcoming Canadian "darlings".

I know you are very favourable of LSPD.

Would you be able to provide few more of those companies: the ones that have huge potential despite the current risk,

Thank you very much

Q: I sold LSPD yesterday after more than doubling up and was quite pleased with the $29.50 number until I saw that it has closed at $34. I want to be a long term owner an my thinking was that it would drift down from my sale price as reality sets in over the coming months. I am well aware that this is why 5i does not advocate this sort of trading and trying to time things but my question now is whether you think it settles down a few dollars or follows Shopify to the moon? My opinion with all of the fear created by our media is that restaurant business will be slower even once they are allowed to open fully. Q: Does a guy wanting to own long term bite the bullet and get back in now or roll the dice and wait? Thoughts?

Q: What is the difference between these 4 companies and could you rate prospects in growth, risk and management. is there much overlap between them?

Q: Hi, what is the short interest in Lightspeed ? Besides good results, do you think that the sharp 38% spike in the share price Thursday, could also have been fueled by short covering ? In your view, is the worst behind the company and is it safe to add to a 2.5% position now ? Thanks

Q: Was there anything in the report or the Conference Call that showed a 20% upside?
Would you know what impressed investors?
Thanks

Q: Good Morning team,

Thoughts on the quarter out of lightspeed? Looks ok with rev beat. What caused the eps miss?

Thanks!

Q: Hi Could you please provide earning estimates for Lightspeed. Thanks

Q: Have you changed your opinion of this company? It wasn't too long ago when 5i was recommending purchasing the company at $39, yet now you are saying that $50 is a long way away. I know that times may have changed, but many of the Tech stocks are hitting all time highs, and with LSPD having enough cash to last 12 years or more, isn't the current price a very good price vs. fair value?

Q: LSPD's business is focussed on small-medium sized retailers, restaurants and the hospitality industry. These are amongst the worst sectors in the economy and may be permanently impaired. Does this not change the investing thesis for LSPD? Is this not a case of sell now and consider buying at a potentially higher price down the road if they can confirm that growth has returned or at least stabilized?

Q: I assume when ranking return potential and risks with one of your answers today ..,LSPD is highest risk and GUD is lowest risk. Please clarify.
“ Return: LSPD, REAL, GUD, SLF Risk: LSPD, REAL, SLF, GUD”

Q: Seems that real is making a big run here. If you had to purchase 1 of these companies for growth moving foward which one would you recommend at this time. Thank you

Q: Please rank the above in terms of return potential and risk. Feel free to exclude one if the comparison is too difficult. Thanks in advance!

Q: If you had to put a fair price ( or range ) on the stock today - what would it be? If you want to wait till after the quarter to answer the question that is okay. I don’t trust analysts but I trust you. I am trying to decide at what point I want my average price to be. I have $20,000 in cash to add to my position and the investment now will have very substantial profits in five years which I know the price will be significantly higher than it is now. I am usually NOT in favour of averaging down but I know they will get to the other side intact. Currently my average price is just north of $32, which I thought was good 45 days ago.
Clayton

Q: First of all, I can't thank you enough for the excellence of your answers. I have been a member for many years. The answers just keep getting better.
Re my question:
I keep having to trim my tech sector. Perhaps I should sell a couple of names instead of just trimming? Would you please arrange these best to last? Many thanks.

Q: I currently own these tech stocks: GOOG, CSU, SHOP, KXS, LSPD, OTEX, and GIB.A. I want to consolidate and simplify my holdings based on balance sheet and growth projection thru this pandemic. I'm thinking of selling two out of this list and am leaning towards selling either, LSPD, OTEX or GIB.A. Which two would you pick and the reasons behind? Thanks so much.

Q: Dan asked a question on May 11 about ranking the prospects of DOO, GOOS, CAE, LSPD over the next 5 years. Your answer was following ranking: LSPD, GOOS, DOO, CAE. My question is would you rank these 4 companies the same way for prospects over the next 12 months?
Thankyou

Q: 2 Questions on Lightspeed, the stock has of course dropped like a rock and rebounded significantly from the lows 6 weeks ago, but even still if it were to head back to February highs it would be an increase of 80% from todays price.

I am trying to understand how much revenues can and are being disrupted by their clients business closures at least in the short term. They list in the most recent MD&A, software and payments revenue (cloud-based software subscription licenses and recurring revenue sources including payments solutions) accounted for 89 % of the previous 9 months revenue. Also noting that most clients are on 12 month contracts with monthly payments. With lightspeed payments only being introduced in the previous quarter there cannot be much revenue lost yet as it was more of a future revenue potential not a current revenue driver. I don’t think they breakdown what their cut would be with the current payment partnerships but they would of course lose out on payment fees potentially similar to SQUARE whose Payment volume was down 39% their final 2 weeks of the quarter, but how much do you think that could change Lightspeeds revenue?

Just a quick browse on their website shows they offer and excel in e-commerce for businesses, so some or most clients would be online and able to operate, if not they should and could be scrambling to add the capabilities to operate online, so this should be a net positive for this type of company (omni-channel commerce SaaS) in this changing business landscape due to COVID-19.

With lots of cash on hand to weather the short term storm, a high % of recurring revenue and the desperate need for businesses to be online would you not think Lightspeed for a long term play or even short term is one of the best options out there for growth?

Q: Stock has dropped 20 % past couple of days. Is there anything stock specific?

Q: Under the recent answers about Shopify, LSPD and Kinaxis there is no mention of " authors of these answers, directors, partners of 5i Research have a financial or other interest in any of these at the time of answering the questions.".
What is the reason?