Investment Q&A

Q: Recently, David Friedberg was asked for his prediction for the worse performing asset in 2024. He said he would be short vertical market software (SaaS) and be long cloud providers that have AI tools and platforms that will allow enterprises to build their own custom applications in a low-cost, low code way. If things play out this way, do you feel it could pose a risk to CSU’s business model?

Q: If you had to choose between CSU and LMN, which would have more growth going forward?

Thank you for your service!

Q: I am interested in buying the following stocks. What would be your 1st to 7th order in buying? Also what would your entry price be for each one.

Q: Hi, Large Cap Tech stocks in US started the new year with a sharp pull back.
In Canada, Shopify was the one which followed the trend with 6-7% drop. Constellation Software was largely unchanged and Lumine is consolidating from recent sharp gains. We hold all above stocks in our Non-Regd as well as TFSA accounts. There is about $80k TFSA Contribution room available, due to withdrawls made last year. We are considering In-Kind contributions to add to our TFSA holdings when MV of these stocks are lower, in order to limit crystallization of capital gains, as all of these names have large gains embedded, in our taxable account. Is it a reasonable approach ?

If technology sector witnesses some more decline (after very strong returns during 2023), what are the next Technical support levels for these three stocks ?

Thank You

Q: Hi there,

I'm looking to put my 2024 TFSA money into once concentrated bet. This would be a longterm hold (ie: decades possibly, if the story keeps getting better). Do you think LMN would be a good name that would qualify? If not, what would currently be a better bet?

Thanks!

Q: From this list of companies could any be a take over target in the next five years using your crystall ball
No commentary is required
Merry Christmas

Q: Peter; Do you see any indication that ,some institutions/ individuals , are selling CSU to buy LMN- and do,you think that’s a reasonable partial switch? Thanks.
And as also a very happy member for many years thanks for all you - and all your employees - who have helped my family with your insights into the market with totally unbiased research. 5i is more like “family” than a brokerage firm . A safe and happy holiday season and I look forward to 2024 with 5i providing the same excellent guidance.
Rod

Q: Peter,
On CSU pullback what price point would you be looking at to step in?
Last pullback in 2022 lasted almost 6 months. Of course I know history never repeats itself exactly but I am looking for a range at which the stock would be in your view a compelling entry point?

Q: If you were to pick quality compounders in the small cap space (US or Canada) like 3 mentioned, can you suggest a couple of good ones. I generally prefer long term horizon. Thanks. Shyam

Q: Hello Peter,
If i wanted to buy an ETF in India, which one would i be better off with? or am I better to put equal amounts.. Also, I was hoping topicus would replicate csu performance over long term ( i know it has not been in existence for very long but i am under water on topicus). Should i just forget TOI, and LMN, and stick to csu. Much appreciated.

Q: Hi, Constellation stock is up over 55% YTD and seems to be breaking out, making new highs, defying analysts' expectations. What, in your opinion, is causing such staller performance ? Where do you see the stock, say in 5 years ? Thank You

Q: I don't subscribe so only have the headline from The Economist of Nov. 30. Can anyone post the article?
Probably cause of recent strength.

How a Canadian company became the world’s best acquirer of tech firms
Meet Constellation Software, tech’s Berkshire Hathaway
Constellation Software company logo.

Q: Current PEs for CSU and Shop seem stratospheric and have me worried. How do they compare to historical PEs for these companies? Do the forward PEs for these two companies justify present share prices?

Jack

Q: Hi Folks,

My RRSP portfolio consists of the above stocks all with relatively the same weighing. Can you suggest 5 names or so, (CDN and U.S) that I take a look at that would complement the above? I am looking for a company that would be a good buy today for both income and capital appreciation - total return.
Thanks

Q: What effects do you see Artificial Intelligence having on Vertical Market Software companies , and specifically to CSU and its divisions? Is AI more or less of a threat to VMS than to horizontal software? How is CSU positioned for this massive technological transition?

Q: We finally have an RESP for our grandchild.

Ready for first equity purchase starting with about $6000.

Looking for suggestions.

Thanks

Q: Hello, Lumine shares have rallied almost 20%, since TD initiated coverage on Nov 14, with a BUY rating and $28 price target. Based on its present valuation and growth prospects (5-10 years), vis-a-vis, CSU/TOI, would you be comfortable increasing current position size of 1.75%, even after the run up ? Or would you suggest to add to 3.50% TOI weight ? ( CSU, already being a large weight ). Thank You

Q: Hi 5i, 95% of my rrsp account are in the above stocks , recently I trimmed technology to add BNS TFII QSR BN VFV , before it was very-highly tech oriented, now I'm looking to preserve capital and get a bit of dividends, Am I in the right track, looking to start withdrawing in the next 2 years, they all are between 8 to 12% of portfolio. Any suggestions for me. Grateful to 5i!

Q: I have some funds to invest in my unregistered account for a 5 year hold and am considering the above stocks and ETFs. Please comment on the projected growth of these stocks and ETFs and rank the stocks for future growth.

Q: Everyone, CSU shares, to my knowledge, have never split and as of today the share price is $3185 ish. What would it take for CSU to split their shares? I understand it’s does nothing financially but give you more shares. Clayton