Investment Q&A

Q: Very nice move in CSU recently. Any reason?

Sheldon

Q: Good morning…just reviewing one of my RRSP accounts and would like to make some adjustments…CSU is now 15% of the account…no other similar stock in portfolio….although very happy with CSU should I sell 50% and buy Open Text or Absolute Software or SIS…will not access RRSP for another 15 years…

Thanks

Q: CSU is struggling quite a bit lately to get to a better price. As it is highly recommended, and likely to resume its path of success, is there a problem with the company ?

Q: Dear 5i,

Recently there has been some Q&A about Canadian company shares that trade in Canada and the US, and pay dividends in US dollars. I believe CSU is one of these. I looked into a bit and it seems to trade on the over-the-counter market in the US. Is that correct? If so, would you advise journaling shares from a $CDN account to a $US account to avoid the commission on the exchange rate on the dividends paid? My understanding is the OTC market is not very liquid and is generally to be avoided.

Thank you, Michael

Q: Recently I've sold some non performing stocks as well as stocks that were a very small portion of my portfolio in an effort to concentrate my portfolio on some higher quality, better performing stocks and I've come up with these 6. Wondering if you could rank these based on risk from less risky to most risky. I'm fairly conservative, tend to hold good quality companies for long periods (5-10 years) and I don't like a lot of volatility - I'd rather get a 5% return and sleep at night than a 10% return and stress about it.

Q: Hi 5i Research team, I have a long term horizon, and more of a growth oriented investor profile. I prefer to well understand the companies I invest in. The technology sector represents a challenge for me in terms of software products, competition, rapidly changing conditions, obsolescence, variety of software portfolio, etc. So I would like to built a sector exposure based on a few companies instead of using an ETF. Based on reading 5i Research, I am thinking a combination of CSU, KXS, GIB.A, OTC, ESL, DSG, TCS, SYZ,SH. Do you agree with this strategy? Would you include some other companies in this list or replace some? In what order would you rank them in terms of total return potential over long term and overall quality? How many of them would be enough? Would you suggest another weighting than equal weight (2% each)? I also need criteria to manage this group since my understanding won't be up to par. How will I know when to sell, or when to over or underweight in some companies? I would not want to react too strongly to short term events (quarterly results). How would you suggest I implement this strategy (buying strategy)? Thank you, Eric

Q: In late July 2015 CSU peaked intraday just below $600. I sold at $574 reaping a lovely almost 500% gain. The stock bottomed just below $450 in Feb 16 and has been lurching higher since, then going on a $45 tear in the last two weeks.

Two questions:

1. Any reason you can see for the recent tear?

2. As the stock again re-approaches its all time high, and knowing you have been a longtime supporter, what are your views on the company and the stock at these levels?

Thanks

Kim

Q: Can you please comment on the current valuations of SYZ, ESL and CSU relative to their historical valuations and growth prospects?

Thanks.

Q: Hello Peter,
I was expecting Fairfax, CRH medical, and Constellation to go up significantly after the earnings announcement. Fairfax dipped, CRH and CSU went up slightl. Any comments please? Do you think it is too late to enter Electrovaya at 3.40 or above? Also, do you think Knight (gud) is a type of stock you can buy and hold it for years given the credibility of the management team? Thanks very much.

Q: Can you explain more about CSU conference call and Q2 results? For a previous question on CSU you told that Revenue Estimate at $510 million and EBITDA @ 131 million (I am assuming these are CAD though wrongly printed as USD). However you later said EPS missed estimates by 50c. I felt this is a big miss. You also said stock may be week. However today CSU went up. Can you explain. I came out of my CSU position today and want to know if I have to re enter. If not can you suggest a better stock than CSU in tech sector?

Q: Hi, would appreciate to share comments on CSU earnings. Looks like a beat on Revenue and EBITDA bur short on EPS. Organic growth is positive.Your insight is much appreciated. Thanks

Q: What is the consensus for Q2 revenue and adjusted ebitda , all in US$?

Q: I own CSU in my TFSA. I have a gain of 105%. I checked, via BMO Investorline, the Analysts 12 mo. price targets; they vary from $510 to $625. What do see as the price target?

Q: I am thinking of adding to CSU and would appreciate your thoughts. Although it's a high quality company the stock has underperformed the TSX this year. Is it better to buy now or wait for price improvement and if the later, what would trigger you to buy?
My thesis is based on CAGR of 20% (2016 est. $18.29 & 2017 est.$21.91) & forward p/e 23. Possible growth driver from TSS purchase by taking advantage of weakness in Europe.
As always, appreciate your views and particularly the other side of the trade.
Many thanks.
Mike

Q: Based on one of your comments yesterday re CSU, would you recommend selling and replacing with OTC, or another tech?
Thanks Peter.

Q: I have 15% of my well diversified portfolio in Tech stocks. I am thinking of consolidating my 7 stocks into a smaller number of stocks - perhaps down to 5. I have 2%-3% in all the mentioned companies except SYZ at 1%. Any suggestions as to which companies to sell and which ones to "top up" would be appreciated, or maybe just leave as is.

Q: I realize these two companies are very different, but both have had a nice share price reduction recently (well, nice if you're a potential buyer!). Straight-up question: Which would you choose for a better TOTAL return over a 5 - 10 year time frame?
And do you see a material difference in net risk between the two over such a time frame? Thanks!

Q: Hello Peter,
I own sj, csu, esl, and gib.a. All of them are down more than 10%-15%. My weightings range from 2 to 4 percent. Is it best to just keep the weightings as they are for long term or reduce them. Much appreciated.Umed

Q: Please comment on Constellation's announcement that it is acquiring NCCW. Is NCCW a large acquisition?

Thank you, Peter

Q: Earlier this year your team did a portfolio review for me. Thanks for that as I am much more diversified now (and a bit smarter). I own ESL and would like your opinion on switching to CSU?