Investment Q&A

Q: Hi, I am intrigued to watch the precipitous price decline of Topicus stock, over past several weeks. True, most high multiple Technology shares have come under tremendous selling pressure, recently. But, a general understanding had been that TOI stock is mini Constellation , of sort, with higher growth potential, but similar business model and management approach. While CSU share price has been fairly resilient during the Tech sector decline, TOI, with 55% decline from its peak, has not displayed similar attributes. Is it the current geopolitical uncertainties in Europe, which has caused this or you see some inherent issues with the company ? With $67, share price has gone in full circle back to the initial days when stock just started trading. Thank You

Q: Hi, Within less than 9 months these stocks have lost between 55 % to 90% of their value. LSPD took the hardest hit, with TOI, the least in this group. All these companies have been market darlings since their IPO's and still continue to be 5i favourites. We own all these names across all family accounts. Based on your recent comments, these stocks also have very high potential of a strong bounce back, once market sentiment towards Technology sector improves. Question: If these companies continue to execute against their respective business models, and Tech/Growth stocks slowly regain favour with investors - Based on some multiple expansion, what would be a reasonable price range expectation over 3-5 years time frame for each stock and how would you rate them, in order, as best placed or likelihood of accomplishing this. Thank You

Q: In your opinion which company would offer the best return over the next 5 years?

Q: Good morning, Which of these three stocks do you guys believe has the best near term bounce back recovery, thanks?

Q: Good morning, Today, what stocks are catching your interest given their current prices? for both higher and lower risk investors. Does DND make that list?
Thanks for your services?

Q: Based on your reply to Paul on May 9th...."We think buying over a year will end up looking pretty good in two or three years". Of the following Companies that make up my portfolio what would be your TOP 3 conviction names to ADD to over the next year based on long term growth potential, good valuation, well run, good management, no brainer this will be a good investment type choice. There is opportunity here so don't want to miss the boat. Yes everything is down. Yes people are panicking. But it will go back up and simply want to focus my energy on the ones with more conviction. I don't need the money for the next 15-20 yrs but don't want to be a moron either and be happy with a bit of dividend here and there when I could see larger returns by making a good decision today. Thanks again.

Q: Both of these companies have corrected significantly in last few months. Do you think seeing their future prospects time frame 3-5 years, shall i buy more

Q: Hello Peter,
I have been meaning to get your opinion even before the two-day wild ride and this question is not based on today’s aftermath. And I will speak from both sides of the fence. As usual, I want your perspective.
You typically respond to reader’s questions with a 5-year outlook. However, I think that the 5 yr business plan is outdated except maybe for utilities and commodity producers. And even then, with instantaneous data enabling policy definition, the peak to trough and back for business cycles are short.
High growth companies typically do not have a moat as they rely on transformative technology as the enabler. Today Amazon finds its digital commerce saturating and looks to cloud services for growth. Shopify is looking at vertical integration with logistics and financial services while the world moves towards open-source digital commerce. Game, set, match.
Now I step to the other side of the fence. Probability of a soft landing -very small? The fed cannot control supply but can control demand. Housing, lumber, commodities consumption diminishes just as supply ramps up in an inflationary environment hoping to absorb costs. Discretionary, industrials slow down and drag commodities.
Where am I going? If my thinking is correct, my investment decision should be based on a 2yr or shorter period return. So, between now April 5 and the end of seasonal strength next Feb; is it tech- SHOP and TOI, or Energy and Commodities? What about Gold and Silver? Is it NVDA and CRWD or QCOM and MSFT? And I am not looking to hedge but make portfolio changes, swinging for the fences. Or is it too late for sell in May?
I look forward to your opinion.
Regards

Q: Hello Peter and team,
Your comments on Topicus results were positive but the stock dropped.. Any idea? Is it a good time to increasing one's position in Shopify? Thanks very much

Q: Perhaps not an easy comparison, but which would you be more comfortable with at this time, LSPD or TOI for total return over a 5 year time frame?

Doug

Q: Hi, Could you please comment on TOI earnings. Thank you

Q: Hello 5i Research
Today’s answer to Terry that Toi is expensive, what price would make it not expensive?
Thanks

Q: In view of a upcoming possible recession I am considering switching Shop for Toi, and Amazon for Crwd for a 3 to 5 year hold ,
May I have your thoughts, please

Q: I currently have a lump sum to invest at this time. I already have all the stocks in your Balanced Equity Portfolio and would like to slowly invest the lump sum (i.e. 10% per month). This is for a long term hold (> 5yrs). Which three stocks of the BE portfolio would you add to at this time and a brief reason why?

Q: When the price of oil tanked, a few fund managers pounded the table. Now that tech is sputtering significantly, do you see multiples of today's prices in the next 18 months?
Specifically, Nvidia, Lightspeed, Topics, Shopify, Google, Facebook, Apple, Amazon, etc.
Is now the time or once the gut-wrenching war subsides or would you stay away?
Thanks.

Q: We have new money to invest and would like to use it to correct our only significant sector weighting imbalance, which is in technology. The sector is currently represented by CSU, DSG, KXS and SHOP, where all but CSU are down.

5i has often stressed the importance of both maintaining target sector weights and not leaving too much cash idle. Now we find ourselves with the technology sector struggling and would like some guidance on how to proceed.

For the existing positions, which are long term holds, would you be inclined to spread out the additional investments over the medium term, say the next 6-12 months, or would you tend to be more aggressive, investing in the shorter term?

How would you rate (1-10) CSU, DSG, KXS and SHOP for additional money today?

If we were to initiate long term positions in TOI, TIXT, NVEI and LSPD today, how would you rate them?

Once again, a big thanks to you all at 5i! We've just renewed our membership after a first year. We only wish we'd known of your service earlier!

Q: Where would you rank APPS right now in relation to the above companies for a buy right now?

Q: You have replaced OTEX with NVEI. I currently own LSPD so would it be better to buy TOI instead of NVEI or would you suggest a different stock?

Thanks

Q: Hello Peter and team,
Can you expand on your answer please on Topicus and Nuvei? You had indicated these are good growth names but add when there is a sustained recovery in tech.. how does one gauge it? Do we use technical analysis and also it seems that yield curve may flatten should that not bode well for tech? With rising rates, banks are supposed to do well but i see a decline.. Is the view now that only short term rates will go up and long term may not go up much; lastly, do you think Abcellara is a good buy now?

Q: Hello 5i team,

Based on growth of revenue and income and not forgetting the debt level. Which one of these two companies would be better suited for higher inflation rate and starting one's position in.

Thank you

Ed