Q: In a recent question you ranked NVEI over PAY over PRL for a 1-3 year hold. Your ranking was NVEI, PRL, PAY. Could you please provide details/logic for the order of this ranking?
5i Research Answer:
All three are expected to show solid growth. NVEI, in fact, is the laggard on EPS expectations, with 'only' 28% growth expected. BUT...it is significantly cheaper than the others, and has lagged their performance. In a good market, its debt leverage will be ignored by investors, and it could play 'catch up' as the others have already moved significantly. It is also significantly larger than the other two and thus may be less susceptible to small cap volatility. Keep in mind such rankings are quite subjective and difficult to predict with any real accuracy.