Investment Q&A

Q: Strong market today but KXS drops over 3%. It's been a lacklustre performer for some time. How serious a threat is AI? How strong a product do they have? KXS has been identified as a potential good performer in 2026 by some analysts. What is your take on the company? Is it worth keeping?

Q: What is your updated opinion now after their unveiling of the value creation plan and substantial issuer bid? Worth holding for now?

Q: FYI I came across the reason for the drop in ZDC I thought you might be interested in - Amazon’s Ring Doorbell division announced a Ring Camera on a small trailer product yesterday at CES. After reading their operational update and a few analyst's "Takeaways" from this news, I added to my holdings as they are catering to a completely different market than Amazon and demand remains extremely strong. Below is the update and some analysts updates.





Operational update:

* Exit-Q4/25 service fleet had 2,783 towers (+18% Q/Q, and above our expected 2,711).

* Tower output capability now at 50 per week (for context, we have been assuming per week output of 30 during Q4/25, 45 during Q1/26, and 50 during Q2/26; this near-term path is already nicely de-risked).

* Currently moving into new/bigger manufacturing facility in Houston that will boost output capacity by ~50% (to implied 85-90 per week; for context, our growth forecast is based on 65 per week in Q4/26+, suggesting there are no capacity bottlenecks).

* Snowballing success with larger type of national/enterprise customers; a national contract has been signed with an existing major homebuilder client (enables quicker deployment of towers to satisfy their demand in more regions); also recently signed up a new furniture retailer that has 250 locations in U.S.; also have multiple trials/RFPs that are active with major new customers.

* Plans are in place to continue boosting regional presence in U.S., and the size of the sales team in both Canada and the U.S. where they see no shortage of demand; based on our recent chats with management, we think the exit-Q1/26 regional sales team (ex. national accounts team) will be >2x vs. the count that existed during the last reported quarter.



Takeaway: We think the update previews that Q4/25 results will beat expectations, based on the reported size of the fleet, and based on our recent chats about demand, utilization, pricing, and sales team performance. We also think the business momentum/capabilities being highlighted previews a need for Street forecasts to eventually increase (Street expectations for late-2026 and 2027 look low vs. Cormark estimates).



Addressing the Ring media headlines:

* Ring (Amazon’s video camera and doorbell cam platform) revealed a new product launch yesterday and it triggered weakness for ZDC’s stock, but the product does not overlap with the market and demand that ZDC is addressing.

* The new Ring product is a video camera on a mobile and self-powered tower (12 feet high); Ring will sell the tower equipment to customers starting at a cost of US$5 K, and buyers can self-deploy the tower unit wherever they want; footage is stored and the owner of the tower can also self-monitor the video as desired (or get a non-Ring, third-party to watch it for added/undisclosed fees); it’s essentially like a doorbell cam, but a more expensive and mobile version used to see small areas.

* In contrast, ZDC does not sell any hardware (does not even rent any hardware); ZDC sells a comprehensive service (real time, live monitoring and response services covering large areas, with the service delivered using ZDC’s own hardware and monitoring staff; even the hardware ZDC is using is very different / 2x size / costly vs. the product Ring is selling).

* There is an existing and crowded market for this type of new Ring product, with many small companies offering it (for many years, especially in the U.S.), but it’s not a market ZDC has been, or will be, involved in.

* We also note that Amazon itself continues to use ZDC’s service, including consuming more of ZDC’s fleet capacity as recently as yesterday at more of their distribution centers (with more orders expected beyond yesterday’s deployments).



Takeaway: The Ring headlines should have zero impact on ZDC’s financial profile momentum that will ultimately power ZDC’s stock price; we think this is a brief trading-type selloff, and a continued selloff is a stock buying opportunity given the setup of standout growth, room for forecast increases, and valuation that still has room to expand (stock trading at mature/low-growth <15x cash EPS vs. our modelled exit-2026 run-rate, a point in time that should be no where close to maturity for ZDC’s growth curve).





This morning, ZDC provided an operational update and its strategic growth roadmap for 2026. Impact: slightly positive.

Fleet growth. The MobileyeZ fleet grew 108% yoy and 18% sequentially in 4Q, reaching 2,783 towers as at 4Q25 vs our estimate of 2,819; 52% of the fleet is now in the US (higher vs our estimate, demonstrating US expansion efforts). The company is also significantly building out its salesforce and its national account sales team. Recall that we model a fleet of ~5,000 exiting 2026 and ~7,700 exiting 2027.
New wins. The firm has secured new customers and expanded tower count with existing clients within the home builder security market. Enterprise sales efforts have made significant progress, with the signing of national account paperwork with the largest US homebuilder, an existing customer. Additionally, ZDC committed towers to a large US SE furniture retailer with 250+ locations and meaningful capacity to deploy more towers. ZDC is actively supporting trials for multiple large enterprise retailers while in advanced stages of RFP processes with some of the largest companies in the US.
US geographical expansion and growing sales team. ZDC has expanded its geographical footprint with service centre locations in the US Midwest and Northeast. In addition, ZDC is aggressively growing its sales team in 1Q26 in both Canada and the US, as well as the national account sales team, as it looks to expand into new industry verticals and regions.
Weekly production. It reached 50 towers/week, with production continuing to grow with capacity (is also slightly ahead of our forecast).
New Houston manufacturing facility and monitoring centre. ZDC is moving into its new Houston production facility in 1Q26, increasing its manufacturing floor space by 50%. While current capacity is 50 towers weekly, the new facility provides the ability to significantly expand its footprint and support additional enterprise customers. In addition, ZDC has finalized a lease for a 15,000sf monitoring facility in Houston to support its growing operations and deliver uninterrupted security services. The centre is already staffed, with additional room available for future expansion.
Our take on Amazon Ring entering the commercial market. While this presents a negative headline risk, it does not deter us from our robust growth outlook expectations for ZDC. Our understanding is that the product offering is mostly hardware-led, catered toward more DIY and price-sensitive customers, with minimal servicing. Most importantly, there is no live 24/7 monitoring (or will need to hire a third-party firm). We note that Amazon acquired both Ring and Blink back in 2018, demonstrating a buy vs build preference.

Q: Hi Peter and team,

What would you attribute the drop in GLXY's price since November 2025 to? Was it profit taking or something more fundamental? Do you see it as a hold, sell or buy ?
Thanks,
Harry

Q: Hi Peter,
FSV is at a multi-year low. Unlike TRI or CSU, which are dumped by investors fearing AI is going to affect their revenue, what are the reasons driving the selloff of FSV? Do you see FSV having strong growth this year and now is an opportunity to add? Or would CSU or TRI be better candidates to add to at current price? Thanks.

Q: Hi Team,
I am looking for a tfsa candidate to play the secular growing demand in the north American electricity grid. Would Grid fit the bill here? The company seems to be doing well, and with a smaller 240mil market cap it seems that there could be multi bagger opportunity here over the next decade, would your agree? If you do not see Grid as a top pick today, do you have a couple alternative suggestions for a high conviction growth stock for this years tfsa contribution?

Thanks,
Shane.

Q: You’re thoughts on finning

Q: In the growth portfolio, could you list the companies you would add to in a TFSA from highest conviction to lowest. Maybe six of them,

Q: I hold small (less than 1%) positions in VNP and GRID. I would like to beef up the size of my holdings or sell and redistribute the funds into other positions. Would you put more money into VNP and GRID, combine the two into one holding of either VNP or GRID, or reallocate the funds. Thank you for your help with this.
David

Q: Hi,
You’ve mentioned a lot of small caps that have already had significant growth in share price. What are some small cap names that have not yet landed on everyone’s radar?

Q: Hi Group please give me your top 6 sectors for 2026 (in order of preference please. Also can you give me you top 2 picks for each sector also in order of preference Lastly too late to buy gold and silver and copper what is your top picks in Gold and silver as well please assuming you recommend buy at this late date...thanks

Q: I am starting to think about my 2026 contribution to my TFSA. I wonder if I might have your highest conviction growth stock pick where risk and volatility are not a concern.

Thanks
David

Q: Given a preference to own one of these versus both, would you favor COIN or GLXY, and why?

Is there a case to be made for owning both …. Or neither?

Thank you

Q: Where would you rank Groupe Dynamite Inc amongst your favourite mid cap companies ? Assuming you feel it is in fact a mid cap stock at a 9 B market cap. A reason please. +5 year hold for a TFSA.

Thank you and Happy Holidays!

Q: can you talk about these stocks as investments
Thank You
Peter

Q: We are looking to inject more growth into our TFSAs - can accept reasonable degree of risk. Looking for concentrated list 10 stocks for 3-5 year hold.

Q: hi, a couple of questions on GLXY: is the company making a profit now? does it have a PE and PEG ratio? approximately what percentage of the income comes from it's various sources? how much is the income related to the price of Bitcoin and/or other digital currencies"currency" concoctions?
cheers, Chris

Q: GWO has done extremely well this year, up over 40%, while MFC is up over 11%. SLF, though, has lagged, down about 1.5% over the past year. What explains the wide gulf in their stock performance?

Q: Hello, Please provide some thoughts around the Dream Industrial REIT Strategic Partnership With CPP announced Dec 17, 2025. Would you expect this to be a catalyst towards a bullish run for DIR.UN? Thanks.

Q: Hi I hold the following positions
CSU overweight
CLS overweight
GOOG overweight
BN overweight
GLXY
NBIS
NVDA
ISRG
AXON
SHOP
AMAZON
HOOD
VOO
URI
PNG

Would you add to existing positions or choose to buy others?

Please list your top 5 other stocks, and a brief reason for each ? Cnd or US

Thank you