Investment Q&A

Q: What would be your best 3 Canadian growth companies for the next 3 years, regardless of category?

Q: I realize that all we have is a press release from the company , but what are your thoughts of the recent large acquisition?

Q: What is your favourite predominantly Canadian small cap ETF ? And American ?
Which of the two do you prefer for a 3-5 year hold?
Thank you,
Philip

Q: Your thoughts on Alaris please. Have they ever cut dividend and do you feel it is safe going forward

Q: Hi .. any thoughts on why the recent nice upward moves? Nice, but why?

Q: This stock is rocketing higher on q2 financials just released. What do you think of it? Despite the gains, first half 2024 eps of 0.13 is very impressive. Risky name but decent small cap opportunity? Thanks.

Q: It seems that small cap stocks are finding some legs. Could you provide 4 CND, 4 US and and some EFT ideas that might be able to take advantage of this trend

Q: Please comment on TLRY's current quarter, debt reduction and the expectations for the German license going forward. Thanks

Q: 5I has been putting HPS.A at the front of the line in growth stocks and I have been getting interested. I like the idea of the business. I also subscribe to Simply Wall Street and get regular emails on stocks I'm watching. Below is my last email from them

" Second quarter 2024 results:
EPS: CA$1.98 (up from CA$1.12 in 2Q 2023).
Revenue: CA$197.2m (up 14% from 2Q 2023).
Net income: CA$23.6m (up 77% from 2Q 2023).
Profit margin: 12% (up from 7.7% in 2Q 2023).
The increase in margin was driven by higher revenue.Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 1.5%.Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 28% growth forecast for the Electrical industry in Canada.Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has increased by 125% per year, which means it is tracking significantly ahead of earnings growth. "

I appears to me that the revenue is lagging the electrical industry and earnings are being exceeded by share price by quite a bit . The thing that hit me the hardest was the revenue forecast { 7.3% per anum } versus the electrical industry { 28% } . That is almost 4 times HPS.A's outlook .....Add to that that earnings increased 50% and the share price increased 125% suggesting the stock is well ahead of itself ..... Could 5I comment on this ? It looks to me like the shares are priced for perfection and one bad quarter could result in a major correction ? ......Thanks for your great service ......

Q: Speaking as specialists in Canadian small cap equity, what are your favourite Canadian and U.S. small and micro-cap equity mutual funds and ETFs?
Best regards,
David

Q: Hello 5i
The question on OGN was in October.
It has been on a good run the last eight months. Can I have a current assessment please?
Thank you
Dave

Q: Terravest stock seems to be getting its traction back, with a new 52 weeks high today, after a sustained period of drawdown, following the equity raise. Could you please help understand some reasons for investors' renewed interest, Also, do you expect this momentum to continue into earnings and thereafter?

Thank You

Q: What is your current opinion of RDVT (i.e. Red Violet)?

Q: Please comment on their new acquisition. Does that make this company more attractive in the long run. The stock has doubled since then. Thanks

Q: "We could see the mega-cap names move sideways relative to small and mid-caps in the near-term and intermediate-term, but we would not be willing to try to time this, as the probabilities from history and current valuations are on our side."

If someone were trimming mega-cap names to raise cash and capitalize on the potential for small and mid-cap names to outperform please name your top 5 Canadian and US companies that would be the first you put this cash into.

Q: Cipher Pharma made a major acquisition today that they say will double their sales and profits. The new products acquired are also superior to the existing treatment, which has 71% of the USA market, so lots of room there for growth, plus they plan to get approval in Canada and make a deal for ex-North America sales. They also have their drug for toenail fungus, a big market, set to produce final results in about 6 months, with sales expected starting in 2026. This looks like a good growth stock to me, trading at a cheap valuation, given the profit from the new products, and I am wondering what your take is on the acquisition and the stock.

Q: Can I please have your view on Audioeye Inc?

Q: What seems to be causing the volatility in the stock, post earnings ? It was supposedly a solid quarter and SPA issues appear to have been put to rest.

Thank You

Q: Dear Peter et al:

I know this is an unfair question! Asking you to rank order your favorite children :)

Plan to add some fresh funds in these stocks in an orderly fashion.
Any thoughts?

Please feel free to add any other small cap stock(s) that you think is as good as these favorites of yours!

Q: Hello,

Can I please get your view on Headwaters' quarterly results. Thanks

Dave