Investment Q&A

Q: Greetings:
In the December issue of CMS Norm Rothery picked his 10 stingy stocks. The above 3 have gone down continually since, to almost the 52 week low. Please give your opinion as to why the refiners are getting hit so hard. I realize that all energy stocks are in a slump, but not to this extent. Have the crack spreads narrowed ? and or what other reasons. Your analysis please?
Thanks,
BEN.

Q: Since I bought some NBIS a few weeks ago, it has been a wild ride, in both directions. It's making me dizzy. Is this volatility common in stocks like NBIS? What if anything do you make of all the ups and downs? Thanks.

Q: Peter and His Wonder Team
AEG is down 6% today...why do you think?
Is it just tax loss selling or other factors?
Thanks!

Q:
This question is prompted by concern I felt upon seeing portfolio consists almost entirely of growth companies, few dividend payers, and no bond holdings. After reading the notes, articles and opinions of several financial analysts and investment gurus, I gather:
— that “value investing” has not worked for the past decade; and
— that now however is the time for investors to adopt a Value-centric approach.
Do you agree with this sentiment? If yes, does 5i have screens (or links to them) of US-listed companies whose share prices have declined more than fundamentals justify AND whose prospects for share price appreciation look good going forward ?

Additionally, IF, and *ONLY IF*, you believe “value’s time has come” do you have a US-listed value-oriented ETF that you care to recommend? I reviewed these two ETFs: ILCV and VLUE. Do you like either one? If yes, do you prefer one over the other? Or do you have other suggestions? Thanks! :ao: sab

Q: Two part question:
You are often asked to suggest 5 companies for a TFSA or for growth and are consistent in suggesting names like CLBT, TVK and NBIS. My question today would be for you to introduce five high growth companies that you are watching but not recommending from the US market. Can you please list companies that excite you but have not yet been mentioned here?
As part two, can you state what you like about each company AND what you are watching for before actively recommending? Take 2 or 3 credits or whatever is needed to provide a comprehensive answer please.

Q: For US industrial, would you choose ROAD or AXON today?

Q: What would you recommend with PLTR after its rise? At some point it will correct? Time to move on or keep it at a reasonable level in your portfolio for when it does correct? I guess the same answer could be applicable to the entire portfolio?

Thanks for your service!

Q: TSLA had a huge move up after three years of flatlining. It just broke through its all time high. Do you think this move is largely related to the market starting to price in future growth from FSD, Robotaxi, energy and Optimus? Do you think these lines of business will start to contribute to revenue in 2025 in a meaningful way? Appreciate your take.

Thanks.

Q: Is KARO:US worth consideration as a growth-oriented diversifier?
Thanks!

Q: Hello 5i
Could you rank the above stocks for a 3-5 year TFSA hold with a medium to high risk tolerance in mind.
Thank you
Dave

Q: Can you please comment on GameStop’s recent earnings? Future projections? Thoughts on the company’s fundamentals?

Thank you for all that you do and happy Holidays!

Q: Hi, I’m looking for your five top CDR ideas for a TFSA. The criteria I’m interested in is share price growth, capital preservation and valuation. A brief summary regarding each choice would be much appreciated. Happy Holidays!!

Q: In response to why NVDA might be experiencing weakness, CNBC has been talking about:

MON, DEC 16, 2024

The Exchange with Kelly Evans
FROM THE DESK OF KELLY EVANS

 
AS OF MON, DEC 16, 2024 • 11:24 ET

What Just Happened.

 
"The market's most important stock is faltering," the CNBC headline aptly reads this morning. And as our Fred Imbert catalogs, Nvidia shares are down 3% in December while the rest of the market is up nearly 4%, and are down nearly 10% from their November 7th all-time highs.



Now, a tiny correction in a stock that's up 164% this year, and 9x in two years, is hardly reason for concern. But there could be a meaningful reason why the shares are stalling out here--and why shares of another chip company, Broadcom, are suddenly soaring.



It goes back to this fascinating discussion between Chetan Puttagunta, a general partner at venture capital firm Benchmark, and the anonymous fund manager known as "Modest Proposal" on Patrick O'Shaughnessy's podcast a couple of weeks ago. I'm no technical expert in AI, but here's my best effort to summarize their discussion.



Namely, has the arms race to develop the biggest, best, and fastest large language model--the kinds of model that uses hundreds of thousands of Nvidia chips in massive data centers--begun to stall out? A few marquee players, like Meta's "Llama" and Musk/X's "Grok," are still plowing ahead, but the broader market may be starting to shift.



The shift is happening because (1), Meta's Llama model is open-source, and therefore start-up teams are now able to use it to produce smaller, more targeted AI models for specific use cases, and (2), the "training" of large language models using both real and synthetic data has stalled out, giving way to a new era of grading them based on their inferencing ability, also known as "test-time compute."



And if this shift is happening--and the podcast only barely got into the chip implications of this--then it would make sense if demand were also starting to shift from a land grab of Nvidia's workhorse chips, to a market where Broadcom's "custom" chips could suddenly become a very important player. Indeed, Stifel CEO Ron Kruszewski told us that's exactly where his firm is looking as they begin to deploy AI.



And boom--Broadcom's earnings last week confirmed its sudden rise as one of the foremost players in AI. Its overall revenues soared 50% from the year earlier, and its AI revenues were up a whopping 220%. The shares surged more than 20% the next day, putting it above the trillion-dollar market-cap mark for the first time. And they've kept rising, adding another 6% today.



Now, if this shift is real, there could be further implications, ranging from expected data center power usage to perhaps reigniting a start-up boom in AI that many beleaguered Silicon Valley investors thought might never come. And Nvidia could still come out just fine, as top analyst Vivek Arya told us last week, even as he raised his Broadcom price target.



But the shift would certainly explain why Nvidia's performance has been more muted lately.



A final player to watch, by the way, is Marvell, another custom chipmaker. Its stock also surged 20% earlier this month--and is now up 102% this year--after stronger-than-expected earnings. For now, though, it's still a much smaller $106 billion market cap.



So perhaps what we're learning this month, in other words, is that Nvidia may be ceding its crown (to whom exactly, we don't know yet) as the most important stock in the market.



See you at 1 p.m!



Kelly

Q: Good Morning

We own the above US stocks and would like to add one more

Looking at adding either wallmart or celistica

Which would you choose of these two?

What other US stock or stocks do you find interesting for 2025?

Thks
Marcel

Q: AGVO seems to be leaving NVDA in the dust good you give us a your thoughts and would you consider selling some NVDA and buying agvo

Q: What are your thoughts on VEEV recent earning? I have less than 1% in VEEV and have become frustrated with it after 3 years. Who is the leader in this sector? Who do they compete with? What kind of prospect do they have? Add, hold or sell?

Thanks

Q: With new funds, looking to allocate for growth - but bearing in mind risk.
Which ones would you focus on [what's their "add"], with your expectations over 3+ years, and entry prices.
Thanks

Q: For a three year or longer time frame I intend to buy two of these stocks: SYK, ISRG, UBER or AMZN. Which two would you pick and please give your reasons.

Merry Christmas to all your staff
Elliott

Q: To get a well diversified portfolio of value oriented stocks, with a large component of cash, can I do better than simply buying BRK?

Q: AXON stock has taken a breather after reaching a high of $690, recently.

There have been some analysts' upgrades ( Price target as high as $800 ) and renewed enthusiasm in this Co., in light of the reports that the new incoming US administration will be focused on more spending on protecting US borders and law enforcement.

AXON stock's addition to Nasdaq 100 Index ( Dec 23 ) was also confirmed, this morning.

Many companies involved in production of military grade drones have also seen their stocks flirting with new highs, after reported sighting of drones in some parts of US and its defense bases.

All of above bodes well, I believe, for AXON Enterprises, being a pioneer in some of the most modern technologies and innovation to support the growing security needs of the Governments. Do you suspect that there could be a meaningful impact of possible US tariffs and competition from its larger US competitors?

How do you see the company's growth trajectory and its capability to justify its high valuation (per your recent comments)? The volatility of this stock was in full display, in Monday's trading when, after reports of Nasdaq 100 inclusion, some investors took profit and stock traded as low as $603, after opening much higher.

We recently initiated a position and after some addition, today have a 1.5%, weight ( ACB $635 ). Would you be comfortable adding on dips like today for long term, as a core holding ?

Thank You