Investment Q&A

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: 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: 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: Could you rank the above stock to currently for a long term hold. Thanks

Q: Could you please comment on the results and status of SBC. Thank You

Q: i hold a number of these small cap names. I do not hold CLS or TVK. At current pricing what order would you add to these names, what names do you think are very attractively priced right now?

Thanks
Tim

Q: If you owned sleep country shares would you sell now or continue to hold with the hope another company steps in with a higher offer than fairfax? If selling is the answer could you suggest some of your current top ideas for reinvesting? I’m a buy and hold for the long term investor with a moderate tolerance to risk and like to own high quality companies. Thank you

Q: I wonder if HPS' compensation policy includes SBC annually. If that's the case and we look at the stock's performance over the past 3 years, the stock was $12. in 2022. If the options are vested after 3 years as is often the case or worse if vested 5 years is'nt there a danger of putting a lid on the stock price until the options are totally vested and cashed? I'm worried that the money invested in the past year will be dead money no matter what PE shows. Right or wrong?

Q: Hi, Could you please provide street estimates for the upcoming quarter. Thank You

Q: Is this a good time to initiate a position. If not, what is a good entry price. It will be a long term hold.

Thank you

Q: Hi Team,
I was looking at adding to either Bn, PRL , Eqb, or HPS.A. Or possibly a new purchase of Lulu for a recovery play here . Could you please rank these names in order which you would prefer to buy today for long term capital appreciation? If you feel there are better opportunities you prefer buying today ideas would be appreciated . Thanks

Shane

Q: I was doing a high level look at my portfolio in terms of recent vs 3, 5, and 10 yr CAGR and saw what I expected from stellar performers like CSU, TRI, WSP, IFC and DSG. What surprised me was seemingly declining longer term performance (ie pre-dating interest rate changes) from FTS, QSR, GIB.A, and EIF. The balance of the portfolio is holding it’s own or is cyclical or I can see a path to renewed growth/performance. Are the four named really lagging or am I looking at the wrong metrics? If you agree they might be considered to be faltering versus past performance can you suggest “growthier” replacements without going too far out the risk scale? Thank you.

Q: Hello 5i...with respect to Cdn Industrials...I am looking to consolidate 9 positions into 6 to 7 holdings...thaey are ( largest to smaillest holding ) WSP, TFII, EIF, ATS, CJT, HPS.A, TRI, TVK, DRX, I am looking for some sort of combo of stable growth ( I have good gains in WSP and TFII and will hold, but could trim ) and potential exceptional growth. Would appreciate if you could rank based on growth and how you might see a consolidation effort for these.

One option being considered is to move completely out of CJT and /or ATS to US industrials and looking at potentials FIX or TT... would like your opinion on this move and if you have preference for one or another suggested potential US industrial ( I already hold AXON )

thanks/Art

Q: If you believe there is a rotation happening in the market from mega caps and the direction of interest rates is lower (speculation US rate cute in september), what are your favorite CDN and US names (2-3 names each) that may outperform in that environment?

Thanks as always,

Dave

Q: Calfrac Well Services crossed my screen. Can you give me an in depth analysis in this stock, insider buying, financial ratios, management , and industry. Will it ever catch up to Precision Drilling’s success? what do you like or dislike about it ? Buy , sell or hold?

Q: I am down on these 3 stocks. Do you see a positive future on them anytime soon?

Q: Going into earnings do you think that Hammond Power solutions is a safe hold.
I recently hold a 5% position at 103.00.
Thanks

Q: Hello, I've been keeping an eye on hps.a for a while now and I'm considering getting in. With its earnings report approaching on the 25th, I'm wondering if I should wait until after the report is released before making a move. Would appreciate any advice you can offer. Thank you!

Q: Electrification seems to be a big theme going forward. Can you suggest some companies, large and small cap, and any utilities that stand to benefit the most from this . I would assume Hammond would be a beneficiary.

Q: Please comment on the recent big price swing in SHOP , HPS . I want to add either LMN or TOI , which one offer better return ? Thanks for your excellent service.