Investment Q&A

Q: Hi Team,
What would be some of your best ideas in the small/ mid cap space today either US or CND that you see having the best potential over the next decade (medium risk). Or alternatively if I wanted to play it safer what US based etf would be suitable to play the theme here assuming small and mid caps will show outperformance in the next few years? I am leaning towards the US sector as outperforming canada at least in the next few years.

Shane.

Q: Good evening. Hopefully a simple question for you. If you could only choose one for best overall returns over the next three or four years, which one would it be please? Or is it a close call?

Q: Can you please provide a list of top 5 mid/small cap names ( US and CDN) to purchase now?

Also top mid/small cap ETFs in US and Canada?

Thank You.

Q: I have HPS.A in my portfolio and I see it in the 5i model growth portfolio. At $135, I have made a gain of 40%. I am very concerned about the new Trump administration putting a 10-25% tax on imports from Canada and Mexico. HPS has manufacturing facilities in Canada and Mexico and the majority of their sales is in the US. Tariffs will definitely affect HPS sales and profits. How concerned should I be and should I sell and lock in my gains? I originally intended to keep this stock for a long time.

Q: Hello 5i staff
I have a portfolio consisting in a few etf’s and a few stocks for the American side. One of these is a small cap etf. On the Canadian side it have mostly large blue chip stocks. CSU, BNT, etc. These are mostly at the full 5% quota. I keep some of these smaller stocks, I suppose because I enjoy winning. The problem, though, is that I hate losing. I keep the amount of these smaller stocks small because of that fear of losing, I suppose. They are often between one and two per cent of a fairly large portfolio, which is low percentage wise, but still quite high dollar wise. I am an advancing senior with moderate risk profile. Have a modest pension, which allows us mostly to live without touching investments. I have been wondering lately whether I should just bite the bullet, take the risk and add more to these fast growers ( and from time to time, fast losers) or whether I should just sell them all and consolidate in the larger stocks and etf’s. especially since I can say that I have won the game? Perhaps I could keep a few for fun. But, I guess that is what I am doing now. I know that you cannot give personal advice. But, I find that you usually have interesting things to say about these kinds of situations. As well, it has been cathartic and possibly helpful for me just to frame the question.
Thanks for all the help you offer us

Q: There seems to be a consistent view by 5i and others that Small and Mid Cap stocks have started to lead the market and will continue to do so over the next 2 to 3 years.

What are your current top 5 Small/Mid cap US and Cdn stocks? Could you also add what you think are good entry points?

Thank you;
Tim

Q: Regarding potential Trump tarrifs, do they apply to services also or only goods?

Do you see any of the companies (DRX, CLS, BN, PRL, Hps.a, ENB, Shop,.... ) affected by this?

I have gains on most of them. Would you sell right away and buy later,.depending on market outcomes?

Would you have a different strategy for stocks that I plan to sell in 1 year vs 5+ years?

Q: 1) My 20 ry old son wants to invest his money and seems to have high risk tolerance.. I'm generally more confident in the US mkt rather than the CDN. Is he better off...
a) transferring his CN money into US and taking the 24% hit and selling in 10 years the exchange rate might be...?
b) buying US stocks in their CDN version which is usually hedged?
c) or buying a US stock in a CDN acct and losing the exchange fee when buying and selling?

2) Can you pick 6 stocks that you think should do well for the next 5 years?

Q: What are your current top 5 US and Canadian growth and value stocks to purchase for long term?
Thanks

Q: Based on growth potential only, would you prefer HPS.A or PRL?

Thanks for your service!

Q: Could I have your top 5 small to mid cap growth stocks. Please rank them. Thanks Steve

Q: You have liked these small/mid cap names over past couple of years and most have done well, thank you.

Under current market conditions and entering a second Trump Term, what would be the order that you would buy these names? Is there any of these names you would not buy and move on from?

Thank You
Tim

Q: As per my question back in July the value of the options are supposed to be accounted for on a quarterly basis in the payables. Directly to my question if we were ganna have to wait many more years before they have little effect on the financials, your answer was:

``Much of these expenses are reported on the financial statements each quarter at fair value, and so although they might have a vesting period of three to five years, the fair value expense of these are recorded. When the DSUs vest, there should not be a material change to the income statement since the options were already accounted for using their fair value over the previous financial statements.

Even though the stock price has risen dramatically over the years, this increase has been accounted for on the financial statements already. A decrease in share price quarter-to-quarter can actually benefit the financials as the fair value of these expenses can decline. ``

What happened in the last quarter reporting then? Weren't the options valued correctly just 3 months ago?

Hard for me to wrap my head around this situation with HPS. It just feels that there is more money flowing into the pockets of the directors at the cost of my investment.

Yves

Q: Hello team,

I'm considering selling Apple at a large profit and deploying elsewhere.
I want to offset some gains with some losses.
Losers in order are:
DRX
SGY
BCE (small amount held in my non-reg)
Selling all is fine with me so I can balance out my Apple gains. What do you think about selling these names and what are a couple of your favourite US and CAD stock for new money?

Q: Good morning,
As the dust settles south of the border, how do you see these two (and related) stocks, as they're connected to EV and renewable energy. Worth purchasing today, or better to look elsewhere?
Thank you.

Q: Now that the Republicans have claimed a clean sweep, how does that bode for the continued electrification and greening of the economy. Do you think that this will slow down growth of such companies as Hammond Power Solutions? Or do you think that things will continue as they have the last few years?

Q: I am planning to sell my shares in CNR. I have done well holding it for several years but there just appears to be opportunities for better price appreciating than CNR has over the past couple of years. I would prefer to replace it with a Canadian company. It does not need to be an Industrial. I am currently over weight financials. I am ok with some risk. What companies would you consider as a replacement?

Thanks for all your help,

Mike

Q: Hi gang, again thanks for answering all Q's on Hammond, I like your SBC comparison to other big companies and your adjusted EBITDA response to mine.

So I promise this to be my last Q on the Hammond roller-coaster;)

Can you provide an update on growth drivers, YoY and forward looking for this co,pany. Is the underlying thesis still strong, with all the electrification needed in NA. And what support levels do you see? I'm looking to leg into a full position, but based on Apr - Jun levels of mid 90's it looks like we could have more floors down to go.

Thx

Q: Why is their Share based compensation (SBC) so impactful and visible in the results? Is it because of the size of the company and revenue? Other companies I am sure has SBC but I rarely see it as a top headline item in earning press release.

Q: Hi gang, first thanks for answering earlier question on Hammond.

My question is if you had a chance to listen on CC this am, and if there were and questions on this SBC impact? It really seams to add volatility to the stock, good results, great share price appreciation, then we get hit with this negative SBC. It looks like they are investing in growth, 20 million to upgrade facilities, but this will come with bigger employee growth.

Thx