Investment Q&A

Q: Good evening,

I currently own VMD, VHI, LLY, and WELL. I'm considering a consolidation down to three of the four stocks. For a five-year hold, how might you rank these in terms of overall growth potential and risk? Thanks, Brad

Q: Hello, Would you have 4 top picks in either of these sectors (industrials, consumer staples, consumer discretionary or health care). I am looking for large caps trading on the TSX with good long term potential. Thank you.

Q: Hi,
I have been currently holding these for awhile and have done well on them, other than maybe WELL, which has been lagging a bit lately. Here are my allocations: WELL (1.7%), SLF (2%), GSY (3.5%) and NVDA (3.8%).

Recently in the last few months, I trimmed some NVDA and bought some VRT (1%) and SMCI (1%). For a growth investor, how would you rank these 3 stocks going forward? Would you continue to trim and buy these smaller cap higher growth names. With the run that they've had, I've been a little more cautious of a slowdown.

Also with these other names I'm holding, I'm contemplating trimming or completely switching to higher growth and better quality names with better runway for growth. What are your thoughts? Trim, add or switch? For example, does it make sense to trim a 3.0% position into two names that are only 1.5%? I'm against diworsification. Thank you!

1. WELL to VHI
2. SLF to IFC
3. GSY to PRL

Q: Could you provide the forward earnings estimated for 2024 and the broken down in quarters.

thanks

Q: Hi 5i, trying to find a rose amongst thorns, and given the change in inclusion rates due to the budget, wouldn't this accelerate any deals in the pipeline? Not trying to be political.

#16Months2GO

Q: It is good to see WELL make an acquisition. How significant is this deal ?

Q: When do they report first quarter results?

Q: Healwell is tremendously appreciating in share price. How does Well health tech. benefit from this. I don't know if they have an investment, part ownership or if its just a collaboration.

Thanks Steve

Q: I am attracted to long term holdings. Been watching WELL hammering on technical support of about $3.65 for weeks now. I'm thinking of pulling the trigger.

Looking at their growing revenue and P/S multiple, those numbers look quite good for a small cap. Is there a better metric for this particular company? What do you think is the biggest negative that investors see in this stock at the moment?

Q: A number of these companies have done very well recently while others have not. Could you rate these as Buy/Hold/Sell and for those you consider a buy, could you provide what you feel is a good entry point.

Thank you
Tim

Q: Hi Peter and 5i,
Who would you favor for growth over the next 5 years between TCS and Well?
Thanks you for your always awesome feedback.

Q: I am thinking of selling my WELL stock for Tax Loss and repurchase after the 30 days. I don't know of a good proxy for WELL so just wondering if you believe this health stock with flat line for a while?

Q: Hi there, I am down 40-80% on BTO, CGX, and WELL (as well as Andrew Peller, which I already know to sell based on your dropping coverage). I am wondering if there is any point on still holding these stocks, or if I should just sell them so I can put the remaining money somewhere else?
Thank you!

Q: Hi Team,
I am debating initiating a position in CTS (Converge). How much confidence do you have in the name? Do you see them being extremely successful in a 10yr time frame? If so; I need to raise funds to buy the name hence trim one or a combination of names. Which of the following would you suggest trimming (or combination of) in order to buy CTS: Well, ATS, TTD,META, CRM. I would only be interested in trimming names in which you think CTS has more potential for SP appreciation. Thanks!

Shane

Q: Are these two in the same space and direct competitors?
Also, I'm trying to understand why VHI stock is performing well, while WELL seems to be flat.
Thanks
John

Q: Hi 5i,
I've owned WELL since the fall of 2020, have bought and sold along the way and I'm now left with a few thousand shares and a net loss of 24% in the name. To some extent due to optimistic forecasts from 5i I've thought that enough of a turnaround might be just around the corner to at least get back to even, and perhaps even make some money - but the longer nothing changes the more my optimism wanes. So, a few questions:
A fella on BNN the other day had VHI as a top pick. Are it and WELL competitors and do their respective addressable markets portend growth?,
If you had to choose one over the other now for a 3 year TFSA hold, which would you go with for some CDN healthcare exposure, and why?
Is there another name that you would choose over both of them?
Thanks 5i, I look forward to your thoughts.
Peter

Q: In a registered account I would like to do some money recycling and choose 2 to depart from and recycle back into the others. HPS.A with 4% weighting and GSY at 6%. WELL is (well below) purchase price and although I still believe in the company the others might do better with a 5 years horizon but maybe not, your take. Could you identify the 2 you would let go and where would you recycle money into with a 1-5 preference, 1 beeing where you would add the most and 5 you would put the least. Having said all of that the total portfolio is much bigger and the position size of all of the above except for HPS and GSY are in the 1-2% range.

Thank you

Q: Can you provide your top 3 small cap picks with the most upside over the next 3-5 years.

Q: I own WELL and like its potential. One comment over the past few quarters that I've heard by analysts is that stock based compensation (SBC) keeps increasing and is concerning. For its growth profile, is WELL's SBC a concern to you guys? Obviously getting heavily diluted impacts us shareholders. Just wondering at what level this becomes a red flag. Thx

Q: Hi 5i, thx again for prompt feedback on my WELL Q's.

Here are a few comments from TD and RBC analysts, both positive, followed by my new Q.

RBC: WELL Health Technologies is well-set to create value, but RBC analyst Douglas Miehm says the market doesn't appreciate it. After a strong 4Q that largely beat expectations, the stock fell about 10% following an unexpected 8% rise on Wednesday in anticipation of 4Q results. In a report, Miehm says that "the market is currently underappreciating the long-term value creation opportunity in "transforming Canadian primary/Dx care, as underscored by our strong forecasted return on invested capital and internal rate metrics for recent acquisitions." He says that there are multiple
tailwinds in Canadian patient services and in diagnostics services to carry it in the longer-term.


TD: WELL Health Technologies shares were down sharply despite reporting better-than-expected earnings in the fourth quarter, but TD Cowen analyst David Kwan says this could be chalked up simply to algorithm trading patterns after the previous day's gains. Shares were down nearly 13% on Thursday to C$3.71 after reporting higher 4Q profit, a revenue beat and upgraded its outlook for the year. On Wednesday, shares rose 8%, and Kwan said Thursday's swing could be trading patterns playing out. "This could be a case of more algo-driven trading patterns," he said.

My Q: please expand on how impactful these "algo-driven" trading patterns are on stocks, especially small caps. Thx.