Investment Q&A

Q: Your thoughts on earnings please. Would you buy this dip if you had a starter position already. Thank you.

Q: Good Day,

POWL went basically up 100$ and down almost as much within a week or 2, what happened? Any significant news?

My personal experience with these types of moves has been mixed, sometimes I let them run, and sometimes "Something doesn't seem right/too good to be true". The exits have been on 'psychology' type stocks and have been pretty successful (TSLA, first buy on SMCI, etc). I know it comes down to position sizing, but are some general guidelines or metrics to look at that can help decide whether it's worth trimming your position or not?

Secondly, PLTR. I have read a lot of the comments on it, and see the value in where they have positioned themselves, but am also concerned about the valuation, and how only a small slowdown could significantly tank the share price.

With the addition to the SP500 being one of a list of its catalysts, are there other companies with solid fundamentals, market share, and or momentum that are on the shortlist/likely to be added to a major index in the coming year or 2? Could you provide 2 or 3 condidates for the TSX60, SP500, NASDAQ100 and any other significant ones that may be of interest.

Thanks!

James

Q: Good Day,

Edit: I got to the end of this and realize there is a lot to unpack here. My apologies and please forgive the transient nature of my ADD brain. Take however many credits you need.

I really enjoyed Jonathans question and your subsequent answer on Oct 10. Continuing on that thread, I too consider myself primarily a growth investor, and have a fairly high tolerance for risk. However, in contradiction (somewhat) to that, I also Love equities with a DRIP program.

I'm planning on making a significant contribution to my RRSP investment account to hopefully capitalize on some opportunities/ tax loss selling in the end of the year, and enjoying the tax break in April.

1. I think? I have a pretty solid basket of growth names, significantly from 5i recommendations. CALF CLBT CROX MSFT NVDA POWL SMCI TCS TMDX AMZN ASPN HPS LMN TVK VRT. In the growth space, Please provide 6 recommendations (CAD, US) ranked in decreasing order of preference that you would consider beneficial to these. If any of these current positions are in a very attractive place to add, you could suggest that with a why.

2. In the dividend/DRIP space, I have DE CHE.UN ZWT BAM SU PPL. About a month ago, I sold my BEP and BNS and rolled them in to my double up my BAM, which paid off, but am considering a re-buy. Reading the questions lately, you have been big on BNS and TD, but seem to contradict yourselves on it. Often recommending BNS over TD, only to recommend to someone that holds both to cut BNS over TD if only one is to be held. Are they that close in terms of future runway/room to grow/total returns? With my Love of DRIPs, would you give the edge to BNS due to the higher dividend? Could you recommend 3 - 5 options in this space, preferably holdings that would require less than 10K (20K for very high conviction) invested to DRIP a unit. ETFs are OK with low fees and higher Dividend.

3. In Jonathans question you commented on Materials being a great addition to a growth investors portfolio as a semi uncorrelated diversification. I've held LUN and LIF in the past, but with the power demands and resurgence of Nuclear, are there better options out there? Please provide 2-3 dividend paying and up to 5 growth options in this space.

4. Is GOOG a buy here? I fully agree that the impact was way overblown. Is it worth getting into one of the 2x leverage tickers for GOOG if ones conviction is very high? Is there any company you would consider a leveraged holding on? If so, which?

Thanks for everything!!!

James

Q: Can I have your opinion on this company. It seems to keep going up every day.

What would be a good entry point if there is a pullback in the market?

Q: Hi team,

I am trying to pick a 2 or 3 small/mid-caps for strong growth for at least 5 years. What are your views on the stocks above ? Do they fit the bill ? What is the risk factor ? Any better suggestions ?

Gratefully,

Jacques IDS

Q: Though different, of these three companies, which would likely have a better run in the electrification theme? Are there better US plays on the theme?
With many thanks.

Q: With respect to my last question just asked, can you please also address the high short interest in Powl. Is it best to avoid stocks with such high short
Interests? Thanks.

Q: These are seeing big drops today - powl in particular. Are you aware of any reason? I was planning on holding all three for at least a year but am now wondering whether I should bail. Any insight would be appreciated. Thanks.

Q: Market reaction seems a litte rough. Any thoughts on these companies.
Cheers , Chris

Q: Could you please give me 5 or 6 of your favorite momentum stocks at present?

Thx

Q: Good day,

Did a huge portfolio makeover a few months ago, almost entirely with your picks (minus a few that didn't click for me) and some of my high own high conviction names. For the most part, they've all done pretty well, with the exception of the last few weeks.

1. Is the last few weeks just overall uncertainty/retraction?
2. bep and bip are down ~15%, is it worthwhile getting out and averaging down BAM or BNS?
3. ATS and CELH are down after large runups after I bought. worth buying/averaging down on one of these?
4. DCBO and NXT back to scratch after huge runs. Do you expect those levels to return? Timeline wise? NXT spun from FLEX, but Flex continues to climb
5. KXS is down 8%, and seems pretty spikey over the last 5 years. Just wait for the next one? Should this start to create more of a steadier trend upward?
6. I bought POWL, and it's basically done nothing, thoughts on the company now? alternatives?
7. I saw a youtuber vid that really loved POET for the coming months years. I was telling a friend about it yesterday because I like (and understand) the technology and what it could do. He literally bought some while we were talking yesterday morning and he's up 30%... Are the company fundamentals/contracts improving? or could it just be hype from youtubers and the like?

Almost all of these had some pretty significant periods of running since I rebalanced in Jan/Feb. I know market timing is not a solid practice, but in a lot of these growth names, at what point is that jump worth moving on from, freeing up some cash for another opportunity down the road? And how do you determine whether it's time or not?

Finally, in the event that your attitudes have changed on any of these, do you have a top 3 CAD, top 3 US new ideas over the last few months that have really turned the tide/become strong buys that I may replace/add?

Thanks for everything!

James

Q: Hi, Powell Industries seems to be in the right sector of electrical infrastructure and stock has done very well. However, as noted in your recent comments, it has been quite volatile, specially after the last quarterly results released in January.

The founder CEO, Mr Thomas Powell has sold bunch of shares in late 2023, as well over 50,000 shares, over a period of several days, between Feb and March, this year, ( $154 to $187 ). In addition, as per F144 filed on March 4, he intends to sell additional 200,000 shares, of which only 4000 shares have been sold on March 4 ( $185-$189 ). So, effectively, there continues to be an overhang of an impending sale of remaining shares, in the market.

Does it explain the sharp and precipitous decline of the stock over past 3 weeks ?

Is this a red flag and limits the future upside of this stock ?

On the bright side, Mr Powell still owns over 2.2 mln shares, which is about 22% of issued and o/s common shares of Powell Industries.

In your opinion, is the price decline of $45 from its recent high is overdone and POWL is a decent buy now, based on current valuation, minimal debt and future growth potential ?

We purchased the shares recently and own with ACB of $160 ( 1.25% weight ) to complement our HPS.a 3% position. Do you recommend holding the shares and add at current level or wait for next quarter ?

Thank You

Q: Good Day,

I picked up CELH and CROX based on the answer to my last question, and added in POWL to boot. Based on my portfolio in my previous question, was POWL something you would consider redundant in my account, or would you be fine with that type of addition in your portfolio.

I have been holding SNPS and CDNS for a minute now, and it just seems to bounce back and forth between +5% and -5%. Are these mostly growers on news and earnings? What are their respective Expected growth rates over the next 1 and 2 years?

This brings me to almost "fully deployed". I have noticed in the last couple weeks that the volatility in the market seems to have increased, and the average of that volatility seems to be sort of flat over this time. I have seen some videos and articles calling for the "AI Bubble" to burst, etc. Do you think there will be a cooling in that space coming? and if that occurs will the market follow it? I've seen many replies where you state that NVDA has a clear 18 month runway for growth, and thus I imagine the companies that support it as well, does that still hold true in your view? If said cooling could be coming, would it be worth the fees to say, shrink/cut some positions? Or is that too much like timing the market and thus better to stay in?

Thanks for everything,

Q: I recently picked up some POWL:US stock. Today (Friday March 1st) I see the stock has dropped approx 5%. I also note that Mr. T Powell, owner, sold 25K shares. This might have been a trigger for some investors as a time to sell. However, he owns 2.4M shares. I am thinking that his sale is actually immaterial to his overall holdings. In other words, this might be a good time to purchase more. Am I on the right track?
My thanks.

Q: Are these good buying opportunities,thanks

Q: Thanks to 5i, over the recent past, I have DCA these stocks, holding less than 5% with room to add based on your advice.
a) 3% - AXON VRT HPS ISRG LMN
b) 2% - BKNG CLS LLY NVDA CELH
c) 1% - POWL NXT EXP
Please rank those that you would be comfortable adding to [DCA] now - with target percentages. For example, would you add to AXON first and, if so, to what percentage.
.

Q: How would you rank the named companies for inclusion in a balanced portfolio today? Would the rankings shift for a growth portfolio?

Q: Are there alternatives to MITK and BKNG that you feel would be better to have in a portfolio today?

Q: Hello 5i
What are your current top 5 US and CDN non-tech small-mid cap picks for growth?
Ranked would be appreciated.
Thanks
Dave

Q: Not a question, but a comment. And not sure if it’s relevant or not.

I’ve been involved in the electrical industry for 35+ years and have been aware of Hammond from a users perspective for much of that time. They’re noted for having good equipment, debatably the Honda or Toyota of relatively small dry type electromagnetic gizmos. Not the least expensive, but good value. It’s reliable, available, and therefore rather ubiquitous in industrial electrical rooms. I own the company not only because of your endorsement but because I like their products.

Similar comment with Powell. Pretty good equipment from a technical perspective and reasonably priced. Good innovators and flexible offerings. They seem to be winning lots of fully evaluated tenders.

One last comment. If privately-owned Schweitzer Engineering Laboratories Inc. ever goes public, consider buying. Fabulous relays and communication equipment for the utility and industrial power system space, and exceptional service.