Investment Q&A

Q: Hello 5i,

The quarter has been quite a ride so far. Get a sniff of a miss or lower guidance and stocks drop faster than a toboggan coming down Mt Everest.

Do you have any recommendations that appear to be Buys if you don’t already have a position? Some examples are: DDOG, VRT, TTD, TMDX, SPSC, CELH, CLBT, ROAD, CECO, APPF, ASPN, POWL, (electrical grid suppliers), and any other intriguing opportunity? The purchases would be for a 3-5 year hold.

If feels like the tipping point for earnings for many companies has been reached. If a looming reporting date is like a 5-alarm fire warning to get ready to bail water and run for the hills, which sounds like… opportunity!

Thank you for all of your help and wisdom.

D&J

Q: Cellebrite stock sank 13% in Thursday trading, post earnings release and closed at its low for the day, on higher than average volume. As of 5.30 PM, stock continues to drift lower in after market.

As per your comments, earnings/guidance was, as expected and nothing really has changed. In your view, this drop could just be profit taking, after its 34% rise over last 3 months.

I find the price action today a little concerning, as if, market had high expectations and company did not deliver that, specially considering the hot digital forensics area, they operate in.

This is a favorite 5i stock and has been recommended for nearly a year, when price was around $19 ( I think ). There should be many 5i members, who follow your lead ( myself included ) and have been generously rewarded, over time ( Thank You !! ).
US small caps, however, are not well followed by Canadian analysts and we depend much on expertise of your team.

It would be really helpful, if you could take a deep dive and comment, if there could be any other factors ( competition, growth rate, order book etc ) which might have contributed the post-earning drop.

Also, do you consider this weakness temporary and with this sharp pullback, would you be comfortable to start a new position or add to existing ownership.

Thank You

Q: With the drop in both CLBT & ASPN today which one do you believe is the better buy today and why. At what price point would you give each as a good and great buy.
Thank you

Q: Good morning 5i team,
Could you please offer me your assessment of earnings reports for both ASPN and CLBT as well their financial health and future prospects. Would you be comfortable adding to either stock under current conditions.

Q: Your opinion on the Q and the guidance pls

Does it reinforce your positive view long term?
Is there any competition?

Q: I hold these small/mid cap stocks. Most have done well.

It looks like the interest rates vs inflation discussion isn’t going away soon and rates may be higher for longer. With this as the backdrop and current uncertainty around the markets is this a time to lighten up on Small/Mid cap stocks and take some profit? Or would you hold?

Thanks
Tim

Q: Can you provide a short list of small or mid cap US stocks that you would recommend?

Q: I've held XYZ in a reg account for a while now awaiting a recovery (down 50%) that never seems to take hold. I have to imagine there are much better opportunities, particularly in the US tech space. What would be some suggestions for replacement I could explore. I've had my eye on FOUR for a while, thoughts on this one as well would be very much appreciated. Thanks so much.

Q: What does CLBT do. ? Do they deal with many countries What Countries ? What is outlook for Company Growth Rates . Is it a strong Buy RAK

Q: Using your SMID rotation theme in the i2i report, please suggest a basket of stocks that fit this theme and an entry price if it's beneficial to wait for a pullback. Would you look at buying, for example, 5 or so at 2%? Thanks!

Q: Hi. I totally missed the boat on Palantir. When the stock was in the high 20s, my beliefs and lots of what I read was confirming that the stock was over priced (at least that is what I thought), and I felt same as the stock rose to the 30s, 40s, .... and now over a hundred. And I still feel that the stock will need to correct at some time, as it has a trailing P/E in excess of 500 and possibly a P/E of at least 300+ looking forward. I made exactly the same mistake with many other companies such as Netflix, Facebook, .... I know that small, newer companies can exponentially increase their profits as they grow up but there is no guarantee that they will be successful (let alone be excessively successful).
So my question is three fold (please deduct necessary credits).
1. What did I do wrong here? I watched the stock go up and up and never pulled the trigger, thinking it was always too expensive. I sometimes feel it is more of a meme stock.
2. Would you buy Palantir at these prices / why?
3. Do you feel that there may be some other companies out there that may be in their early days (or well established) with lots of room to grow. If yes, your listing a few of your top convictions, along with a sentence (or two) explaining your rationale and intuition would be greatly appreciated.
Thank You.

Q: Hi Peter and team,
Can you recommend five U.S. and five Canadian diversified stocks with medium to high risk, strong growth potential, and at least positive earnings?

Q: Peter/5i staff, could I have your best 3 ideas for small caps, three from US and 3 from Canada, Thank you for all your helpful advice, Cheers, Geoff

Q: Hi Folks,

Can you suggest 3 conservative growth stocks and 3 aggressive growth stocks for each the U.S. side and the Canadian side that you would be buyers of today for a 5 year hold?
Many thanks for your sage advice through the ups and downs of this turbulent market!

Q: If you could only buy 5 stocks today in North America what are they and why?

Q: Hello Team, Seams like every couple weeks something in the world changes the script (Trump, Tariffs, Deepseek, etc). Can you please rank the above 12 stocks from best too worst for the next 2-3 years. No worries about size of company or industry. Thanks so much!

Q: Do you prefer CRM or NOW. It seems CRM is down in sympathy with NOW results. Were they really that bad? CRM trailing PE is almost 30 but NOW is much higher I believe. I have sold half my NVDA with the idea to move it into the next phase of AI adoption, software. Am thinking one of these and perhaps PLTR. You have much posted on it, any information you could add regarding buying it, would be helpful. Any other software companies you would consider? Thank you so much.

Q: I believe the Canadian is going lower from here . What's the best way to play this theory. I assume you will say simply buy US stocks if so please give me your top 5 taking into account the pierced risk going fwd (tariff's, plus trade war, political unrest Etc. I have room in registered account as well as TSFA

Q: I have the above tech stocks sitting at just over 30% weighting in portfolio. Could you please rank them as to which you might sell first. I sadly sold Crowdstrike last summer when they had their issues and I am thinking I need a cybersecurity stock. Would you buy Crowdstrike or Palo Alto or half of both. Also, What do you think about Saleforce? With the thought of cheaper AI, is that one that would possibly benefit and how where would it rank within my aboce tech stocks? Thanks for all your help. With all your advice, last year was awesome and still up this year following yesterday’s falloff.

Q: In a question yesterday - attached - I asked you to recommend one or two US equities and listed those already held. In response, you gave me two equities which I had listed as already owned. Clearly you have not had your morning coffee:-) Please try again.

Yesterday's Question:
VRT has now grown to 9.5% of my total portfolio. (Thank you for the recommendation!) Would you let this winner run? Or would you be inclined to trim? If trim, what one or two US equities would you purchase (any sector) with the proceeds with a similar risk/growth profile...and why? The following US/international equities are already held: GOOG, NVDA, AMZN, MSFT, V, COST, AXON, ISRG, CLBT, and NBIS. Thank you.

Answer:

In our view, as a company aproaches 10% of a portfolio, the portfolio starts to become a bet on that single name and we would typically prefer to trim the position down. For something with a similar risk profile and growth potential, we might consider NBIS and CLBT, but both are higher risk.