Investment Q&A

Q: Dear Peter et al:

Happy Healthy Peaceful and Prosperous New Year to all the members of your excellent team. Including the lovely folks at CMS/MF Update!

My first question of the year!

A really "tough" and bit unfair question!
How can anyone choose a "favourite" child amongst their four terrific "kids":)
But here it goes.

Which is your favourite "child" for this year's TFSA contribution. For a "buy and forget" period!
CSU or LMN or TOI or.....BN :)
I have them in varying amounts in different portfolios!
All of them are up though CSU and it's "family" have lost a lot of their lustre.

Look forward to another good year with your team.

Make Portfolio Analytics "bit more personal", then I will come on board there as well :)

Q: Hydrogen stock Nel ASA, Thyssenkrupp and dynaCERT.

Do you think Hydrogen will ever become popular?

Do you think any of these company's would be worth investing in?

Thank you.

Q: Happy New Year 5i Team - I noticed the category 'Hidden Gems' in a communication from sometime in the past. Would you be able to provide a list of a few stocks that might fit into this category now, solid companies that have sold off for whatever reasons in spite of solid fundamentals and good growth prospects, US and Canadian. Any market cap is fine but with emphasis on small and mid caps
Thanks.

Q: What are your thoughts on this ETF ? Good investment if one feels banks are quite highly priced at this point ? Are there other similar ETFs out there ?

Thanks,
Mark

Q: I realize that these are very volatile markets (especially for small caps) but do you think that the preliminary Q4 and YE 2025 results released by KITS yesterday deserved a 9% haircut to the SP?

Appreciate your great work and Happy New Year to the team.

Q: Seemingly, recently, news on kits indicated thumbs up. I can"t figure out why the stock
dropped substantially. What am I missing? Your thoughts.

Q: Thoughts on CPD for the coming year? How much more volatile is than XBB. Trying to understand how it fits into my portfolio between equities and bonds,

Q: Happy New Year 5i Team I'm looking to add to my TFSA either SVM or LUN. As an exploration geologist I'm more concerned with the market valuations not the technical aspects of these companies. Many thanks. Rockdoc

Q: Hi there, what is your opinion on space exploration? Also, what company or basket of companies do you feel would be worth investing in, in this area?

Lastly, I've been looking into fixed income and HISA products. Can you please give me your opinion on the income portfolios offered by Wealthsimple?

https://www.wealthsimple.com/en-ca/portfolios/income

Thank you!

Q: A question for Peter. NVDA, AXON and ISRG are examples of great companies, that you have followed and recommended for years. Which 2 or 3 companies do you have your eyes on, that may become the next group of great companies in the next 10-15 years. A brief explanation of why each of these companies may become great, would be appreciated. Thanks for this excellent service!

Q: Your thoughts on these stocks:buy/hold/wait?Entry points?
Thank you

Q: Peter; The new partnership plans to acquire “ industrial” projects in Canada. Any ideas of what this would compromise- could SVI be in their sights - or ? Thanks,Rod

Q: Which would you prefer and why? Is there any need to hold both?
Thanks

Q: Peter, I found your answer to Nick about best stock decision to be thought provoking. When you bought NVDA it was some where in the 2 to 3 dollar range. What was your thinking at the time that made you like the stock? What was it about the stock that kept you holding ?
Do you see any early stage stocks today that warrant looking at?
I would like to add my appreciation to all at 5i for all the help and insight over the years.
Peter

Q: I understand COHR is preparing the paperwork to sell more shares. If I understand correctly they want to raise 1.7 billion. Their current capitalization is just shy of 28 billion so I would characterize them as still a small cap. Any concerns about dilution? Would you mind explaining COHR’s relationship with Apple? I assume COHR is a supplier but of what? Any excessive dependency on a single client? Any thoughts you have would be appreciated. I’m up 280% on COHR so your help is much appreciated!
Jim

Q: Can I get your opinion on the better buy.. thanks

Q: I was just sent this update on the recent ZDC action from a fund manager that follows (and is a shareholder of) ZDC. I thought you might be interested. Feel free to publish it if you think it would be of value to your members.

After a total senseless decline in ZDC shares, let me summarize it for everyone following the group investor call yday. Sidebar, insiders are buying stock and the first filing hit this morning. Mgmt and board all intend to buy more shares. You want to bet against a company that has beaten consensus eight consecutive quarters?



Ring's tower is an off the shelf, hardware offering with no service, monitoring, or installation. It's a Chinese camera, no analytics, no infrared. In fact, it's half the height of the ZDC tower, so it was clearly not designed for large scale commercial, where ZDC is focused. Meaning ZERO overlap.
Amazon now has 20 towers with ZDC and ZDC is the ONLY tower provider to Amazon. In fact, Amazon took two more towers THIS WEEK.
ZDC now has MANY enterprise customers with towers and awaiting orders. Kruger, Home Depot, Circle K, Seven Eleven, Amazon.
The Kroger contract with LVT expires on Jan 31. All indications that this should be ZDC's contract. What happens if you wake up tomorrow to 500-1000 towers ordered by Kroger? The stock would be back at all-time highs in my view
the company was very explicit that they will use the balance sheet this year to fund growth and will be expanding the credit facility with the established accordion. No equity bailout for anyone. Leverage never gets above 2.5x
the stock is trading at 8x 2027 EBITDA for a company growing EBITDA 100% YoY. The most recent takeout in the space was Guarda buying Stealth last year for 21x FY1 EBITDA versus 13x 2026 for ZDC
Simple supply / demand: after the washout yday, 30 investors met with mgmt. ZDC has one of the best registers I have seen for a small cap and many more large LO buyers in the weeds. I am certain that I know who will win the showdown. The AUM for these funds dwarfs the AUM of hedge funds and retail.

Cheers

Scott

Q: Your thoughts on Rockport, please How does it compare to TVK ? Thanks Jim

Q: Please send me the link to your 'Energy' Section referred to in your reply to my last question. Thank you kindly.

Q: Trading in the shares of BTO lately has been very contrary to the price of gold and on some heavy volume days. It seems to go down when the price of gold goes up and it was recently a top pick by a fairly reputable mining investor. They seem to have a good relationship with the Mali gov't, but do you think this trading pattern is a warning sign of some nefarious situation only a few know about?