Q: Hello, I have in my growth-oriented TFSA the following stocks: DSG, NVEI,OTEX, KXS,DOL. I don’t intend to add to any of these, except possibly KXS. I will have funds available in January to add another stock. 1) Do you still believe in KXS enough that it would make sense to top it up? 2) Can you give me your 5 best ideas in growth names (any sector) with a short explanation for each? Ideally names that are not as volatile as NVEI… Thanks!
5i Research Answer:
Yes; KXS remains debt free with excess cash, with a solid growth outlook. We would be fine adding to it. Five lower-vol growth suggestions (in addition to those in the question): BN ($140B in available capital, leverage to lower rates, deal flow likely to accelerate); EQB (management, rates, gaining market share); GSY (very cheap, back in higher growth mode, tight share float); TRI (excellent management and exection, available capital, global exposure); DOL (still plenty of room to add stores, executing much better than peers, solid management).