Q: Of these three small caps would you own all three at 3 percent? In what order would you start buying? Do you see potential multi baggers?
5i Research Answer:
While we cannot personalize responses, and each individual investor has unique risk tolerance levels and ability to take risks, for a growth investor, we would be comfortable owning these at a 3% position each. All three are less than a $1B market cap, and have shown strong price appreciation in the past five years. We think ZDC has some of the highest growth prospects of the three, followed closely by PNG, and then KSI. We would likely buy in this order: ZDC, PNG, KSI. While predicting multi-baggers is tough, we think the names have high growth and price appreciation potential.