-
Descartes Systems Group Inc. (The) (DSG $114.13)
-
Kinaxis Inc. (KXS $176.17)
-
Open Text Corporation (OTEX $46.85)
-
Canadian General Investments Limited (CGI $44.85)
Q: I own all in small positions with goal to give some growth to a mostly dividend portfolio. With bad luck the only one I don't own is Celestica. I realize this is now the darling. Do I keep these or sell to buy Celestica? My only concern is chasing a hot stock which sometimes doesn't work out. Thank you!
5i Research Answer:
We continue to like KXS and DSG, with a preference towards DSG over a long-term timeframe. OTEX has been moving well recently, and at its cheap valuation of 9X forward earnings, we think if management can begin to turn things around, it has the potential to expand in the coming year(s). We think GIB.A has potential, but it has been very weak recently, and we would be comfortable switching to a stronger name like CLS, despite its already strong run.
We think that 'chasing' hot stocks too much, too quickly, can be detrimental to a portfolio, but we feel that if investors properly size positions, and risk management, that strong names can continue to perform well over time, despite already strong runs.