Q: Hi Team,
I am looking for a tfsa candidate to play the secular growing demand in the north American electricity grid. Would Grid fit the bill here? The company seems to be doing well, and with a smaller 240mil market cap it seems that there could be multi bagger opportunity here over the next decade, would your agree? If you do not see Grid as a top pick today, do you have a couple alternative suggestions for a high conviction growth stock for this years tfsa contribution?
Thanks,
Shane.
I am looking for a tfsa candidate to play the secular growing demand in the north American electricity grid. Would Grid fit the bill here? The company seems to be doing well, and with a smaller 240mil market cap it seems that there could be multi bagger opportunity here over the next decade, would your agree? If you do not see Grid as a top pick today, do you have a couple alternative suggestions for a high conviction growth stock for this years tfsa contribution?
Thanks,
Shane.
5i Research Answer:
We feel GRID can benefit from the long-term secular demand in electricity grids as it is a smart grid tech company that builds hardware and software solutions to help electric utilities modernize their power distribution grids. GRID collects and analyzes data from grid devices like meters, sensors, etc., and enables utilities to have visibility and control of their grid operations. We also like ELVA for its stationary energy storage solutions. While GRID and ELVA are smaller names, we would be comfortable here, while acknowledging position sizing and small-cap risks.