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Shopify Inc. Class A Subordinate Voting Shares (SHOP $154.02)
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Vitalhub Corp. (VHI $6.93)
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Brookfield Corporation Class A Limited Voting Shares (BN $54.33)
Q: Hi 5i team,
The above stocks in the subject line have had a dismal year price wise (they actually have pulled back significantly over the last 6 months). May I please have your opinion if each of these stocks, is a buy, sell or hold and the rationales for your recommendations.
Thanks,
H
The above stocks in the subject line have had a dismal year price wise (they actually have pulled back significantly over the last 6 months). May I please have your opinion if each of these stocks, is a buy, sell or hold and the rationales for your recommendations.
Thanks,
H
5i Research Answer:
BN: BUY; the decline is more due to sentiment towards private equity than to fundamentals. BN has a massive amount of capital to make transactions in a weaker market. Dividend was just raised; it is not their first downturn.
SHOP: BUY, but riskier due to volatility, and it is sensitive to the economy. But AI will drive its costs lower and it continues with a cash-rich balance sheet and good growth expectations.
VHI: HOLD. Still some potential here but we might not want to fight the negative momentum at this stage.