Investment Q&A

Q: I have 2 Stocks in my Portfolio both of which have taken large hits recently resulting in sizeable pullbacks.

Both of these companies seemed to previously be doing well.

Would u say these stocks developed valuation issues or there was a material change in their fortunes currently or perceived going forward?

Would u hold, Buy more or sell these stocks at this point?

Q: Happy new year to the 5i team and readers! In your Jan.6th answer to Judith you ranked App no.1. Can you please elaborate on why it’s a top pick and comment on valuation. I am concerned about valuation - but then again, I’ve sold many a growth stock prematurely due to this concern and missed out on gains!

Jason

Q: For various geopolitical and economical reason's, I am now looking for a fully integrated US energy Cie,including a significant % of natural gaz and transportation , located in "safer places "..I like CVX , but I will appreciate your ranking in this perspective,even if these 2 Cies are not included!

Q: I have made some updates to my portfolio before heading into the new year and am looking for your thoughts on total portfolio. I have it all in TFSA and am 28 years old with a long time horizon. Could you give me your opinion over next 1, 3, 5 years of portfolio.

What changes might you make to this portfolio to stengthen it?

Portfolio Breakdown:
Stock Amount Invested (USD) % of Portfolio
NVDA $6,500 12.04%
SHOP $2,840 (converted from CAD) 5.26%
AMZN $2,650 4.91%
MSFT $2,520 4.67%
MELI $2,483 4.60%
PLTR $2,250 4.17%
TSM $2,000 3.70%
CRWD $1,830 3.39%
GOOGL $1,780 3.30%
TTD $1,767 3.28%
ISRG $2,180 (converted from CAD) 4.04%
META $2,150 (converted from CAD) 3.98%
BRK.B $1,470 2.72%
AXP $1,560 2.89%
LLY $1,500 2.78%
DIS $1,280 (converted from CAD) 2.37%
NBIS $840 1.56%
CELH $700 1.30%
SMCI $392 0.73%
SPCE $188 0.35%
XRP $120 (converted from CAD) 0.22%

Thanks,
Dan

Q: What do you think about these two stocks. TSSI has been on a tear lately. BMR on the other hand is struggling but has some nice contracts with Nvidia and others.

Q: Good morning everyone,

Has your thesis remained intact on URI? It appears to be making the turn. At a reasonable attractive entry point along with some potential catalysts in 2025.

Would this be your buy in this sector? AXON is already owned in a full position. Along with TFII on the CAN side.

Is their an industrial or similar name you'd rank above for the coming year?

Thank you.

Q: This stock was up big on earnings last week. Is it a buy, or is the rally simply short-covering?

Q: Hello and Happy New Year 5i
I learned about SMCI from 5i and had great luck with it last year! Thanks! I stuck to my goals and sold all of my original investment to remain in the stock with "house money". I don't have any intentions of being a day trader but the timing of my purchase allowed me to double my money in about 4 weeks and that was my goal over a period of a year or two.
To my question
Smci appeared to be a profitable company supplying a huge company in a growth industry. I don't think that has changed? I heard in an interview late last year that the numbers of sales (provided by SMCI) to Nvidia were backed up by information released by Nvidia themselves.
#1 Is there anyway to find that information in disclosure documents from Nvidia?
#2 Wouldn't that information clear up many of the worries regarding the factuality of information coming from SMCI?
I'm not too concerned about the timing of the release of information if SMCI is really selling as much as it seems to the biggest player in the market.
Thanks as always for your terrific insight!

Q: CRNC is up big again today. Thoughts on this company?

Q: Thoughts on Trinity ? Has been in a gentle uptrend and has a substantial yield. How much is return of capital ? Thanks and all the best for a great 2025 !

Q: Hi,
I'm down 25% on AVAV. I'm contemplating adding more. Would you consider this a good move? 5 year hold.
Also what would be the maximum weight YOU would be comfortable holding AVAV if it were your portfolio?
Thanks

Q: Hi 5i Team - Could you provide an update on Axon, its fundamentals including cash and debt positions, insider holdings, as well as its potential going forward. Also is there something we should be concerned about in light of its 10% drop today preceded by poor momentum over the past several weeks. Thanks.

Q: AXON stock has been quite weak, over past several weeks, going into the close of 2024. The downtrend has continued in January, with a horrible price action, Monday, when stock opened at $605 and quickly lost another $50.

It's 5i's favorite company, and has all the right ingredients for success, AI, security, expectation of larger spending on border/law enforcement by new administration.

Why do you think stock has lost momentum and investors seem to shun the stock and sell at every opportunity ?

Stock has broken down several support levels and after reaching a high of $698, not far ago, is languishing around $550.

What is your current assessment of the Co. and is the stock still worth holding for
investors who bought at higher levels ( $625-$650) ?

Thank You

Q: Hello 5i,
I’m wondering why Axon is down over 8% today? Have the fundamentals suddenly changed? Would you be buyers at this level? I appreciate your comments.

Q: Any particular reason for the relatively large decline today?

Q: I am considering Chubb Insurance as a defensive play.

Could I have your assessment of this company?

Q: I am considering the NASDAQ stock (NDAQ).

It has a consistent record of solid earnings. With the new U.S. Administration easing up on regulations there is the potential of an increase in M&A and IPO activity for the markets this year. If so, NASDAQ could be well positioned.

What would your advice be?

Thank you

Q: Which is better to buy? Fractionl Bitcoin via Wealthsimple, etc. or a Bitcoin ETF? Why?

Thanks! Austin

Q: Happy New Year to everyone at 5i

I recently read a recent article in the Financial Post:
“The S&P 500’s performance in 2024 made investing look easy. Why bother with strategy?”

Since the ‘Magnificent 7’ stocks dominate ETFs such as VFV, I’m concerned that the S&P 500 represents a very lop-sided weighting of its constituent stocks. We do hold VFV in several of our combined accounts, but am considering selling 25% of VFV and using the proceeds to purchase some EQL.U, an ETF that has never had a question on 5i. I’m aware that an equal weighting strategy results in a tilt towards mid-cap stocks (a good thing?), has a higher expense ratio (not so good) and has higher volatility (again, not so good).

Do the benefits of equal weighting in the S&P 500 outweigh the disadvantages? What is your take on this strategy? Are there similar ETFs to EQL.U that we could consider? Would RSP be one of them?

Thanks as always for your insight.

Q: I understand CRM, a software company, is getting into AI via software. Does 5iR know any other S&P 500 software companies doing the same thing???.....Happy New Year ......Tom