Investment Q&A

Q: I have full positions in NVDA, NBIS and GOOG and do not need to add. For additional money directed at the AI theme, please suggest 4 US companies and 4 CDN companies to buy today and hold for 3-5 years. A one sentence explanation for each choice would be appreciated. Thanks

Q: I adhere to a portfolio construction strategy where 5% is a full position but I allow for a "rock star" stock like a SHOP, NVDA or GOOG, to go to 7% at which time I will trim a point or two.

When you suggest a small-cap stock, you often warn against buying too big a position initially, given the inherent instability and risk of a smaller company. My question is, at what point do you "loosen the reins" and allow that stock to assume a full position and when do you allow it to go to (in my case, for example) rock start status? I'm thinking of companies like ATZ and HPS.A. Is it based on capitalization, number of business cycles management has gone through, profitability ratios or is it as much art as science?

Appreciate your insight.

Paul F.

Q: What are your thoughts on Char Technologies? Too early to invest? What other small caps would you invest in instead for a 5-year hold?

Q: My recent answer for additions to my tfsa was to add the following firms: VNP, CLS,PNG, BN, & SHOP.
My question when written listed the above holdings as currently owned.
Could I have 4-5 other firms please?
Thank you David

Q: So brp goes down 35% because of tariffs.hps.a and tvk both down 8%.Should I add to my positions.

Q: Any reasonfor the 9.19% drop today after record H of $246.60 on Monday.AddHold or Sell. Txs for u usual great views & services

Q: Going forward, for a 3 year hold, do you like HPS.A or ZDC for growth. Thank you

Q: In regard to the question about Hammond Power this might help..... from TD this morning,

National Bank Financial analyst Baltej Sidhu thinks the simplified rules emerging from “significant” changes” by the U.S. government to Section 232 tariffs on steel, aluminum and copper will provide a notable “structural tailwind” for Hammond Power Solutions Inc. (HPS.A-T).

Shares of the Guelph, Ont.-based company jumped 15.3 per cent on Monday after the Trump administration announced updated guidance on those tariffs, clarifying how rates apply to imports.

“The updated framework introduces a tiered structure, with 50-per-cent tariffs on primary metals, 25 per cent on derivative products, and a reduced 15-per-cent rate on select metal-intensive industrial and grid equipment,” he explained. “Overall, the tariff calculations are simpler and transparent, and could be viewed as the administration working with the industry, in acknowledging supply constraints and the need to support ongoing U.S. industrial and grid buildout.

“While the 15-per-cent grid equipment category appears to capture HPS’ suite, we believe its transformer products are likely to fall under the 25-per-cent derivative category, based on product codes listed in the annex. That said, we view the revised framework as more transparent and consistent, replacing metal-content-based calculations with a clearer rules-based approach, which should improve confidence and create a more level playing field.”

While acknowledging the overall financial impact “remains under evaluation given the complexity of HPS’s input mix and broad SKU base,” Mr. Sidhu thinks the revised framework could “prove incrementally less punitive” for Hammond.

“Under the revised tariff regime, the effective burden may be more manageable relative to the prior structure,” he said. “There are puts and takes as the savings may flow through to the customer in maintaining relationships. Stepping back, the policy shift reinforces an already tightening supply backdrop for transformer equipment while supporting continued investment in grid infrastructure, leaving us optimistic that HPS can recover costs and sustain pricing.”

Maintaining his “outperform” rating for the company’s shares, the analyst raised his Street-high target to $235 from $220. The average is currently $161.

“While we have more clarity, we are comfortable with our current estimates, and believe the reaction in the shares reflect margin expansion of 100-150bps vs. our modelling of 120bps. Owing to the continued structural drivers, and increased confidence, we increase our target,” he explained.

Q: Good Morning
Cant seem to find a reason for the big jump in
HPS.A this morning and then a slide back are you aware of what may have happened?
Thks
Marcel

Q: Hello 5I
This stock seems to be in a down trend. Do you have any news and would you buy it here? Thanks. Cheers

Q: With the VIX above 30 and sure to continue to be volatile in the coming weeks, how would you advise investors to step into the current market? Can you provide a couple of examples of companies you would be buying into this volatility?

Thank you
Tim

Q: I have these small/mid caps in my portfolio for future growth. Any concerns with any of these? Please rank these for growth potential. I do realize GRID ZDC and ELVA are much smaller. Thanks Stephen

Q: Do you have a preference at this time between BYD, FTT and HPS.A for a long term hold.

Q: Which of these would you recommend as the best AI infrstructure play?

Q: Good Morning
Can you comment on Hammond 4th quarter results?
Thks
Marcel

Q: Would you consider all positions in your growth portfolio still buyable today? Are there any that would make you pause if you were buying now?

Q: Hi,

Already holding HPS.A at 3.6% and I like the growing power thesis. Do you think buying ENS, MPWR or APH would be too much? I like the growth of all these other names but is owning all four too many? How would you rank them to buy now for best risk adjusted return?

Q: forgot to ask, why are certain companies such as CLS, TOU, HPS.A, etc. not included in the market summary reports?

Q: In quarters in which HPS.A does particularly well, executive compensation tends to sink the shares. Earnings are due on March 18. Is this one of the quarters likely to produce significant executive compensation or will comparison to the previous quarter dampen the exec comp and help the shares?

Q: Hello Peter and Team,

I am looking at turning over a portion of my portfolio and rotating into AI infrastructure. With the growth we're seeing increased power consumption, micro data centers, advanced cooling, specialized power distribution, and a supply shortfall are all going to be very relevant in the coming years with the AI capacity rising so fast.

My questions;
1. Has there been a market sector specifically dedicated to AI? Or is it just grouped into IT?
2. I know you mentioned TransAlta Corp in your recent "Best Stock Ideas. What other companies do you think we should be looking at moving forward?
3. Are you looking to have more focus on this sector for the Model Portfolios and if so, which companies are you looking at for growth and for income?

Appreciate all you do

gm

ps,... Thank you for 5N Plus, Kraken & Tantalus