Investment Q&A

Q: What are your five current favorite stocks for short-term (1 year) gains? They can be either US or Canadian stocks. Thanks,

Q: Hi 5i,
Thanks for all your great work!
I know that you like Hammond Power Solutions. Can you please provide some detail as to why you like it?
Thanks,
Murray

Q: We know from recent reports of grid failures during extreme low and high temperatures that North American electrical infrastructure is inadequate to meet our rapidly growing requirements for electrification.

My questions are:
- will governments re-design, regulate and install new infrastructure in partnerships with private sector/s? (what could possibly go wrong?)
- what exactly constitutes the grid (the components)?
- what companies or types of companies will provide the designs and components for the transitions in Canada and the US?
- are there any obvious stock picks that 5i can recommend at this point?

I realize that this topic falls somewhat into speculation and opinion at this point. I am looking for best thoughts from 5i - not necessarily definitive answers. Maybe 5i would consider producing ongoing articles and references on grid revitalization as we move forward.

Thanks!
Heather

Q: I want to add one of these to my TFSA. With potential total growth in mind, could you please list these in order in which you think might do best. Thanks.

Q: Good Day,

I picked up CALF and HPS.A based on your last answer to my questions. CALF was EXACTLY what I was looking for in that space. HPS.A looks really intriguing, and despite the constant highs on highs providing a bit of apprehension, I think I'll look back later and be happy. Thanks.

Through looking in to NXT as an option, came across FLEX, which it was spun out from, as well as TOI (and CSU by proxy) when looking at LMN.

Would FLEX or NXT have a better future outlook and why? What would you rank the risk and growth potential for each? Are there any other companies like FLEX that you would recommend? Also, the Share price estimate for FLEX is showing a high of 35, which is significantly higher than current. are those pre-NXT spinoff estimates?

For LMN and TOI, same questions.

Q: Recently you recommended the above companies as top 5 small caps. Could you rank from 1 to 5 re: upside potential?
I currently own EQB and GSY.
Many thanks

Q: How would you rank these today for a growth oriented investor looking to hold?

Q: Good Day,
You have identified the above stocks as all having high growth prospects. Can you please rank them in the order of what you would purchase first today, and risk level associated with each one.
Thank you,

Q: Do you think some consolidation is due in HPS or have there been fundamental shifts that explain the trajectory and can be sustained?

Q: Many years ago I heard Peter say on BNN that one of the best indicators that a stock will outperform the index is when a company initiates a dividend for the first time. Are there any good quality Canadian growth companies that currently do not pay a dividend that you feel are reasonable candidates to start paying a dividend in the next 12 - 18 months?

On the same topic, generally speaking, what would be some of your favourite small to mid cap Canadian growth stocks that do not pay a dividend? Say under a $10B market cap.

Q: Hi, Hammond Power stock continues to make new highs every day. Scarcity of sellers and low liquidity is evident. An order for sale of 8000 shares at $84.82 was quickly snapped up by hungry buyers, in no time. Besides the low float, what are the fundamentals driving the stock with this incredible strength? How is the valuation today, with the elevated prices? If there was cash to deploy, would 5i consider increasing its position in the Portfolio, at these levels ? Thank You

Q: The two least profitable stocks in my entire portfolio are SIS (up an anemic 6% after two years) and PBH (up 10% in the same time period). I'd like to replace both with something growthier - but here's the catch - I want similar dividends (+/- 1%) and I want Canadian replacements in the same sector. My only other Consumer Defensive is COST. Current industrials are WSP, HPS.A, J, and TFII. I would welcome your speculation on how SIS and PBH are likely to grow this year...and what potential replacements might be. Thank you.

Q: Would you buy this stock at its current price, and if not what price would you?

Q: Can you compare POW and HPS-A against each other and identify which would have more share price potential? How would they compare to something larger like FTS?

Q: This is a question regarding portfolio composition, which I would describe as alpha-balanced. I have chosen not to invest in real estate (as I own a home) or materials (too volatile). I am overweight in Tech (17.5%), Industrials (19.25%) and Finance (22.3%). The other sectors are all at appropriate weights. I am somewhat concerned about having too much allocated to financials and seeking advice. The stocks I hold in relatively equal amounts are: BAM, BN, X, V and HMAX. (I hold HMAX strictly for the out-sized dividend with the expectation of little growth; with a solid dividend here, it frees up other funds to invest in more aggressive companies that don't pay dividends such as HPS.A and LMN.). Long story short: do I have too many eggs in one basket, or do my financials have sufficiently different drivers that you would be comfortable with this imbalance? Any other comments with regard to the strategy behind my chosen portfolio composition would be most welcome. Many thanks.

Q: For a RRSP account, and ignoring diversification, what would you be the most comfortable buying today at current prices, for:

1) 1-3 year short term gains
2) 10-year long-term gains?

Q: Do you have a number for the projected earnings for HPS.A?

Also ,price to forward sales ratio for CSU, and current debt to equity(and how does that compare to a year ago)?

Thanks
Mike

Q: 5i has given our family some very good investment ideas. Among the good ones that have benefitted our accounts lately are LMN and HPS.A. Thank you for these. Using your crystal ball what would be your best suggestion for a couple of other similar stocks that might replicate these growth stories over the next year. Thank you.

Q: A family member entering post-secondary school owns these stocks in their TFSA on an approximate equal weighting of $4,000. They have $8,000 to contribute and invest this fiscal.

The objective is growth with some risk; maintenance of capital is a secondary objective.

If allocating in $4,000 increments would you add to one or more of the existing investments or are there one or two you think would be better suited to a young investor over a 3 - 5 year investment horizon?

Thanks so much.

Q: Hi Team,
Having not researched this name myself yet, what is the story behind HPS? It's an old company and looking at a 10yr chart had been flat for years between $5-$10 range. Now since 2021 it went parabolic to $84 today. What changed in its business to justify such a drastic gain? Perhaps I am a bit cynical or cautious; but I am a bit hesitant being told in the past not to invest in names that have gone parabolic so quickly? At least without a significant pullback. Thanks for your insight!

Shane