Investment Q&A

Q: Which stock: HPS.A, PRL, TVK or VHI would have the most growth going forward? I take after today, it's best to wait a few days?

Thanks for your service!

Q: Dear 5i
Do you prefer PWR or POWL and why ?
Also VHI seems to be one of your top picks for small cap growth stocks but the valuation ie P/E seems quite high . Does its growth rate justify the valuation ?
Thanks
Bill C

Q: Would you consider Revenue Growth the leading indicator of a companies liklihood to succeed and grow its share price provided properly managed?

Seems todays most successful stock market darlings have all had tremendous revenue growth albeit not necessarily Profitable during their early days of rapid Revenue growth.

If I were to look for 2 or 3 US and Canadian Mid Cap companies most likely to lead the rest of the market with staggering Revenue growth over the next 2-5 years which do you think these might likely be?

Q: Dear 5i
Could you provide me with the expected earnings growth rates for the year for the above mentioned stocks .
Also would your order of buying these stocks be the same order as the expected growth rates ? In other words are there any other significant factors to consider other than growth rate for the above stated stocks that might change your order of buying ? So considering the above what would your level of conviction be from highest to lowest for these listed stocks ?
Thanks again for your valuable assistance in the challenging world of stock picking . I'm pretty sure there are quite a few of us DIY investors that would be lost without the great advice from 5i Research .
Bill C

Q: Hi, for smaller cap companies, what would be your max position sizing for someone that is a medium/high growth oriented investor. What are some criteria's you look at when sizing a position depending on if it is small, mid, or large cap? Beta/volatility, cyclicality? I'm guiding towards 5-8% for larger cap names such as CSU, BN, BKNG, GOOG, etc... and 2-3% for smaller names such as LMN, TVK, PRL, WELL, VHI, ATZ, etc.. I know for more volatile names, a smaller position can have just as large an impact in a portfolio. Thanks!

Q: Hi, thinking of adding a small position in one of these to add some torque within an RSP. Which one would you choose right ow and what price would you recommend buying at? Thanks

Q: Hi Team,
Out of HPS.A and VHI, which do you like better today? Looking for highest potential return over the next 10 years.

Thanks,
Shane.

Q: Hi team,
What’s your current thoughts on Vhi? Valuation wise it currently seems pricey . But , the company recently completed a big offering at near today’s price. So, investors seem to want to pay up for the name. Recently Jason Donville named it as a top pick , with him spouting that it should be a $20 stock in a year. Is this realistic ? I remember when Donville was a small cap god on BNN 10 years ago; at one time he had a good reputation it seemed as a stock picker . He also mentioned that it is the next dsg. Big shoes to full. I guess question is does vhi really have the potential to change the healthcare software sector radically in the next few years ? Does it hold a product ahead of any competition? Is this a name that could be a huge winner in the long run ? I hold a smaller position currently. Wondering if it’s worth a shot adding to the band long term at this level ?

Thanks ,
Shane

Q: Hi again. This is the question I tried asking last night and kept receiving a note for a Server Error.
I added in my contribution to my TFSA yesterday. I was thinking of adding in.a new position in ZDC or topping up 2 of the other names. If you suggest adding to 2 of the above, what would your 2 top choices be and why?
Thanks David.

Q: Hello 5i
I currently own CSU LMN TOI SHOP VHI (which I consider tech'ish).
Do you see a compelling reason to add any of the other tech holding from the 5i balanced or growth portfolios? Would you avoid the concentration of the CSU family in favour of others?

Q: Greetings, would like your latest thinking on Vitalhub. I know you still like it. I know very little about technical analysis, but the chart lately looks a little different than past “dips”. In the past after a pullback it seemed to fairly quickly regain its upward momentum. Right now it seems to have stalled a bit and even make lower lows. I would like to think that maybe people are just taking some gains in the new tax year, but the valuation is making me a bit nervous if growth is slowing. Thanks for your insight.

Q: I am looking at DNTL, ZDC, MDA AND VHI. Would appreciate your input and recommendations of which are good and which to avoid. Please put them in order of preference.

Donna

Q: Happy new year! I read the news that vital hub has issued a short form prospectus, but I don't understand what this means. Does this mean dilution, or is it more positive for the stock? Would it be worth taking a nibble at this point?

Q: Happy New Year 5i.

I want to add $14000 of Canadian small caps to the two TFSAs in my family. I'm looking at adding two of VHI, ZDC, MDA, and E in equal amounts. Can you rank them in order of preference with a brief explanation? Thanks.

Q: I am only interested in holding Canadian Long Term Compounders. I am looking for companies with decent ROIC, ROE and good balance sheets and preferably owner/operators with skin in the game. In the Canadian space of my portfolio I hold CSU, ATD and TFII. My question is could you provide to me 10 small and mid cap Canadian names that you would feel would make the best long term compounders to hold for at least 5-10 years.

Q: I have these companies in equal amounts in my TFSA.With an additional $18k to invest,which ones would you add to at this time or would you prefer others. I am 74 and plan to live to be 100,which is my mother’s age! I hope to eventually shoot my age(golf).
Thank your exceptional advice and Happy New Year,

Q: What are your thoughts about these companies growth prospects for 2025?

Appreciate all you do.

Cheers

Q: Comment on earnings . Getting really tired do i just sell and buy vhi

Q: Merry Christmas 5i folks.

Thanks for everything this year. Overall very solid returns achieved.

I was holding ZWT and then added QMAX (to compare for a bit and then consolidate) for Sector exposure, but when I looked at my whole portfolio, AMZN, MSFT, NVDA, GOOG and SHOP, through 40-600% gains (many thanks), have become about a third of my portfolio, but also represent 40 and about 22% of ZWT and QMAX. With their fortunes tied so heavily to my individual holdings, is it worth holding a sector ETF?

Conversely, I kept teeter-tottering on which Canadian bank was going to be "The best" over the next few years +, and not pulling the trigger. Based on some of your other answers recently, I settled on going with a 6% position in ZEB, and am ultimately pretty happy with the lower management fee and equal weighting approach, and having a holding in the financials. Do you think the outlook for the financial space over the next few years would justify a higher weighting? Would adding a small position in PRL or something make it more complete?

On the small caps side of things, I have positions in PNG, TCS, CLBT, TMDX, ASPN, HPS and CALF. CALF has been sort of... uninteresting, and I'm considering selling it and initiating a couple more small caps for more torque. Front runners currently are VHI, ZDC, WELL, MDA. Thoughts? Any others you would put in there? Would you dump ASPN for UFPT?

Given how weak the Canadian dollar is right now, would you prioritize US or dual listed companies? Or will Canadian ones get a 'Double boost' if we can get some strength back in the loonie?

Thanks for everything, and Have a great new year!

James

Q: Hi Team,
What would be some of your best ideas in the small/ mid cap space today either US or CND that you see having the best potential over the next decade (medium risk). Or alternatively if I wanted to play it safer what US based etf would be suitable to play the theme here assuming small and mid caps will show outperformance in the next few years? I am leaning towards the US sector as outperforming canada at least in the next few years.

Shane.