Investment Q&A

Q: Hello 5i
Could have your assessment of Teradyne and Sibone?
Thank you
Dave

Q: Do you like cp at this price

Q: What is your updated opinion now after their unveiling of the value creation plan and substantial issuer bid? Worth holding for now?

Q: What is your opinion about this Co.? On NAZDAQ as GridAI Technologies Corp.
Thanks for all your support in 2025!

Q: Most silver stocks are down today with today's decline in the metal. However, USAS popped 15% late morning after being down early. I can't find any news. Do your sources have anything on this? Thanks Rob

Q: FYI I came across the reason for the drop in ZDC I thought you might be interested in - Amazon’s Ring Doorbell division announced a Ring Camera on a small trailer product yesterday at CES. After reading their operational update and a few analyst's "Takeaways" from this news, I added to my holdings as they are catering to a completely different market than Amazon and demand remains extremely strong. Below is the update and some analysts updates.





Operational update:

* Exit-Q4/25 service fleet had 2,783 towers (+18% Q/Q, and above our expected 2,711).

* Tower output capability now at 50 per week (for context, we have been assuming per week output of 30 during Q4/25, 45 during Q1/26, and 50 during Q2/26; this near-term path is already nicely de-risked).

* Currently moving into new/bigger manufacturing facility in Houston that will boost output capacity by ~50% (to implied 85-90 per week; for context, our growth forecast is based on 65 per week in Q4/26+, suggesting there are no capacity bottlenecks).

* Snowballing success with larger type of national/enterprise customers; a national contract has been signed with an existing major homebuilder client (enables quicker deployment of towers to satisfy their demand in more regions); also recently signed up a new furniture retailer that has 250 locations in U.S.; also have multiple trials/RFPs that are active with major new customers.

* Plans are in place to continue boosting regional presence in U.S., and the size of the sales team in both Canada and the U.S. where they see no shortage of demand; based on our recent chats with management, we think the exit-Q1/26 regional sales team (ex. national accounts team) will be >2x vs. the count that existed during the last reported quarter.



Takeaway: We think the update previews that Q4/25 results will beat expectations, based on the reported size of the fleet, and based on our recent chats about demand, utilization, pricing, and sales team performance. We also think the business momentum/capabilities being highlighted previews a need for Street forecasts to eventually increase (Street expectations for late-2026 and 2027 look low vs. Cormark estimates).



Addressing the Ring media headlines:

* Ring (Amazon’s video camera and doorbell cam platform) revealed a new product launch yesterday and it triggered weakness for ZDC’s stock, but the product does not overlap with the market and demand that ZDC is addressing.

* The new Ring product is a video camera on a mobile and self-powered tower (12 feet high); Ring will sell the tower equipment to customers starting at a cost of US$5 K, and buyers can self-deploy the tower unit wherever they want; footage is stored and the owner of the tower can also self-monitor the video as desired (or get a non-Ring, third-party to watch it for added/undisclosed fees); it’s essentially like a doorbell cam, but a more expensive and mobile version used to see small areas.

* In contrast, ZDC does not sell any hardware (does not even rent any hardware); ZDC sells a comprehensive service (real time, live monitoring and response services covering large areas, with the service delivered using ZDC’s own hardware and monitoring staff; even the hardware ZDC is using is very different / 2x size / costly vs. the product Ring is selling).

* There is an existing and crowded market for this type of new Ring product, with many small companies offering it (for many years, especially in the U.S.), but it’s not a market ZDC has been, or will be, involved in.

* We also note that Amazon itself continues to use ZDC’s service, including consuming more of ZDC’s fleet capacity as recently as yesterday at more of their distribution centers (with more orders expected beyond yesterday’s deployments).



Takeaway: The Ring headlines should have zero impact on ZDC’s financial profile momentum that will ultimately power ZDC’s stock price; we think this is a brief trading-type selloff, and a continued selloff is a stock buying opportunity given the setup of standout growth, room for forecast increases, and valuation that still has room to expand (stock trading at mature/low-growth <15x cash EPS vs. our modelled exit-2026 run-rate, a point in time that should be no where close to maturity for ZDC’s growth curve).





This morning, ZDC provided an operational update and its strategic growth roadmap for 2026. Impact: slightly positive.

Fleet growth. The MobileyeZ fleet grew 108% yoy and 18% sequentially in 4Q, reaching 2,783 towers as at 4Q25 vs our estimate of 2,819; 52% of the fleet is now in the US (higher vs our estimate, demonstrating US expansion efforts). The company is also significantly building out its salesforce and its national account sales team. Recall that we model a fleet of ~5,000 exiting 2026 and ~7,700 exiting 2027.
New wins. The firm has secured new customers and expanded tower count with existing clients within the home builder security market. Enterprise sales efforts have made significant progress, with the signing of national account paperwork with the largest US homebuilder, an existing customer. Additionally, ZDC committed towers to a large US SE furniture retailer with 250+ locations and meaningful capacity to deploy more towers. ZDC is actively supporting trials for multiple large enterprise retailers while in advanced stages of RFP processes with some of the largest companies in the US.
US geographical expansion and growing sales team. ZDC has expanded its geographical footprint with service centre locations in the US Midwest and Northeast. In addition, ZDC is aggressively growing its sales team in 1Q26 in both Canada and the US, as well as the national account sales team, as it looks to expand into new industry verticals and regions.
Weekly production. It reached 50 towers/week, with production continuing to grow with capacity (is also slightly ahead of our forecast).
New Houston manufacturing facility and monitoring centre. ZDC is moving into its new Houston production facility in 1Q26, increasing its manufacturing floor space by 50%. While current capacity is 50 towers weekly, the new facility provides the ability to significantly expand its footprint and support additional enterprise customers. In addition, ZDC has finalized a lease for a 15,000sf monitoring facility in Houston to support its growing operations and deliver uninterrupted security services. The centre is already staffed, with additional room available for future expansion.
Our take on Amazon Ring entering the commercial market. While this presents a negative headline risk, it does not deter us from our robust growth outlook expectations for ZDC. Our understanding is that the product offering is mostly hardware-led, catered toward more DIY and price-sensitive customers, with minimal servicing. Most importantly, there is no live 24/7 monitoring (or will need to hire a third-party firm). We note that Amazon acquired both Ring and Blink back in 2018, demonstrating a buy vs build preference.

Q: Hello 5i Team,
I was looking at the performance of ZSP vs. SPY on the Google Finance site.
ZSP shows a 1-yr return of 13.33%, and a 5-yr return of 97.04%
SPY shows a 1-yr return of 17.67%, and a 5-yr return of 81.69%
Why are the returns so different if both are looking to replicate the returns of the S&P 500?
For a long term hold within my RRSP, would it be better to take a position in one vs. the other, or take a half-position in each?
Many thanks,
Brian

Q: BNS, like all the Canadian banks has had a good run. would it be a mistake to cash out and look to some small caps?? Thanks Jim

Q: Given the Venezuela situation and resulting effect on sentiment...do you prefer Canadian gas or oil?

Q: In the past month ELVA has doubled. Why?

Has it run ahead of itself that is quite an increase in a very short period of time.

Should one wait for a retracement?

Thanks

Sheldon

Q: Hi Peter and team,

What would you attribute the drop in GLXY's price since November 2025 to? Was it profit taking or something more fundamental? Do you see it as a hold, sell or buy ?
Thanks,
Harry

Q: Is it possible that yesterday's announcement by Amazon of their entry into Zedcor's market causing the spike down?

Q: Hi team,
I read the zdc update this morning and thought it sounded great . Then the stock drops like a rock…what did I miss? What’s your take on the dip and company update ?

Thanks ,
Shane

Q: Topping up my TFSA - have narrowed it down to one of the above companies. Which one would you choose and why?

Q: Your thoughts please on the news from Magna with their work with NVDA and with the stock doubling from April is it a good time to look at it again. Maybe an AI play now as well.

Thx

Q: I have no consumer staples, real estate, or utility stocks right now. How would you rank these sectors right now based on macro factors? Can you list two most compelling stocks for each category? Can be either USA or Canada.

Q: Good afternoon,

I feel that I have constructed a well balanced equity portfolio of between 20-25 stocks, thanks in large part to you and your team.

I have identified the following as core positions, where each one represents between a 3-5% weighting:

RY
GWL
ENB
FTS
AEM
BN
NVDA
GOOG
AMZN

I know that there could be many additions to this list. But assuming I hold my "top picks" to these names, do you have any immediate concerns?

Thanks as always.

Q: Hi Peter,
FSV is at a multi-year low. Unlike TRI or CSU, which are dumped by investors fearing AI is going to affect their revenue, what are the reasons driving the selloff of FSV? Do you see FSV having strong growth this year and now is an opportunity to add? Or would CSU or TRI be better candidates to add to at current price? Thanks.

Q: My current plan is to add to my XIT holdings in my TFSA with this year's contribution.

By the way, XIT tracks very well when compared with QQQ...using multiple timeframes on your charting system. They overlay each other very closely....surprises me.

This is actually a "timing" question. Usually I just contribute the money and then buy according to a well laid out plan weeks in the making. However, with the big run up last year and the slide in stock prices lately, I can't help but ponder whether I should just sit on my hands for a bit?

My full plan was actually to buy the first $7k tranche sooner (early Jan), then create some cash from the other holdings in my TFSA and buy a 2nd tranche later...Feb?

Your thoughts?

Thanks for your help throughout the years....been with you from virtually the beginning....love the service!!! Steve

Q: We hold both in cash accounts and need to put one or both (total $14k) into two TSFAs. All tax implications being equal ,which one or a combination of both do you recommend taking from taxable cash accounts and putting into TSFAs?
Happy New year ,and thanks for all your hard work.
Philip