Investment Q&A

Q: Hi team,

I am trying to pick a 2 or 3 small/mid-caps for strong growth for at least 5 years. What are your views on the stocks above ? Do they fit the bill ? What is the risk factor ? Any better suggestions ?

Gratefully,

Jacques IDS

Q: Though different, of these three companies, which would likely have a better run in the electrification theme? Are there better US plays on the theme?
With many thanks.

Q: With respect to my last question just asked, can you please also address the high short interest in Powl. Is it best to avoid stocks with such high short
Interests? Thanks.

Q: These are seeing big drops today - powl in particular. Are you aware of any reason? I was planning on holding all three for at least a year but am now wondering whether I should bail. Any insight would be appreciated. Thanks.

Q: Market reaction seems a litte rough. Any thoughts on these companies.
Cheers , Chris

Q: Could you please give me 5 or 6 of your favorite momentum stocks at present?

Thx

Q: Good day,

Did a huge portfolio makeover a few months ago, almost entirely with your picks (minus a few that didn't click for me) and some of my high own high conviction names. For the most part, they've all done pretty well, with the exception of the last few weeks.

1. Is the last few weeks just overall uncertainty/retraction?
2. bep and bip are down ~15%, is it worthwhile getting out and averaging down BAM or BNS?
3. ATS and CELH are down after large runups after I bought. worth buying/averaging down on one of these?
4. DCBO and NXT back to scratch after huge runs. Do you expect those levels to return? Timeline wise? NXT spun from FLEX, but Flex continues to climb
5. KXS is down 8%, and seems pretty spikey over the last 5 years. Just wait for the next one? Should this start to create more of a steadier trend upward?
6. I bought POWL, and it's basically done nothing, thoughts on the company now? alternatives?
7. I saw a youtuber vid that really loved POET for the coming months years. I was telling a friend about it yesterday because I like (and understand) the technology and what it could do. He literally bought some while we were talking yesterday morning and he's up 30%... Are the company fundamentals/contracts improving? or could it just be hype from youtubers and the like?

Almost all of these had some pretty significant periods of running since I rebalanced in Jan/Feb. I know market timing is not a solid practice, but in a lot of these growth names, at what point is that jump worth moving on from, freeing up some cash for another opportunity down the road? And how do you determine whether it's time or not?

Finally, in the event that your attitudes have changed on any of these, do you have a top 3 CAD, top 3 US new ideas over the last few months that have really turned the tide/become strong buys that I may replace/add?

Thanks for everything!

James

Q: Hi, Powell Industries seems to be in the right sector of electrical infrastructure and stock has done very well. However, as noted in your recent comments, it has been quite volatile, specially after the last quarterly results released in January.

The founder CEO, Mr Thomas Powell has sold bunch of shares in late 2023, as well over 50,000 shares, over a period of several days, between Feb and March, this year, ( $154 to $187 ). In addition, as per F144 filed on March 4, he intends to sell additional 200,000 shares, of which only 4000 shares have been sold on March 4 ( $185-$189 ). So, effectively, there continues to be an overhang of an impending sale of remaining shares, in the market.

Does it explain the sharp and precipitous decline of the stock over past 3 weeks ?

Is this a red flag and limits the future upside of this stock ?

On the bright side, Mr Powell still owns over 2.2 mln shares, which is about 22% of issued and o/s common shares of Powell Industries.

In your opinion, is the price decline of $45 from its recent high is overdone and POWL is a decent buy now, based on current valuation, minimal debt and future growth potential ?

We purchased the shares recently and own with ACB of $160 ( 1.25% weight ) to complement our HPS.a 3% position. Do you recommend holding the shares and add at current level or wait for next quarter ?

Thank You

Q: Good Day,

I picked up CELH and CROX based on the answer to my last question, and added in POWL to boot. Based on my portfolio in my previous question, was POWL something you would consider redundant in my account, or would you be fine with that type of addition in your portfolio.

I have been holding SNPS and CDNS for a minute now, and it just seems to bounce back and forth between +5% and -5%. Are these mostly growers on news and earnings? What are their respective Expected growth rates over the next 1 and 2 years?

This brings me to almost "fully deployed". I have noticed in the last couple weeks that the volatility in the market seems to have increased, and the average of that volatility seems to be sort of flat over this time. I have seen some videos and articles calling for the "AI Bubble" to burst, etc. Do you think there will be a cooling in that space coming? and if that occurs will the market follow it? I've seen many replies where you state that NVDA has a clear 18 month runway for growth, and thus I imagine the companies that support it as well, does that still hold true in your view? If said cooling could be coming, would it be worth the fees to say, shrink/cut some positions? Or is that too much like timing the market and thus better to stay in?

Thanks for everything,

Q: I recently picked up some POWL:US stock. Today (Friday March 1st) I see the stock has dropped approx 5%. I also note that Mr. T Powell, owner, sold 25K shares. This might have been a trigger for some investors as a time to sell. However, he owns 2.4M shares. I am thinking that his sale is actually immaterial to his overall holdings. In other words, this might be a good time to purchase more. Am I on the right track?
My thanks.

Q: Are these good buying opportunities,thanks

Q: Thanks to 5i, over the recent past, I have DCA these stocks, holding less than 5% with room to add based on your advice.
a) 3% - AXON VRT HPS ISRG LMN
b) 2% - BKNG CLS LLY NVDA CELH
c) 1% - POWL NXT EXP
Please rank those that you would be comfortable adding to [DCA] now - with target percentages. For example, would you add to AXON first and, if so, to what percentage.
.

Q: How would you rank the named companies for inclusion in a balanced portfolio today? Would the rankings shift for a growth portfolio?

Q: Are there alternatives to MITK and BKNG that you feel would be better to have in a portfolio today?

Q: Hello 5i
What are your current top 5 US and CDN non-tech small-mid cap picks for growth?
Ranked would be appreciated.
Thanks
Dave

Q: Not a question, but a comment. And not sure if it’s relevant or not.

I’ve been involved in the electrical industry for 35+ years and have been aware of Hammond from a users perspective for much of that time. They’re noted for having good equipment, debatably the Honda or Toyota of relatively small dry type electromagnetic gizmos. Not the least expensive, but good value. It’s reliable, available, and therefore rather ubiquitous in industrial electrical rooms. I own the company not only because of your endorsement but because I like their products.

Similar comment with Powell. Pretty good equipment from a technical perspective and reasonably priced. Good innovators and flexible offerings. They seem to be winning lots of fully evaluated tenders.

One last comment. If privately-owned Schweitzer Engineering Laboratories Inc. ever goes public, consider buying. Fabulous relays and communication equipment for the utility and industrial power system space, and exceptional service.

Q: I bought this a week or so ago when I saw it come up in a Q&A. It's gone up nicely since then. Assuming you still like it, can you explain why? Thanks,

Jason

Q: I’m currently a momentum/swing trader, but running out of names to hop on with everything up. Can you provide 5 US growth names that you might enter based on their current momentum? Either a bounce or continued rise in the next month?

Q: I'm down 50% on this one. Any chance of recovery in the next 12-18 months or time to move on as there appears to be better opportunities out there? If so, can you suggest a couple replacements? Many thanks.

Q: Hi Everyone at 5i!
POWL had a big price move yesterday. Could you please shed some light on this? What are the prospects of this company going forward?
Cheers,
Tamara