Investment Q&A

Q: Hi 5i Team,

I came across an article this weekend about the "Rule of 40" and how it is evolving. It states that companies exceeding the Rule of 40 by 10 or more points (achieving a score of 50 or higher) see their revenue multiples increase by approximately 2.2X, and smart money is now favouring companies that balance growth with profitability, rather than just pursuing high growth at any cost.

I'm curious about Canadian and U.S. companies that achieve a Rule of 40 score of around 50 or better, meaning their revenue growth plus profit margin adds up to 50% or more. For example, a company growing at 20% with 30% margins, or one with 25% growth and 25% margins.

- Can you recommend any companies that fit this profile?
- Any Canadian companies that might be flying under the radar.
- Any mid/small-cap U.S. companies that meet this criteria.

Do you think this makes sense as a screening criterion for identifying quality growth stocks? If not, what is lacking?

Best,
Matt

Q: SKWD has been treading water for a while now. What do you think of their prospects moving forward?

Q: corweave and nebius both got hammered in november, i know you had nebius as a top pick when you were on bnn.it went straight up then straight doen.
which do you prefer now and why.would you buy both or stay away. dave

Q: What would be your US stocks for tax loss selling?
Thank you so much. Lorraine

Q: ZenaTech - ZENA on the Nasdaq, looks like an interesting product offering, would you consider it investable? Another company with the same product that you like better?
Thanks

Q: hello
I have a partial position on gsy; go easy
it has plummeted

looking for a bottom , what would be a good entry price for a 3 years hold? would you prefer GSY over PRL which is a smaller company?
thanks

Michael

Q: Hi Team,
Do you still consider Srad and Geni solid growth names? I own both in moderation at a loss. Wondering if they are worth holding or if you would trade them in for any other “better” ideas at the moment? 10yr hold.

Shane

Q: Hello
looking at both Stn and wsp to add to a pre-existing position

what would be a good price to add for Stn.ca?
thanks

Michael

Q: Thank you for the recent flash update on several companies that have experienced a large decline in the last few months. Your reports reaffirmed the solid foundation of these companies. Also nice to see a bit of a bounce upward of these companies,
Thanks Stephen

Q: What are your thoughts on this small cap that was at one time a high flyer?
Would love your analysis on there recent Earnings report and do you see some good things down the road?
Thanx as always
Gary

Q: How is Celestica's current valuation, after this AI related pullback, last week ?

What is the level of debt and is it sustainable ?

What is the risk/reward to own/add shares at these levels ?

Thank You

Q: Dear 5i team,
I have been a WSP shareholder for over five years. During this time, the share price has sometimes fallen, but my patience has always been rewarded. I am struggling to understand the recent drop in the share price. I believe the Q3 results were solid. I note that competitors in the sector, such as Stantec and Atkins, are also experiencing declines…
Could you explain recent WSP's decline? What is your view on the future of the stock, and if you are confortable to continue holding?

Thank you.

Q: Hi 5i,

I've noticed a massive divergence in the price of oil and oil companies. Can I please have your analysis of this, and what are your favorite stocks in this sector for a long term position. I'm also looking for shareholder friendly, low debt play.

Thx.

Q: goog msft, and amzn together constitute 39% of my portfolio. Is this too much? Would you reduce some or all? Are gsy and png still among your top picks? Thanks Jim

Q: What is your opinion of J post their earnings release? Quite a negative reaction to what looks like a decent future? Thanks.

Q: can i have a list of canadian companies who's return on equity is greater than their p/e. thx

Q: In FU to my previous question about the need to pay capital gains my new CVE shares from the takeover of MEG, you stated it can be a tax-free transaction "if the rollover is declared". As I did an AI search for clarity, it states that the Section 85 rollover cannot be declared unilaterally by one party; both the individual taxpayer and the acquiring Canadian company must jointly elect for the Section 85 rollover. Can I assume that CVE would have declared their part in the "joint election" with CRA? So when I file my taxes and use the form, it should be okay? Thanks

Q: Do you recommend moving on at this point given the buyout by Abbott? Would you consider waiting it out until 2026 to defer taxes?

Q: Between these two companies, if only one is to be owned, which would you select for a long term hold? Which company has a bigger "moat" and is less likely to be disrupted?

Thanks.

Q: Hi 5i,
Is this a good entry point for Capital Power? Do you think it has much growth potential?,
Thanks, Cheers