President & CEO at Donville Kent Asset Management
Member since: Oct '09 · 1083 Opinions
We're entering a new cycle with AI being the big story. He's bullish overall. The market bottomed last October/November, but the appetite for growth is coming back, so IPOs could return later this year. He likes medtech and fintech, driven by AI. You need 3 things to set for the next growth cycle: great valuations, investors are out of the small/midcap, growth asset class and interest rates are flat or falling.
A good steady Eddy. He's owned this in the past. He had concerns on their dependence on gas. They are a play on convenience stores. Good for the long term. Consistent.
Is growing this year, but long term and compared to peers lacks growth in the software consolidation space.
It's been disappointing, making bad capital allocation decisions. New management projects good numbers ahead, so it's a show-me stock. Hold, if you already own, or watch the next few quarters before entering.
Owns a small position. A speculative stock. They make loyalty programs and have a good track record under good managers. A good, little company, but it's early days for them.
It should be okay. They used to grow at 70-80% annually, but now at 20%, but profitability is climbing. More a buy than a sell, but it's not cheap at 80-90x valuation. Are better choices out there.
Is watching it. Great, little SAAS company that suffered when the market shunned small caps in 2022-3. They're doing all the right things, valuation is fine and ROE margins are great. Their customers are governments, starting in western Canada. They buy companies that add-on to their existing products.
He owns 3-4 fintechs like this. PRL does consumer loans, providing for American credit loans. Great track record. Are growing rapidly and pay a nice dividend now. Shares have rebounded well since last fall. Trades at 8zx cash earnings. Growing this year probably 30%.
They do physical and cybersecurity. A very small-cap, early-stage company. If they execute in the next 2-3 years, they will be great.
Big tech and data centres need more power, because AI consumes a lot. Hammond plays into this.
A great company. A huge part of the internet is creating content, and Adobe is the centre of that. A long-term buy. Great balance sheet. It won't go up 30% year after year, but you can sleep at night owning this. They're broadly into AI and will continue to benefit from it.
Healthcare is a good theme and the sector needs to be more efficient so opportunities lie ahead. Strongly likes this.
Has been expensive for a long time, but earnings are steadily rising, enough to make it reasonable priced and maybe attractive.
Suffers headline risk, because it's a subprime lender, but are very well-managed. He holds a large position. They keep raising the dividend and are managing credit losses. The stock can double in 3-4 years as you collect the dividend. It will sell off on bead headlines though.
They run a phenomenal business, very profitable, but the stock is never cheap, at 29-30s PE. Super track record.