Kim Bolton

Tech as part of a broader rally in 2022? This year there's been so much uncertainty regarding inflation and interest. The path is a little clearer now, and that's why he's more constructive. But there's always incoming information, so projections could change on a dime.

Inflation. The big buzzword for the year is inflation. Only when CPI got to 8% did they start to increase rates around the world. Driving inflation are data points, in particular CPI. The last few months have seen a number of disinflationary readings. He thinks, barring any big spike in costs, month over month CPI will be from 0-0.4%. If you extrapolate that over a year, CPI will remain high now but could get down to 2-4%. At the same time, Fed fund futures are priced at just under 4% from March - July 2023. As long as the month over month inflation readings stay below 0.3% for the next 6-9 months, you'll see Fed funds rate and CPI be on top of each other. The road map is becoming clearer, and he expects the market to start acting more positively than it has been.

Fascinating Canadian play in cybersecurity. Digital forensic investigation of devices via its data analytic software, primarily for police, military, and government. Spotty on earnings power and profitability, so he doesn't own it, but follows it. (Analysts’ price target is $33.80)

Small company, losing money. Data analytics, enterprise software solutions in the financial space. Too tiny for his firm. (Analysts’ price target is $0.52)

He owned it and took profits. Recent earnings showed loss per share, but beat on revenue. Follows it closely, as it's the premier in AI. (Analysts’ price target is $11.86)

Loves it. Poster child for Canadian tech. Long runway to price target. Vertically integrated in about 6 specific business lines, and it becomes exceptional in those areas. Extremely well managed, good business model for these times. Buy under $2000. (Analysts’ price target is $2650.00)

Small-medium size. Hardware products/services, enterprise resource planning. Generates money, $37M in revenue for the last 2 years. A keeper. (Analysts’ price target is $11.90)

Likes it. Regionally focused. Well run. Very good at what they do. Proven themselves. From here, almost a double to the price target. (Analysts’ price target is $9.50)

(A Top Pick Oct 20/21, Down 70%) Poster child for SaaS. He backed away from a lot of them last November, as it's the most highly leveraged segment and reacted badly when interest rates spiked in February 2021. A real company, he still follows it. (Analysts’ price target is $148.50)

(A Top Pick Oct 20/21, Down 30%) Reduction in value easily managed by his hedges. He maintains a 2.5% position. You always want to own the leaders, and this one's the undisputed foundry leader. (Analysts’ price target is $107.00)

(A Top Pick Oct 20/21, Down 55%) Out of the fund, but still in some separately managed accounts. Great play on e-commerce. Enhances the basic e-commerce store. A real company, makes money, but the environment is not favourable right now. (Analysts’ price target is $38.00)

Follows it. Fantastic underlying financial metrics. Revenue growth is 71%. EBITDA growth of 25%. Strong balance sheet. (Analysts’ price target is $4.20)

Key part of the whole tech arena, especially wireless side. Leader in 5G chip design. Recent acquisition accentuates its business lines plus the automotive area. (Analysts’ price target is $182.50)

Because of the volatility, a tradable security, not an investment. You could buy it down here. Recently named a leader in the Gartner magic quadrant. Double-digit growth rate, very strong balance sheet. (Analysts’ price target is $59.00)

A bit recession-resistant. Fantastic array of clients. 97 of its top 100 clients have been with them for 10 years. A sticky business. A good time to buy if you think, as he does, that the market's going to become more constructive into Q4. (Analysts’ price target is $416.00)