Stockchase Insights

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. ARKK today is similar to oil in March 2020 in that both are/were unpopular trades. ARKK has been heavily sold off over the past year, and while we would not expect much of a recovery in the near term, we feel that most of its underlying companies have decent fundamentals and solid network effects. It may take a long time to recover, but a lot of the names have been heavily sold off, and we would like to continue assessing the underlying companies' earnings before stepping in here. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Small bitcoin mining company. Increased its revenue well over the quarters. Good gross margins and recently profitable. It aims to hold the bitcoin that it mines on its balance sheet and as of December 2021, holds 169.3 bitcoin. Held up well considering the selloff in bitcoin and other bitcoin miners. It is highly risky and speculative, but given its strong balance sheet, it has some merit. Would be mindful of position sizing. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Good potential in its battery business. Shows good growth, the valuation is historically cheap at 8x earnings and the balance sheet is solid. Would wait for better momentum to add. Unlock Premium - Try 5i Free

Will a lot of people be moving into GICs and out of stocks. The market looks forward and investors tend to anticipate rate hikes well before they happen. This is one of the reasons the market is weak currently, as investors fret about higher interest rates down the road and exit. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Do not think there is a big rush to add more here. Unlike US tech ETFs, XIT is still very heavily skewed towards just five companies. There is potential and the bottom should be close. It becomes a question of position size and timeframe. Every time we think we are close to a bottom the market seems to roll over again. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Not too much real estate exposure. Great likelihood of doing well in inflation. Has massive capital that can be deployed if acquisitions become cheaper, and has a more diversified overall asset base of businesses. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. After many years of steady performance, the company started to miss estimates and revenue growth has essentially ground to a halt. It was always an expensive stock, and the combination of no growth and high valuation caught up to it. In addition, debt is high, and it has received multiple broker downgrades. The dividend is decent, but has not been raised in 18 years. In 2021 it lost money and this was its first loss in two decades. At current levels it is more interesting, but we would not expect a lot here until revenue growth picks up or costs decline. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The biggest market rallies occur during bear markets. It could be bargain-hunters, asset allocation shifts, or short covering. Some stocks will double once this market truly pivots. Would like to see a rally that lasts more than one day, and a market where there are not 3% swings, daily. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Pays a decent dividend yield of 1.6%. Long-term debt has been significantly reduced. Quite healthy in terms of debt levels and ability to pay them, although ability to service and pay debt has been eroding slightly over time. A lot will depend on the gold market, and if the price of gold continues to increase, OR's financial standpoint should also increase. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS of 85c beat estimates by 13%. Sales of $1.522B beat estimates by 3%. EBITDA of $301M beat estimates by 6%. Sales rose 13% with 10.8% organic growth. Operating income rose 2.5%. It had a solid quarter and the company is renewing its share buyback plan. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. CUB has a net cash position of about $16M, and sales are growing nicely. Sales are expected to go from $5M last year to $77M next year. It is, however, still losing money, and with negative cash flow (-$30.5M last year). The sector got hyped last year, and the stock is down 37% in 2022 with the weak market for small caps. Its small size and cash flow add risks. Insiders own 10.6% directly and a holding company owns 16%. It has four analysts with an average target price of $1.92. While interesting, the current valuation means expectations are very high. Would like to see a few more quarters of high sales growth. There is time to wait on this one. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Most bubbles have already popped; cryptos, EVs, SPACs. Other than some of the biggest companies, we have seen small cap and mid cap growth stocks simply devastated. Yet, earnings estimates are moving up (contradicting some of the article comments) and corporate balance sheets are in very good shape vs other cycles. There are 11M jobs available in the US. Everyone is negative, yet the things that count: earnings, jobs and interest rates, are not necessarily that bad. Rates are rising, and inflation is a concern. But at some point, inflation peaks. It may peak faster with a China slowdown and a possible recession. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Quarter was good. Revenue grew 77%, beat estimates by 10% and EPS more than doubled to 8 cents, beating estimates by 25%. The company made five acquisitions year to date and organic growth was decent at 7%. Cash flow conversion was strong at 82%. Backlog looked healthy and showed good growth. Gross margins came down slightly, but management expects them to rise in the next quarter due to more software sales expected. Management also noted improvements on the supply chain side with regards to hardware deliverables from 4-6 months to 2-3 months (normally 4-6 weeks). Overall, CTS is well-positioned. No major concerns about the quarter. Negative momentum on the stock is more market-related than company-specific. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Market sentiment continues to be weak. There has been a trend of many high growth names guiding for lower growth resulting in a massive drop in shares. At 6.8x earnings, it is very cheap. The risks are more than priced in at this point. Would be very comfortable at these levels with a 5 year+ time horizon. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Converts dividends into capital gains such that no distributions are paid out. Based off the S&P500 index so has good diversification exposure to large cap US companies. $3.2B in assets. Fees are a bit higher than a standard ETF, but taxes are deferred and shift to capital gains taxes over dividend income. Unlock Premium - Try 5i Free