DON'T BUY

IT services and support style business model. Company not performing well in the markets. Debt also a concern. Would not recommend investing. 

BUY ON WEAKNESS

Earnings not as good last quarter (recent for share price weakness). Overall - a strong business that is consistently profitable. Consolidation in sector will help. A great example of a cyclical growth company. Would recommend buying on weakness. 

BUY ON WEAKNESS

Fantastic company - however share price way too high. Valuation very expensive at current levels. Would recommend buying on weakness. 

BUY ON WEAKNESS

Fantastic company. Leader in diet boom. Very high valuation - would recommend buying on weakness. 

HOLD

Spinoff of TC Energy that owns oil pipeline assets. High dividend payer. Highly levered - will need to use free cash flow to pay down debt. Could take 2-3 years. Would recommend holding for dividends. Trading at high end of valuation range. 

WATCH

Would recommend holding company. Politically - might not be as good with Trump administration. Dependent on subsidies from government (reason for government concern). 

BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of 28c beat estimates of 17c; revenue of $282M beat estimates of $277M. EBITDA of $55M beat by 3%. Backlog is $4.6B. Revenue and EBITDA guidance was raised, and the company says it will be cash flow positive in Q4. Sales growth should be 30% with the new guidance. Higher work volumes and stronger contributions from satellite systems and robotics helped the quarter/outlook. Things continue to look good here. 
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

At some point, CELH is going to become a very very attractive buy. But right now it is a falling knife, having dropped from near $100 to today's $25, in a relentless rollover. It has cash and earnings growth, but we would not yet consider it 'value' since it is still at a 37X earnings valuation. The product is good, we think, but Pepsi's de-stocking has been brutal to the company, and revenue fell 31% in the Q3. We need this to at least level out to get some confidence back. 
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BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $0.365 beat estimates of $0.311 and revenues of $75.0M beat estimates of $73.218M. Sales grew 19% driven by higher subscription revenue and customer retention. Adjusted EBITDA margins expanded from 9.7% for the same period in the prior year to 15.7%. Management noted advancements in its platform and scaling of its international operations as key drivers for sustainable growth. Its valuation is not cheap, trading at 39X forward earnings, but growth rates are good, and it is expecting to continue expanding its margins. We feel these were good results.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Company Highlight - VersaBank (VBNK):

VersaBank (VBNK) is a Canadian-based, digital-only bank focused on specialized lending and deposit services. Established as one of the first fully digital banks in Canada, it operates without physical branches, leveraging technology to keep overhead costs low and streamline services for niche markets, including point-of-sale (POS) financing and commercial real estate lending. It mostly operates in Canada, but has recently expanded some services into the US. 

Its stock price has recently seen strong momentum, up 58% year-to-date, and 125% on a one-year basis. It pays a small yield (0.4%), but both sales and earnings growth are expected to be strong in FY2025 and FY2026. Its historical growth rates have been robust, with a five-year sales and earnings CAGR of 16% and 19%, respectively. Net profit margins are expanding and with a market cap of $595.7 million and a reasonable valuation of 11.4X forward earnings, we think VBNK looks interesting here. 

We can see that its net profits have really taken off over the past couple of years, and its outlook is increasingly positive. It has ongoing plans to expand its POS financing offerings in North America, and its cybersecurity segment, DRT cyber, is also expected to see growth in the coming years. 
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