PAST TOP PICK
(A Top Pick Jun 05/24, Up 10%)

It is an interesting business at the right time. It should be up more and is one of the cheapest stocks in their coverage so be patient. It is part of the AI theme and manages 300 good quality forums. He feels it should be $20 to $25.

PAST TOP PICK
(A Top Pick Jun 05/24, Up 79%)

It is a fintech company and a provider of credit through intermediators, all through AI. In fact it is almost a pure AI play. It covers Canada, the U.S. and U.K. It is still trading at a single digit P/E, growing at 67%, with earnings growing almost faster than the share price.

PAST TOP PICK
(A Top Pick Jun 05/24, Up 201%)

It provides security in parking lots and can monitor anything. It uses AI technology so its monitoring is cost effective and more efficient.

BUY

It is a submarine stock and is on the cutting edge. It has military contracts which have good margins and provide recurrent revenue.

BUY

As a spin-off of Constellation Software. It has the same business model as CSU, only its focus is on the European SaaS market. It is growing well and its valuation is similar to CSU.

DON'T BUY

He doesn't like the space which has quite a few competitors and low margins. Also is not a fan of management. It could get taken out.

Unspecified

It is a little expensive but profitability is coming up fast along with rising margins. It is now focusing on making money and has millions of customers on its platform. If you own it keep holding since the trend of the past 18 months should continue.

HOLD

It is never cheap. It is a play on global trade and is very well managed with very high margins. If held, keep holding for the long term.

TOP PICK

It has been an oil and gas services rental type of company but is on to bigger and bigger things. It supplies natural gas portable generators in remote locations and is pivoting into a play on AI centres where a lot of electricity is needed. It uses gas that would otherwise be wasted by natural gas producers.       Buy 2  Hold 0  Sell 0

(Analysts’ price target is $2.78)
TOP PICK

Its software makes health care more efficient. It is in the U.K., Canada and Australia and growing rapidly with lots of upside in the U.K. With $100 000 cash and lots of upcoming acquisitions, its valuation should be cut in half once it starts deploying its capital. Should be a $20 stock a year from now.
Buy 7  Hold 0  Sell 0

(Analysts’ price target is $13.39)
TOP PICK

It covers making satellites to software management. It is a great Canadian story and an example of how good Canada can be. It should grow by 30% for three years with great margins and trades at 13 times cash earnings. He is looking for a quick increase in the stock price to $50.    
Buy 6  Hold 2  Sell 0

(Analysts’ price target is $32.63)
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

CB is a large property and casualty insurance company, which has shown disciplined underwriting and risk management over the years, leading to its large scale and strong profitability. It pays a yield of 1.4%, it has grown its sales and earnings at a 10.6% and 22.4% five-year CAGR, respectively. Forward growth is expected to be strong, and it has increased by 18% over the past year. It trades at a 12X forward earnings, and overall we would be quite comfortable with CB as a defensive play.
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HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The REIT sector is sensitive to the economy and rates. It has not performed so well, with a five-year return of 1.56%. Rates moving lower in Canada should add support, but our economy may be a bit iffy for a period of time. We would consider ZRE OK for general real estate exposure, but not hugely attractive. 
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BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

At 22X earnings, it is on the 'expensive' side of things, but is still likely attractive to most for its 6% dividend, considering the rate picture in Canada. We would not consider it a SELL, but in the $66+ range we might look at it as source of cash if an investor wanted to move to a more growth-focused company. But we continue to like it overall, and would consider it a 'safe' name in a market correction. But we would certainly not expect another 36% gain as we saw last year.
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COMMENT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Comfort and Returns

‘Comfort is the enemy of returns as you can have comfort, or returns, not both’ – Mark Yusko.

Behaviorally, an investor's willingness to sell stocks increases as the market declines, as it becomes more uncomfortable to hold on to a losing position. In order to feel more comfortable, those investors will sell the declining positions in order to ‘stop the bleeding’. In some instances, selling a losing stock is certainly warranted, where the fundamentals have changed or it is going against the market, but in other instances, it can simply be attributed to systemic selling across the broader markets. The same principle applies to buying at the very lows, it can be uncomfortable buying a stock after it has declined significantly (such as what we are seeing across many stocks today), but historically these periods have represented some of the best long-term buying opportunities.

Of course, the principles of ‘buying low and selling high’ and ‘buying when others are fearful and selling when others are greedy’ are well-known mottos to most investors, yet in practice, these are much harder to execute on than in theory. Almost every investor would prefer to buy at the exact bottom of the market or sell at the exact top so that they do not have to hold through the uncomfortable waiting periods in between, but part of a long-term investment strategy involves holding through both bull and bear markets. Many studies have shown that missing out on the few best stock market days of the year can be detrimental to an investor’s portfolio, and while holding on during bear markets may be uncomfortable at times, it is in the depths of the bear markets where bull markets are born. 

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