goeasy Ltd T.GSY

Recovery Potential

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Park Lawn Corporation (PLC), Kinaxis Inc. (KXS), goeasy Ltd. (GSY), Trisura Group Ltd. (TSU), WELL Health Technologies Corp. (WELL), Galaxy Digital Holdings Ltd. ordinary shares (GLXY), Docebo Inc. (DCBO), Dye & Durham Limited (DND) 

I ended up with too large of a DND position which I have been (too) patient with as the macro economics involved are challenging and until that changes, there is little to do but wait. If I wanted to hedge my bet and sell some, are there a few other beat up names that you feel have a similar or better recovery potential? 

We sold DND in the growth model portfolio as we did not like its recent financing, its debt level is high, and growth is minimal. With that said, there are several names that we feel have good future growth potential, however, these names are higher risk and investors should expect volatility and potential price declines. 

A few names that we feel have good growth and return potential include: WELL, TSU, DCBO, GLXY (highest volatility and downside risk of all the names listed), GSY, PLC, and KXS. We feel that these names can perform well over a long period of time, share prices have come under pressure over the past couple of years, and any potential reversal in the macro or interest rate environment can act as tailwinds for these names. (5iResearch)