Increase Docebo (DCBO) Position to a 4.0% Weighting
Trade Rationale - DCBO also operates in the LMS space and it has been recovering nicely since a sharp drawdown in May of this year. The past two earnings results have calmed investors concerns over customer churn, and sales growth is estimated to be in the double digit range for the next few years. Margins are expected to expand, and we expect its enterprise and government segment to continue growing.
Increase Tamarack Valley Energy (TVE) Position to a 3.5% Weighting
Trade Rationale - Despite record cash piles and solid balance sheets, most energy names have struggled to see much in the way of share price appreciation. With the price of oil hovering around the low $70s, and very low valuations for energy names, we feel there is a decent risk/reward opportunity here. TVE is a strong oil and gas exploration name with a forward P/E of 3X. Profitability, free cash flow, and sales growth are strong, and we see upside potential in this name if the price of oil stabilizes or bounces higher.
Increase Vitalhub (VHI) to a 2.5% Weighting
Trade Rationale - VHI has been grinding higher, up 125% year-to-date, and up 211% on a one-year basis. It is not cheap, but margin expansion is expected to be strong, growth potential is there, it has a good acquisitive strategy, and has benefited from increasing demand for digital health solutions. We like its price momentum, growth in free cash flows, acquisitive strategy, and business model.
(one of the portfolios from 5iResearch)