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Market Call

Jesse Gamble: Jan. 28, 2025

Jan 28, 2025
Jesse Gamble, Senior VP and portfolio manager at Donville Kent Asset Management, shares his insights on Canadian growth stocks. He evaluates their valuations against U.S. counterparts, discusses selection criteria, and highlights companies like Light Speed and NEAT.com for their promising growth prospects. The conversation also touches on acquisitions by Propel Holdings and Gray Wolf, while diving into market risks concerning debts and tariffs. Jesse emphasizes the importance of understanding a company's balance sheet and analyzes stocks like TerraVest and Reitman's recovery journey.
45:44

Episode guests

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Quick takeaways

  • Canadian stocks are undervalued despite significant U.S. revenue, creating unique investment opportunities amid market dislocation.
  • Knowledge-based industries in Canada present robust growth potential due to their insulation from macroeconomic risks and innovation.

Deep dives

Discounted Canadian Growth Stocks

Canadian stocks are trading at a notable discount compared to their U.S. counterparts, a situation that presents significant investment opportunities. This disparity is often measured using a cash price-to-earnings ratio, revealing that many Canadian firms, despite having substantial U.S. revenue streams, remain undervalued. Factors such as tariffs and geopolitical concerns further accentuate this dislocation, leading investors to conduct thorough evaluations of their portfolios. By identifying stocks that are less exposed to these risks, investors can capitalize on the inherent value within Canadian markets.

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