Reza Samahin, partner and portfolio manager at K.J. Harrison & Partners Inc.
FOCUS: U.S. growth equities
Top picks: Rocket Lab, IMPINJ, Kneat.com
MARKET OUTLOOK:
We have seen sharp pullbacks in many growth names from 15 to 20 per cent in mega cap growth to over 40 per cent in the smaller names.
While there are good reasons for the pullback, namely tariffs and geopolitics, the long-term themes haven’t changed. In fact, my confidence in some of these long-term themes such as AI and space have only increased. Thus, it is not a bad time to be looking at these names.
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TOP PICKS:
ROCKET LAB (RKLB NASD)
Space launch and satellite services. Scrappy and talented CEO Peter Beck. The thesis for all space stocks is very simple, launch costs have come way down since the space shuttle in the 1980s, $50,000 per kilogram into space to perhaps $12,000 20 years ago to several thousand today going to a few hundred in a few years. That is creating an explosion in activity and entrepreneurship in space. RKLB exemplifies outstanding execution and focus Peter Beck is a scrappy and talented CEO and founder. Not without risks.
IMPINJ (PI NASD)
PI is the leader in rain rid. Every manufactured product will eventually be tagged by an RFID tag, and it can be used to track pigs, do inventory, help with loss prevention and other things. PI is well positioned but volatile stock. It’s pulled back considerably and worth a look.
KNEAT.COM (KSI TSX)
Quality Canadian small cap with good management. It has delivered over the years and has high gross margins and high recurring SaaS revenue. Lower multiple than comparable U.S. players. Marquee customer list.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| RKLB NASD | N | N | Y |
| PI NASD | N | N | Y |
| KSI TSX | Y | Y | Y |
