Market News
After a very rough start to the week with all 4 indexes down significantly on Monday, the markets recovered throughout the week as investors bought the dip. The potential of reduced economic stimulus and fears of rising energy prices that could boost inflation caused the volatility in the markets throughout the week.
On the TSX index, while tech stocks led the index to its lowest level in two and a half months on Monday. Energy and bank stocks led the Index back into positive territory to end the week in the black.
In the US, all 3 markets started the week off with a sharp drop on Monday but rebounded to end the week in positive territory, despite a slight dip Friday afternoon. The markets were led upward by Microsoft, Amazon, and the other big tech companies during the week, but a disappointing jobs growth report caused the slight dip on Friday.
Portfolios
When I checked the portfolios Monday afternoon the portfolios had fallen by as much as 10%. Not a great way to start the week. However, as all 3 portfolios are tech heavy (arguably too heavy), as the tech companies rebounded so did the portfolios. While 2 of the portfolios lost ground for the week, it was good to see Portfolio 3, thanks to gains by Shopify, Microsoft and Cloudflare, up for the week, even beating the Nasdaq.
Companies on the Radar
Two new companies I investigated this week were Copperleaf Technologies (TSX:CPLF) and Rivian Automotive. Copperleaf is a developer of decision analytics software to help companies manage their assets and make better investment decision. I’m impressed by their claimed 100% client retention rate, the land and expand strategy to grow annual recurring revenue, continued revenue growth, and that they have large clients throughout the globe. The company appears to have a strong, experienced management team that has created a strong corporate culture (a company employees enjoy working for). And Copperleaf is riding growing importance of ESG (Environmental, Social, and Governance) where companies need to improve the capital and operational decision making.
Copperleaf went public on October 6 at $15.00 per share. The first trade was made at $17.25, quickly moved above $20, and currently sits in the $24 range.
Rivian is a builder of electronic vehicles, specifically a pickup, an SUV and a delivery van. Both the pickup (R1T) and the SUV (R1S) are targeted at consumers looking for a vehicle that functions well in the city and even better off road. Amazon will be their first customer for the delivery vans with an initial order of 100,000 vans to service the ‘last mile’ of Amazon’s delivery process. Rivian also plans to build out their own charging network.
Rivian is founder led with a vision to “… shift our planet’s energy and transportation systems entirely away from fossil fuel.” The company is riding the huge trend towards electric vehicles with a fast-growing market. The founder and other senior executives, along with Amazon and Ford, among others, all have at least a 5% stake in the company so they have skin in the game. The company also seems to have a strong culture (per Glassdoor). What isn’t so great is when I looked at the numbers – zero revenues and almost a billion in losses. However, Amazon’s order for 100,000 delivery vans, plus almost 50,000 pre-orders (requires a US$ 1,000 deposit) for the R1T and R1S so sales aren’t a concern for me. They will also be able to generate money from selling regulatory pollution credits to other automobile makers. Selling credits has proved beneficial to Tesla so it should help Rivian.
Rivian shares will be available on NASDAQ with the ticker RIVN but neither an initial price nor when the company will go public has been announced. I expect a high level of interest in Rivian and the shares to jump accordingly.
During the week I looked at the companies in Portfolio 1 for the purpose of adding to the winners and the following companies caught my attention. The criteria I was looking at included the objective metrics percentage gain in share price, and compound annual growth rate, both since purchased. On the subjective side I wanted companies that would be doing well at least 5 years into the future. I also wanted some non tech companies and a mix of young, high growth companies and mature growth companies to keep the portfolio relatively diversified. In no particular order:
- Celsius Holdings (NASD:CELH)
- SEA Limited (NYSE:SE)
- Cloudflare (NYSE:NET)
- Nvidia (NASD:NVDA)
- Nuvei (TSX:NVEI)
- Trisura (TSX:TSU)
- Magnet Forensics (TSX:MAGT)
- Innovative Industrial Properties (NYSE:IIPR)
- Crowdstrike (NASD:CRWD)
- Home Depot (NYSE:HD)
- Visa (NYSE:V)
- Roku (NASD:ROKU)
- Trade Desk (NASD:TTD)
Portfolio Updates
Portfolio 1
Portfolio 1 for the week ended October 8, 2021: DOWN 
Activity
Bought: Boston Omaha (NYSE:BOMN) Boston Omaha first came on my radar in early 2019 when it was recommended by Motley Fool. I liked that it was run by the 2 founders whose interests are aligned with shareholders. It is a holding company which includes outdoor advertising, real estate, and broadband services, among other assets. I made an initial investment in May, 2020 and the share price has since doubled. I feel the company will continue to perform well for at least 5 more years.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
US $
No US$ dividends this week
Quarterly Reports
No quarterly reports this past week.
Portfolio 2
Portfolio 2 for the week ended October 8, 2021: DOWN
Activity
No significant activity to report this week.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
US $
No US$ dividends this week
Quarterly Reports
No quarterly reports this week.
Portfolio 3
Portfolio 3 for the week ended October 8, 2021: UP 
Activity
No activity to report
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Brookfield Renewable Partners LP (TSX:BEP.UN)
Brookfield Asset Management Inc (TSX:BAM.A)
US $
No US$ dividends this week
Quarterly Reports
No quarterly reports this week.