Stock price when the opinion was issued
Owns in balanced income fund, hasn't worked this year. Down 20% before dividends, not great. Volatile fuel prices, consumer not spending as much. Dividend grower for many years. Management in fight with major shareholder. Ridiculously cheap valuation, share price should have found a floor. Could be subject of an acquisition.
Sounds counterintuitive, but WFG and trees are going to be beneficiaries. US still needs them, just going to pay higher prices.
GRT.UN is a good name. PKI works well here. Materials sector, with a name like NTR.
There's even a part of the TSX that does well with a falling CAD, as earnings get amplified.
Should work regardless of tariffs. It's being pushed to unlock value. A few $$ to be earned from low-hanging fruit. Market sees EPS growing 15% over next 2 years, trading at 9x. Idiosyncratic name, not tethered to news headlines, with a nice dividend. Yield is 3.8%.
(Analysts’ price target is $48.70)A big shareholder is agitating for change, wanting management to enhance value. World-class assets. It's cheap. Refining margins have been coming in and general malaise in economy may explain share price. Very undervalued and value will be realized somehow. Debt, but a lot of FCF. Yield is 3.96%.
(Analysts’ price target is $47.91)Bowing to pressure, the CEO has stepped down, adding to uncertainty. The company also lowered guidance, which is not overly surprising, really, considering the economic situation unfolding. The CEO change should appease Simpson and other funds somewhat, but likely only a bit. There is still a strategic review ongoing. Certainly a sale is one possibility. There are a lot of moving parts here. The stock has held up well, likely due to speculation on its future. We would not see it as a great purchase right now, as it would essentially be a 'bet' on a takeover in a very uncertain market, and not really our type of play.
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The controlling shareholder wants to sell the gas stations and keep the refineries where the margins are higher and sit on lots of real estate. He doesn't own the shares, but the bonds which pay 6% during falling interest rates. Not investment-grade bonds, so the leverage is high.