Westshore Terminals Inc. (WTE-T)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A fairly unique company in Canada that is in the shipping and port sector. The stock has done very well this year, and is still cheap. Would be okay to buy here for income investors. Unlock Premium - Try 5i Free

(A Top Pick Oct 25/19, Down 31%) They have been in deep negotiations with TECK.B-T. The market was pricing in a $16 stock for them. This is the base case for this stock. There has been tax loss selling. They are now in negotiations with other bulk commodities companies. He still likes it.

(A Top Pick Jul 26/19, Down 23%) They had some difficulties with TECK.B-T not long after it was a Top Pick. It is still the leading coal export terminal on the west coast. It is a challenge that their largest customer is looking to renegotiate and move volumes elsewhere. It scores in the top 1% on valuation. It still yields over 4% with a low payout ratio and has a solid balance sheet. It is a relatively stable stock relative to other commodity stocks. It is still on his buy list.

(A Top Pick Aug 21/19, Down 27%) He still owns it and still likes it down here for the same reasons. The negative performance is mostly because the market still wants to see a deal between them and TECK.B-T, which seems to be playing a bit of hardball. He would expect that they come back to the table some time this year and formalize an agreement for some tonnage.

Why the selloff today? Teck may be expanding its deal with a competitor causing a sizable share price sell off (over 10% today) -- this may double Teck's capacity. People may also be concerned about future coal demand and exports. There just not seem to be any catalysts to spark his interest. It is not wise to panic on this, there will be time for recovery to allow you to assess the situation.