Cargojet Inc (CJT-T)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Their results were positive on the macro level. Revenues beat estimates at $172.1M. EPS missed substantially with a net loss of $11.1M, which is less than last year’s loss. Still not profitable but in the long-term the company is increasing in value and will do well over time. Unlock Premium - Try 5i Free

Let's be clear. This is not an airline pick. It's air cargo. Dominant in Canada. Extended contract with AMZN. Stock's sold off, as investors have moved to the reopening trade. But the boom in e-commerce that resulted from Covid is here to stay. Selloff unwarranted, now at a more attractive valuation. A long-term hold. Yield is 0.57%. (Analysts’ price target is $257.83)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Strong growth is expected in the future and the balance sheet is improving rapidly. The stock may be oversold. Although it may still be cyclical, the company has transitioned. Good for a medium term hold. Quite cheap compared to potential earnings growth. Unlock Premium - Try 5i Free

MX-T vs. CJT-T vs. Canadian Banks. MX-T is very tied to commodity prices. CJT-T enjoyed a surge in business due to the pandemic so probably due for a bit of a breather. He would prefer the Canadian banks, such as RY-T, TD-T and NA-T.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The CFO is retiring in a month and markets reacted negatively. A big overreaction but the markets also saw some volatility in general. Would be okay buying into the weakness. Unlock Premium - Try 5i Free

Very well-postioned in Canada given their dominant market share to benefit from continued e-commerce boom. E-commerce is here to stay no matter what happens with the reopening. CJT also is positioned internationally after signing a deal with Amazon. Today, UPS reported super numbers that is lifting CJT shares too. Air cargo rates and volumes continue to rise. The pullback now is a buying opportunity. Yes, Air Canada is getting into cargo, but there's enough of the transport pie to slice. (Analysts’ price target is $259.00)

Yesterday's sell-off He owns Amazon instead, CJT's customer. Air delivery is growing as retail grows online. This business is solid, though there may be more competition as the airlines resume flying. The Canadian economy will grow as will e-commerce, so this is good to hold long-term.