The stock market has been experiencing volatility due to a variety of macro factors. The treasury yield fell, following unchanged interest rates, though the policy update could open up to more talks of rate cuts. U.S. consumer debt is also reaching a level not reached since the 2008 financial crisis. Gold prices are also fell lower, following the Fed’s move away from a patient stance on rate.
Energy and resource stocks have experienced a downward swing due to concerns over the overall health of the economy.
Here are this week’s 52-week high and low list:
Here’s this week’s 52-week high stocks on Stockchase…
BCE Inc. (BCE-T) TSE
It is in a very competitive market. Recent results suggest the move to streaming is weighing on Shaw. There is increasing competition in the wireless space. It is too early to tell how they will do here. It is an oligopolistic industry so there are some limits to how high rates can go from here.…
A media company that is building out their wireless platform, particularly in Western Canada. Doesn't feel any compelling reason to Buy this. Would rather own one of the national carriers. Dividend yield of about 4%.
It is a small cap. The balance sheet is not bad. There are a lot of dividends in Canada that are a lot higher than they should be (5-7%) but he feels we have an all clear on this one. He models 17% earnings growth. Last quarter they beat estimates by 10% and boosted the…
His model price is $27.69, 46% higher than the current price, but the stock’s technicals are giving a sell signal and the earnings estimates have been crashing. Since 2010, the stock has hit this level three times and done fantastically after that. He would buy a little bit here but would not buy more until…
(A Top Pick Jan 22/16. Up 34.16%.) A very solid, stable company. The original business was pension benefits, but have also expanded into employees’ system programs which is growing. They’ve acquired some contracts in the US and thinks there are good opportunities for acquisitions there. He still likes this. They’ve retained 97%-98% of their customers.…
CP vs. CN It's as good as the Canadian economy. Ottawa's policies haven't been kind to our economy. CP vs. CN depends on their pricing at a given time. CN has a better network across North America, whereas CP is more Canadian. Both are good railroads.
This is the largest provider of senior communities. The demographics play in their favor. The 75-year-plus population is expected to double in the 20 next years, growing 3 to 4 times faster than the general population. Penetration of the seniors market is still low in Canada, so there is a lot of room for growth.…
Great company. They have some government-funded assets, but are also expanding more into the private pay. There is a lot of growth there. If you are a REIT investor, you want to have exposure to the seniors living space, because it is going to outperform any of the other REITs over the next cycle.
Enwave (ENW-X) TSXV
Dehydrated foods technology. Has had one great announcement after another. Seem to have crossed over a threshold now. Amount of money they lose on a quarterly basis is small and have about $6 million in cash.
A geothermal play in Nicaragua. He saw a presentation in January where they finally got their utilization levels up to a reasonable level, which isn’t that far from a point where equity investors are wiped out. They are now at a point where they could start generating cash flow. Instead of milking this as a…
Probably going to have moderate growth and an attractive yield. For an income investor, it is a reasonable investment.
Hydro One (H-T) TSE
The market doesn’t like the uncertainty associated with this company, which includes a change of management (in progress) and delay of approval of their planned acquisition of another business in the USA. He thinks the stock is overpriced relative to expected earnings growth. It has negative free cash flow. Dividend coverage is good but with…
There has been heightened interest in renewable energy. Chart shows a pattern of consolidation through 2016, and now there is one for 2017 as well. We are close to the top of the channel, so if it breaks above that level that is a positive sign. Wait for this to break above the current level…
Which utility to buy? Utilities have recently done well with a rotation to safety (like telcos). He likes Fortis, but it's trading at a 52-week high, so wait for a pullback, unless you have a 10-year horizon.
This does energy services and energy marketing, so they are a reseller of different products such as natural gas. Now they’ve just gotten into solar. Have done test marketing both in California and New York, which has gone well, so they are going to start to roll it out across the country. They are also…
Another utility. It is defensive. It has meaningful growth potential. He likes the growth prospects. (Analysts’ price target is $16.01)
CGI vs. OTEX He's been watching Open Text and will buy it under $40. They're good at making purchases. He prefers it to CGI which is too high right now.
The recurring revenue has been growing. It has had a big basing pattern for a couple of hears. If you own any technology in Canada, this one has to be part of it.
This does mortgage appraisal, with 90% of revenues coming from the US. They’ve done a great job in terms of signing up a lot of the larger US banks. They just went public this month. He really likes the story. If you have a long-term perspective, he thinks the company is going to do extremely…
🛢 Basic Materials
He personally likes to purchase ETFs to diversify risk in the space. He likes the bullish technical chart and thinks it will go higher as long as gold does too.
Had been one of the great stories in the last 2-3 years however, they ran into a development issue because part of the ore they were working with was refractory so costs skyrocketed. In the last year they have discovered a very high-grade pot that they can actually use to blend with the current operations.…
Cymat Corp (CYM-X) TSXV
Aluminum foam has great potential. A conceptual stock. Don't expect a big earnings growth in the next year.
Have some hits against them including the price of gold, the US$, and it is located in Turkey. Have about $385 million in the bank. Had no debt, but have taken some on so that they can expand their copper play in Turkey. Their “all in” cost is less than $700, so they are profitable.…
Manufactures an environmentally friendly synthetic wood product, i.e., it doesn’t have formaldehyde. There are a lot of companies that are looking to eco-synthetic products to replace older products that have formaldehyde. Trading below its cash. Have about $1.50 per share in cash on their balance sheet. He is still in the process of evaluating this.
Located in Quebec and put out a recent drill hole didn't see that they have a large disseminated deposit. However, they are very serious about mining and you are interested in small-scale mining in Quebec, it is all right. Would try to switch into something else at some point.
One of his recent “Bottom Fish” that he has put a little bit of tension on. They have the Cheechoo project, about 15 km south east of Eleonore, which is now in production, almost meeting its 300 ounce per year over put. The Cheechoo is a low grade system, but have been discovering that there…
The commodity is going one way and the stocks are going the other. It has always been the darling premium amongst the names. They are expensive for a reason. He finds opportunities at lower PEs. He sees greater value elsewhere.
Has a really good low-cost gold mine in Kyrgyzstan, but the government could create problems and you have to factor this in.
A perfect stock for an older investor. A steady climber that's broken away from the other gold stocks. It's always paid a dividend which is tied to the price of commodity--which will grow over time.
Ecuador is becoming more mining friendly, but he is suspicious and it seems the government is reactionary and he does not trust what they are doing. He is leery about putting his money into this country.
Iron ore in Labrador. Thinks the price of iron ore will go up between 30% and 50% this year. One of the few juniors that has a legitimate iron ore play.
His concern is that the COO (Chief Operating Officer) left at the same time there was a news release that they had reduced the capital. His worry is that the COO left because he didn’t want to own the capital estimate.
Stans Energy (HRE-X) TSXV
Rare earths in Kyrgyzstan. Was a pick of his at some point. (Don't have it in our records so not sure when it was the pick. Ed). Was never covered by analysts. Has sold most of his holdings. People will have been selling it for tax losses and will probably go a bit higher in…
Gold assets in Canada but Saskatchewan coal discovery causing increase in price. Has too much market capitalization.
Excellent liquidity situation. Payout ratio is sustainable. Was a discount for management that was probably warranted but is now overdone. Have done very well over the last couple of years. Would like to buy it in the $8 range. 7.5% distribution is very safe.
Real estate advisory and have a small survey business in western Canada. Q1 was disappointing. Would be concerned unless they could deliver stronger fundamental results.
He is a big fan of the real estate. Took a big position. It is a one client operation - Canadian Tire. Now they are looking at neighbouring properties with shops that are where they are because Canadian Tire is next door and people go there.
A 9% yield is high so pay attention to why it is so high. Lots of Alberta exposure. They want to reduce leverage. There are a number of issues that cause him to look elsewhere.
Retail focused, but it owns a lot of Yorkville and assets in areas of high income. They came out with a perfect quarter, raised guidance, and the stock dropped 5%, so he was buying aggressively that day. This is a rare opportunity to buy a very high quality high end retail at a very reasonable…
They run gated communities and apartment buildings in the U.S. Trades at 24x earnings, so expensive, but their growth justifies that. It's capital-lite (few expenditures) business which is good. They've been growing at double-digits, growing organically at 7%, making acqusitioning along the way to further add to earnings. They occupy only 20% of the market…
When markets start going well, people start taking money from under their mattress and putting it in and that benefits companies like this. Stock price had a tremendous ride. Returns to investors were not all that great. The question is how they will attract people in the future. Expect that people who manage money will…
He's surprised they've done so well, because they've missed several quarters, partly due to bad weather hurting their bottom line. IFC had great growth through acqusition years ago, but they've been disappointing lately. He'd rather buy a lifeco, not a P&C company,
Owns this in his income portfolio. Their portfolio is diversified outside of Canada. Thinks they will continue to grow by acquisition. They pay nice yield and the CEO owns a fair bit of the stock as well.
It is not a bad alternative for individuals in their retirement years. You need to have your return expectations in check. You are getting same property NOI in the single digits. They are in the process of high grading their real estate and will be left with more core urban centers typically near transit. You…
15 high dividend paying stocks. When thinking about buying any stock, you are buying it for growth on one hand and income on the other. A split corporation takes those 2 components and splits them apart. The growth is called a Capital Share and the dividends are then paid out to the unit holders as…
Chart shows it has had 2 little bottoms, and is positive that the downtrend has been broken. Financials in general have been pretty weak. Until this one breaks out of the downtrend channel, he would not start a new position. Rising interest rates help financials. Dividend yield of 6.3%.
Owns a little. Canadian REITs have bounced off the bottom during the last couple of months, in part because of higher oil prices and higher commodity prices. That has benefited the entire sector. This operates in an area where rents are not regulated.
Has been a little weak lately. Made an acquisition of Century Property. Has a management arrangement with Starlight (?) but he would prefer a better management agreement but it is a really good source for small company acquisitions. 7.83% yield.
A very effective mortgage lender. He has client funds in this. They operate in Canada and the US. Their advantage is that they are not bound by the kinds of restrictions that the banking sector is. Somewhat more risky, but at the same time are quite effective in how they operate. Returns have been quite…
They do oil/gas fluids. Profitable company and revenues are growing by leaps and bounds. They have a lot of debt and have taken on quite a bit of debt and have virtually no cash in the bank. Just did a $10 million raise and sold 6.6 million shares, which they needed to pay down some…
Exploration company and development. Canadian energy stocks have done extremely badly, so people have gone international, such as this company. Thinks there’s another 50% upside for 08. Good management. Own about 15% of the company.
This has rebounded quite nicely off the low, and are showing signs that the turnaround is working. Whether to buy it today is a very tricky decision. He doesn’t think you can understate the impact of the on-line threat. They are dealing with razor thin margins, so what happens when they start shipping out their…
(A Top Pick January 20/17 Up 11%). Earlier in the year there were concerns the Trump Administration would institute a border adjusted import tax, but this seems to have faded away. They are a low cost producer and he continues to like it. Good company with a great balance sheet.
This typically does really well from April to July, but once you get into July, it tends to move lower. We are now past the period of seasonal strength. Stay away from this for now. There are other opportunities.
Here’s this week’s 52-week lows stocks on Stockchase…
Really likes this company. Is ridiculously cheap. They had very good 2nd quarter results. He does not think their debt is a problem. This company will survive and will throw off tremendous amounts of cash. He recommends buying it on weakness.
This company is very leveraged (5 times debt-to-cash flow), which will limit its ability to develop capital projects. He has stayed away and was not a fan of the various joint ventures and prefers to own companies that own their own infrastructure.
(A Top Pick April 22/16. Down 4%.) Has a $4.60 target. They are doing a large amount of high impact exploration. If they pull that off, the stock will probably get to the $4.60 target.
This is a smaller company. A Cardium player in Western Canada. They have a good team. It is currently doing 3600 BOE’s a day and will be north of 4000-4200 by the end of the year. His 12-month target is $3.60. BV is $3. How many times do you buy a good growing company with…
It hit upon hard times with an extremely highly leveraged balance sheet, but management has kept the company alive. They have significantly de-risked the company but it has shrunk. The balance sheet is very much improved. This is a very high risk/high reward kind of play.
They are 9,200 boed and 71% natural gas. They are working at reducing debt and building a position in the Cardium area. He has a $2.40 per share target in the next 12 months and he holds it personally. Yield 0%. (Analysts’ price target is $1.75)
The second largest natural gas producer in Canada. Half of its value is in the infrastructure it owns. It has been a laggard in the market, but its stock is highly correlated to natural gas prices, which is not representative of the fact only 24% of their production is sold into the depressed AECO market.…
This has done an incredible job of production and getting their costs down. We have a real use of natural gas for electricity air conditioning generation across North America, so gas prices are up. This is not the day that you want to buy gas stocks.
Conservative management team. They have re-geared their business around the Montney region. Cash flow today is not a great reflection of what the future will be, he thinks. The dividend has held around 5-6% and he plans to hold for the long term. Yield 5.8%
His go to name for when WTI returns to $80 next year. Even at today’s high stock price, this could still go to $5 per share. They have reduced their leverage and could become debt-free in the near future. Yield 0%. (Analysts’ price target is $1.85 )
(A Top Pick April 24/14. Down 36.76%.) Still a core holding. This company stands out as one of the best capital allocators in Calgary. They have a track record going back to 1998 of delivering exceptional returns to shareholders. A very disciplined company, and he considers it a cornerstone of his portfolio.
Trican (TCW-T) or Calfrac (CFW-T)? This is a better company operationally and geographically. Less debt, although they do have a lot of debt as well, so everything is not rosy. His preference would be Canyon Services (FRC-T).
(A Top Pick April 6/15. Down 32.4%.) Natural gas producer in the Montney. Very well-run. Likes the story longer-term. This could be a $3-$4 stock again, but the problem is low natural gas prices. They are managing themselves frugally for these tough times. A name that you want to buy on weakness. If they got…
He just bought this. This has fallen, based and is moving up now with higher highs. He's very bullish in commodities now, because it was beaten up and has alredy based. (Analysts’ price target is $9.85)
He’s not really excited about energy, and gets a feeling we are just being manipulated. He likes big cap energy in the US. This closed at $13.29, and his model price is $17.30, a 30% upside. It’s one Canadian stock that actually has a distribution that is actually lower than its income. Thinks it goes…
It should be rising now. It's had a great run since Februry, though it's seen recent weak momentum. It should hold around $9. Well-run company. The US dollar will have a strong influence in the energy sector. Hang onto it or buy around $9.
How does volume play into your analysis? Volume is conviction. If you just get one day, it could be an institution buying, which may or may not mean anything. If there is a successive period of days where the volume is picking up and the stock is moving in the direction you want, it can…
The company has recently gained traction as demand for their Tier I rigs has increased. He is challenged to see how utilization rates can go much higher. He would prefer to own Trican (TCW-T) instead at this point.
His only natural gas exposure in Western Canada is Tourmaline (TOU-T). You would have to be really constructive on Canadian natural gas pricing (AECO) to really want to own this. A very high-quality company with good assets, good management and a reasonable balance sheet. Pays a dividend yield of north of 8%, which is probably…
They executed the plan flawlessly. The declining gas price challenges them. Thinks it is pretty neat. Prefers TOU because it is a bigger company. If you are patient with PNE-X in a low gas market it seems they have a strategy for taking advantage of the low gas price.
People criticize it for their debt. They are only 33% debt to capital position. He thinks it is an attractive story. His target is $3.06 this year. They are 96% gas. If LNG comes on line, it will need gas. Under $2 PONY-X will be a great buy.
We have been in a gas bear market for 4 years. This space has been decimated. It is a medium oil producer in Alberta. They continue to grow but have too much debt. They should be fine when prices recover.
Calgary based with a focus in Yemen. Has done a great job of building production. Last couple of months, they've had some disappointments with some exploratory wells. The past growth is likely to slow down. Not particularily expensive, but will probably have to wait for some good news on their exploration.
The 1st place this is going to run into resistance is at around $7.80, so there is a lot of upside left. It should start pushing onto $9.15. It's a good stock to own right now.
Fantastic company. They do a great job of knowing where the next big play is going to be and either moving rigs or purchasing some in the area. Fantastic ROE. They continue to do quite well. Looks pricey here and given his negative opinion on commodities, he would not buy now.
Has a lot of admiration for the CEO, but the company walked into several sharp objects in 2017, and their credibility has been hit. It’s going to take some time to demonstrate their execution capability. For the time being, it is difficult to see the stock outperforming others. He would rather buy names that are…
Chart shows this as having not moved much for about 5 years, and then went parabolic in late 2017. It’s going to be overbought, which is why it is probably currently pulling back.
In the drilling business with one of the better management teams and a pretty new drill fleet. If you are going to own any drillers in the Canadian space, this is one of the top 3 that you want to own. However, with the drop in oil and gas prices, it is difficult for them…
(Market Call Minute.) Just acquired one of her junior companies and she intends to take the shares and hold.
One of the 1st ones to unlock a zone in the Cardium, and now the industry is following them. Their results have been getting better and better and better. Production per share has been very, very strong. This is one that can compete with the US names.
🛢 Basic Materials
The best of the small cobalt companies in North America. It has an asset that is alive and well. It will be raising money for it while next door a mine is being decommissioned.
They are active in several concessions in Mongolia. Any one of their projects could be a major mine. Should do well over the long term.
This is not a company that he can properly value as they have not produced any earnings. Doesn't fit with this type of value company.
Merging with Nikanor, which is a good deal and good for the Congo. Could be an interesting play in the future. Prefers Anvil Mining (AVM-T), which is already producing copper.
He doesn't own any drilling stocks. As economy recovers and more resources are needed, drilling companies will do better. Would prefer Trinidad (TDG-T) because of the yield. Use a stoploss at the 50-day moving average, but once you see the market rollover, exit and take your profit.
A fantastic looking stock. The last upward trend is really positive. If it can get above the high of around $1.70 it reached in early 2017, it is not going to have much resistance. If it could get above the $1.80 point, it could easily be a double.
He wants to caution people on this. It is a small-cap company, and he hates recommending small caps on BNN. It is an exploration company. They drilled a spectacular hole in Flin Flon Manitoba, which traditionally has been a good place for zinc VMS deposits. They have a wonderful, deep, geophysical whole, but now need…
The primary long way to get exposure in the Canadian frac market of larger companies. He likes management. They are a transportation advantage within Canada, and are roughly 40% of the Canadian frac sand market. Some of the big, big wells going on in the Permian literally use 100-200 railcars for a single well. The…
The largest and highest grade tin deposit in the world. The median grade in this deposit is 5X the average mine grade. A superbly great deposit. The bad news is that it is in the Congo, and it is in a bad part of the Congo. Thinks this will go into production.
Explores ultrapure graphite deposits in north-eastern Ontario. Quite small and is still in development. Not quite at the producing stage yet. Just came out with a really nice intercept today and the stock was halted. As purity levels on graphite goes up, profits explode. He doesn’t know which way it is going to go. It…
Junior exploration company frilling in Baffin and high arctic. Some interesting geology. Worth holding onto. They will one day make a discovery. A well-run exploration company.
Itafos (IFOS-X) TSXV
Agricultural company focused in Brazil. Has a phosphate deposit, which is expected to come Into production over the next few years. Also looking at other opportunities. Brazil is going to have to import fertilizer, so there is a cost advantage of producing in Brazil.
2 gold projects in Ghana. Just came out with good drill results on one. Not many shares outstanding.
Has a very good project in China. If you are okay with investing in China, there are two companies that stand out, this one and Sino Gold. Not a fan of China.
Quite a nice chart. Found a bottom in 09 followed by a nice rise. Looking pretty good but definitely into a consolidation stage. Potential to pause for a long time. Essentially going sideways since Nov/09. Exit if it goes below $2.80. If it starts moving up, has the potential of $4.50.
It has been a painful year for junior mining stocks. There has been an exodus of capital from the group. It is a pure play on zinc, is a low cost producer and he likes their position. There is no debt and they are building up cash. He thinks a catalyst will be the US$…
Power Metals (PWM-X) TSXV
Hard to recommend this stock. Metals are like the oils now. Hold if you own it, but he wouldn’t put new money in.
Buying because of most recent drilling results. They keep hitting it every time they put out a press release. It has been so beat up it is a great buy right now.
Recently purchased as a toe-in-the-water flea bite at less than 1% in his portfolio. One analyst believes there is some pretty good upside opportunity. Speculative.
They are doing distinctive infrastructure, where they are digging trenches to get that last mile to the home. They are doing this in the UK, and have a large contract with one company. He really likes the story, but is waiting to see some revenues and earnings drop to the bottom line over the next…
Blockchain technology. There are going to be big winners and big losers in this area. A lot of banks are getting involved. This, in many ways, is the wave of the future. At the same time, there are going to be a lot of companies that will simply disappear. You have to be very careful…
They make bikes, baby furniture, baby equipment, car seats, etc. The family that is involved in it owns a significant stake. He sees better days ahead. It is trading at a reasonable valuation. Dividend yield of about 4%.
Current inventories are selling very well and profits are very large. Stock has been off the map but is now rising. Selling at 6/7 X this year's earnings.
He used to own this. The CEO he knew suddenly and abruptly resigned. They brought a new CEO but then there were reimbursement problems. Their balance sheet is not pristine. Centric doesn’t look like a quick fix.
Not one he follows or would own right now. This provides construction services to Western Canada with schools, hospitals, sports arenas, high-rises, etc. It also has exposure to the energy business. Even if energy prices have something of a rebound, the suppliers are going to lag considerably. If you are looking for a play on…
Interesting technology. Trials are turning out well, but too small a sampling at this time. Speculative.
This has limited history, but it is a $1.50 stock that is acting quite well. It’s too early in its history for him to have too much of a comment on it. It certainly looks like it is going higher, and he would watch it.
Use this list wisely to identify buying opportunities.
Happy trading !!!