Suncor Energy, Aritzia Inc. and More at 52-week Highs & Lows (Jan 12-18)

Not accumulating here, wait for a pullback. Business focused and on track. Divested assets at strong valuations. Overhang from WGL has faded. Improving returns on US utilities. Defensiveness of a utility, but also midstream torque for growth.

(A Top Pick Jan 07/21, Up 98.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ARX is progressing well. We now recommend trailing the stop up (from $9.50) to $11.00.

Always had too much debt, heavy oil, etc. and now they are going into the Clearwater play. They acquired a massive position and drilled the 2 best wells and got cashflow back in a month. Trading at material discount and changing rapidly. Committed to being a strong returner of capital. (Analysts’ price target is $4.83)

A major with great price momentum and still cheap valuation. Like many of the energy companies, it is trading at 6x EBITDA. 13x earnings. Hitting a number of metrics. Their latest deal is accretive for them immediately. A safer way to play a continuation in the energy bull market. Relatively early days he thinks. (Analysts’…

She owns no energy producers. CPG has benefited the past year from rising oil prices. But over five years, you're down double digits. This year, it'll depend on oil prices. If you think oil prices will go a lot higher, so will CPG, but she can't forecast oil. Though, she doesn't see a huge rise.

Paying down debt, because otherwise it makes it hard to get financing. Sold off part of assets, a smart move. Likes what they're doing. If oil stays around $75, they will benefit over time. They're being cautious. They've agreed to buy back shares, but this can change.

A potential double from here. Trading at 2.6x cash flow. Free cashflow is 23%. Buying back shares due to distressed value. Has 10 years of inventory. Balance sheet is good. Could privatize themselves in 4 years. 99% upside potential. (Analysts’ price target is $16.24)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The most recent quarterly results were good. Management is reinvesting back into the company. Higher free cash flow is expected for next year. Good for sector exposure. The balance sheet is very strong currently. Unlock Premium - Try 5i Free

(A Top Pick Jan 07/20, Down 17%) COVID-19 crushed this. It was trading at book value a year ago. He still likes it even though it has been painful. He is sticking with it.

Have been increasing production aggressively. They just acquired a company to add to their production. This acquisition should help them move from small cap to mid cap. It has had a nice move up from there. Looks attractive. Waiting for a pull-back.

Difficult to measure their new strategy. They have done great in the past, but this does not fit what he is trying to accomplish right now.

(A Top Pick Nov 20/21, Up 217%) You get leverage to a rising oil price since it is unhedged. Has differential exposure to WCS differentials. At $80 oil, they will reach their next hurdle for cashflow. Upwards of 20% of shares being retired every year. Could privatize themselves in a couple years with cashflow. Target…

Building up volume now. Trading at 1.7x 2 year out cashflow. Owns it for this. The stock is probably worth 4x what it is right now. Does not pay a dividend.

Did a buyout that diluted their stock materially. There is pure inventory but with Clearwater optionality. Need a new Board, new CEO and not a name he would own now.

Nat gas stocks have done extremely well off the bottom. This one is pricier than others. Other names are more compelling, such as TOU, PEY, ARX, or AAV.

A mini Nuvista. Doing infrastructure and delineation right now. Owns a small amount. The sellers have been non-commital and now there is an overhang. Trading at 27% free cashflow yield in 2023. Less liquidity than Nuvista.

There is a rumour that Paramount has acquired a 9% holding in Nuvista. Paramount is outspending their cash flow and announced, if required, they may look to sell off assets and this could Nuvista. Both companies share prices have been pushed sharply lower as a result.

Monitoring traps on oil and gas wells in Canada. It is a good company and could be an acquisition candidate. It is a cheap stock. It could benefit from the 'January-Effect'.

Still cheap compared to the group. Balance sheet in great shape. 20% cashflow per share growth, compared to peers at 6%. Decent production growth. Nice dividend, compelling payout ratio. So much depends on the commodity price, and oil is not the future. Oil prices are pretty firm where they are. Lots of room to go.

Well-run company. Always trades at a bit of a discount to the sector because of the nature of the business. Not a bad one to get into.

(A Top Pick Dec 08/20, Up 288%) Likes management. Relatively low decline rates. Nice acquisitions. Sector recovery has provided a tailwind.

Haven't liked it for the over global diversification, dividend cut, and other issues. However, the stock is deep value. Trading at 2.1x cashflow. 49% free cashflow yield. Has short reserve life. Low so they need to add to inventory. Can privatize themselves in 2 years however. 10% of the stock is short. Trading at a…

Sees growth here. Likes it. Doesn't own, but he would. Raising dividend, free cashflow, finding opportunities for growth. In the Top 10 in oil and gas.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock is cheap due to its debt positions. It is about 3x cash flow, which some investors are worried about. The debt is from their Velvet acquisition. Improved cash flow will help decline this debt. Growth looks good. Unlock Premium - Try 5i Free

No price target A copper producer that flies under the radar operating, operating in Chile. They get the tailings from the world's largest copper mine and then they produce copper from it. Thet spent $300 million to build this project. They're hugely leveraged to copper. They continue to process more. They guide 62 millions pounds…

(A Top Pick Feb 05/21, Up 49%) Benefited from move in copper, and silver and gold should follow.

It's too pricey and the stock will struggle to hold amazing summer gains. Buy at $8-9. It's a decent company, though. Too much optimism in this name now. The easy money has been made in copper.

(A Top Pick Mar 03/20, Down 6%) Operate a Quebec mine which coming along, and produces 6 million high-grade ounces underground. They're targeting September for their resource update, and the feasibility study in 2022. The right people are in place. He thinks there's more exploration to come in this mine. He used to own this…

Long-term, great operators. Loves their migration to copper. Next quarter or two will be at risk. More downside than upside in coal. He sold, and is looking for more pure plays in copper.

A smallcap that's done well for him as lithium prices have jumped, fuelled by the boom in e-cars that will continue for the coming decade. Like Australia, all the Canadian projects have been hard rock. Most lithium comes from South America, which is low cost vs. hard cost which costs more in production. Australia leads…

They acquired adventure gold. They are re-drilling a depleted old mine and finding new zones. They reported a find this morning. It has lots of cash and not a lot of stock out. (Analysts’ target: $2.15).

(A Top Pick Oct 4/06. Down 26%.) Surinam. Very good geology. Initial results had half the holes with hits. Mineralization lower than expected with their focus of higher grade on the lower great deposit. The bigger story will be the lower grade bulk tonn

Skinnier multiple compared to the others. Trades at 11x. Great numbers, but stock fell on uncertainty when acquisition was announced. Valuation and growth rate are good. You want to own banks in this environment, and this is his favourite. Yield is 3.61%. (Analysts’ price target is $156.72)

Big footprint in EM. Canada's third largest. Acquisitions are done for now. Visible path to double-digit returns, at just over 11x earnings. Record high, more in store. Yield is 4.40%. (Analysts’ price target is $94.15)

(A Top Pick Dec 29/20, Up 40%) Company didn't take write down set aside for pandemic. Room for divided growth and potential for share buybacks. Valuation cheaper than other Canadian big banks. Very resilient and should be part of most portfolio.

Dividend 15 Split Corp. (DFN-T) or Dividend 15 Split Corp. II (DF-T)? Both are Split shares. The preferred share is the low risk preferred share dividend. He wouldn’t buy both, because you are looking for either growth or income. He would use one or the other and build that in your portfolio.

It is a split share financial corp. It has a big distribution. There was volatility in three periods from 2011. You have to be mindful of the volatility. There is some leverage involved and downside risk in times of market volatility. He would avoid this at the moment.

Not a fan of closed fund since the underlying securities will deviate from the net asset value of the fund. There are big dislocations. Underlying holdings are good quality companies. On a weighted basis, the yield is 3%, but the fund is paying 8%. This comes from the capital gains. It is not pure yield.

Prem Watsa engages in market timing, unlike Warren Buffett. Fairfax is a black box as to what it owns. Challenging business. Stuck in the mud for a while. If you want too look at good capital allocators in the P&C business, look at BRK.B, which he owns.

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(A Top Pick Nov 13/20, Up 33%) Has started buying back shares and paying dividends. Financials should do well as the yield curve steepens. Valuation is not as compelling as before. Middle of the pack. Has moved to US banks and non-financial banks in Canada.

LBS vs. FTN An interesting structure, but they have their own at his shop. One is a play on ENB. Very optimistic about the potential for ENB to continue raising its dividend. He also has a real estate split with a mix of long-term value REITs and industrial exposure to access the e-commerce trend.

This is a seasonal period when Lifecos in general tend to do well. This is a special vehicle where they buy a lifeco, split it up and give the capital appreciation to one half, and the dividend to the other half. Dividend yield of 19% is extremely high, and he is having trouble with that.…

If inflation and rising interest rates leads to a steeper environment, then yes, it will be positive. If Feds make a policy mistake and the yield curve flattens, it will be negative. The steeper the yield curve, the more profitable it is for banks. In the back half of next year, there is a risk…

He prefers to own the individual banks. If you are in it for diversification, there is no issue with that. He likes the sector.

Performed well. Higher highs, higher lows. Above the 200-day MA, which is moving higher. Will benefit from rising interest rates. Wealth and asset management is more in demand globally. He also owns another life co, see his Top Picks.

TD vs. NA He prefers TD over NA and advocates taking profits if a position has become overweight. Opportunity in TD looks better for 2022. TD is over-capitalized the most. Its US-centric footprint is more net-margin sensitive than Canadian banks. With interest rates poised to rise, this should advantage TD. Its capital markets business (with…

Aimia preferred shares: It's run into problems. It'll be difficult going forward. The value was in the Air Canada miles, not Aeroplan. If you own a preferred share that's not paying a yield, then it's distressed. Take a loss.

(A Top Pick Feb 18/21, Up 29.9%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with D.UN is progressing well and has achieved our $25 objective. To remain disciplined, we recommend covering half the position and trailing up the stop (from $16.00) to $$22.50.

A portfolio of royalties such as Mister Lube, Oxford Learning, and Sutton Real Estate. They tend to grow around the rate they are paying out. If you are an income investor then you will be fine with this.

FTN vs. LBS An interesting structure, but they have their own at his shop. One is a play on ENB. Very optimistic about the potential for ENB to continue raising its dividend. He also has a real estate split with a mix of long-term value REITs and industrial exposure to access the e-commerce trend.

(A Top Pick Oct 21/21, Down 7.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LB has triggered its stop at $38. To remain disciplined, we recommend covering the position at this time. Combined with our previous buy recommendation, this will result in a net investment loss of 9%. We will look for better…

Assets in US, trades on TSX. Shopping centres benefit when anchor tenant is a grocery. Good job growing portfolio. Balance sheet is fine, distribution is safe. Safe and stable hold as it takes time to digest recent acquisition.

What they lend to is incredibly stable. Good operators. Perfect vehicle for TFSAs or registered accounts. Trades slightly above NAV. Yield of about 7%.

You're looking at 2.5% to 3% yield. Some of the best value is in small cap dividend payers.

In general terms still on a downtrend. Bearish big picture. Could get back into the 20 dollars.

(A Top Pick Nov 21/20, Up 98%) Doing well on all geographics and channels. Return of 98% from Past Pick. he continues to own

Well-managed. The whole lumber industry had a massive run-up in prices given demand in renovations and new houses as well as supply contraints. The sector has pulled back a lot, but has climbed recently. The outlook is good. They trade at half this PEs now. The balance sheet is clean and IFP has a strong…

It has not done anything special except to be in the right place at the right time. There was a huge demand pick up for lumber. Lumber has a strong seasonal period. Lumber companies and home builders tend to under-perform starting now. Given the run in this one he would put a trailing stop on…

Stockchase Research Editor: Michael O'Reilly WFG (with sales up over 85% on the year and having 60 facilities in Canada, the US, United Kingdom and Europe) is reiterated as a TOP PICK. Recently reported earnings showed YTD EPS over $24 per share, compared to under $4.50 a year ago at this time. It trades well…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A mix of BCE and Telus is probably a good choice for exposure in the telco space. They should be able to pass inflation on to the end customer. They should also increase distributions to shareholders to offset inflation. Unlock Premium - Try 5i Free

The whole sector hasn't done well in the past year. But this current pullback is an opportunity. NPI is a leader in offshore wind energy. She owns other names in green energy. This is a decent investment, though.

Sentiment on renewables has taken a nosedive. Number of projects likely to be consummated in next 3-6 months, including acquisitions. Nicaragua contract extended. Valuation steep discount to peers. Will see increased M&A activity or an increased payout ratio by jacking up dividend.

Generally doesn't think carbon capture and storage is the solution to reducing emissions. Questions if this is a viable solution. Hasn't been demonstrated on scale. Carbon capture will play a role where there is a market for carbon dioxide, enhanced oil recovery.

He likes it long-term but uncertainty short-term about earnings. Utility like. At some point it is going to be a mature industry paying big dividends. Not there yet. Right now because of broader market concerns, need to be cautious.

In Canada and France. Stock's come off, but one of the best growth profiles of the independent power producers. Expanding into the US. Not the biggest player, mid-market, can carve out a niche to capture growth and projects. Undemanding valuation. Yield is 1.80%. (Analysts’ price target is $47.75)

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.

Wouldn't be his top pick. Usually goes with the cycle pretty well. We are still in a sceptical stage of the market. Any silver company will do well once the optimistic phase begins.

Dundee vs Excellon? DPM-T was a previous Top Pick and he would look to add to a position. It is one of the highest free cash flow generators in the gold producing space. Production continues to grow and costs are better than their peers. He would continue to hold it. Silver does have some upside…

They are a developer, early stage, and looked to be on to a big discovery. Now it looks like a lower grade but economic mine. If you look at the valuation, it still looks like they are onto a high grade discovery. He would move on.

An open pit facility in Guyana. As gold prices go up it benefits as it is a high beta stock. He is not too keen on this one as the grade of resource was not what he was looking for.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Likes the valuation but there needs to be some execution and growth must resume. Investors love to hate the stock so positive news tends to move the stock more. Ok to own a small weighting. Unlock Premium - Try 5i Free

They provide digital services to retailers to allow quick changes to pricing and other tasks. They have a long history in this space and are trying to get into big-box stores. The company is small and new, so he's watching it. Once revenues ramp up, he'll enter.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Their latest earnings showed revenues growth of 9.9% year over year. The results were better than expected, though the company is still not profitable. They should be profitable in 2022. Guidance was raised. Very little debt and if sales momentum continues, it can do well. Unlock…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock price should not go below $3. 5i did not expect shares to go this low. Investors are not reacting to fundamentals recently. Nothing has changed for the company. More acquisitions should happen. Management is following their 5 year plan and doing a good…

(A Top Pick Jan 25/21, Down 74%) Whole telehealth sector has been decimated. Investors are selling, but they're not pandemic plays. Digital healthcare revolution is just getting started. 2 big contracts announced. Valuations are starting to look attractive. One of the best paths to organic growth and profitability.

E-cars were a super hot trend. GPV make e-cars like cutaway vans and schoolbuses. They use a wireless charging technology, so vehicles can always be charging. Biden wants to phase out gas buses by 2025, so this a  big opportunity. GPV numbers of last night aren't EBITDA-positive, but will be EBITDA positive later this year…

You get run ups and then disappointment. Probably investable but he is not sure if it will be a player in the future. This was the same case 20 years ago. It sounded imminent 20 years ago and this has not yet panned out.

It got stuck above $30 and is now building a nice base. He likes this.

Has diversified into other areas than straight flower production. Focusing on the US for cannabis. HEXO will survive in Canada. Has not seen much this year. There will be an acceleration soon. Has a dominant position in Quebec. Would look at buying into it.

This has great assets globally. The biggest sourcing platform for organic foods. It is really hard to get an organic designation. It takes 3 years for a farm to convert. They spent a lot of time putting together assets and it hasn’t been managed well. The company did a strategic review, brought in an investor…

They are reporting great earnings, but it is trading along with the sector (down). He owns this and it has been a Top Pick in the past. He continues to like it as they are developing new products like edibles that are putting them in the forefront of the cannabis space. They also have a…

A millionaire stock? Vivid imagination. Hasn't made a penny to date. Balance sheet is sloping down, as it's consuming equity. Every time it takes a run, many people run for the exits. Pure speculation, a gamble, fluctuates wildly. Doesn't see the earnings or explosive growth in the Canadian market.

We've reached the tipping point where we're sick of really dirty oil. But don't get greedy with this now. Can't recommend buying it at current levels after such a big run.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Certainly lower risk now at these prices. However, would wait for better news and improvements on fundamentals. Hard to call the bottom and sentiment could continue to be negative. Trading at 1.7x sales, which is below pandemic pows. Would wait for more positive momentum.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They reported weakening revenue and earning numbers for the last few quarters. Management attributes it to reduced order volume due to component shortages, and supply chain disruptions. There is some credibility with repeat purchases from large firms. Could start a high risk small position with…

Their model is based on getting royalties off the cannabis companies they produce. They've done some smart deals and have been able to put pressure on producers who needed money. Not sure why it moved so down today.

Smaller cap company. The financial technology was originally launched as a lender. Now it is in bitcoin and wallets. Still no earnings. Challenge is that it trades 28x EBITDA, no return of equity, no cashflow. Has had good price momentum in the past but too volatile.