The stock market has seen its fair share of ups and downs this week, with stocks rallying on Tuesday following a sell-off at the beginning of the week. Tuesday saw one of the greatest gains for the Dow Jones Index in two months. The S&P 500 also so big gains. However, the markets have been virtually flat this week.
Economic woes and fears of a recession were further compounded with the 10-year Treasury note falling below the 2-year rate. A signal that investors have concerns over global economic growth and are looking for safer investment options. There were some positive news, with the U.S. delaying new tariffs on consumer goods until mid December.
Many gold and silver companies are seeing their stock prices hit 52-week highs, indicating a desire to own these safe-haven investments. Defensive stocks: Metro Inc (A) (MRU-T), Royal Canadian Mint (MNT-T), and Loblaw Companies Ltd (L-T) are also hitting their highs as well.
Resource and energy stocks have taken a hit with Bellatrix Exploration Ltd. (BXE-T), Husky Energy (HSE-T) and others trailing at their 52-week low.
Here’s this week’s 52-week high and low list:
Here’s this week’s 52-week high stocks on Stockchase…
🛢 Basic Materials
ABX-T vs. G-T. G-T is more the defacto go-to name. ABX-T does not have the growth any more. He thinks G-T has better assets. The problem with G-T used to be excessive valuation but that is not the case now.
He does not buy or short gold stocks. From a momentum perspective, it fails poorly. With a trend down it will tend to get more selling until it reaches a floor, which it has not. There is not much cash flow and a small yield. It is a volatile stock.
Hold or Sell? This has had a nice move. If you are underweight the whole gold complex you might want to keep it. If you are a trader, you have had a spectacular move in the last 4 months, you might want to take your initial capital out.
Located in Turkey is one of the major dangers, because of their elections and that they are not getting along with Russia. Thinks the US$ is high, so when that comes down the gold price should go up. The company has zero debt and they make money. Thelr “all in” sustaining costs is $600+. Have…
Acquired the old United Keno Hill mines in the Yukon last June. One of the highest grade silver camps in the world.
Gold is trapped in no-man's land, unable to break $1,350/ounce for a long while. That's reflected in this stock which has a lid on it. Until this breaks out, there's no buying opportunity. Also, existing shareholders will sell off when this eventually rises. This could be sideways for a while.
An ETF that owns physical gold bullion Everyone else uses GLD, but he uses CEF. He sees gold as the cash component in a portfolio, and not as a speculation. Banks see gold as cash, too. The problem with GLD, will he be able to access it? He doesn't know. You need at least $150,000…
Just reported numbers and beat expectations. Should comfortably meet their expectations for next year. You get little flare-ups of perceived political risk. It represents fair value. You get a good leverage to the price of gold.
Continues to add to the position today. $105 Million in cash. Very rich deposit in Columbia. Has very high grade gold showings and PGM credits. Will continue to drill this year and deliver this year. Deposit could grow a heck of a lot bigger over the next couple of years.
Had a bit of the stumble about a year ago, which caused a delay in one of their mines. They seem to be getting past that now and things seem to be getting back on track. It could be a potential investment, but he wouldn’t put all his eggs in one basket.
This was formerly a closed-end fund of junior resources but changed its method of operations and now has two gold projects in Bulgaria and hope to produce as much as 500,000 ounces in 3 years. Also have exposure in several other junior stocks. Cheap.
Low P/E at 1.5. Like a mutual fund and is valued that way by most investors. Management team is putting deals together giving an opportunity to get in on the ground floor of some extraordinary opportunities that is translating into exceptional earnings.
Is the price of gold manipulated? Gold is now in a sideways range during a commodity bear market that'll last to 2030. That explains why FNV has been in a sideways trading range for so long. It FNV breaks above the current $100 that will be encouraging. Meanwhile, he would wait. June/July is gold's seasonality,…
Chart shows a long downtrend and you want to watch for a break away gap, which he thinks it has had. The exhaustion gap occurs at the end of the move with big volume, opening higher followed by a huge volume and then closes unchanged or lower. He would prefer to see this on a…
300,000 hectares of holdings in Brazil. Lots of prospective ground. One of the major shareholders is BrazilInvest (?), a 12 billion-dollar merchant bank connected to the Brazilian government. Have a large land package that has yet to be meaningfully explored but there are discussions underway for acquisitions that might allow them to easily become a…
It has a distinct downward trend. Seasonally it goes up in February and again in July. Wait until it shows a base pattern before making a major commitment. Be patient. It is not there yet.
The no. 1 performer on the TSX in 2018, up 85%. They have great mines in Ontario and Australia, both stable areas. They keep increasing production targets: produce 1 million ounces of gold a year by 2021. There's a place for precious metals in your portfolio when we hit the inevitable recession and return to…
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.
Silver play in Mexico. Had a phenomenal 2006, and despite that it is relatively under followed and under covered. Have optioned out about 56% interest in their Wanasebo project on condition that $5 million is spent on drilling over the next 5 years. The grade that they encountered on the initial drilling is twice what…
If he has an older client that wants to have precious metals, this is one that he would put in their accounts. Considered higher risk, only because of the market cap. Has come down quite a bit. The dividend is a nice gift, but he is not trading it for that as it could come…
Has a huge resource in China. Very cheap and relatively thin. Likes the operator behind this very much.
Gold has an upward bias but he is neutral on it over the next year or so. Regarding this company, there are better places to put your money but if you are really a bull on gold, this will provide higher leverage because of their projects.
Lot of cash on the books. One of the largest primary silver producers. You get 4.5% dividend. He loves getting paid to wait for the market to turn around. Geographically diversified. Brought down costs and when silver price goes up, this will do well.
Gold assets in West Africa, Ghana and Ivory Coast. Good management. Going into production this year and expected to produce 80,000 ounces in Ghana this year and probably 200,000 next year followed by 278,000. Cash costs expected to be about $450 to $500 an ounce so have a lot of leeway. Will continue to grow…
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.
He likes management and the asset. They are looking to produce 120,000-150,000 ounces of gold per year. They are all-in sustaining costs of around $740-$790. Have $50 million in cash. They are paying down their debt, which is only about $54 million. A single asset company and in a jurisdiction not everybody wants to be…
Have the largest ounces of exposure per share in the market. Very, very tight with their shares. It’s run by a great management team. Should be doing better. Has the connection to other problem companies. The company will probably be sold.
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.…
With the uncertainty of the gold space, she would tend to gravitate towards higher-quality names such as Franco-Nevada (FNV-T). The last couple of deals they have done have caused some investors to step back.
(A Top Pick Jan 24/14. Down 11.04%.) He really likes this story. 80% of silver production comes from a by-product from copper mines and from mines that are really shutting down. Pure silver plays are rare. Located in Argentina which is probably why the price has been hurt a little more, but it hasn’t hurt…
Silver is riding coat tails of gold. Thinks of gold and silver in the same vain. In last year, silver moved more than gold. He is bullish on both metals. It is over bought, but every gold stock is.
Pretty good cash costs, but they have a relatively low mine life. Costs will go up over time. They acquired a property nearby and increased their asset. He is impressed by the size of the camp. It is probably an acquisition target now. FNV loaned them the money to do all of this. It is…
Going to have a mine with an enterprise value of about $1 billion when all is said and done. Will be producing about 358,000 ounces of gold and that is a lot of cash flow and earnings that come from that. Good jurisdiction and good location.
A Mexican silver company, formerly Scorpio Mining. They want to build a combined company with reserves of more than 1 billion ounces of silver. This is going to take some doing. He is underwater in his small position, but is going to stay with it.
(A Top Pick Jan 10/06. Up 60%.) Has completed financing and will have 2 mines in production by the end of the summer.
This is not mining, they just take a fee for services from the mines. Currently he is not into precious metals. The money flows are out of precious metals.
Keeps looking at it. He focuses on good management, low cost of production, good reserves on the ground, and geo-politically stable. It’s getting to point of generating free cash flow. Great job of putting things together.
Could be a repeat of Francesco Gold which was a very large success. Good management team. The stock has become somewhat of a cult stock. Thinly traded. Good cash balance. Needs a lot of patience.
A silver play in Mexico, one of the last great potential silver discoveries, i.e., an extension of the vein in terms of the length, width and depth. A great play and a good speculation.
Klondike Gold (KG-X) TSXV
He is using as a proxy for sole risk exploration. Run by good people. He is not really a believer in sole risk exploration as the odds are really stacked against you.
Doesn’t think the Promontorio is a large system. Did a deal to pick up Sunshine mine in Cour De Lene, which has a decent grade deposit but the issue with a lot of the companies in this area is dilution and mining costs.
The silver sector has had a spectacular run. He has a prejudice against small mines, because they have all the risks of the big mines, but can never make you money.
Silvercrest Metals (SIL-T) or Silvercorp Metals (SVM-T)? This one is a fairly small deposit, but with high quality people.
Metals/mining sector is not the best place to be right now. This one looks like it's bucking the trend. Chart shows a decent uptrend and shows little “step-ups”. If it broke down through the current price, it would probably hold at $.50.
Management is first-class. The stock may be fully priced given where they are in the assets that they acquired. However, if you go back in time with this management, you don’t do poorly investing with them.
(Market Call Minute.) Deposit looks good, but it hasn't quite the size or the grade that it needs to move forward.
Gold in Burkina Faso. Good management. His probabilities of success are very good based on management's previous success in selling a gold mine. Have started drilling. Speculative.
2 gold projects in Ghana. Just came out with good drill results on one. Not many shares outstanding.
Likes it a lot although valuation is a bit up there. When you have a high value stock you want to make acquisitions. They have indicated they will not do that so all they can do is accelerate their own production or drive costs down.
Bought this 4 or 5 years ago by a private placement. It didn’t do well. They’ve restructured the company and kind of firmed it up. The geologist running it is good and smart. Has a joint venture with B2Gold (BTO-T) looking at a very prospective ground in Finland, probably one of the top places to…
Has had trouble getting traction. This is one you should bargain hunt for in the $0.10-$0.20 range and hope they come up with some new idea post uranium.
A silver play in Mexico, one of the last great potential silver discoveries, i.e., an extension of the vein in terms of the length, width and depth. A great play and a good speculation.
Equinox Gold (EQX-X) TSXV
Stock continues to outperform time and time again. The chairman, whom he knows and admires, is the biggest shareholder and a superb manager.
The guys behind this have had great success in Mexico. They've had not bad results to date. Anything in the silver area is probably going to do well.
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.
This started as a Western Canadian focused REIT and has expanded into the US. Their payout ratio is a little higher than others, but overtime this is an investment that will pay well and he has faith they will work to lower the leverage on the balance sheet. Yield 8.4%.
BAM vs. Onex They're very different companies. BAM has moved from infrastructure to being more private equity; it's larger than Onex. Onex just bought Gluskin and Sheff, branching into a new direction. You can do well owning both; buy 50/50 in them. He can't favour one over the other.
Not a name for a yield investor even though it has an attractive yield, as it is going through a lot of transitions. He has warned about owning stocks through transition periods. A great company with great management, however when you start churning the amount of assets they have, they are selling billions of dollars…
Highly recommends averaging down if you own it, and just wait. Has 30 of the best silver and gold companies all in one stock. Paying a nice dividend. If the dividend gets cut, that’s fine, because of the leverage to the portfolio. Well managed.
Sprott Inc. (SII-T) TSE TSE
Eric Sprott’s one of the smartest people in Canada and is assembling a first-class investment team. There are some issues with Timminco (TIM-T) that have to be cleared up first. If you have a 2 or 3 year outlook, a great buy.
TMX Group (X-T) TSE
This has been performing super strong with the markets being on a roll. Thinks this continues to do fairly well. It ranks really well in his process both technically and fundamentally. If he didn’t own it, he would certainly look at it.
He is a little wary of REITs right now. Valuations are excessive. You are paying 15 to 16 times cash flow. There is a lot of risk if interest rates ever start to move higher. The Calgary real estate market is not turning around in a hurry.
Recently bought the stock. This is the 1st day that Element Financial shares are formally split into 2 companies, ECN Capital (ECN-T) and Element Fleet Management (EFN-T). Thinks both are undervalued. He tends to do this in terms of the Price to Book ratio. The BV is more or less about $4, so if you…
Assuming that the contagion is not so devastating, and assuming that they can still raise capital at a reasonable cost, he thinks this company will pull through. A year from now, many of these companies will regain their losses.
Great Canadian company. California Closets, College Pro Painters are some of their brands. They are also in the property management business. Stock trades at 28 times earnings but it is a very capital light business with no fixed assets. Generate very high free cash flows. Very good story in the US. (Analysts’ price target is…
goeasy (GSY-T) TSE
It has done very well, going into the consumer lending space. They put up another good quarter of earnings and margins continue to grow. This stock could continue towards $60 this year.
They are doing a good job. It has broken above its 50 day moving average. The trend is in a non-aggressive down trend. It is near the top of its channel.
Likes this company. Their most recent quarter showed a slight little bit of weakness, and this is mostly because of weather. There might be a bit of an opportunity this year, because this REIT has is some very interesting developments that they have been doing, and another pipeline coming up over the next couple of…
(Top Pick Jan 29/15, Up 16.82%) A very solid management group. They had problems digesting their acquisitions. He got out earlier in the year and intends to now get back in.
AQN vs NPI Both companies have similar yields -- around 4.9%. He owns both. AQN-T is more US focused. NPI-T is more international. The dividend with AQN-T is paid in US dollars.
We are seeing a new secular uptrend in 10 years bonds. It will put pressure on bond proxies like EMA-T. If your time is more than 3-6 months then okay, but if longer then look at something with pricing power like telcos or REITs.
$37.56 is his target price. He'd buy it at $39, $10 below the current price. We might see that. Not a fan of this.
Sold his holdings fairly recently. This has just been added to the TSX Composite, so there will be quite a bit of index investors buying the stock over the coming weeks. 19.9% of the company is owned by Cascades (CAS-T), and he gets the impression that we are in a target range where Cascades might…
(A Top Pick Sept 28/11. Up 22.45%.) Getting close to being fully valued and he is starting to Sell it. Has had phenomenal growth and is very conservatively managed. Doesn’t see much upside so is basically holding it for its yield.
An independent power producer. They have about 3000 MW of basically US based, but they do have some projects, primarily wind, in Ontario and Manitoba. Trading very inexpensively. They have the ability through their parent Pattern Energy Group (PEGI-Q) to vend in new development projects, so they don’t sustain development risks. They are 89%-90% contracted…
Great assets. Capital expenditure is going down. Can provide a lot of products to clients. Slightly defensive in many ways. Would like to see the 1.3% dividend increased. Good story. He prefers BCE (BCE-T).
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.
They're expanding like crazy in China, but their sales growth is weaker than expected. He doesn't know their strategy and won't buy QSR until he does. They're generating lots of free cash flow and offer great brands, but the market fears it'll overpay its next acquisition.
(Past Top Pick, Sept.18, 2017,Up 41%) A car repair chain. They're a consolidator in this space and now have covered in the U.S. Consistent ROE generators. A core holding.
This has been a phenomenal story. The most important thing is free cash and what the companies do with it. This company is diversifying by getting into networking, data storage, and into other markets. Rogers (RCI.B-T) owns 32% of them and he doesn’t think it is properly reflected in Rogers’ stock price. He would buy…
A year ago they went through a restructuring and then a big acquisition in Safeway. They were left with a banner that had few discount brands in Western Canada, then tinkered with their loyalty program and that upset consumers. Last quarter the results were not liked. He used to have it but now prefers WN-T…
There’ve been some challenges in the frozen food area, but these are temporary, and they are going to step in and fix that. There is a new president coming in, which will pay particular attention to their problems. 70% of their exposure is Loblaw's (LB-T). Through the buyback program they’ve initiated, they are going to…
Threatened by online shopping? He likes it, because it dominates grocers in Canada with good real estate. It's a little vulnerable to online shopping, but grocers like Loblaw won't be affected much. Also, Loblaw has click-and-collect e-shopping where a customer orders groceries online then picks them up. He expects double-digit earnings growth after Loblaw absorbs…
Exchange traded receipts? This allows you to buy physical gold that is held at the mint. Management fee to own it is way less than buying an ETF. If you want to own gold, this is an excellent product.
It ranks in the top 10% of his dividend model. It had an earnings surprise earlier this month, and is expected to grow 15% this year with a 13 P/E. He likes it. ROE is 15%.
(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.…
This one has gone sideways for about the past 5 years. Although there are no barriers to entrance into their business, they are the largest auctioneer of industrial equipment globally. Thinks they are larger than the next 50 competitors combined. There is about $200 billion of used equipment that transacts every year but they only…
A turn around story. Good management. A lot of cost cutting is still going on. Most costs are US$'s, but sales are in Cdn$'s, so a strong Cnd$ is good for them. Expects a share buy back.
Instead of using existing NSAIDs for arthritis and getting holes in your stomach, their drug is coated with sulfur and it is effective, even in lower doses. Phase II studies should be completed by end of year or there may even be news by end of June. He thinks it is a very sound science.
It is a Canadian infrastructure pipeline company. They are creating plastics that will go into the US and create a lot of revenue. He is taking a look at it.
It's had an enormous run to levels he didn't imagine. Companies that have a good growth trajectory and story garner a huge multiple because there are so few of these stories in Canada. He wouldn't buy it now. By comparison, Amazon looks reasonable at 40-50x PE vs. Shopify which is in the 200s or 300s…
Here’s this week’s 52-week lows stocks on Stockchase…
🛢 Basic Materials
Then 1.96 Copper has done well so this stock has done well as well. It's an inexpensive way to get into mining. It's a mining processing facility which produces copper. He's still holding on to it.
Have projects in Nevada and French Guiana. Until recently, French Guiana was a tough place to explore. However, the government has mapped out areas where you can mine open pit, areas where you can mine underground and areas where you cannot mine. That is a huge plus. Have a large deposit in French Guiana of…
Compared to Canfor (CFP-T) and West Fraser (WFT-T), this has the least exposure to the softwood lumber issue. Only 15%-20% of their product is shipped across the US border. 60% of their production is already in the US. The housing market in the US is growing, but is still growing quite slowly because of the…
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…
China issues? A cyclical stock for sure, so its tough to buy and hold. The balance sheet has been right sized as the debt has been reduced. They are cheap based on earnings. If you believe China trade issues will be resolved, you should continue to hold. (Analysts’ price target is $39.84)
Recently dropped to an all-time low Tax-loss selling probably had an effect. It's probably the bottom now and it's cheap now (like many stocks). But TV won't be the first to rise, because it's so small. Larger competitors will move up sooner and higher. Maybe within this year this will rise, but it depends on…
NTR or WEF? He would prefer NTR-T as he believes it will eventually be back to making money. He thinks deforestation is one of the biggest contributors to greenhouse gas emissions. There is only so much arable land and thinks NTR-T will benefit the most.
It peaked in early June and fell to $80, breaking a strong 19-month trend. The early-August low fell along with commodoties as a whole. It'll likely continue to fall.
When the rare earth bubble took off, they deployed the drills into the area and found substantial rare earth deposits. It has a meaningful heavy component to it, but the commodity price is back down again. Once China shuts down illegal mining, you will see the price of rare earths coming back up.
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.
TV-T vs. HBM-T. TV-T has ties to the zinc market, which has been under severe pressure from tax loss selling. HBM-T would be a better replacement if you want to be here.
Is one of the steel plays in Canada which was seen as defensive given the tariffs. Have seen people take profits after good results reported. It is still a dicey sector, with tariff concerns and economy and infrastructure concerns. Investors are getting concerned about this sector. He suggests taking profits now and see what happens…
Looking fairly attractive at this level. The discovery in Mongolia has the prospect of being one of the largest copper/gold mines globally. Brought in a partner, Rio Tinto (RIO-N), which took control of the partnership, which has de-risked the project for Ivanhoe. They are in the market with a rights offering in a $7 range,…
Doesn't know the stock that well but based on what he does know, it's in a favourable place. Undervalued. If the mining cycle continues, you should see good performance out of this one.
He is less afraid of political risks. The management team has been successful in the past. Gold and silver demand has increased in the last couple of months.
It has risen to the forefront to be a go to. They are global. Their primary exposure is to copper and is a leveraged way to play a recovery in copper. Keep in mind it is leveraged so it will go the other way just as far if copper drops.
Operated by the Lundine family. This has been a truly outstanding Canadian success story. It mines and markets some of the highest quality diamonds globally. Earnings on a quarterly basis are lumpy, but over the course of a year they earn and distribute a lot of money. Return on cost employed in this mine is…
Last November he did a site visit in Argentina and it was the biggest site visit he ever saw. The lithium sector was hot, but now there's a fear that it might be well-supplied because SQM in Chile is now allowed to produce at a much higher volume than before. The Chinese are now partnering…
Very high quality exploration target. Understand that exploration is an extremely dangerous game. There is no one he knows that is as good at exploration finance as Robert Friedland. The stock has had a tremendous move, and is a very, very large target. If you own it, use trailing stops.
Unlike most of Canada, he is not a Lithium Bull, and is not a lithium bull with regards to the Clayton Valley in Nevada, where most of America’s lithium deposits are. He personally would not be an owner of this.
Have some good indications that the zones go deeper than before and the grades are pretty good. New management team and getting good support and is getting noticed.
He's simply not buying Athabasca (or CPG-T) [to answer a client whose question involves an inside joke].
(A Top Pick December 18, 2017. Up 24%). This will be a significant beneficiary of LNG Canada for 2023, along with Painted Pony, Bonavista Energy and Tourmaline. He sees this rising to $9 in 12 months and $15 in the next 3 to 5 years. Production is 80% natural gas. They will raise their liquids…
If you are a retiree and looking for income, this is a company that you definitely should look at. She has a lot of respect for the management team. Have done very well by investors historically. They are doing a rights offering to existing shareholders to bring some equity into the business, because they essentially…
(A Top Pick December 18, 2017. Down 33%). He was early in his recommendation of this company, but it is doing the right things. It is extending the maturity of its debt. The company was over $3 a year ago. Production in Q2 was up compared to Q1. It will drop for Q3 because of…
(A Top Pick March 26/15. Down 82.46%.) A driller and has been an absolute disaster. He has had very few blowouts in the past few years, but this one was absolutely brutal. Eliminated their dividend, revenues have gone way, way down, and they have had to lay off a lot of staff. There is a…
There are 3 pressure pumpers in Canada and are involved in the hydraulic fracturing of reservoirs as part of the completion process after the well has been drilled. This company has struggled with the debt and has been selling their US business. At this point in the cycle, he wouldn’t be too constructive on this…
Hoping to be acquired. Feels the assets are worth a lot more than where the stock is trading. Can't see who would want all of the company's assets. If it was sold in 2 or 3 different pieces, they could probably get more value.
The debt is simply too high for him to invest in. They also have some issues with First Nations peoples. This has too much hair on it for him.
Has come back to support levels. At this stage, he'd be a buyer. If you already hold it, you'd be careful, as you wouldn't want it breaking support.
Most of their uranium properties are in the US. Experienced management. Purchase half your position now and the rest over the next few weeks as there may be some pullback in the share price.
(A Top Pick June 11/2018, Up 1 %) Canadian company, but about 80% of production is in US, so they get world price for oil. The Canadian listing gives them the dividend tax credit and it’s well managed.
Still a little early for the drillers, particularly the fracers where this one is placed. Feels they have a couple of very, very ugly quarters in front of them, and earnings revisions are still coming. He would be more inclined to buy the unlevered producers.
Chart shows this consolidated at around $1.10 this spring. Support was broken in early June and it dropped down to below $1. Then it rose again to the support level at around $1.10. The story doesn’t look so great. He wouldn’t want to be in the stock.
Uranium play in Namibia. They will have high costs, but as the price of uranium goes up, it could grow. It will take years and years. Because of its recent run, he wouldn't buy at this time.
Didn’t raise capital in the process of going public. Very cost focused company. $17-19 range. 15% per share growth predicted. On his watch list.
They are pursuing MEG energy but they are not that receptive. HSE-T stock has retreated. He thinks they will win this. They have refining capacity.
This chart is showing lower highs and lower lows and is at a 5 year low. He thinks it is best to exit this one as it is showing no signs of a bottoming formation.
They are doing all the right things. They had assets sales. They are strong at monetizing assets. One of the stronger performing energy names.
Kinder Morgan (KMI-N) or Kinder Morgan Canada (KML-T)? In the short term, he would choose neither. If certain things happen, he would look at the Kinder Morgan Canada position. The Canadian subsidiary, without the pipeline expansion, is worth $15. That is just on the assets and the quality of the assets. Since you can get…
(Market Call Minute.) Quite a volatile story. They have too many small deposits around the world and they need one big major deposit.
Stock is now about the 20, 50 and 200 day moving averages. There is a little of an upward trend. There will be some resistance at around $7.
He is a large shareholder. It is a tier-one asset. All of these stocks are ahead of the uranium price. You have to be a patient investor with a 3 year time horizon. He thinks it will go lower after PDAC and then will go higher.
The stock has been hit lately. Their oeprations were doing well over the past few quarters. Then, PD announced they would buy Trinidad (during a market downturn), so their stock collapsed. He's trying to understand their rationale behind that announcement. Their last quarter was weak. Hold onto itnow. The stock could snap back if Ensign…
Great driller and a low-cost producer of natural gas. However, the problem is the price of natural gas and how to get it out of Alberta and into a market that will pay more for it. That is a problem with a lot of natural gas stocks these days. Dividend yield of 8.96%, a warning…
(A Top Pick Apr 7/17, Down 29%) They did a good job of paying down debt. He thinks they will now move on to phase II of the current project and will bring up production. They will more than double production. It will continually bring on more cash flow. He thinks the stock is cheap.
They have a lot of debt but you have to look at the equity. They are about 9% liquids and 91% natural gas. Their stock popped last week because they announced on two wells. They are now finding more liquid rich opportunities. It is one of the names he likes. He projects $6 within a…
Coming out of Arc Financial (private equity). Clean balance sheet. Trading at 1.9 times next year EBITDA. Historical average in Canada of a pumper is 7. Liquidity vacuum in the stock market is creating this opportunity. (Analysts’ price target is $18.20)
(Market Call Minute.) Great company with a good management team. Has a sustainable dividend, but the growth rate plus the dividend is too boring to attract the next incremental dollar.
Need to be careful on the gas recovery. It is primarily a weather trade. If you are bullish on gas, this is a solid name.
Say they can meet their generous dividend if WTI goes to $40. Balance sheet is fine. Likes it, but as oil prices bounce around, its metrics started to deteriorate. It's a good name as long as they execute and oil stays up. Yield is 10.5%.
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.
There is secular growth and they are cyclical. We are starting to make a turn. We are seeing good risk/reward in this area. He would be buying it here. He bought an EFT in the area just this week.
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.
(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…
Denison and Cameco (CCO-T) are the 2 Canadian operators of uranium mines in the Athabascan Basin. This basin has the highest uranium grade deposits in the world. There have been some significant new discoveries, and activity is starting to blossom again in the basin. The future of uranium supply lies in the Athabascan Basin. The…
Not cheap but he sees a chance for a double or triple. Rio Negra province in Argentina is a 10% partner so they have helped in permitting issues. Have extensive surface showings of uranium mineralisation. Low grade but very good and mining and processing is cheap.
They have a great niche in car security software. Another auto-sensor company was taken out earlier this week. As 5G comes, BB could be a takeover target. You could capture a bit of growth as well.
(A Top Pick Nov 15/18, Down 3%) Loves it. A fine 5-year hold or even 2-3-year timeline. The industry boasts 20% growth for the next 5 years.
A relatively small company that guided a little bit lower. The long term outlook is good and they just signed a term agreement within China. A good time to buy or add to your position here.
Their specialty is in antennas. People are excited about the opportunities when the industry moves to 5 G.
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.
Route 1 Inc. (ROI-X) TSXV
His third-largest holding in his personal portfolio. Has a product that goes into the USB port on your computer and allows you to reach into any computer, where you have authorization, around the world. Has been trading in a band of 3.5 cents to 5 cents. Currently at break even on earnings and cash flow.…
An ETF that holds Indian companies. There are 2 ways to play India. You can buy an ETF or you can go in and buy a particular stock. You may be buying things that the index doesn’t show, but that this company has access to.
Believes that this has bottomed. There is a lot of competition in this space, both from private companies and from public guys like Black Diamond, etc. Thinks that is coming to an end and there will be a little bit of consolidation. Players that have the best balance sheet will be the ones that consolidate…
They bought a UK company with their largest markets being the UK and Hong Kong. Those two markets have been depressed. It could turn out in the long run to be a very good move for NFI-T. He thinks their dividend is fairly safe at these levels. Longer term he thinks they are in a…
Drones. He wouldn’t want to own a drone maker, because it is going to be a Chinese industry. Instead of drones, these people are aiming for air rights, which he finds interesting. That is an asset you can’t replicate. Management is very, very skilled. They have built and sold a number of tech companies. They’ve…
Aimia (AIM-T) TSE
Because of overpayment of dividends, the BV per share has been sliding. Has a terrific yield of 8.7%. The dividend is covered, but barely. Doesn’t like these kinds of companies because it is like the ground is giving out beneath your feet. Has a target of about $7, but it cut through strong support at…
He held this in the past. It looks dangerous. He would wait for it to get down to the $1.35 level. It is almost micro cap and these companies can run into problems. Use the 100 day moving average. (Analysts’ price target is $2)
(A Top Pick Aug 26/14. Down 38.51%.) Right now they are looking at a merger with Novariant, a company in California. This is a Calgary-based company that moved to Kansas City, so there are more hoops to jump through, because the California regulators have to approve it. The GPS space is not doing very well…
This ran into significant trouble and were in a lot of fixed-price contracts that went over costs. They have had to totally restructure the company. Also, they are primarily a Western exposed company, and more on the construction side rather than engineering in the equation. Feels they have been overlooked. If there is going to…
STANTEC vs. AECON - He's studying the infrastructure space closely. He has no criticism about Stantec, but he prefers Aecon for its balance sheet ($260 million in cash) and low debt. And its new CEO has global experience, which is a catalyst for Aecon and will help them go global. He hasn't bought ARE yet,…
This is an ultra-low cost airline. The airlines have been doing very well recently. The chart shows the company is transitioning from one kind of company to another at around mid-December. He likes very-low-price companies but would be cautious about how much he would invest. Not more than 3% of his portfolio. He would expect…
There are all kinds of good things about this company. After NAFTA was agreed upon the stock has gone down. Issues in Europe should have been short term. It is perceived as the smaller of the auto parts companies. But it should be viewed as a metallics manufacture. They make products for oil and gas,…
Sold his holdings as he felt the company wasn't sufficiently forthcoming. If you own, continue to hold for the long-term, three years. Fully priced.
A provider of temporary workplace accommodation, primarily in Western Canada, in the oil sands. Likes the name and likes the space. Thinks this space is going to be growing 18% over the next 5 years because of the projects they are involved in. (See Top Picks.)
Earnings are inconsistent from quarter to quarter, but they have tremendous growth ahead, like building a plant in Brazil. They do grain storage and transportation for individual and industrial farms. Likes them long term say five years, but they can miss their next given quarter.
They are growing into Ontario. Their recent earnings really caught on with an impressive number. It was not even a full quarter of results from the recent acquisition. They have 20 year contracts. 16 times earnings. (Analysts’ target: $51.80).
It is interesting in the way they have transitioned their business to cultivation. It is on his radar. It has some possibilities down the road.
The risk is they own a bunchof U.S. real estate tied to medical practices and there were changes in the competitive landscape in some states. They bought a company recently that spiked the stock. He's met and likes the management. But they carry a lot of debt. He believes they'll sail through it, but the…
One of the 39 marijuana licensed producers. Has a small operation on Vancouver Island. Also, has property on the mainland and the goal is to build a new facility there and get it licensed. A new licensed facility, gets them into the Health Canada queue a lot faster. This company flies under the radar right…
Their numbers were up 13%. They have a device that looks at moles for Melanoma. They are now focusing on health and safety for workers. There is a pilot going on with Loblaw’s.
A fairly small company. Management understands the mine. They have some natural gas storage. The price of natural gas in Alberta has been depressed and at some points in the summer it was down to zero. Having the storage facilities allows them to hold the gas from the market until the price comes back. They…
Use this list wisely to identify buying opportunities.
Happy trading !!!