Aritzia Inc.,Enbridge and More at 52-week Highs and Lows (Jan 08-14)

Is there any growth in the investment business? AGF's balance sheet is too big for what they earn. Potential write-offs must happen to bring that down. Asset management businesses are being killed. $10.84 is his target price--lots of upside and they can cover their dividend.

A big Canadian mutual fund company. A go-go stock for many years and a fast-grower, but is now under pressure like the sector. Still produces a lot of fresh cash flow. It's in trading range of $18-23. Pays a nice dividend.

Dream Office vs. Dream Industrial Never a fan of Dream Office, which had a lot of Alberta exposure. He prefers the industrial side, which has performed better and faces little competition; there are only 3-4 industrial REITs in Canada. Hold both, don't buy or sell.

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.

They grow by acquisition, some smart ones, but the asset management business is tough, given ETFs and robo advisors. Nothing against Fiera, but the sector faces these hurdles. He's watching Fiera.

It has performed exceptionally well over the last few years. He thinks there is still room to go here. They still trade at around 8 times earnings whereas peers are 12 times earnings. When the cycle does turn down this stock will turn down, however, because their loans are to those with not the strongest…

Likes it a lot and recommended it a few weeks ago as yields have been bottoming and flattening out. Yields will rise long-term, he predict, which will benefit lifecos like this. GWO broke its downtrend at end-2018, rose, hit a second bottom (a double-bottom) and is now accelerating higher.

Will do well if interest rates go up. A lifeco that offers financial services. Scores in the top 25% of valuation with decent price momentum and volatility. (Analysts’ price target is $60.89)

(A Top Pick Oct 26/18, Up 37%) It was defensive at the time. Markets were falling. Even at these levels, it's trading at 15x and growing at 15%. On a price to growth basis, still a good opportunity in a fragmented market.

Very focused. Have positions in 4 life insurers and they are running a covered call program against the existing long positions. Going to have volatility given its exposure.

Not a quality growth company. MFC is too hard for him to figure out. He'd rather buy a Canadian or American bank like National Bank.

He was a shareholder when they announced their dividend cut last year. They had a hiccup when they tried to re-purpose storage tanks. The dividend is more sustainable than it was before. With the transition underway they have converted a number of storage terminals. Their aviation services business is a much more stable business and…

It's one of the best looking bank stock. It looks more like an insurance stock. A nice 50% increase from the bottom with a good dividend. There could be more upside looking at the chart pattern. Not a very volatile stock.

Onyx has done a good job on their portfolios. She has been playing this through KKR-N and Brookfield to get these secular drivers. They have strong alignment with shareholders.

SLF vs MFC When he values lifecos, it's on price to book, dividend yield, or price to earnings, rather than price to cash flows. Sun Life trades at a premium. His preferred lifeco is Manulife, because of a discounted valuation plus a better business overall because of its Asian business. Wealth management is also better,…

He does not own this one, but holds their debenture. There was an issue with one of the subsidiaries and the holdings are doing better now. It is not approaching full valuation -- near $22-$24. He would buy on weakness -- somewhere around $19.

Owned this for 6 years, but couldn't understand why the 8.2% yield was so high. If there's a bump (a bad earnings report), he worries what would protect this. He means 120% in over-distributing. Great properties in eastern Ontario and Quebec, but it's hard for them to grow.

A large company in commercial real estate. Barely pays a dividend, but offers an 11% free cash flow yield that's and growing 91% YOY. It trades at 8x trailing cash flow and boasts a big 25% return on capital in Q4. Earnings to grow 11% in 2020. (Analysts’ price target is $107.83)

A hold. A tiny REIT with a yield that is too high to sustain. They did a portfolio acquisition of retail mall space in Quebec -- the wrong asset at the wrong time.

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.…

Doesn't like these split-stocks. Why are these ETFs paying a higher yield than the stocks they hold? That's a red flag. One reason is leverage. Sure, you get a nice return, but no price movement. These are very complicated. Doesn't like them.

More upside? He took profit a while ago. It has great price momentum, but the low ROE, high valuation metrics, and high debt levels make it look very expensive. He would like to see it pullback before buying in again.

They do benefit plans and pension plan management. They expanded in the US. He thinks there is going to be slow steady grow. Low risk, high quality investment. Solid.

(A Top Pick Jan 07/19, Up 20%) One of the hottest retail stocks out there and will be on a roll for many years.

Nicknames it Hit By A Car like its chart. HBC is all about its real estate holdings; that's the reason you own this. Doesn't know if the current rally signals a buy. Can't predict this chart. Even consider selling it.

It broke above a key trading level and suggests more upside to come. Your downside is to $33.76. He would buy on weakness.

Chemical stocks have strong seasonality from late-January to early-May, based on seasonal demand. The chart shows higher lows as it approaches $12. This looks good.

A heavy equipment dealer. He is looking for a cyclical recovery next year. They are a distributor for Caterpillar and other heavy equipment. Really good operators. Yield 1.58% (Analysts’ price target is $69.50)

He owns this and has recommended it in the past. There are rumours there may be a large merger coming for them. He will continue to hold it from here. They have historically taken mergers in the past and tucked them in an accreative way.

Likes it. The only publicly traded storage company. Pricing has risen. They've made accretive acquisitions. Not cheap now and fundamentals need to catch up. Really like this story. Hold for the long term; probably a US company will take them out down the road--at a premium. Lots of growth ahead; not a yield play.

This is going to continue to be a story that will grow attraction. This is not his favourite way to play it. TSLA-N would be his preferred way to play it.

(A Top Pick Nov 22/19, Up 7%) Bit of overhead resistance now. If it starts to fail at current prices, they may have to ditch it. He's keeping an eye on it.

Not a long-term hold. Near-term is okay. It's quasi-cyclical. If housing dips...oh boy. He owned this 30 years ago. A good operator with good product, but the macro environment is not good. If a recession comes, sell. Hold.

Global warming will cause more disasters and there will be a need for infrastructure. They were in the penalty box but have started turning around since the last quarter. The acquisition was written down and got burnt, but now the company has environmental and infrastructure. (Analysts’ price target is $38.41)

It has been hitting record highs. It is among their top 5 holdings They upgraded their fleet. Their purchase of Aeroplan will be very accretive. There is room for them to grow nicely.

(A Top Pick Jan 04/19, Up 37%) He recommended it at a low point last year. Today, it moved well. He strictly trades this stock and is not in it right now. However, he has made 30%-50% trading it in the past. He's getting his feet back into energy but he would prefer other names.

Announced they will be testing a well in the key area for the Abiod in Tunisia. Will be testing 3 zones, so are quite confident they are going to have something. If they find 500-1000 barrels, the stock has done quite well. Likes the company and has a target of $0.55. Information will be known…

He considered taking a run at it at $0.40. It has money in the bank, no debt, he likes what the management is doing. The absence of debt limits the downside risk, making this a reasonable spec, but he doesn’t see much momentum at this time, partially because of regulatory issues.

Likes the pipelines. It's broken out. Could hit $60. What's not to like? The sector seems to be catching a bid right now. Yield is 6.14% (Analysts’ price target is $55.79)

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He does not own this one, despite the earnings metrics looking solid and there is no net debt. They missed on a recent quarterly earning, but not a bid deal. They are trading at 7 times cash flow and 7 times EBITDA. He would like to see the ROE improve a bit. Price momentum has…

A fine IPO performer; they did a good job to ensure that private equity fund involved got cleaned out, so that overhang didn't happen. They just put out a strong report with good international growth. This may be added to an index. Not a cheap stock, but they boast earnings growth and a strong brand.…

(Market Call Minute.) Volatile stock and you can hold it if it hangs in there but be careful.

Don't get scared of parabolic moves. The chart looks very good. It has shot up in the last 6 weeks. Its next move could be just under $6 pretty quickly. Relative strength vs. the S&P looks very good. However, expect volatility. Own a small holding.

Still trending up to 60 cents. There's runway ahead. Moving averages point higher.

It is on his watch list. It has been there for a number of years. It has not done very much but once in a while it perks his interest. He is going to do a review in the next couple of weeks and it may move it up then.

He is attracted to their exploration ground and their joint venture. They have worked well.

Has no current plans to own this. Has a high regard for management, but his suspicion is that their cost of capital is too low. He sees them having a very difficult time thriving in the next 18 months. There are much better names out there.

The strip ratio is a moderate-high 7.5:1. Metallurgy is an issue. Brent Cook: The issue here is that the higher-grade ore is very dirty which makes it an issue to process. Nearby hydroelectric facilities and better access will take their capital costs down a lot. An interesting play at an reasonable price now. They may…

This has a diamond project in Saskatchewan and have been working on it for more than a decade. It was a pretty decent company and had good potential for future development, but the diamond industry is extremely difficult. Cash needs to be raised and you have to perform up to expectations. A pretty high-risk play.

She has not owned any gold for the longest time. She has been looking for opportunities where they can go higher without the commodity going higher. She is not sure about Equinox and it has not hit any of her screens yet.

Likes management. Note that there is nothing immediately happening. It’s not something to chase, but just accumulate over the summer. Turkey is not bad at all, it is a democratic system. Their mining code is working. He thinks they have permitted 10 mines in 10 years. This company is technically very, very competent. Sitting on…

He believes it is fully price, but going higher. The recent acquisition is the first part of an amalgamation strategy. He has confidence it will be successful.

A copper play in Arizona. They put acidic solution in the great to dissolve the copper then recover it. Upfront capital is low, so there's a potentially high return later. They have key permits in place to turn this project around. Their 2016 study implies a 40% return.

In a longer-term uptrend, but he sees consolidating ahead. This is one of the better mining charts. Has good leadership. This will push higher eventually to $10, but he expects a wider market pullback soon.

If there ever was an extreme niche, this is it. They gather the pollen and special powders to deal with the fields and nasty pesticides. 90% of the world’s commercial greenhouses actually buy hives of bees.

(Market Call Minute.) Small-cap nickel in Australia. Too small cap and has some technical issues.

Logistics business. It is software as a service with 90% of revenue is recurring and growing rapidly. Online retail is a new sector for them. It will grow for many years.

They sold their position due to the inconsistency of their results. He is watching it again, especially now that the momentum is improving. He is not buying yet, but will keep an eye on it.

Time to buy? A stock that had terrible debt over the past couple of years. Over the past year, valuation metrics are expensive. The Q4 rally may be a sign it has outrun its performance. He needs to see earnings play catch up. This would be neutral at best.

One of the challenges is that it has had a huge run – 35-40%. It is at the point now that it is acquiring bigger companies. It is a quality outfit.

Up 190% in the past year--not normal. He bought it in the $80s, but won't buy it now (nor sell it). Yes, it could be an Amazon and go to $2,000, but the downside risk is also huge. Too high. Wait for a pullback, at least.

A former top pick. It's had a nice run this year. It's a real estate service company transforming into a tech, the Bloomberg of real estate, that's growing by double-digits. A good one to hold for the long run. Good managers.

(A Top Pick Jul 27/17, Down 6%) Volatile. It's come down a lot, but there's a lot of upside ahead. Well-managed. They can make accretive acqusitions. Their problems integrating some businesses are behind them and they now have a strong runway ahead.

It has been a good story. It is a Canadian national champion. The only challenge he has is that his clients have an ambition to have a dividend. He would buy it if they initiated a dividend. If you don’t need one, then it is one to look at. Look for a better entry point.

Payout ratio is 56%. Sales are declining by 25% and earnings have fallen by 67%. He would be cautious and would look elsewhere. Yield 13%

It is insanely expensive. A good company and a great Canadian success story. It will probably have a good quarter. SAP is launching a similar product. There is always a possibility that they get taken out but it would be hard to make it accretive.

Had a large uptick in the first half of 2019, then fell, then jumped up again in October 2019, but since then has done nothing. May to September is seasonality. Chart shows the same, consistent pattern in past years. Hold off on telcos until seasonality. Pays a 4.6% dividend.

The London Stock Exchange has been interested in acquiring them, which he thinks would be positive. He would consider holding for now and decide if holding shares in the Exchange makes sense in the long run.

A great chart. It's trending higher, though looks a little stretched. BLX is a bond proxy, so collect the dividend. Short-term, he expects a pullback, so investors should floor into this. This should be a relative outperformer. Great chart.

He likes to buy stocks that are in an uptrend and a good valuation. CPX is a stable business, but at 10 times EBITDA and 22 times earnings it is too expensive. The payout ratio and yield are pretty reasonable, but it carries a fairly high level of debt. Yield 6.22%

It isn't moving with the markets. It bottomed at $12 in October and has broken out nicely since then. Interesting. Will meet resistance at current levels. But it has the potential to reach $16-17. People are buying it for the decent yield. Looks good now, but dangerous if it falls below $13.25. Take a break…

He feels all cannabis stocks are gambling stocks. A maturing debenture is expected to keep downward pressure on the share price. There is no assurance that any existing company will be a survivor -- it is simply too early. No one is making money in this space. Without being able to predict revenues and expenses,…

A leader in the cannabis sector. They're extractors of CBD oil for medical purposes. All these players want to come in, but the bottleneck is in obtaining the oil. See the CNN documentary to understand what they do. Earnings trend has just begun, as when Prohibition was over. (Analysts’ price target is $30.82)

He avoids the cannabis space now. (He owned some early on.) The market here is too small here. He's keeping tabs on some names. It's still tax-loss selling now. He needs to see how these companies will be profitable. He'd rather buy the US weed stocks--a bigger market there. Avoid this space.

Competition from Teck? Teck has announced it will potentially be increasing shipments in competition against them. This has moved the valuations right to the top of his list of buy prospects. It trades at 8 times earnings. A cheap cyclical stock with a low dividend payout ratio. Most of their coal them move is for…

They market is for drying harvested marijuana. About 20% of warehouse space is used for drying. Their technology radically speeds up the drying process, allowing for much higher production space. It helps reduce working capital as well. They are signing up lots of business and expanding in Edmonton. Great opportunity going forward.

There is so much concern on quality of earnings and when the companies will be profitable. He wants to see the industry mature. He likes it long term. The health side of this could be revolutionary over the next couple of decades.

They have a lot going on in their greenhouse and outdoor operation. They have a deal with Scott's Miracle Grow. He sold off and may buy back in.

He has been looking at this as it has become more attractive now. A mid-tier producer that has stagnated when a partnership did not materialize. They are involved in the specialty pharmacy business which could grow into the mainstream in the future. They could be bought out in the future.

For tax-loss selling? It's disappointed the market. But it's time to look at it. They should take the company private; the share price is so low, so disastrous since its IPO. Existing owners could buy it all back. Overall, retailing is a difficult space now.

Problem is the highs are getting lower and the lows were getting lower. Stock is possibly consolidating. But you really need it to break out. An OK entry point might be around $50-55. Not the kind of stock he buys.

Their project near the coast of Nunavut has run into issues with the metallurgy. The process they've used hasn't worked. Until they turn this around, the deposit is in trouble.

Met several time with management. Likes the management and the company. Started to have some good results. Have drills turning. Given quality of projects they have in that company, it is just a matter of time. Mexico.

In the military services type industry. He used to own this. They just signed a contract and the stock price jumped. If that contract pans out, then the stock is going higher for sure. You want to make sure that it is real. Sometimes companies announce agreements and they are not as great as they…

Best quarter is the last one, which ends in February. December - May is optimal holding period. Lately, it's been trending lower. No reason to be enticed just yet. Want to see support at major moving averages.

They have done an excellent job executing. They have been working on a number of different products. They have been a leader in Canada and will continue. It will depend what happens with the new products.

They're working on a phase two test of a new drug, but the results are delayed, which has hammered the stock by half, though it's moved up 16% today. Results should be released in mid/late-January and he expects them to be positive. The drug will address a huge population who suffers high cholesterol. He sees…