Uni-Select Inc, Hydro One and More at 52-week Highs & Lows (Nov 23-29)
Canadian & U.S. Stocks Finish Mostly Lower With Chinese Protests in Focus. Investors looked toward protests in China and weighed the impact the unrest could have on the country’s Covid-19 policy. 52 week highs included Uni-Select Inc & Hydro One. 52 Week lows included Hexo Corp & Tucows Inc.
Here are this week’s 52-week high and low stocks on Stockchase:
52-Week High TSX Stocks
Here’s this week’s 52-week high stocks on Stockchase…
🛢 Basic Materials
May be starting to break out of its long sideways trend. Doing lots of exploration within current deposits, has expanded its high quality gold reserves. 1x book value. Yield is 1.13%. (Analysts’ price target is $13.38)
Foran Mining Corporation (FOM-X) TSXV
(Top Pick Jan 10/12, Down 5.00%) In general resource stocks have been difficult. It is with the crowd. Massive VMS deposit adjacent to Hudbay. At some point it will be developed and patience is required. Hudbay could expand by buying this one.
Large dividend yield (income trust format). Stock has under performed the past few years (large legal bills). Specialty chemical business with under-investment creating opportunities. Investing into R&D which will create new business lines and profits. Expecting cash flow and earnings to grow regardless of economy.
Canadian National R.R. (CNR-T) TSE
He's owned CN for years. They've struggled recently and have a new CEO. CN's network has the continent covered, so he prefers CN over CP.
Canadian Pacific Rail (CP-T) TSE
Uni-Select Inc (UNS-T) TSE
(A Top Pick Jun 30/21, Up 12%) He trimmed a lot of his shares recently. It's a turnaround story, having brought in new managers doing a good job. He's seen many companies in auto supplies run into supply chain shortages--demand is there, but not supply, so this is a near-term risk. Long term still looks…
Bombardier Inc (B) (BBD.B-T) TSE
There has been a stock consolidation. It has been transitioning into focusing more on the business market. A recession would be a concern through lag time in orders and deliveries. Has done well in the past few weeks.
Simpler portfolio with better growth if you own the individual stocks, where you get both the dividend and capital appreciation. With this one, you're playing dividend vs. capital appreciation.
Element Fleet Management (EFN-T) TSE
NA's largest fleet manager, also in Australia. Steadily executing. Nice, solid growth story. Even after the runup, trading at 15x, going higher. Yield is 1.72%. (Analysts’ price target is $19.36)
Great defensive company. Subscription-based services to legal, accounting, and tax. Even in a recession, those sectors need access to data to do their jobs. It's all about owning it at the right price. Strong numbers last quarter. Always trades expensively. Intellectual assets have high returns with low capex. Not a bad entry here around $125.…
George Weston Ltd. (WN-T) TSE
Low risk. WN owns the Loblaw and Shoppers Drug Mart real estate and accounts for half their earnings. A dull and boring consumer staples business. Trades at a 12% discount to its holdings in Loblaw and Choice REIT. They just raised their dividend by 10% today, though it isn't huge. They just sold their baked-goods…
Metro Inc (A) (MRU-T) TSE
High quality. Good package of grocery plus pharmacy. Very well run, reflected in ROE of 15-16%, better than most peers. Strong balance sheet, nice dividend. One knock is the multiple of 18x vs. market of 13x. Don't buy here. Wait for a pullback and buy for the long term.
Very profitable. ROE is around 30%, and has been high for a long time. Company has never used its potential to expand the business faster. Great value, but buying back stock at a high valuation. Go elsewhere.
Kraken Robotics Inc. (PNG-X) TSXV
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Cash position is strong despite revenues falling in 2020 compared to the large order they received in the prior year. Margins have improved. It continues to secure orders. High risk but doing many things right. Unlock Premium - Try 5i Free
CGI Group (A) (GIB.A-T) TSE
High quality. Outsourcing business brings costs down. Impressive global business. Lots of government work that's protected, so valuation hasn't come down. If you're long the name, keep holding. Always finds new verticals to work in.
Magnet Forensics (MAGT-T) TSE
Fascinating Canadian play in cybersecurity. Digital forensic investigation of devices via its data analytic software, primarily for police, military, and government. Spotty on earnings power and profitability, so he doesn't own it, but follows it. (Analysts’ price target is $33.80)
Hydro One (H-T) TSE
Some avoid utilities as interest rates rise. However, Canadian utilities have done very well due to the Russian invasion. So, investors seek defence in this sector. Valuations here are a little rich. He likes Hydro One for stability. He also likes clean energy like AQN, which he trimmed a little. Clean energy will come back…
52-Week Low TSX Stocks
Here’s this week’s 52-week lows stocks on Stockchase…
Chain of cannabis dispensaries, solely in Canada. Deep pockets, due to investment from ATD, which taps into smart management but caps potential. You want to own the integrated operators that go from seed to store. He owns CURLF instead.
CloudMD (DOC-X) TSXV
Interesting story, 70M market cap. Took goodwill impairment of 84M, as a result of acquisitions. Follows it, great business model. Difficult investing environment right now. (Analysts’ price target is $0.48)
Hexo Corp (HEXO-T) TSE
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.
🛢 Basic Materials
It looks interesting, but is too small for his funds. It has under-performed for the past few years. They are in the right place at the right time, but we need to see some good drill results soon.
TVI Pacific Inc (TVI-X) TSXV
10 years ago he owned it and did very well. He got interested again, but he can’t reach the company over the last two weeks. Lost $2.2 Million this last quarter. He is watching it closely. 450 Million shares fully diluted. He wants confirmation they will not do a concentration.
Falco Resources (FPC-X) TSXV
A project that is effectively right underneath the Horne Mine Complex in Québec. Originally it was very low grade gold and copper, so in order for this to be economic, they have to be able to mine it using bulk mining methods, and keep the costs as low as possible. That would entail blockading. He…
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.
First Mining Finance Corp (FF-T) TSE
(Market Call Minute.) Great execution with a $500 million market cap. Thinks it is ahead of itself. It is expensive.
Fortune Minerals Ltd. (FT-T) TSE
He met with management 7-8 years ago. The difficulty is that it’s been around since 1988 and revenues have always been a difficulty. They have no production. Expects there to be quite a bit of dilution. He doesn't invest in companies without revenues.
Arctic Star Diamond (ADD-X) TSXV
Blue Sky Uranium Corp (BSK-X) TSXV
(Top Pick Jan 7/07, Down 63%) Uranium project in Argentina. Still working on it, but grade is not quite what he felt they needed so sold out.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A nice quarter overall with 40%+ growth. Sales rose to $23M and beat estimates of $15M. Margins rose. Loss was higher than expected and the balance sheet remains quite stretched. Unlock Premium - Try 5i Free
Tucows Inc. (TC-T) TSE
(A Top Pick Jul 29/20, Up 17%) #2 in the domain business. A cash cow. Steady and predictable. Also have a mobile business and a fibre business. In this environment, expects them to have many more installations and business should boom. Top management. Would buy at these levels.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A plant-based baby nutrition company. Deal with Walmart has been positive development, giving them higher exposure. Trading at 15x sales, which is expensive considering the current revenu base of $1.8M. Has had a good quarter. Balance sheet looks good and sales should see strong growth.…
Gas play in Hungary. There is gas there but can you get it out and can you do it economically? It is very deep. Exxon is a good partner but a slow one.
Africa Energy Corp (AFE-X) TSXV
Use this list wisely to identify buying opportunities.
Happy trading !!!