Royal Bank, Lightspeed POS and More at 52-week Highs (Nov 18-24)

A long drive ahead of it. Not the best brands in their dealership package. Overextended, so it's having a garage sale. Exposed to the west, which is struggling. Canadian consumer is one of the most indebted in the OECD. Economic cycle is still questionable. An alternative is APR.UN, with about an 8% yield. They own…

The dividend was very high, almost too high. The dividend was illuminated and the stock price took a hit. They are active in the alcohol space and marijuana. Have been raising money, and could be a potential acquisition for Aurora.

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…

Very cheap, trading below book value. Balance sheet is a little heavy. Great yield. Historically miss earnings. Consolidate a declining industry and try to rationalize it by cutting costs. He holds if for the yield and the valuation. Have to be patient.

He knows it very well, back to when they were private. They continue to build out. If they can allocate capital well, resulting in animated programs that are well-syndicated, then they should do well. If not, then this will be a lumpy stock. He needs to research them more.

There is a lot of froth in the green space area. He thinks there is a shift to people wanting to trade these at a premium. Longer term it makes sense to hold this, but be careful chasing names in this space.

Some of the downside momentum in the sector has stopped. This is certainly one of the companies he would look at. It looks like they are executing and growing.

He owns CNR instead. Some of the best businesses ever. Can increase prices, diversify. Hard to compete against them. E-commerce explosion has created backlogs. Good stocks to own going forward. Quality company, good management. Sees many years of good returns.

His favourite manufacturing stock. LNR makes transmissions for Ford and GE pick-up trucks, so they're at the forefront for the car industry. They also have products for e-cars, like an electric axle. Their SkyJack division is rebounding with the construction business, and their fire machinery business is positioned well in the coming recovery.

Are they positioned for the e-car sector vs. their peers? Magna is better-positioned vs. Canadian auto suppliers. They have a balance sheet advantage, which is clean, and they have global partners entrenched who are all moving to e-cars. Magna doesn't advertise their business in e-cars, but he firmly believes they are involved and will be…

He prefers services companies to producers. Existing wells decline quickly. Services companies have gear that you don’t have to worry about it declining. Insiders have been buying more recently. This one could be the last one standing.

He owns it in some of his portfolios. They were vegetable growers in the past. Their costs are down fairly low. He is waiting to see what they will do in the next quarter. Their sales price should increase as they sell more directly than in the past. Their low cost production will become more…

They were rallying last week after boosting their forecast. We have resistance just under $5. We are almost at the 200 week moving average. Wait until it punches through $5. It has been going up against the S&P since March.

They did well, but then missed some quarters. (So has NFI-T.) Margins have dropped in the bus space. He exited 18 months ago. Cities may be holding back on bus orders as they decide on whether to buy e-buses or not. There may be pent-up demand.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has been growing revenues well and has paid off a debenture. Revenue growth is expected to pick up and the company should be profitable this year. Trading at around 10x revenue and 41x expected earnings. A good prospect for the battery space. Unlock…

(A Top Pick May 08/19, Down 25%) A tough environment for them. They sold out of their holding last June around $22. They were having troubles rolling out a South American strategy so opted to move on.

Earnings expectations are for a $0.14 loss this year per share, compared to $1.23 from last year. The company has recovered to strongly on the US housing market recovery. Based on historic valuations relative to book value he sees a range of $11 to $16 for the share price. It has a good balance sheet.…

Doesn't follow the name super closely. Positives in the industry. Good growth trajectory. Still a good name but volatile, as it's tied to the price of the commodity. Low interest rates should benefit it.

Q3 earnings were really good, strong free cash flow. Had layoffs, downsizing. Still a very cheap stock at 9x. There's room for this one. Big move in last 2 weeks, so wait to add. If you have it, hold it and enjoy.

Allan Tong’s Discover Picks ITP stock 3.82% dividend yield based on a 51.75% payout ratio. Cash flow is strong. The PE has ticked up from 10.11x in late-March to the current 13.9x, but is far below the 20.68 of September 2019. It reported a winning report last week and hit fresh 52-week highs. Intertape offered…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Comes with risk but has good potential upside. 5i likes it quite a lot. A good medium term hold. Unlock Premium - Try 5i Free

The overall yield is 5.8%. The dividend seems to be well covered. The earnings for last quarter were 33% higher than expected. The outlook for the company is pretty good. The acquisition could offer good synergy.

(A Top Pick Dec 11/19, Down 5%) You want to buy commodities when they're forgotten about. Retail was the reason for the miss. Some investors worry it's a structural issue, but he puts it down to Covid and weather. Still likes it, but sold half his position for other industrial plays. You get paid to…

(A Top Pick Jul 16/19, Up 1%) It's the best performer of the big 5 banks and pays the second-highest dividend that'll make up most of returns. Don't expect share appreciation in banks, but still a solid business with banks getting a piece of the equity management business. But the lending spread will be challenged…

A leasing company run by Steve Hudson. They did a $265 share buyback late last year, then in February doubled their dividend. Low interest rates will help them. It took a while, but the stock is moving up these days. (Analysts’ price target is $5.39)

It's unique in Canada without peers, really. They haven't issued much stock in recent years. Note that in Q3 in the middle of the pandemic, they had record charge-ups on their financed loans--they know how to finance loans and make money. They know what they're doing. The PE is cheap and the returns are through…

Has been tempted to buy it for the valuation, but cannabis and bitcoin generated a lot of revenue for them, but that's since come off. Also, there's the UK headwind. It faces some rocky months ahead. Don't buy it now, but things will shake out in 12 months. Buy it at 0.75 book.

Involved in nonstandard automobile/motorcycle insurance as well as home insurance. BV of around $14.37 but Tangible Book is $13.50. No debt. Overly capitalized by over $35 million. Stable management. Basically Canadian, but their big driver is Europe. 25%-30% growth. Will probably earn about $1.30 next year. Have an option of putting in a dividend, free…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Their Q3 report was very positive and beat estimates. The revenue forecast is 40% compared to last year. The EBITDA forecast is nearly 75% of 2019 levels. The stock should start being more noticed. Unlock Premium - Try 5i Free

Tough year for the banks. Q4 will be released in a few weeks, and you never know what you're going to get. Brighter days are ahead, and the market's already figured that out. BMO is not his favourite. Prefers National, TD, Royal. You'll do fine with the Canadian banks. Some concerns around fintech. Low interest…

A competitor to Xebec. They are expected to break even in 2021. He prefers Xebec. Both are bidding on books worth 1B.

It's a real estate play on medical facilities in the US. It was overleveraged a few years ago, then COVID declined their business, which are non-essential surgeries. But they're still profitable and paying dividends. He sees upside.

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

Tomorrow is the last day for trading because it has been taken over by TCN-T and he will be tendering all his stock.

Analysts see a target of $4.25. He is more cautious based on how vibrant the economy will be. Their business is focused on base metals like copper. Commodities will likely be in a sideways range for some time to come. Earnings are negative and expected to be down over 100% this year. This is not…

Interesting. There are two classes of nickel: good and very good, the latter used in batteries for e-cars--high demand. TLO has a deposit in Minnesota that could be fruitful in the next three years.

Operates in Trinidad. It is a highly prolific energy producing region with an 80% success rate. TXP-X have four wells they are drilling and had two successful natural gas discoveries and will be drilling the other two later this year. (Analysts’ price target is $1.27)

(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.

Copper pricing seems to be Firming here. Commodities are starting to come off from a bottom here. It is 9 years into a bull market and into a recovery. If you are going to play it, this is probably a not bad place to be. Copper looks interesting here.

Mongolia. Optimistic themselves. Can’t give advice.

A risky stock that’s driven him nuts. He bought it around $10.96. It’s finally breaking out. Copper stocks could do well although his exit price is around $11 which could move up depending on how it performs. (Analysts’ price target is $15.47)

This is a zero, although not priced there yet. That is where it is going. It has been a lousy company for a long time. Madagascar will prove to be their undoing. They defaulted on their debt in February. Their debt is currently worth 54 cents on the dollar so the stock is worth zero.

He's learning as much as he can about this stock. He's nervous about little markets with great, big technogical promise. This could be a good market performer this year. Perhaps own this for the long-term, but knuckle down and learn what this company does with aluminum alloy technology.

Junior exploration company frilling in Baffin and high arctic. Some interesting geology. Worth holding onto. They will one day make a discovery. A well-run exploration company.

They hold Quebec assets. They just reported a quarter that blew away expectations. The iron ore price has bounced back, and CIA produces high-grade iron ore, so they fetch a premium price. Also, transporatation costs have declined in the last month. If China comes back into the fray, CIA will enjoy huge growth. (Analysts’ price…

Their South American deposits are huge and demand billions of dollars in capital to build. They are copper-centric, and copper prices are low now. It's a great speculation over five years. Not for the short term.

(A Top Pick Jan 23/20, Up 14%) It's been a crazy ride, bouncing up and down sharply since its IPO then during Covid. It delivered a stunning second quarter in the middle of the pandemic, growing 70% which stunned the markets. They shifted business online. They put in a U.S. IPO which investors gobbled up…

Target of $45.40. Cloud-based learning management platform. Strikes a chord during these Covid times. Amends traditional corporate learning requirements. Risks, as it's a competitive field. In right place, so they've done well. He's watching it.

Blockchain ETFs? He loves block chain and has about 7% of his portfolio. He likes HIVE as they are a miner of block chain coins. Global integration is just getting going. The technology will benefit from the way global markets will go forward. Imagine if gold could have a tracking system for physical it would…

They own the Rosia Montana gold mine in Transylvania. Have been trying to get permitted for approximately the last 10 years. This is going to continue to be an uphill battle. The resource is tremendous but he feels this is stuck in the jurisdiction where they don’t want the mine to go ahead. If they…

With if they drill a high-grade hole in the Ivory Coast? The market would do very well. SME is backed by the most successful exploration financier in this era. It's an interesting project with mixed results. If they hit a deep hole, they will do very well. He's attracted to it.

It is pure extraction. There are probably 3 or 4 of them. They are a leader. There are not too many companies here that are profitable and these guys are one of them. They do toll extracting for clients as well as getting their own Cannabis and extracting from them. They make a great margin.