Air Canada, Canadian Imperial Bank of Commerce and More at 52-week Highs and Lows (Nov 06-12)

It was a smart call to spin out the Canadian operations from ALA-T. ACI has done reasonably well. He likes utilities and this pays a 4% dividend. As rates stay low, this will benefit. ACI's valuation is higher than some peers, but he would hold it if he owned it.

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…

It's the top-performing Canadian utility yet little known. Has momentum. You're paid a safe, big dividend pl;us modest price growth. It plays into the carbon tax. CPS's assets are gas, wind and solar which are higher-cost commodities to produce, so the carbon tax will hit traditional forms of energy and benefit CPX. He sees a…

(A Top Pick Feb 24/16. Up 51.06%.) A great business for the renewable side of things. This is going to be a long-term growth business. Selecting your entry point is going to be the most difficult part.

(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.

Wind in the North Sea. They started in Canada. They decided two years ago whether to put themselves up for sale and it did not go through. It has stable cash flows and there is potential for a rising dividend. Debt goes up when projects are build and then when completed, cash flow goes up…

One of the leaders in the space. They are buying a lot of the former Sun-Edison assets and transforming into a large solar element. As part of the Brookfield brand they are run very conservatively. Great place to be long-term if interest don't go up. You kind of have to make an interest rate call.

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They are fantastic asset managers. It has a great long term trend. You could buy a half position, knowing you might have to buy the rest lower. It has been a good position.

A Québec focused REIT. Payout ratio and debt are a little high. He really likes the way they really own their Québec market. If you believe in Québec, this is a good name to invest in. Dividend yield of 10%.

He owns no banks; it's a tough environment for them. Low interest rates will be a headwind. In the next 12 months, look elsewhere, but long term this is fine to hold. The banks haven't done anything in the last 17 months. CM is his choice after RY-T.

Pretty interesting business. They do fleet management. Sticky revenues. Their CEO resigned. They lost a major customer. One that where maybe there is a lot of value. Lots of Free Cash Flow. But would like to see until the dust settles. A very good business that he is not sure it is working.

(A Top Pick Jan 09/18, Down 6%) Can't control the market. Earnings were up 10% in 2018, dividends were raised twice. You have to own a bank, and this is their preferred one, trading at 9x earnings, grow earnings 6-7% this year. What's not to like?

This would not be his favourite. This is a multi-family REIT. Some of the ones he likes a little bit better have internal management and better balance sheets. If you are buying this, you are really buying it for the yield. You can get better risk/reward with similar yield with something like a Pure Multi-Family…

This is known as the niche brick and beam landlord in Toronto. 40% of their properties are in the downtown core. The name has pulled back recently, mostly related to the pullback in REITs. Also, 10 year bonds are backing up a bit giving a bit of consternation in the space. The name has come…

Should one buy Dream, which pays no dividend and has dropped significantly in value or just buy its managed REITs and be happy with the 8% distribution? Really depends on your needs. If you need theincome or happy with the capital gains. This is the asset manager that manages the REITs. It also has a…

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.

Chart shows it has had 2 little bottoms, and is positive that the downtrend has been broken. Financials in general have been pretty weak. Until this one breaks out of the downtrend channel, he would not start a new position. Rising interest rates help financials. Dividend yield of 6.3%.

Brookfield has generally done a good job with most of its companies, but this one has fallen off the radar a bit. It has a decent yield. There will be some projects fed into it from Brookfield over time, but he feels there are better opportunities elsewhere.

(A Top Pick Jul 25/19, Up 6%) Good for income investors. Though weaker than its peers, BNS at 10x earnings is still a good stock worth buying.

They've come back from the worst and re-orgnized their businesses. But they will be challenged. The banks too as home sales decline and those prices are flat.

The stock is cheap and he holds it in the portfolio. Trades at a low price to book value. Yield 4.5%

This tends to increase dividends in the 3rd quarter, so you should look for one in August. Anything related to the mortgage business is tied to interest rates. Although interest rates have come off currently, he believes their ultimate direction is up. That will put pressure on anybody who is related to that business. He…

TD-T vs. RY-T. TD-T is bigger than RY-T in the US. BNS-T is a bit cheaper. He is warming up to the sector in general.

(A Top Pick May 30/18, Up 3%) He liked it then and likes it even more now. Lifecos are a good defensive play at this time, especially when they are all so well capitalized.

In a good area Too speculative Watch for new clients

(A Top Pick March 26/15. Up 0.75%.) Their one and only mine is located in Turkey. A lot of people question about investing in Turkey. The company has about US$360 million in the bank, with no debt. Have a line of credit for US$250 million, because they want to expand their play in Turkey to…

(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 company is developing insecticides that are non-poisonous. The products have been tested by the 2 largest fruit and vegetable growers in the UK.

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

One of his favorites. Junior mining companies are on their knees. They get percentage of metal production in return for financing. Any operating cost increases are not borne by these guys. They have a war chest to take advantage of opportunities.

Mainly in Alaska and Arizona. Stock is generally not known. Project generation. Relationships and projects with several other companies. It spreads the risk.

This company has two parts: Containerboard and tissue. Both are cyclical businesses. Containerboard depends on economic activity: the more activity, the more boxes are needed. That industry is looking better, partially because of what is happening in the wood industry. In contrast, there is overcapacity of tissue in North America. Buying Cascades now buys tissue…

(A Top Pick Dec 14/17, Up 4%) They paid a special $4 dividend in the past year, but took a major hit right after. Also, US housing eased back; recently housing has come back. He's moderately bullish on U.S. housing. Demand is there, but finding land to build on and to build houses is challenging.

Good properties.

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…

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.

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…

One good hole and this stock will perform spectacularily.

The 4.7% dividend yield is safe and management is smart, but he prefers the parent, BAM, or BBU. All Brookfield stocks are very well run. They just bought an asset of ALA-T. They have a lot of cash and their dividend is safe.

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…

The management team has a great track record. They have met all their promises to pay down debt and increase revenue with better things yet to come. Yield 2.23% (Analysts’ price target is $75.18)

The market is angry with three companies with the same management. They are doing a fantastic job, though. They are going so strong that they don’t want to do any marketing. It has been pretty quiet from the news front. They have new staff that help them with licensing processes required for their expansion. It…

This equipment producer is active in Europe and Italy creating renewable natural gas from composting as well as methane collection in garbage dumps in North America. He likes their long term prospects.

Thinks valuations across the board are relatively stretched for these companies. Has some secular concerns when it comes to cable and telecommunication businesses, which have kept him out of it. You are going to see a tremendous amount of cord cutting i.e. consumers opting for skinnier cable packages or no cable package. That could significantly…

Ski-doos. Has a fairly mediocre track record at the moment. In hugely better shape than Bombardier (BBD.B-T).

The only death care stock in Canada. It is solid from the demographics alone but they are also consolidating within the industry. He thinks they will eventually be sold to a larger player. They have a good land holding. (Analysts’ target: $24.88).

This is a really, really quiet company. They don’t issue a lot of stock, the brokers don’t talk about it, it is pretty illiquid and doesn’t trade, but is a pretty solid company. Operate in hardware retail stores. Recent sales growth was 9%, but more importantly, was 24% in the US. Earnings per share went…

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.

A really neat little company. Good funding of their R&D. They have revenue and operating profits. Agreement with Cardinal will be good for getting tests done in US.

Continues to like this company. Provides connectivity software and hardware solutions in wide area networking. Tremendous growth. Expect them to earn $.10 to $.11 this year.

One of the leaders in the enterprise software market. They lost a big client in mid-2017. A good company. (Analysts’ price target is $93.92)

A heavy oil producer that has a lot of leverage on the balance sheet. It trades a relative cheap multiple, but he does not like the exposure to heavy oil. It is a speculative name in his mind that lacks the growth parameters they look for.

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…

It has been a while since he held it. He prefers owning the senior producers, when it comes to heavy oil. Their projects have not been well capitalized and they have taken time to get the Duvernay assets incorporated from the Raging River acquisition. Nothing wrong with it and they are paying down debt. There…

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.

(A Top Pick Jan 15/18, Down 71%) He would buy on weakness. They are hitting on a new play. It is one of the bargains of it. He would buy. The balance sheet is not an issue.

This is one of the four oil and gas stocks he holds. The company has very low capital risk and is a steady dividend payer. He thinks they can again grow the dividend next year. Very attractive at these levels. Yield 5.7%.

(A Top Pick June 8, 2017. Down 13%). Activist investors have gained seats on the board and are having a significant influence on management decisions. He thinks it is likely that the company will sell itself by the Fall, at a significant premium, therefore it looks like a promising short-term play. If that doesn’t happen,…

Directional driller. With higher gas prices, there will be an increase in drilling.

Looks like it is breaking out of a pretty good base. It has built a very nice base on pretty good volume, and it looks like it is ready to try some new levels.

A service company in oil and gas, providing a fairly essential service for them. Oil/gas companies will continue to use this for emulsion treatments. This is one of the more defensible franchises out there, which is why it trades at a premium. Long-term this is a good company and is probably undervalued, but in the…

He would not own SGY-T. There are other companies that hold better assets and purchase them at better levels. He would choose TOG-T if you are looking for a sustainable yield instead.

He believes this is the way we go greener. Uranium has been in a multi-year base. The industry will come back to life when Uranium gets back to $43.

A toss of the coin. It’s one of about 700 juniors. Interesting one. Difficult to say whether it will get to production. Would rather have Denison (DML-T) or Hathor Exploration (HAT-X), which has fabulous grades.

(Top Pick Dec 20/16, Up 101%) Their net backs are about the largest in the industry. They have beaten guidance and all the analysts have moved their numbers up. They are the fastest growing small cap company. If we get a lift in oil prices it will go up even higher.

This is so cheap and beat up, and it pays a dividend. The risk is up, not down.

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.

Yukon and Brazil. In production in Brazil. So beaten up due to it being a risk of trading time. Waiting for risk appetite to come back before buying.

They did a good deal with VII-T. They build long term assets before the stock got beat up. It has recovered nicely. If the price of oil comes down then it is possible after the winter we could see lower prices of $4-5. Hold off and wait until about late Q2 of this year.

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)

Pays a 14.1% dividend, but the street expects this to be cut. He has started to look at it. VET has international operations in Europe and Australia. Worth buying if you stomach a dividend cut.

He is underwater with this. He likes to think it is going to turn, and he’s willing to hold on. They paid down an awful lot of debt. It seems like a good speculative play, but he isn’t willing to put more money into it.

Very small and not something he would normally recommend. This is more of a science experiment at this point. He prefers the big brother Fission Uranium (FCU-T).

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.

A company he likes and has owned in the past. They’ve undergone tremendous restructuring over the last 5 years. Economies of scale are massive for a company like this, which has had an impact on their margins. As margins have grown, so has the stock price.

It had a big spike in the spring above $50. Right now, it's around $45. With the next earnings report, this could go either way, up or down. This stock could test the range of $38-44. It's volatile. Hold if you're long term. He expects this to test $44.

He would be selling. It has a very cyclical pattern on a value chart. It goes up to 4 times book value and then comes back down. It is at that point now.

He is a geological advisor to them. Consulted on a project in Italy, but it was not what he thought it would be.

Has an excellent package of properties with gold, uranium and nickel. A really good stock.

Using ground water sampling. It is a tool used in conjunction with geology. Together they find a target. They have only managed to pull in one partner. He thinks they need to bring in more to show the business model works.

(Market Call Minute) Loves it. Stock is cheap and feasibility study looks really good. Keep an eye on it.

All of a sudden there is a whole slew of interest on lithium, but thinks some of the stocks have gotten ahead of themselves. If you already own this, he would continue to Hold. The company has a particularly good project in Argentina, where there is a lot of lithium out of salt beds. They…

One of the best deposits in the US. 7,000,000 ounces at about 1.7 g plus an antimony (?) kicker with it. A fantastic deposit. There is a lot of questions as to whether it gets permitted or not but he thinks permitting goes ahead. Getting hammered by funds redemptions. Tempted to buy this again.

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…

Have one really high grade, base metal deposit in Ontario where they are drilling off a mass of sulfide in Alaska. Interesting deposit in that it’s good grade and the guy behind it is a very good geologist. Looks like a decent deposit.

It seems the hole went right down the throat of what looked like a structural intersection. Also, it was reverse circulation, and the recovery wasn’t that good. An interesting deposit and in the part of Peru that is very dry, which is part of the issue of getting diamond drilling there.

Lithium. Has a very interesting and attractive deposit in Argentina. It is the most economical form of lithium. It is not hard rock, so there are not a lot of costs and they can do this economically. Higher risk/high potential return. Management is first-class.

A lot of potential. Thinks they will attract a lot of attention in the coming weeks, but depends on how they do. Highly speculative, he does have a position in it.

Missed their production targets by over promising and under delivering. Still has great confidence in management and think they can get on top of the problems. Good silver projects.

Hope Bay gold project. He is the senior lender. Great management. High quality guy working in a tough environment.

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Rare earths in Kyrgyzstan. Was a pick of his at some point. (Don't have it in our records so not sure when it was the pick. Ed). Was never covered by analysts. Has sold most of his holdings. People will have been selling it for tax losses and will probably go a bit higher in…

A fantastic story. Have about 5 billion pounds of copper and gold. Cash costs in this environment should be about negative. Sees upside in this one.

Located in the Sugar zone in Ontario. They’ve drilled the top 400 m of their deposit, which has a decent grading resource at about 7-8 g a ton, and have about 4000 ounces. That means they have found about 1000 ounces per vertical metre. That is a pretty good metric for the start of a…

Likes the graphite space quite a bit. There is a move towards using graphite in electric vehicles and batteries, so the space is doing quite well. Have 4 deposits in Ontario with good proximity to infrastructure. Excellent management team.

A high quality exploration company, and has had a very good recent move. Had some very good results earlier in the week, and the market has responded well.

Has a phosphate/titanium deposit in Québec so this is the right geographic region. The grades are nice and the continuity is nice. However, it is a small company that needs to do more work to get their deposit developed. They have to go through studies. There is a feasibility study that is coming in the…

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…

Likes the production profile. Their costs should be coming down so they have a good growth profile. An underfollowed story. It's just a matter of volatility with the gold price. Some of these companies are an little bit higher cash cost producers so they are going to have the fluctuations along with the gold price.…

Gold assets in Canada but Saskatchewan coal discovery causing increase in price. Has too much market capitalization.

Has been a popular stock, Aurora is entitled to about half their production. High multiple, so same issue with supply coming down the pipe. There are some cheaper names, based on exports and production levels, such as Hydropothecary. Good company, but facing industry-wide issues.

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.

Their technology treats depression that's non-invasive. GTMS rolled out laser eye centres in the 1990s. They're growing in the U.S. rapidly. (Analysts’ price target is $6.00)

They have a great opportunity in Quebec where they've just secured a big contract to supply cannabis to the retail market here. There's a good chance of it being bought out. Stock is relatively cheap compared to the big 5 as this industry consolidates.

Robotic surgery. Intuitive Surgical (ISRG-Q) has a monopoly. This company thinks they have a better system. Have to go through FDA procedures. If it works they’ll be able to share the giant market. Have a long road ahead of them.

He likes it. It was trading sideways and then broke out. He thinks there is some multiple expansion. The last couple of quarters have gotten better.