Constellation Software Inc., Fortis Inc. and More at 52-week Highs and Lows (Archive From Sep 04-10)
It’s been a trader’s market recently, with wild swings on all the major indices. Today, there was promising news on the US – China tariff front with China stating they would loosen their foreign investment policy. This week, utility stocks such as Atco Ltd (ACO.X-T) and Canadian Utilities (CU-T) are at their 52-week high as investors continue to favour defensive names. Others include dividend paying stocks such as Brookfield Asset Management (A) (BAM.A-T), Dream Industrial REIT (DIR.UN-T) and Sun Life Financial Inc (SLF-T). Constellation Software inc. (CSU-T) is once again continuing at their 52-week high.
On the other hand, Centric Health (CHH-T) continues to fall lower. Marijuana stocks have also experienced a decline, with Canntrust Holdings Inc. (TRST-T) 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…
This is effectively a utility and benefited tremendously from the safety trade with bonds coming down from 4.5% to 1.5% 5 years ago. Stock recently dropped because of a rebalancing of portfolios. Expects we will only see higher interest rates for many years and this does not speak well for this company.
Algonquin Power & Utilities Corp (AQN-T) TSE
He likes this stock a lot. It has been making higher highs and higher lows. He thinks another intermediate stock rallies about to begin so would be recommending this "risk-on" investment. He would be patient and buy on weakness near $16.
Boralex Inc. (BLX-T) TSE
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…
Canadian Utilities (CU-T) TSE
It is one of the stocks he owns across his client base. They are trading at a slight discount. The government in the prairies is funding clean energy that benefits CU-T. It is suffering the Alberta oil price.
Emera Inc (EMA-T) TSE
Sell Visa to buy more EMA or buy an American utility? He's struggling with what to do with EMA. They just cut their dividend growth to 3-4%. They continue to do good business in the SE U.S. It's stable and steady. He wouldn't buy more Emera or American utilities. If you want exposure to U.S.…
Fortis Inc. (FTS-T) TSE
It had a nice run on lower interest rates and the safe haven status. It is probably a better time to take some profits than to buy in. But don't get rid of all your utilities. This is a good time to take some money off the table.
Innergex Renewable Energy (INE-T) TSE
(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.
Pattern Energy Group (PEGI-T) TSE
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…
Naikun Wind Energy Group Inc. (NKW-X) TSXV
A wind farm developer. Have a big project, 1.75 GW, on Vancouver Island, which hasn't started producing it. Doesn't believe they have the permitting or authorization nor are their transmission lines. A very premature company.
Thinks there is a lot of disarray in the company right now. Cut their dividends earlier in the year.
Allied Properties REIT (AP.UN-T) TSE
(A Top Pick June 23/15. Up 13.18%.) Usually an outperformer, but the market has been up at the same time by about 11%. Has added more just recently. Still has growth going forward. Very urban focused, Class I office with retail components.
Artis Real Estate Investment Trust (AX.UN-T) TSE
Haven’t looked at it for 2 years. REIT sector hasn’t had great tailwinds, with rates going up. But now REITs have outperformed the TSX. Artis reissued securities, has assets in the US. Balance sheet getting a bit better, solid management. But company is unfocussed. Other REITs are doing better. Struggling to find its identity. Avoid…
Brookfield Asset Management (A) (BAM.A-T) TSE
When will it go below $60 for me to buy it? Maybe never. Sometimes just buy a stock and don't wait for it to pull back; the stock could keep rising. BAM is one of the best stocks out there. Pension funds and endowments love these infrastructure stocks with steady earnings for a long time.…
Choice Properties REIT (CHP.UN-T) TSE
A spin-off from Loblaw; most properties are Loblaw locations. The interesting is the merger with another REIT. Good thing is the wider exposure to other sectors, but the bad thing is losing focus from the grocery retail sector. Overall, the merger is a good thing--it's a more liquid company. Over time, should see higher multiples.
Crombie Real Estate Investment Trust (CRR.UN-T) TSE
He likes that their portfolio has a lot of development potential, especially in the Safeway portfolio that they purchased. The market however has been very harsh on this because of their relation with the Empire group and the grocery debacle. He doesn’t think the grocery is going to fail. This means you are buying a…
CT Real Estate Invest Trust (CRT.UN-T) TSE
Has some good potential. A little expensive at the $11 range, but on any pullbacks, he would Buy. 5.86% dividend yield.
Dream Office REIT (D.UN-T) TSE
It has struggled. They had quite a large portfolio in Alberta. It recovered over the last 6 months. He has never really liked this REIT. It still does not have the greatest assets. They cut their distribution and that caused the fall. The yield is sustainable now, however.
Dream Industrial REIT (DIR.UN-T) TSE
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.
Dream Global REIT (DRG.UN-T) TSE
(Market Call Minute.) German office exposure. A little complicated and a little disappointing on the last quarter. Avoid for now.
First Capital Realty (FCR-T) TSE
Retail focused, but it owns a lot of Yorkville and assets in areas of high income. They came out with a perfect quarter, raised guidance, and the stock dropped 5%, so he was buying aggressively that day. This is a rare opportunity to buy a very high quality high end retail at a very reasonable…
Granite REIT (GRT.UN-T) TSE
When this IPO’d, it was primarily dependent on Magna (MG-T) accounting for well over 90% of its net operating income. Management’s objective was to reduce Magna’s exposure to less than 50% NOI within 3 years by making additional acquisitions by using their under leveraged balance sheet. Management has not done that in a very aggressive…
Industrial-Alliance Life Ins (IAG-T) TSE
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.
InterRent REIT (IIP.UN-T) TSE
(Top Pick Nov 13/14, Up 12.48%) Just raised their yield 5%. He believes in their markets, such as Hamilton.
Minto Apartment REIT (MI.UN-T) TSE
Management is outstanding. A new REIT run by knowledgeable people. Highest quality of apartment space in Canada, focusing on Toronto. A long term hold with a safe distribution. He owns it.
Northview Apartment Real Estate (NVU.UN-T) TSE
Proposing to take over True North Apartment REITs. A very controversial deal, and usually this company doesn’t do things that are deemed controversial. The market was not positive on this because basically you usually don’t do dilutive deals when you’re stock price is at a lower level and trading significantly below NAV. The view is…
RioCan Real Estate Investment (REI.UN-T) TSE
He only owns one REIT -- in international healthcare. He thought with interest rates going higher, the valuations are possibly going to be too high.
Equitable Group (EQB-T) TSE
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.
Sun Life Financial Inc (SLF-T) TSE
Some of the insurers have been performing decently lately. In part because you have a dividend supporting it. 3.8% dividend yield now and sustainable. He likes the space now.
TMX Group (X-T) TSE
How does this make money? They make money a variety of ways. Listing fees, trading fees and fees for information. You are seeing more of a global consolidation in this industry. At these levels, he feels valuations are somewhat excessive. This has had a big run in the past 2 years.
Intact Financial (IFC-T) TSE
It has superior results to Canadian peers. The accident rate has not been lowering because of backup cameras. Profits will improve and the stock will go up. (Analysts’ target: $107.77).
BCE Inc. (BCE-T) TSE
There is a bit of friction between the various providers. We are seeing the introduction of new and bigger data plans with more reasonable pricing. It is one of the ones he would look at within the industry.
You must own a Brookfield stock in you invest in Canada. They raise the dividend every year. They sell expensive assets and buy better ones, including Enercare last year as well as midstream Alberta assets. That said, he prefers the parent for better growth. BIP is a great income stock though.
Morneau Shepell Inc (MSI-T) TSE
(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.…
Ritchie Bros Auctioneers Inc. (RBA-T) TSE
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…
🛢 Basic Materials
This company is in production in Mexico. Did a very good job of picking up one of the past-producing silver mines. Initially had some difficulties in the share price came back a bit but is recovering strongly now. Strong management. Their plan is to amalgamate other small silver mines in the district.
Eldorado Gold (ELD-T) TSE
Has some very good assets, but unfortunately in some difficult environments, Greece being front and centre. Probably trades at a 30%-40% discount to its peers. A very low cost producer and great margins. Material growth down the road over the next 5 years. Unfortunately, they are in a bit of a battle with the more…
Eastern Platinum Ltd. (ELR-T) TSE
Likes the space. There are very few ways to play it. Production profile is very strong. Always has been quite a liquid stock. Recovering automotive industry is one of the reasons it is doing well. Demand is rising. It’s more a pure play on Platinum.
Franco-Nevada Corp. (FNV-T) TSE
The premier gold royalty company. A great investment. He feels bad for not owning it in the past. Gold prices near $1300 US and if you feel prices are going higher this would be good.
Minco Silver (MSV-T) TSE
Has a huge resource in China. Very cheap and relatively thin. Likes the operator behind this very much.
Osisko Gold Royalties Ltd. (OR-T) TSE
A royalty on the Malartic mine that was spun out of Osisko Mine (OSK-T). His problem with this is that it is over NAV, which royalty companies do. Right now, you could buy a few juniors at about half that valuation, so you really have to like the royalty side.
Pretium Resources (PVG-T) TSE
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.
Seabridge Golds (SEA-T) TSE
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.
Bear Creek Mining (BCM-X) TSXV
Their deposit is very exciting. There is a huge silver resource in Corani, Peru. The trouble is, it is remote and at a high altitude and the grades are low. Would like to see what impact the altitude will have. Too early.
Giga Metals Corp (GIGA-X) TSXV
Has a massive nickel deposit in northern British Columbia. Low grade, but can be mined as an open pit. The jury is out on this one. Looks intriguing.
Integra Resources Corp (ITR-X) TSXV
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.
Kootenay Gold (KTN-X) TSXV
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.
Orezone Gold Corp (ORE-X) TSXV
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.
Probe Mines Ltd (PRB-X) TSXV
Interesting deposit. One of the spiky ones where gold grades are very erratic in the holes as they follow it down. Most recent drilling was deeper with some really good hits. Once you get down there though, you have to start thinking what is the strip ratio and what is the cost to get down…
Strategic Metals (SMD-X) TSXV
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.
Southern Silver Exploration Corp. (SSV-X) TSXV
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.
Golden Valley Mines (GZZ-X) TSXV
Company prospects for land, stakes it and then gets other companies to do the major work at their expense. Because they have so many properties, long-term they should get a discovery.
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…
Metro Inc (A) (MRU-T) TSE
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.
George Weston Ltd. (WN-T) TSE
(A Top Pick March 17/17. Down 1%.) The bulk of their fortunes are still tied to Loblaws (L-T), the dominant food retailer in Canada. The company has been known to pay special dividends when their cash builds up. He wouldn't be surprised to see that happen again in the next few years.
Boyd Group Income Fund (BYD.UN-T) TSE
A+ management. One of the best performers on the TSX for the past decade. They continue to take market share, but the multiple isn't cheap. They're the only stock to play collision repairs, which is a highly fragmented space. They make highly accretive acquisitions. He holds a big position.
This does mortgage appraisal, with 90% of revenues coming from the US. They’ve done a great job in terms of signing up a lot of the larger US banks. They just went public this month. He really likes the story. If you have a long-term perspective, he thinks the company is going to do extremely…
Constellation Software Inc. (CSU-T) TSE
They have done well over a long time period. He thinks it may be over valued right now. Without a sizable dividend, he is staying away. With a marketcap of $23 billion, they need to take on bigger and bigger ventures.
CGI Group (A) (GIB.A-T) TSE
Worried about the market and U.S. politics. There's some progress in China-US trade and both sides need a resolution. But don't over-emphasize the politics like the U.S. Government shutdown; the economy will still march ahead as recent strong unemployment numbers demonstrate. The wall and shutdown are noise. Be more positive on the market, and corrections…
👨💼 Professional Information Services
Just pulled back because of near-term concerns on upcoming European regulations, but believes that will ultimately create a tailwind as clients need to adapt a system to manage these new regulations. Trading at a 4-year low. He models a 6% EPS growth. They have an active Buy-back. Good balance sheet. Dividend yield of 3.1%. (Analysts’…
She prefers to own ENB-T, but thinks this stock will do well. The dividend is safe. But it is getting more difficult to build pipelines. There is no compelling reason to shift over just yet.
Inter Pipeline (IPL-T) TSE
They are building a petrochemical facility in Alberta and the market is a bit nervous. This is creating a good buying opportunity. You are getting paid to wait for the project to add a further $5-$10 per share capital appreciation. Yield 7.62% (Analysts’ price target is $24.27)
CGX Energy Inc. (OYL-X) TSXV
Ballard Power Systems (BLDP-T) TSE
Here’s this week’s 52-week lows stocks on Stockchase…
(A Top Pick Jan 29/18, Down 4%) It has become his largest position, making it 5% of the company. They are going to benefit from a huge amount of infrastructure spending over the next 25 years. They are supplying WiFi networks also. They made two transformative acquisitions last year and they should see benefits this…
Lite Access Technologies (LTE-X) TSXV
They are doing distinctive infrastructure, where they are digging trenches to get that last mile to the home. They are doing this in the UK, and have a large contract with one company. He really likes the story, but is waiting to see some revenues and earnings drop to the bottom line over the next…
Enablence Technologies Inc. (ENA-X) TSXV
Involved in fibre-optics to the home. Interesting new technology. Would not buy until it is closer to the time when their first chips start coming out in ’07 and then wait to see if they can ramp up volume production.
Peeks Social (PEEK-X) TSXV
A social media platform. A difficult one to analyse. It has a cast of big shots in management operating mainly out of California he thinks. This is into video streaming. The difficulty with this is that you need a gazillion hits, and the giants such as Google and Facebook are the ones that take the…
Over the last 12 to 24 months has had a number of reimbursement cuts or rumours of them. It is now trading at a cheap valuation. Assuming no more cuts, then they should be starting to build on that. In recent earnings surgical centers were stronger than analysts expected. They have a new product to…
Roots Corporation (ROOT-T) TSE
They recently completed their IPO. It struggle a bit out of the gate and has treaded water ever since. It is a fashion brand that has been out for long time. He does not see the growth here. There are a lot of better places to be in retail. Where is the expansion going to…
Got hurt. Margin compression. In US, it matters what can you get paid from Medicare. Missed numbers last 2 quarters, got clocked, now trying to get back onside. A “show me” stock. Stay away for at least another 6-12 months.
Canntrust Holdings Inc. (TRST-T) TSE
This is a cannabis company that has a new product line for pets. He generally dislikes the sector and the associated valuations. You are betting this sector is going to explode and it is hard to know which companies will survive. It has a $600 million valuation on $20 million in sales.
(A Top Pick July 3/15. Down 17.93%.) A really interesting company and is in the early innings of its growth phase. They are really trying to do something brand-new, building interior office solutions. It is now into hospitals, schools, and now even getting into residential. Earnings tend to be fairly lumpy, so he traded out…
SNC-Lavalin Group Inc. (SNC-T) TSE
It is doing a stair-step action down. You have to be careful with stocks like this. It could be a value trap. He would not recommend it.
This does energy services and energy marketing, so they are a reseller of different products such as natural gas. Now they’ve just gotten into solar. Have done test marketing both in California and New York, which has gone well, so they are going to start to roll it out across the country. They are also…
🛢 Basic Materials
This is not the first bear market he has seen. This is the next new big mine. Diamonds have been going thought a bit of a dry spell. There were finance issues. The rough market for diamonds is up a little right now. He prefers to go in at a little earlier stage. He believes…
Nevada Copper (NCU-T) TSE
Quite a nice chart. Found a bottom in 09 followed by a nice rise. Looking pretty good but definitely into a consolidation stage. Potential to pause for a long time. Essentially going sideways since Nov/09. Exit if it goes below $2.80. If it starts moving up, has the potential of $4.50.
Stornoway Diamond (SWY-T) TSE
It is hard to finance junior diamond miners. But once they line up all the partners, thinks this could be a potential mine, but high risk.
Canfor Pulp Products (CFX-T) TSE
China Gold International Resources (CGG-T) TSE
Has a very good project in China. If you are okay with investing in China, there are two companies that stand out, this one and Sino Gold. Not a fan of China.
Critical Elements Corp. (CRE-X) TSXV
Will be processing tailings as well as reenergizing an open pit. Not crazy about the grades in either the tailings or the pits. Has some merits.
Mirasol Resources (MRZ-X) TSXV
Not really a Silver company but have at least one silver discovery in Patagonia. Have some joint ventures with Couer d’Alene that looks like they are drilling up some silver.
Ressources Sama Inc (SME-X) TSXV
We are going to know a lot about this company in the next 4 or 5 months. When Robert Friedland hits a property with the drill bit, he hits it really, really, really hard. His inclination would be to wait until you see data coming in.
Advantage Lithium Corp. (AAL-X) TSXV
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…
Foran Mining Corporation (FOM-X) TSXV
Manitoba, close to Hudbay. VMS, Multi-metallic deposit, very high grades, strong ownership by very important people in mining industry. Not easy to buy and one should be extremely careful. Speculative.
Rupert Resources Ltd. (RUP-X) TSXV
Started drilling in Red Lake, Ontario. It's sometimes best for a junior not to drill as the stock can do better on the potential rather than the actual drill results. Wait for the drill results before buying.
Speculation drove it up to $7 in 2006 and it then sold off. It is quite positive now that it has finished building a base and has broken above the down trend line.
Use this list wisely to identify buying opportunities.
Happy trading !!!