Constellation Software Inc., Xebec Adsorptions Inc and More at 52-week Highs (Archive From Dec 09-15)
Markets held onto gains on promising updates on the stimulus front. However, the coronavirus related restrictions remains an overhang on the market.
This week, large cap names such as Constellation Software Inc. (CSU-T) and Canadian Imperial Bank of Commerce (CM-T) are trading at 52-week high. Xebec Adsorptions Inc (XBC-X), which concluded a transaction recently has made some gains. The hot renewable sector is represented by Transalta Renewables (RNW-T) which has hit its 52-week high.
Here’s 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…
AcuityAds Inc (AT-X) TSXV
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Some insider selling is normal since the stock is up more than 900% this year. The recent insider selling is not a great sign, but not so worrying in this case. At last report, insiders owned 23%. Unlock Premium - Try 5i Free
Maxar Technologies (MAXR-T) TSE
This was $80 a few years ago, then an acquisition of Digital Globe (made a lot of sense) made investors worry about the balance sheet, but that's improving as they pay down debt. The DG deal married DG's orbital satellites with Maxar's existing software to analyze that data from outer space, which is important to…
Sylogist Ltd. (SYZ-X) TSXV
A software company that does all kinds of software and have done well over 6 or 7 years. It has been really weak for 18-19 months. They have a really nice cash position, but investors have been board with it. The dividend has kept rising. If you have a 5 year timeframe, good, but not…
Sangoma Technologies Corp. (STC-X) TSXV
Likes it. It's cheap vs. its peers. They did financing and have a lot of cash. Expect acquisitions. Own this for 4-5 years. Buy for now, but hold for that long. It will bounce around with the tech sector. They've done the right things this year to shore up their balance sheet.
Constellation Software Inc. (CSU-T) TSE
A tech pick? CSU are great acquirers and integrators. Why buy a US tech stock when you can buy a Canadian one at half the price (in terms of valuation)? Software will take over the world.
The dividend stocks as a group has underperformed. There's nothing wrong with the fund. He would prefer technology stocks although they don't pay dividends.
Stockchase Research Editor: Michael O'Reilly BDT operates as a contractor in the Canadian construction market. As new vaccines roll out, we bet work on infrastructure projects will ramp up quickly in the new year. It pays a good dividend that is backed by a 71% payout ratio. We would buy this with a $6.50 stop-loss,…
Canfor Corp (CFP-T) TSE
(A Top Pick Dec 26/20, Up 81%) He sold mid-last year, too soon. Housing proved to be very strong. He would buy it again if lumber prices pulled back again.
ADF Group (DRX-T) TSE
The chart looks good with nice volume. It's been trading sideways for a while. It looks like it's starting to fill in the drop that it has. It looks like it could go up $.20-$.30 with a stop-loss at $1.10.
Interfor Corp (IFP-T) TSE
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.…
Linamar Corp (LNR-T) TSE
Auto parts stocks can be value traps. They often have high ROE, low debt. Problem is they're cyclical, depending on how auto sales are doing. Feast or famine. He prefers companies that can increase earnings through thick and thin. Be very careful. Not long-term holdings, they're rentals.
Martinrea (MRE-T) TSE
A cheap stock that's survived the downturn with a healthy balance sheet as they pay down debt. It trades at 4x forward operating cash flow which is growing, and probably boasts 10x forward earnings. The car business is coming back. Auto parts company can shift to meet demand in growing e-cars. (Analysts’ price target is…
Methanex Corp (MX-T) TSE
(A Top Pick Jan 09/20, Up 23%) A recovery play, very cyclical. Has moved dramatically since March lows, but there's still upside. Largest producer of methanol in the world. Continues to buy.
Norbord Inc (OSB-T) TSE
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.
Taiga Building Products Ltd. (TBL-T) TSE
There were a couple of subtle things went on with the trust conversion which discouraged a lot of investors. An illiquid stock. Most of their exposure is in B.C. and Alberta where housing is still very strong. Thinks we're at the peak of a cycle so don't have it as a long term hold.
Toromont Industries (TIH-T) TSE
(A Top Pick Nov 01/19, Up 29%) A mystery since it has done well despite the pandemic. Distributor for Caterpillar equipment, constructions, power systems, etc. Home building is doing well and construction is doing well. Gold mining is also back in full swing. Their customers are having a good year. Scores well on all 3…
West Fraser Timber (WFT-T) TSE
It is almost at the '08/'09 level. It has collapsed below 2.5 times book. If you are patient, we are getting to an area of lows. The twelve month earnings forecast is minus 14 cents. He figures $22 for a bottom in the share price.
Westport Fuel Systems Inc (WPRT-T) TSE
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.
WSP Global Inc. (WSP-T) TSE
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Their latest acquisition was viewed positively by investors. The GIC backing and ESG shift is also positive. A good long term hold. Unlock Premium - Try 5i Free
StorageVault Canada (SVI-X) TSXV
(A Top Pick Mar 05/20, Down 20%) He thinks it is a great sector. They are a consolidator in this space. It is recession resilient. This business is more predicated on life events.
Xebec Adsorptions Inc (XBC-X) TSXV
(A Top Pick Dec 09/19, Up 191%) They make renewable natural gas: They take methane gas from garbage dumps, feed lots and other sources and turn that into natural gas that's shipped through a pipeline. They do this worldwide, building and designing these facilities. He sees strong tailwinds here for the next decade as governments…
Mullen Group Ltd (MTL-T) TSE
(A Top Pick Oct 28/19, Up 3%) MTL.DB-T Convertible Bonds Maturing 2026, 5.75%. He sold them out of his equity portfolio but still owns them in his bond portfolio. He is very familiar with the company and they have a very consistent track record. There is an imbedded call option in the share that triggers…
Trican Well Service Ltd. (TCW-T) TSE
He does not own any service names. Oil company spending will go to dividend increases, share buybacks or deleveraging. Production growth related spending is a couple years away. Bullish elements for gas has been offset by decrease in production. It is too expensive right now for him to buy.
Wajax Corp (WJX-T) TSE
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.
Rocky Mountain Dealerships (RME-T) TSE
(A Top Pick Mar 01/18, Down 22%) This was disappointing. They were trying to grow at the expense of the bottomline. Their growth plans did not come to fruition. The CFO left. He does not see a lot of reason to be involved in this name at this point.
Russel Metals (RUS-T) TSE
(A Top Pick Dec 13/19, Up 6%) A steady business. It's a volume business. It's ridden through Covid with confidence and is set up very well to supply steel to the US in the coming 6 months. There'll be a surge in steel demand.
Major Drilling Group International Inc (MDI-T) TSE
As commodity prices go up this one should do better. He likes the management and their philosophy. The balance sheet is in good shape. He thinks most of the tax loss selling has been done and it will go up now. He would like to find a good entry point to buy into it.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Despite it being 90% up this year, it is still relatively cheap at 9x earnings. They also added to their dividends in the peak of the pandemic. They blew estimates away and the stock has seen some upgrades. Growth may slow but it has some…
Canadian Imperial Bank of Commerce (CM-T) TSE
The banks lagged this past year, but their earnings delivered as capital markets delivered. Interest rates have hurt this year, but should tick higher in the future. The banks hold excess capital. They've more than covered loan-loss provisions. They will buy back shares again and do acquisitions. He now likes Canadian banks for the first…
First National Financial (FN-T) TSE
It’s slowly moved up from $28. The pullback is a natural phenomenon after the pop. Lots of volume. He would buy it here.
IBI Group (IBG-T) TSE
This stock can respond well to small improvements. This has turnaround potential. The low multiple can expand and earnings can grow. Long-term, it's a play on urbanization. They can build subway stations, and then land contracts to build condos and malls which always spring up around stations. (Analysts’ price target is $7.25)
Northwest Healthcare Property REIT (NWH.UN-T) TSE
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A very decent REIT. They have a stable base of business with good income. Not cheap on valuation but the last quarter results were good and it has weathered the pandemic well. Unlock Premium - Try 5i Free
goeasy (GSY-T) TSE
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has raised dividends in February. Business is good. It just raised $200M from a securitization funding. Unlock Premium - Try 5i Free
People Corp. (PEO-X) TSXV
(A Top Pick Apr 24/18, Up 21%) Organic growth is 9-11% annually for the least few years, excluding acquisitions. Impressive. They just had a great quarter. They're doing the right things and setting themselves up to be the premiere benefits company.
It's illiquid. They've good managers, though, and the stock has moved up, maybe overextended. He likes the story, but it's too illiquid for him. Recent quarters have not been strong. This space had to become good operators when lumber prices went down, and is starting to find momentum with more housing starts.
BRP INC. (DOO-T) TSE
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is showing better momentum and 5i likes it. It is cheap on valuation and is less vulnerable to changing customer taste. Unlock Premium - Try 5i Free
Roots Corporation (ROOT-T) TSE
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.
Transcontinental Inc. (A) (TCL.A-T) TSE
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.
Sleep Country Canada Holdings (ZZZ-T) TSE
He has liked this stock for some time. They disappointed analysts last year and that is now behind them. You should start to see very good year over year comparisons. The multiple got traded down into 12 times earnings. As the comparisons improve he expects the multiple to improve taking the stock back to the…
(A Top Pick May 17/19, Down 7%) He still holds this one. He participated in a financing about four months ago. They produce tests for HPV, but unfortunately COVID-19 has taken center stage. He likes their quality assessment tests and the outlook remains positive.
🛢 Basic Matrials
China buys a huge amount of steel and iron ore, so this will benefit Stelco and those commodity prices. The current CEO is very good. This has huge upside with strong real estate value. Will produce strong cash flow to the point that he predicts the dividend to return.
Touchstone Exploration Inc. (TXP-T) TSE
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)
Alphamin Resources Corp (AFM-X) TSXV
The price of tin is less important to this company then it is to other tin producers, because their grade is so high. The grade is about 10X the average mine grade for tin worldwide. Thinks they will be able to announce production finance fairly shortly. The construction schedule will take some time. The Congo…
Crew Energy Inc. (CR-T) TSE
Enterprise value is very cheap. But the issue is they have debt. They did an infrastructure deal to reduce that debt. A big part of that debt is a 2024 maturity at a low interest rate, so Crew will survive. Their liquids are in a condensate-rich area. The stock has been hammered because of high…
Energy Fuels Inc. (EFR-T) TSE
Likes that they have done a bunch of things to consolidate their operations. Balance sheet looks fine. They are going to live and die on the price of uranium. If you have a positive outlook on uranium, this is definitely one that you want to own.
Largo Resources Ltd. (LGO-T) TSE
Had a head and shoulders with a big run then big drop. The momentum is over. Its believers are now back to own it. Will be news driven. The risk is to the upside.
Mega Uranium Limited (MGA-T) TSE
Very junior, although it has been around for a long time. It is basically a lot of hype and hope. They are doing some work in Australia, and virtually have no money. Nothing found to date has been feasible, that they can push it forward in a big way. He avoids companies like this like…
NexGen Energy (NXE-T) TSE
NexGen vs. Fission He owns both Fission and NexGen. They're far from infrastructure in the Athabasca Basin and would be challenged if it wasn't for their deposits being large and of quality (and next to each other). They could get built as a pair. The Fission deposit is borderline-tier one deposit, whole Nexgen's is. The…
Sherritt International Corp. (S-T) TSE
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.
Turquoise Hill Resources (TRQ-T) TSE
It's in production. The question is how much more capital does it require. It is a good deposit and they have a good partner, but Mongolia is and will be an issue. It is highly levered to copper prices and you still have the geopolitical risk. It is a big asset in terms of copper.
Cameco Corporation (CCO-T) TSE
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Raymond James raised its target from $17 to $20. There is no news to account for the drop today. It is important to note that it is down less than 3% after running up 48% yoy. Unlock Premium - Try 5i Free
Capstone Mining Corp. (CS-T) TSE
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.
Entree Gold (ETG-T) TSE
Labrador Iron Ore Royalty (LIF-T) TSE
(A Top Pick Dec 27/19, Up 41%) Pays a 6.5% dividend. The price of iron ore will remain strong in the coming year, but he's looking elsewhere.
Moneta Porcupine Mines (ME-T) TSE
A very large, low grade deposit. It has a little over 1 million ounces M&I, and probably 3 in inferred resources. A real, sketchy sort of deposit in that the mineralization is spotty. If you were to try to mine this as an open pit, your waste to ore ratio would be extremely high, especially…
Platinum Group Metals Ltd (PTM-T) TSE
Sprott is a secured lender in this project, as well as a shareholder. The mining start-up looks like it has been fairly troublesome. If they work through their problems, which he thinks they will, he thinks there is tremendous upside. However, there is risk. There is tremendous upside if they can make all this work.…
Scandium International Mining (SCY-T) TSE
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.
Commander Resources Limited (CMD-X) TSXV
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.
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.
Pure Gold Mining Inc. (PGM-X) TSXV
A smart group of guys. They are putting a fair bit of work into proving their concept is right. They seem to be backing up their thesis. It is looking like it is working so far.
Denison Mines Corp (DML-T) TSE
He's owned it in the past. DML has traditionally issued a lot of shares, which he doesn't like. Also, ever since the Japanese nuclear reaction meltdown, this sector has been troubled. He avoids the sector.
UEX Corp. (UEX-T) TSE
The million-dollar question: so where the price of uranium will go, because it's been dead for so long. Don't put new money into it. A long-term play, not short-term.
Whitecap Resources (WCP-T) TSE
WCP buying TORC Oil Like with Suncor, we've had a relief rally in oil and cyclicals. Instead of vibrant competition in this industry, all this pressure on oil will reduce this space to a handful of names. He's looking for the highest free-cash flow producers at their lows. WCP gets stronger with this merger and…
Metalla Royalty & Streaming Ltd. (MTA-X) TSXV
It's a work in progress royalty company in gold and precious metals. Only three years old, it's very active by deploying $70 million of capital. Only two of their 45 assets are actually producing with two more coming on this year. So, there'll be a rapid advance in cash flow. The dividend is small but…
Purepoint Uranium Group (PTU-X) TSXV
Junior company that is basically raising money to explore for uranium. Sometimes takes years to find a deposit. Have to be patient. Some interesting prospects in the Athabascan basin. Pretty strong drill program for the first half of 2008. On negative days, you could pick some up for a short-term trade.(Buy uranium stocks when uranium…
Not one of the best in the space, but the whole group has seen a rise. Assets in Australia, which is a favourable jurisdiction. Wait for last night's election results to calm down before taking a position.
52-Week Low TSX Stocks
Here’s this week’s 52-week lows stocks on Stockchase…
🛢 Basic Materials
It is supper big but not super rich. Other companies were in and pulled out. He has his doubts about it over the next 10 years or so. The problem is that most of the metal is at depth. There may be some debt issues.
Flowr Corp. (FLWR-X) TSXV
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.
Use this list wisely to identify buying opportunities.
Happy trading !!!