Hydro One, Killam Properties Inc and More at 52-week Highs & Lows (Sep 08-14)
Bank of Montreal, Telus Corp and More at 52-week Highs & Lows (Archive From Aug 25-31)
Major indexes saw mixed results to start this week. The Dow was flat to negative along with the TSX. Industrials and materials are seeing a slight rally. Financials and consumer staples saw some weakness.
This week, Bank of Montreal (BMO-T) , Canadian Imperial Bank of Commerce (CM-T) and Royal Bank (RY-T) are among the big banks that are trading at 52-week highs. Retail stock Aritzia Inc. (ATZ-T) and dividend play Enbridge (ENB-T), BCE Inc. (BCE-T) and Telus Corp (T-T) are all trading at premium.
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…
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…
Likes it. More Canadian-centric than their peers. The banks are delivering very good ROE, though not sure if they can maintain that. CM pays a dividend over 4%. It's well-managed.
It is a split share financial corp. It has a big distribution. There was volatility in three periods from 2011. You have to be mindful of the volatility. There is some leverage involved and downside risk in times of market volatility. He would avoid this at the moment.
Would be concerned about the payout. Seeing a devaluation. He thinks the market’s already turned, but you see it in the financials first because of rising interest rates. The derivatives are the problem, especially with Deutsche Bank with lots of exposure to Italy and Turkey.
(A Top Pick Jun 25/20, Up 32.42%) Has a lot more stability today. Trades at a slight discount to NAV. Close to a 10% return. Yield is 3.5%.
goeasy (GSY-T) TSE
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company continues to report excellent numbers and growth. Dividends were raised substantially. Loan book is increasing while credit losses are declining. Unlock Premium - Try 5i Free
Very focused. Have positions in 4 life insurers and they are running a covered call program against the existing long positions. Going to have volatility given its exposure.
Financially strong with good diversification. Major moving part is the investor and wealth management section. The life section segments are also important. Wealthsimple is a smart hedge to their legacy financial businesses.
He watches small cap financials – see his Top Picks today. However amongst the group of large banks, this would seem to be his number one pick. It seems to be a little more efficient with its capital and is a leading franchise in virtually every business that they operate.
Stockchase Research Editor: Michael O'Reilly AD.UN is a Calgary based investment trust that pays out about 70-80% of cash flow to investors. It generates about 85% of its cashflow from US operations. It trades at 8x earnings compared to peers at 23x and trades at 1.1x book value. Its payments to investors provides an excellent…
He is not bull on the office space. They have been growing in sub-markets he is not keen on. 37% is in Atlantic Canada and he is not keen on their holdings.
Among Canadian apartment REITs, CAP REIT gets all the love, but also the price appreciation. Actually, Killam's chart is nearly identical to CAP REIT year-to-date and pays a healthy 3.88% dividend yield (CAP REIT pays 2.84%). Whereas CAP REIT is centered on Toronto, Killam focuses on Atlantic Canada, namely Halifax and Charlottetown. Another difference is…
US-domiciled REIT that trades in Canada, anchored by grocery stores. Defensive. Missed last quarter, but not a big deal. In the right spot. Small market cap, so a liquidity issue. Buys good assets. Cheap valuation. He sold when it moved up.
Working to diversify, including owning Ontario real estate. Undergoing a review to calculate capital differently which, if successful, would let them compete more aggressively on loan products. Regional banks are trades for him, in and out. Prefers this to LB.
Stockchase Research Editor: Michael O'Reilly IGM is a $10 billion Canadian financial services business with brand names including IG Wealth Management and Mackenzie Investments. It trades at 13x earnings compared to peers at 29x. With its expected growth in earnings, its PEG ratio is 1.03 and it trades at under 2x book value. It pays…
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. NAV per unit growth is 6.3% based on strong revaluation gains in Australia and a rebound for Brazilian Real. The growth strategy based on continued revaluation gains and execution in UK value creation initiatives was reiterated by management. Deploying capital for their acquisition. A fine…
Likes it and its sector. Trade at a healthy premium. In the right markets. Growth has traditionally been there. Fairly valued today. Look for pullbacks to buy.
What they lend to is incredibly stable. Good operators. Perfect vehicle for TFSAs or registered accounts. Trades slightly above NAV. Yield of about 7%.
New CEO. About as textbook a succession planning as you'll ever see. Louis Vachon leaves pretty big shoes. It's been the best performer of the big 6 banks under his tenure. New CEO has been the COO, career NA employee for 23 years, digitally savvy, ran capital markets, known to the board and investors. Business…
Alberta power market fundamentals have improved and benefited CPX. Transitioning aggressively to sustainability. Wind at its back. Cashflow increasing. Valuation consistent with peers. Trying to be carbon-free by 2040. You can't own them all, so he owns AQN, EMA, and BEP.UN instead.
They provide elective surgical services in the U.S., though it's a Canadian company. Because of Covid, those services have collapsed, but will recover as the economy reopens. Such surgical demand will be out of sight, because of huge pent-up demand. Also, the valuation is much lower than the historic norm. They will enjoy 2-3 boom…
Tailwinds over the next few years. Accretive acquisitions will add to market cap and bottom line. By pulling synergies out, margins can improve. Not the largest margin business, so they have to be careful. Market has been impressed, hitting all-time highs.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has no debt, excess cash and good growth. They just reported a solid quarter with an EPS 21% better than estimates. Valuation is still below some software stocks. Unlock Premium - Try 5i Free
The stock has been on fire, getting even more expensive. They are buying more companies to expand. LSPD has been using their high share price to issue shares and buy companies. The valuation is way too high for her.
One of the few tech companies in Canada. Breaking out close to 52-week highs. Could go up 10-12% from here. Would look for a breakout and buy at a pullback when it tests support.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The price for the secondary offer was set recently but the offer was previously announced. The growth potential is positive and recent acquisitions have been good. Volatility is expected with a large stock sale. Unlock Premium - Try 5i Free
Believes the deal with Rogers will close. Election could upset the apple cart, but polls don't expect a change in government. Even if there is, huge precedent for the deal to close. Good risk/reward right now, in a market where there's a lot of risk. Good place to park some cash while we wait for…
Remote monitoring of chronic disease. Real-time reporting to doctors. Slowed by Covid. Cashflow positive this quarter. Subscription model. Solid growth trajectory. CEO has a lot of skin in the game. No dividend.
BCE Inc. (BCE-T) TSE
BCE vs. T Likes telecoms in general, giving a mix of some growth with very good dividend yields. Telus yield looks secure, with about a 5% growth rate. Yield about 4.4%. He prefers BCE, with a yield of 5.44% and its consistent cashflow and growth. Media, sports teams, and different networks are helpful to BCE's…
Does not think there is a risk of a dividend cut. Assets being held include aviation in remote northern communities, industrial businesses and they keep adding to it. It is a junior, private equity arm. An acquisitive player. Yield is competitive and it should grow. Good company, good management team with good operating strategy.
(A Top Pick Sept 9/16. Down 2.7%.) Has a world-class property in Argentina and a world-class CEO who has done this before. They’ve raised money from various sophisticated institutions at about the current price. At some point, given lithium prices and electrification of cars it is going to get taken out. Highly speculative, but if…
(A Top Pick Oct 07/20, Up 14%) She exited the position when the market started to move from COVID winners to recovery stories. It has held up quite well. She thinks the trends are very much still in place.
A contract manufacturer for electronics, communications, and storage. The move to the cloud has benefited them. The stock has struggled for a while but it is too cheap to ignore right now. Top 10% on valuation. 0.6x book value, 4.3x enterprise to EBITA, and 4x cashflow. A cashflow machine with no concerns on the balance…
Exemplifies growth and cyclicality. Engineering design, natural resources, infrastructure, and other sectors. The economic backdrop is bright for companies like this. Governments want to do infrastructure renewals. Governance and management missteps are being worked on. (Analysts’ price target is $41.07)
Fantastic growth stock. Great margins. Highly fragmented business. Supply shortage. Great history of acquisitions. Tons of runway left in Canada. Multiple on the higher end. Risk is possible need to raise capital for a big acquisition. Hold and add on a pullback, or buy in chunks.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Could deliver good growth although it is more in the cyclical business. Business is solid and the stock has hit more investor’s radar. 3 year + timeframe. Unlock Premium - Try 5i Free
(A Top Pick Dec 24/20, Up 28.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BDT has achieved its objective at $10. To be disciplined, we recommend covering half the position at this time and trailing up the stop (from $6.50) to $8.25. If triggered this would all but guarantee a net investment return…
It's a tough one. It's a bet on the near-term future on corporate jets. It's a huge debate given Covid. Jets are safer than commercial flights. Then again, businesspeople can meet on Zoom, not in person after a flight. Also, companies are getting scored on ESG and private jets score negatively. Take profits.
CP vs. CP Don't chase CN now. There's a bidding war by CN and CP for KSU. KS is talking to CP and he expects CP to win the war. He prefers CP. He's short CP, because he's long KSU. CP looks good in terms of earnings.
She likes their near- and long-term prospects. WSP shares have done well in the past year. They made key acquisitions in the environmental space. Good balance sheet and strong ESG score. She trimmed her position in recent months, but she still likes this. It's a well-run company in a good business.
He's passed on this after reviewing it many times. They depend on retail sales in clothes, and face a lot of competition. They grew very quickly but have been plateauing. It craters on high cotton prices, though. It's a trade at best.
Don't own it but it is a brick and mortar fashion retailer they have confidence in. There is fashion risk to it with spending pattern risk. Store expansion story outside and inside Canada. Not trading at a terrible multiple, the premium multiple is justified.
Struggles with this. Earnings have remained largely unmoved from a fundamental point of view. Will acquisitions actually move the needle? Quite expensive for what it is. He's watching, but they'll have to show him the money before he'd be a buyer.
(A Top Pick Sep 15/20, Up 31%) The gains are surprising. They've invested in long term areas, namely e-commerce. Costs to protect employees from Covid will roll off. Shoppers during Covid flocked to the top supermarkets, though are now returning to the discount chains, which Loblaw also owns. She's waiting for a pullback to add…
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has very strong growth and the sector is relatively stable. Overall, it is ahead of the market despite its expensive valuation. Unlock Premium - Try 5i Free
Operating extremely well. Hitting new highs. Tailwinds could last a while. Defensive. Coming transition from consumer staples to small caps will reduce WN's price momentum. Hold, wait for a pullback or consolidation.
🛢 Basic Materials
A steelmaker, and steel prices are hot. There are supply issues with steel, so now is a golden time to own STLC. Steel stocks haven't corrected like mining stocks, so maybe a correction will come. These are trading stocks, not long-term holds.
They've been around for a while and own a lot of the Ring of Fire's nickel deposits. Ontario was supposed to open infrastructure so these deposits would get mined. It's a government and infrastructure play. But NOT has a lot of debt, with no cash flow. Government involvement can work out long-term.
It's too pricey and the stock will struggle to hold amazing summer gains. Buy at $8-9. It's a decent company, though. Too much optimism in this name now. The easy money has been made in copper.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Momentum is solid. The fundamentals are improving along with profitability. Debt relative to cash is also improving. Market cap has reached $520M with insiders owning 10%. Not profitable yet although revenue is ramping up. Expensive but revenue growth looks good. Unlock Premium - Try 5i Free
Chart shows a up pattern on the beginning of the year. Even though it had a nasty day today, the uptrend has not been violated. Has to get through about the $1.25 area before it can be considered a breakout. If you know the fundamentals and this matches them, it could be okay. (See Top…
The real story with AAV is Entropy, which is a new carbon capture division they created. They have had some positive field trials. They have created a liquid that can extract CO2 more effectively and cheaper than before. You are also getting natural gas. In the service business, there is little exclusivity for techniques. Would…
Focused on nat gas, unlike SU. Strong seasonality right now, which favours BIR, until mid-late June. A reasonable buy at this point.
Enbridge (ENB-T) TSE
Owns it for the safe 7% dividend. In energy, she owns only the pipelines. ENB can keep raising the dividend. ENB has long contracts so there's a safe income stream.
In tough shape. They made the wrong bet on natural gas. Sell it and buy elsewhere. But it will pay off over five years.
Telus Corp (T-T) TSE
T vs. BCE Likes telecoms in general, giving a mix of some growth with very good dividend yields. Yield looks secure, with about a 5% growth rate. Yield about 4.4%. He prefers BCE, with a yield of 5.44% and its consistent cashflow and growth. Media, sports teams, and different networks are helpful to BCE's growth.
52-Week Low TSX Stocks
Here’s this week’s 52-week lows stocks on Stockchase…
🛢 Basic Materials
They are a developer, early stage, and looked to be on to a big discovery. Now it looks like a lower grade but economic mine. If you look at the valuation, it still looks like they are onto a high grade discovery. He would move on.
A smallcap explorer/developer with an operation in Quebec. In Q3 2020, a preliminary assessment was done: 8 million ounces, with 250,000 ounces yearly for the first 14 years in an open pit, then will go underground for around 10 years to produce 100,000 ounces annually. It's like a mini-Detour Gold c.2009, which has since doubled…
It's an exploration play, and they've found high-grade gold in Finland. Keep in mind that other companies are also exploring, so you should own 4-5 out of 40 of these companies. Exploration is the riskiest (and most fun) part of this sector. AU's drill results so far have shown some great grades. He still likes…
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.
An explorer. Likes it, but there's risk. Once there's a big discovery in the States, a lot of US money will come into the sector and that could be bullish. Lots of optimism on this. No problem acquiring at this level. Once more results come in, he will have to decide whether to pull money…
(Top Pick Jul 13/11, Down 8.69%) Funding issue. Venture is down about 38%. Exploration companies have come off the most. Smaller company that didn’t have a lot of cash. Two days ago they came up with a huge whole with 1.3 grams. If you have a long-term perspective, wait until they do their funding.
(A Top Pick Sep 01/20, Down 64%) Disappointing. Numbers haven't been coming as fast as the market would like. Over time, he has faith the resource will materialize from the drilling.
One of his recent “Bottom Fish” that he has put a little bit of tension on. They have the Cheechoo project, about 15 km south east of Eleonore, which is now in production, almost meeting its 300 ounce per year over put. The Cheechoo is a low grade system, but have been discovering that there…
It’s gone up, it’s gone down. Revenues are small, but growth rate is high. They have an online piece (software), but the offline piece is highly coveted. Could be an IP claim, where someone buys them just for the IP. They’re flush with cash.
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
Route 1 Inc. (ROI-X) TSXV
The business allows a USB device to reach into a database. Many of the clients were US military and security agencies. A recent acquisition gives them good forward prospects.
(A Top Pick Apr 27/20, Up 16%) Covid has indirectly increased their business. Growing organically and via acquisitions. Reasonable multiple. Either multiple expansion or a takeover target.
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.
Wellness drives CBD demand and there's more competition entering this space. The CBD market continues to expand into drinks and food. He used to own this, but sees better opportunities. But CWEB is one of the U.S. leaders in this crowded space, so it's okay. You want to be in this space.
He is hesitant to look into the social media companies related to the cannabis sector. He does not believe there is enough defensible on the technology side to say data gathering is a beneficial business in this space yet.
They pick up vintage, expensive handbags they find in Asia then sell them here in kiosks. Interesting business, but has performed poorly. He didn't buy it.
They market is for drying harvested marijuana. About 20% of warehouse space is used for drying. Their technology radically speeds up the drying process, allowing for much higher production space. It helps reduce working capital as well. They are signing up lots of business and expanding in Edmonton. Great opportunity going forward.
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.
Use this list wisely to identify buying opportunities.
Happy trading !!!