Emera Inc, Restaurant Brands International and More at 52-week Highs and Lows (Archive From Aug 28-Sep 03)
The stock market is set to open strong today as tension in Hong Kong eases and the yield curve of the 10-year Treasury yield going back to normal. Furthermore, there was a block by the UK Parliament for a no-deal Brexit.
Barrick Gold (ABX-T) and Centerra Gold Inc (CG-T) is hitting their 52-week high. Utilities such as Brookfield Renewable Energy (BEP.UN-T) and Fortis Inc. (FTS-T) is hitting their high as well. Several REITs are also performing very well. Defensive grocery stocks are also rising, as investors search for safer investments.
On the flip side, resource stock, Bellatrix Exploration Ltd. (BXE-T) among others are at their low. Canopy Growth Corp (WEED-T) continues to be depressed.
Here’s this week’s 52-week high and low list:
Here’s this week’s 52-week high stocks on Stockchase…
🛢 Basic Materials
Barrick Gold (ABX-T) TSE
He likes the gold generally speaking. They are heading higher because of the fiscal situation of the US, Europe, Japan and increasingly China. So he thinks a 10% to 20% of the portfolio should be on gold or gold stocks as a defense mechanism.
Gold is an enigma--sometimes is a currency or a hedge against inflation or something else. What's holding back gold now is that it's the inverse of the U.S. dollar--which has been strong this year. Producers like Agnico have operating leverage--when gold prices rise, their prices and earnings will rise disproportionately more than the commodity. Agnico…
2 gold projects in Ghana. Just came out with good drill results on one. Not many shares outstanding.
An ETF that owns physical gold bullion Everyone else uses GLD, but he uses CEF. He sees gold as the cash component in a portfolio, and not as a speculation. Banks see gold as cash, too. The problem with GLD, will he be able to access it? He doesn't know. You need at least $150,000…
Long on this stock and Sell the February Calls options for $1.10. He gets $2.77 yield for the options for less than a month. He makes 4% and they expire on Saturday.
Had a bit of the stumble about a year ago, which caused a delay in one of their mines. They seem to be getting past that now and things seem to be getting back on track. It could be a potential investment, but he wouldn’t put all his eggs in one basket.
Chart shows a long downtrend and you want to watch for a break away gap, which he thinks it has had. The exhaustion gap occurs at the end of the move with big volume, opening higher followed by a huge volume and then closes unchanged or lower. He would prefer to see this on a…
300,000 hectares of holdings in Brazil. Lots of prospective ground. One of the major shareholders is BrazilInvest (?), a 12 billion-dollar merchant bank connected to the Brazilian government. Have a large land package that has yet to be meaningfully explored but there are discussions underway for acquisitions that might allow them to easily become a…
It has a distinct downward trend. Seasonally it goes up in February and again in July. Wait until it shows a base pattern before making a major commitment. Be patient. It is not there yet.
The no. 1 performer on the TSX in 2018, up 85%. They have great mines in Ontario and Australia, both stable areas. They keep increasing production targets: produce 1 million ounces of gold a year by 2021. There's a place for precious metals in your portfolio when we hit the inevitable recession and return to…
He believes it is fully price, but going higher. The recent acquisition is the first part of an amalgamation strategy. He has confidence it will be successful.
Ecuador is becoming more mining friendly, but he is suspicious and it seems the government is reactionary and he does not trust what they are doing. He is leery about putting his money into this country.
Junior Silver. Very few good silver deposits globally. Most deposits the juniors are getting into are lead/zinc/silver. You have to look at the grade and mining width. This one has the best silver discovery going. Scheduled to go into production in 2016. 2 others are Fortuna Silver (FVI-X) active in Peru with a mine in…
Chart shows they have broken their downtrend, which is a positive scenario. They're building a base pattern. Chart shows it is forming a couple of little tops and if gold does slide down, you are probably looking at $.70. Look for a little bit of resistance at $1.20. If it pulls up it probably represents…
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.
Lot of cash on the books. One of the largest primary silver producers. You get 4.5% dividend. He loves getting paid to wait for the market to turn around. Geographically diversified. Brought down costs and when silver price goes up, this will do well.
He likes management and the asset. They are looking to produce 120,000-150,000 ounces of gold per year. They are all-in sustaining costs of around $740-$790. Have $50 million in cash. They are paying down their debt, which is only about $54 million. A single asset company and in a jurisdiction not everybody wants to be…
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.
Silver is riding coat tails of gold. Thinks of gold and silver in the same vain. In last year, silver moved more than gold. He is bullish on both metals. It is over bought, but every gold stock is.
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…
Going to have a mine with an enterprise value of about $1 billion when all is said and done. Will be producing about 358,000 ounces of gold and that is a lot of cash flow and earnings that come from that. Good jurisdiction and good location.
This is not mining, they just take a fee for services from the mines. Currently he is not into precious metals. The money flows are out of precious metals.
Keeps looking at it. He focuses on good management, low cost of production, good reserves on the ground, and geo-politically stable. It’s getting to point of generating free cash flow. Great job of putting things together.
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.
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.
GMV Minerals (GMV-X) TSXV
Thinks there is another mine in this company. This is a story that is going to unfold and he likes it.
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.
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.
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.
Silvercrest Metals (SIL-T) or Silvercorp Metals (SVM-T)? This one is a fairly small deposit, but with high quality people.
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.
Low-grade but big gold deposit in British Columbia. Revamped management. Potential good future. Worthwhile speculation.
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.
A lot of volume has been coming in to the TSX Venture Exchange lately. Has come out of a lovely bowl base.
(Market Call Minute.) Deposit looks good, but it hasn't quite the size or the grade that it needs to move forward.
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.
(A Top Pick May 11/18, Up 24%) It has good US exposure. Don't expect acquisitions. This will be slow and steady, and the dividend will gradually rise. A good place to be when the interest rate is cut.
Likes it. Largest of the renewable energy utilities yieldcos in Canada. Because it has the backing of BAM.T it’s a bit of a safer place, especially if you’re worried about short-term political risk. Own tremendous amount of hydro, solar, wind power. Own two thermal plants that burn nat gas, so not completely fossil free. More…
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…
Hydro One (H-T) TSE
He would wait on this one -- with changes on the Board and it being a relatively new company. There are other companies in the same space guaranteeing dividend increases going forward. He would look to other utilities instead.
Sold his holdings a few months ago as he had thought it had become fairly valued. If you own, it never hurts to take a profit. This company is doing very well with the build out in the mining and oil/gas sectors.
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.
Canadian utilities tend to bottom as markets are peaking. He thinks this is a signal that investors are looking for safer havens. These will be attractive for 2019.
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…
A great chart with a strong run since January. You can nibble away now and add exposure as it rises.
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…
(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.…
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.
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…
(Top Pick Nov 13/14, Up 12.48%) Just raised their yield 5%. He believes in their markets, such as Hamilton.
Has been a little weak lately. Made an acquisition of Century Property. Has a management arrangement with Starlight (?) but he would prefer a better management agreement but it is a really good source for small company acquisitions. 7.83% yield.
(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.
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…
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.
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.
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).
Thinks there is a lot of disarray in the company right now. Cut their dividends earlier in the year.
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.…
A shortage of housing and a willingness to rent to added to their tailwinds. At these levels, he would wait for a better price.
Has some good potential. A little expensive at the $11 range, but on any pullbacks, he would Buy. 5.86% dividend yield.
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.
(Market Call Minute.) German office exposure. A little complicated and a little disappointing on the last quarter. Avoid for now.
The glory days are probably gone. They have done a lot to repair the balance sheet and improve liquidity. Banks are becoming more competitive in this business.
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…
A year ago they went through a restructuring and then a big acquisition in Safeway. They were left with a banner that had few discount brands in Western Canada, then tinkered with their loyalty program and that upset consumers. Last quarter the results were not liked. He used to have it but now prefers WN-T…
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.
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…
New leadership has cleaned up the battle with franchisees a few years ago. The last CEO ramped up Horton's same-store sales growth. This organic growth will continue as well as acquisitions to come. (Analysts’ price target is $93.67)
(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.
He says the earnings expectations have been revised downwards my several analysts recently. Their last earnings report had a negative 14% surprise. Although the current P/E is reasonable the free cash flow rate is negative. The dividend looks defendable with a 51% payout ratio. Overall, it is the lack of growth hurting this one and…
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.
BCE Inc. (BCE-T) TSE
They don;t own any of the cable operators. The dividend is safe. A problem that they had for a while which was the under-funding of their corporate pension plan was cleared. If you are looking for an oligopoly with safe income this fits nicely.
It is too small cap for him, but it scores in the bottom 10 present on valuation and momentum. Negative ROE, and no price to earnings. Debt is not troubling, but they are not cash flowing. You want to see them making money.
Here’s this week’s 52-week lows stocks on Stockchase…
They're sstill struggling because it's niche-based. They make some profits, but they're riding a big massive trend (like Shopify, though the comparison may be unfair). BB is interesting below $10, and it has room to grow to $12, but not $20.
$300 million in cash and less than 9 times earnings. They just can’t get any love. It had a bit better execution in terms of earnings and they could get recognized. They buy back stocks. Leverage on their operations is quite high and it has not performed yet. (Analysts’ target: $14.87).
Leonovus Inc (LTV-X) TSXV
He is looking at investing in this one personally. Very speculative and very early stage growth opportunity. Have software that takes advantage of the “dark” cores in computers. Computers were not able to keep up to speed so ended up having computers coming with 2 and 4 cores. They will use the unused cores and…
(A Top Pick December 18, 2017. Down 33%). He was early in his recommendation of this company, but it is doing the right things. It is extending the maturity of its debt. The company was over $3 a year ago. Production in Q2 was up compared to Q1. It will drop for Q3 because of…
Not cheap but he sees a chance for a double or triple. Rio Negra province in Argentina is a 10% partner so they have helped in permitting issues. Have extensive surface showings of uranium mineralisation. Low grade but very good and mining and processing is cheap.
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).
(Market Call Minute.) The debt on this is way, way too high. The CEO is very well regarded. He inherited a "bag of hammers" and has been selling off assets to pay down debt. Has been doing a fantastic job, but just doesn't see the investment thesis on this.
They are 9,200 boed and 71% natural gas. They are working at reducing debt and building a position in the Cardium area. He has a $2.40 per share target in the next 12 months and he holds it personally. Yield 0%. (Analysts’ price target is $1.75)
Natural gas. One of the 4 junior companies that owns property in the Utica Shale in Quebec. This is riskier because it is early stage but there is a lot of reason to believe that these 4 juniors have a shot at owning a very large reserve of gas. There is risk, but the upside…
They are waiting for Husky, the operator, to make some announcements. Land issues in the area. Also working on some UK deals to get them farmed out. A fabulous story for business risk oriented accounts. Use a 3/5-year investment time horizon.
Likes this a lot. It has been one of those abnormally strong businesses, in an environment where most businesses have been quite challenged. This is part of an LNG play in that it provides services to LNG players that are based in Papua New Guinea. They are currently going through some contract renegotiations and have…
They make bikes, baby furniture, baby equipment, car seats, etc. The family that is involved in it owns a significant stake. He sees better days ahead. It is trading at a reasonable valuation. Dividend yield of about 4%.
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…
He sold it at the start of 2018. The stock has taken a dive. It had a bad quarter, but it could move back to $18-20. It's currently at cheap valuations. A problem is that they can't buy enough dealerships to grow their company, at least not in Canada, so they must look to the…
An actively managed basket of Indian stocks. There is higher cost from the active management and from an index ETF. In the long run the currency has dragged a little on your returns. He thinks it will stabilize going forward. He thinks this will be a fantastic growth area of the world.
Has done plenty of acquisitions. Continue to raise dividend. Bought two companies in the US and it looks good. A great, great company. Solid because they get their management fee even when the market goes down. Could sell themselves 5 years down the road.
There are 2 commodities in the commodity sector that are still steaming hot. Coal and potash. This company owns 1 of each. This is a very interesting speculation if you believe coal prices are going to hold up. Looking at this one again.
Believes that this has bottomed. There is a lot of competition in this space, both from private companies and from public guys like Black Diamond, etc. Thinks that is coming to an end and there will be a little bit of consolidation. Players that have the best balance sheet will be the ones that consolidate…
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 is an ultra-low cost airline. The airlines have been doing very well recently. The chart shows the company is transitioning from one kind of company to another at around mid-December. He likes very-low-price companies but would be cautious about how much he would invest. Not more than 3% of his portfolio. He would expect…
This is in the business of catering, in part, to the US military. They clean their equipment, and have won some big contracts. So they have a good customer that is always going to pay. Starting to get traction now, but don’t put a lot of your portfolio in penny stocks right now. It is…
They came out of nowhere and won some big contracts. After a slump in orders some just came in. There is a much larger company in the space that has recently disappointed investors in terms of share price. It will weight down this one. Don’t step in now. Wait till the new year and take…
Has been under a little pressure. Thinks that it is a pause, not a stop. Heavy hauling and crane services. They increased their margins last quarter. Rolling up all these acquisitions well. Wait because there might be a seller out there. But it is a buy.
🛢 Basic Materials
The primary long way to get exposure in the Canadian frac market of larger companies. He likes management. They are a transportation advantage within Canada, and are roughly 40% of the Canadian frac sand market. Some of the big, big wells going on in the Permian literally use 100-200 railcars for a single well. The…
(Market Call Minute.) We are all using more paper than we ever did before. Might not be an unreasonable thing to own right now.
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.
He is less afraid of political risks. The management team has been successful in the past. Gold and silver demand has increased in the last couple of months.
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.
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…
A tricky one. Have a very small mine in Ireland that they are trying to put into production as well as a small jewellery division. There is no clear indication of what they are trying to be. Gold deposit is very small.
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.
A fairly small company. Management understands the mine. They have some natural gas storage. The price of natural gas in Alberta has been depressed and at some points in the summer it was down to zero. Having the storage facilities allows them to hold the gas from the market until the price comes back. They…
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…
Canopy Growth (WEED-T) vs Aurora Cannabis (ACB-T) The battle of the titans. Both companies do good things. He favors Canopy as it has a lower risk diversified growth strategy in 12 different facilities. He also likes the deal with Constellation for further diversification. Aurora is expected to grow with the expansion of the new facility…
Wound care dressings. Would like to see them get another significant partnership. Has a hard time on either a technical or fundamental basis figuring out an entry point.
One of the 39 marijuana licensed producers. Has a small operation on Vancouver Island. Also, has property on the mainland and the goal is to build a new facility there and get it licensed. A new licensed facility, gets them into the Health Canada queue a lot faster. This company flies under the radar right…
Their numbers were up 13%. They have a device that looks at moles for Melanoma. They are now focusing on health and safety for workers. There is a pilot going on with Loblaw’s.
Use this list wisely to identify buying opportunities.
Happy trading !!!