National Bank of Canada, Air Canada and More at 52-week Highs and Lows (Archive From Oct 23-29)
Stocks are having a rally as earning season trudges on. With positive earnings and advances in the US-China trade war, the market is on the rise.
This week, Canadian Imperial Bank of Commerce (CM-T) and other financials, such as National Bank of Canada (NA-T) are at their 52-week high. Air Canada (AC-T) continues to be on this list from last week as well.
On the other end, cannabis stocks continue to trail. Aurora Cannabis (ACB-T) and Hexo Corp (HEXO-T) are still at their 52-week low. Energy sector stocks also continue to be depressed. Basic materials across the board are down.
Here’s this week’s 52-week high and low list:
Here’s this week’s 52-week high stocks on Stockchase…
Canada’s newest REIT. He does not think there is a big reason for fear, but was unhappy with the debt level. He is waiting it out to see how it performs. They have top notch management. This is very similar to ACQ-T, but you own the real estate of the dealerships. 10.6% yield.
BTB Real Estate Investment Trust (BTB.UN-T) TSE
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%.
Canadian Imperial Bank of Commerce (CM-T) TSE
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.
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.
Home Capital Group (HCG-T) TSE
Was caught up with origination issues. Loan growth going forward is likely to be challenged. He prefers Timbercreek Fianancial in this space, it is much more defensive, and are not dealing with the liquidity issues that Home Capital are dealing with.
Laurentian Bank (LB-T) TSE
LB hasn't followed the big Canadian banks. It's been sideways for many years. It's been a definite downtrend since late 2017. Recently, it looks like it's breaking the downtrend, which is positive. Now, the chart looks good. He's okay with it.
Northwest Healthcare Property REIT (NWH.UN-T) TSE
Something of a healthcare REIT, and is typical of a lot of younger REITs where they’ve got a development company that identifies properties, builds them up and gets them fully leased, and blends them in. This has had some hiccups in the last little while. It is trading at a discount to NAV. Not a…
Nexus Real Estate Investment Trust (NXR.UN-X) TSXV
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…
Element Fleet Management (EFN-T) TSE
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.
True North Commercial REIT (TNT.UN-T) TSE
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.
StorageVault Canada (SVI-X) TSXV
What is your long term outlook on this? He thinks over the next two years and longer, it looks strong. They own it currently, and sees the ownership as fragmented. The demand for storage continues to increase and it is becoming more difficult to build these facilities. There is long term potential here.
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.
Dream Global REIT (DRG.UN-T) TSE
(Market Call Minute.) Trading at a sizable discount to NAV. However, there are still some single tenant risks. There are other global names he likes more.
Manulife Financial (MFC-T) TSE
This and SLF have been diversifying. MFC is pushing their wealth management business and increasingly from the Asian market. He's gun-shy on MFC. He used to own it.
Genworth MI Canada Inc. (MIC-T) TSE
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…
National Bank of Canada (NA-T) TSE
(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?
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.
Knight Therapeutics (GUD-T) TSE
He's skeptical of biotechs, especially small-cap, because their new products either get approved or not. An investor really must study this industry well to understand it. He doesn't invest in this space.
Protech Home Medical Corp (PTQ-X) TSXV
They just released earnings this week and they have been turning their business around -- increasing margins and growing organically. Management owns about 18% of the shares and it trades at 5 times earnings. He thinks it could trade at twice that level. They are involved in patient home monitoring. Yield 0% (Analysts’ price target…
Antibe Therapeutics Inc. (ATE-X) TSXV
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 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…
🛢 Basic Materials
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…
Bee Vectoring Technologies International (BEE-X) TSXV
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.
Millrock Resources (MRO-X) TSXV
Mainly in Alaska and Arizona. Stock is generally not known. Project generation. Relationships and projects with several other companies. It spreads the risk.
Centerra Gold Inc (CG-T) TSE
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.
Marathon Gold Corp (MOZ-T) TSE
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…
Wallbridge Mining Company (WM-T) TSE
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.
Minera Alamos Inc (MAI-X) TSXV
(Market Call Minute.) Deposit looks good, but it hasn't quite the size or the grade that it needs to move forward.
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…
Air Canada (AC-T) TSE
Likes this chart and he has recommended buying AC around $32. The Onex-Westjet news pushed this up, but it will trend down a little. A strong chart.
Xebec Adsorptions Inc (XBC-X)
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.
BRP INC. (DOO-T) TSE
Ski-doos. Has a fairly mediocre track record at the moment. In hugely better shape than Bombardier (BBD.B-T).
Cogeco Cable (CCA-T) TSE
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…
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.
Here’s this week’s 52-week lows stocks on Stockchase…
Not his favourite cannabis stock. They've diluted shares and are buying another company, which tells him that they're buying with stocks, not cash, which tells him that management believes their company is overvalued. ACB is very high compared to its peers. He's shorting it.
Hexo Corp (HEXO-T) TSE
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.
Titan Medical Inc. (TMD-T) TSE
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.
They are the number two in Canada. Should be able to monetize some assets and should be debt free. The name is trading at just over 2 times EBITA. At $70 oil, he sees a 102% upside. At $80 oil, he sees an upside of 172%. (Analysts’ price target is $2.41)
Bonterra Energy Corp (BNE-T) TSE
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…
Calfrac Well Services Ltd (CFW-T) TSE
There are 3 pressure pumpers in Canada and are involved in the hydraulic fracturing of reservoirs as part of the completion process after the well has been drilled. This company has struggled with the debt and has been selling their US business. At this point in the cycle, he wouldn’t be too constructive on this…
Mullen Group Ltd (MTL-T) TSE
Shawcor Ltd. (A) (SCL-T) TSE
Global pipeline coatings. As a Canadian we should all be very proud of this company. There are not many Canadian companies that are a world leader in what they do. Has held this as a Long position many times. The downside is that they are going through a rough patch right now. Management feels that…
Valeura Energy Inc. (VLE-T) TSE
Small cap natural gas company in Turkey. They get triple the price for natural gas over there. There is $1.30 of value. $5.50 is the value being put on the upside of this company. Why would he want to pay this.
Yangarra Resources (YGR-T) TSE
(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.
Madalena Ventures (MVN-X) TSXV
This is a stock that you can trade fairly well because the targets they are drilling are fairly large and every time they are about to announce the results of their drilling, the stock has a tendency to move up. They haven't hit any other targets and that is why the stock has moved down…
BNK Petroleum (BKX-T) TSE
PrairieSky Royalty (PSK-T) TSE
(A Top Pick April 2/15. Down 16.23%.) Has been trimming his position. Valuation is rich, especially when comparing to a Freehold Royalty (FRU-T). Also, Canadian Natural Resources (CNQ-T) vended their freehold land and gross overriding royalties into this company for an almost 20% shareholder basis. They’ve given indications that they want to dividend half of…
Surge Energy Inc (SGY-T) TSE
85% light oil and 15% natural gas. It is a very low payout ratio. It is a monthly payout of more than 7%. It will be a fabulous rate of return. (Analysts’ price target is $2.15)
Leucrotta Exploration Inc. (LXE-X) TSXV
He is quite bearish on the broader markets, but the sentiment in the energy sector in Canada has been so negative that he thinks it is undervalued. They have no debt and has 900 prime low-cost Montney drilling locations with significant infrastructure and only about 10% of it is dry gas. CEO owns about 30%…
Small tech name in Canada. Come back from the dead. Building in the hot areas like 5G. A small company, not expensive, underloved. Will have to ride through volatile times. No dividend. (Analysts’ price target is $6.00)
Siyata Mobile Inc (SIM-X) TSXV
They are building an integrated device allowing for two way talk within fleets. It has taken time for them to get all the certifications and approvals to get here. There were concerns that are now behind them. We need to see sales start to transpire into fleets in the US.
Celestica Inc (CLS-T) TSE
$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).
🛢 Basic Materials
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.
Midas Gold (MAX-T) TSE
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.
Scandium International Mining (SCY-T) TSE
Scandium makes aluminum special. It makes it stronger and corrosion resistant. It is also very workable, so it competes very well against other alloys. We are a couple of weeks away from the feasibility study and an environmental impact statement. Hopefully, there will be a mining permit in 6 months. Looking for production in 2018.…
Source Energy Services Ltd (SHLE-T) TSE
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…
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…
Northern Graphite Corp. (NGC-X) TSXV
Recently did a financing. Believes graphite, which is used in lithium batteries, is the next big wave in Canadian mining. Owns a small position in this one but may be adding to it. Wait until the financing comes off of restrictions, which could create some weakness.
Canfor Pulp Products (CFX-T) TSE
Guyana Goldfields Inc. (GUY-T) TSE
(Market Call Minute) Loves it. Stock is cheap and feasibility study looks really good. Keep an eye on it.
Ascot Resources (AOT-X) TSXV
(Market Call Minute.) Interesting exploration in the northern triangle in British Columbia. Great neighbourhood.
Stella-Jones Inc. (SJ-T) TSE
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.
Golden Arrow Resources Corp. (GRG-X) TSXV
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.
Powered seats for movie theatres. They have deals with companies like Cineplex, large market theatre chains. He likes the longer-term growth, but because it doesn’t get a whole lot of coverage, it is quite volatile. They have developed massive inroads in China, and just did a deal with a company who has to purchase so…
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…
Spin Master Corp (TOY-T) TSE
Largest demographic group is the 29 years old. Ready at the point of household formation. No debt. They generate a lot of cash. (Analysts’ price target is $50.33)
$64.70 is a low from late August and a bit lower in April. It held in there. Around $69 there is a bunch of resistance. It has had no strength against the S&P since June. We are probably going to come back to the low $60s test.
Use this list wisely to identify buying opportunities.
Happy trading !!!