Most Anticipated Earnings: MRE-T, PSI-T and more Canadian Companies Reporting Earnings this Week (Aug 05-09).

It has one of the strongest teams, some of the strongest assets and some of the strongest markets in the cannabis sector. The stock is recovering now with the underlying business continuing to grow. Some of the institutional managers could come back. It is possible for a glut in Cannabis in the U.S. as well…

Bullish on the macro for industrial warehousing. Likes the focus in Toronto. Likes management. A show-me story, small. An opportunity. He's confident in their ability to grow. A bit expensive, so it's a bet on management and growth. On his radar for attractive entry points.

Because it's more focused on resources in Western Canada, has had a tougher time. Especially with the decline in mining, and oil & gas being very cyclical.

(A Top Pick Nov 27/23, Down 17%) Everything that could go wrong, has. Potential tariffs of 25%. Concerns about capex needed for EVs. Now trading at 3x operating cashflow, 7-8 forward PE. Doing the right things, great backlog, European exposure. Still likes the story, sticking with it. 

Forestry space He owns no names. The stocks are okay but face trade disputes and an economic slowdown that will hit housing stocks. The stocks have been beaten up.

Commodity index hasn't done well either, and NTR is somewhat correlated with that. Unperformed, but now forming a base. Not seeing a strong impetus for stock to increase. Commodities are taking a backseat to tech and growth.Longer term, will be a fantastic play as fertilizer demand grows. But not now.

He never owns airlines. AC has failed to generate shareholder wealth creation historically. They take on too much debt, then buy back shares, then raise equity. Avoid. 

Defensive growth at a reasonable price. He's not a trader, but this is the third time he's owned it. Leader NA producer of railway ties (a duopoly) and utility poles (pretty much an oligopoly). Really improved margins. Very strong balance sheet, buying back lots of shares, increasing dividend every year. Got hammered recently, as utility pole…

(A Top Pick Dec 11/23, Up 11%) It should have done better since it beat expectations and raised guidance. Next year's expectations are not in the double digit range. Earnings are 6 to 6 1/2 X  which make it attractive to hold or buy. He has reduced their holdings from overweight to neutral weight. They…

Large issue with the company is legalizing the products(marijuana). Another worry is the over supply of products in the market. Federal laws against marijuana in USA make it hard to deal with expenses that are not deductible (100% tax rate). Could be a good investment if US legislation changes. In the meantime, would not recommend…

Recent addition into portfolio. Stock not as cyclical as perceived. Backlog of work projects very good. Work and revenue is guaranteed from the customers. Recent earning announcements very strong. Recent dividend increase by 50% very strong. Company growing to a size where larger investors start to invest. 

He projects record EBITDA in 2024, and have a record backlog based on strong demand for agriculture infrastructure in Brazil and eastern Europe. Trades at a cheap 7x EBITDA. A peer just got acquired at 8.5x EBITDA in the U.S. Are rumours of a takeover. (Analysts’ price target is $78.13)

This has great assets globally. The biggest sourcing platform for organic foods. It is really hard to get an organic designation. It takes 3 years for a farm to convert. They spent a lot of time putting together assets and it hasn’t been managed well. The company did a strategic review, brought in an investor…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Consecutive quarterly revenue growth. Industry leader in out- sourced facility service. Non-cyclical market with tremendous pricing power. Continues to be acquisitive. Unlock Premium - Try 5i Free

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The stock is cheap, and acting better. The sector (in the US, mostly) has been seeing some good numbers recently. It hit a 52-week high this week. We think it can be held, and >$10 is possible, even $12 under good conditions. $16 we think…

He sold his shares a few years ago, because SWP would need a lot of capital to move their plant (to meet higher demand). The results have been pretty good, but the prices have also risen. Also, they face competition and need more capital to complete further expansion. So, they have taken on a lot…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Profit of 1c per share beat estimates of -1c. Revenue of $7.2M beat estimates by 11.4%. EBITDA was positive $1.17M vs an expected loss of $305,000. Sales rose 186% so certainly a nice improvement. Margin was 67% up from 49.5%. Profit was the highest in three years…

(A Top Pick Nov 27/23, Up 37%) Steady eddy. Lots of downside protection, which is what he's looking for right now. He even added some recently. Defensive, low valuation, growth potential. More east to west, rather than north to south (which may see some volatility with the new US administration).Likes the pipeline names, and this…

Its businesses depend on consumers, so some growth might be capped. Pullback could be a time to look at it, but has already done pretty well over the medium term. Steady-eddy with potentially high valuation. Keep an eye on.

Holding company, without much integration between assets. Not much value creation from acquiring and running assets. Wouldn't expect it to outperform the market by a lot. Fair value right now, a hold.

Huge new facility is coming onstream, and fundamentals in containerboard are more solid than in the very competitive tissue market. Facility over budget, so will take a while to get a return. Focused on debt reduction.

Great-looking chart. Had a long base of 2-3 years, which was ripe for swing trading. But now it's broken out, and that's good news. Parabolic move in a very short time, from $7.50 to $12.50, and it will take a break. When it does, that would be another great entry point as it might pull…

Spike today might be due to US hurricane. Whole sector can be volatile. Nice run since July, when homebuilders picked up substantially. Getting above $19 was significant. Big spike today. Don't want to see it break below $15. Will have trouble between $22-25, so might spend some time there chewing through the supply (as people…

CURELF-N vs. CL-X. He really made a focus on the US for cannabis. He thinks the US MSOs have a tremendous amount of room to go. CURELF-N is one of the leaders. CL-X just did a deal in California, which is one of the biggest markets out there. He likes both of them. They are…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The stock has really jumped over the last month and the most recent news we see is relating to CKI renewing its NCIB (share buyback plan). CKI plans to buyback 5% of outstanding shares over the next year. Results vary significantly period-to-period making it harder…

Flagship renewable diesel project coming online next year.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have been growing their top-line quickly over the last quarters. Net profit margins are improving. Although debt is quite elevated, they have cash balances and equity positions that are decent. Valuation is cheap and future growth estimates are good.A smaller size so could see…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The company saw a big pop in 2021 on EV hype for the Coil Drivers it sells. It has never really had significant revenues or positive free cash flows. If EV demand booms the stock could do better, but overall we are not too interested…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 9c missed estimates of 17.5c; revenue of $72M missed estimates by 2%. EBITDA missed by 11%. SXP is down significantly over the last twelve months by ~42% and recent earnings pointed towards declining profits and revenues. Revenue fell $6M. Earnings and EBITDA margins…

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's look at this many times, but never bought it. Pipelines still need to be approved, despite more talk about them. Co, crude-by-oil will endure, and everyone wants to make this safer. KLS has the technology to do this though their tech hasn't been mass-adopted. He'd like to see accelerated growth and earnings first. However,…

Very strong Canadian company that doesn't get enough attention from the markets. Last quarter starting to prove business prospects. Landing gear in very high demand within airline sector. Trading at discount to other names in the sector. Very high barriers to entry within the business. Margins continue to expand - will be good for cash…

Good for marijuana exposure. Speculative, but quality. 

Sawmills and other building material sites in Canada and US. Building out larger US presence through acquisition. Earnings were fine, but stock dropped. Revenue far below expectations, but cashflow in line. Great job managing inventory and cash to pay dividend. Homebuilding should remain strong. He's looking to top up his position.

Margins under pressure. Inventory is elevated, which makes it difficult for margins to recover in the short term. Elevated leverage. Doesn't see any great catalyst to unlock value. Intense capital requirements. Might stay in deep value territory for a long time.Invest somewhere else and do better.

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.

They had huge writeoffs in 2018 and more could be coming. They got hit by the 25% tariffs. They have diversified into car seats, bicycles and furniture. The dividend has been eliminated. He is watching it, but too early to buy.

It's never done anything and has disappointed shareholders. He owned shares 10 years and sold it because he got fed up with its lack of progress.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The acquisition was actually announced in April, ans is just moving towards completion now. Business-wise, we think it is a decent deal to combine the two companies, gain synergies and get a better valuation as a larger company. BUT....it was a very big premium for…

SU vs. CNQ He doesn't generally participate in the E&P space, as it's hard to make decisions based on the underlying commodity price. Bigger picture, still huge demand for Canadian oil and gas on world markets. EVs won't take over anytime soon.SU had been an underperformer and a laggard. Management changes have resulted in turning…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. STEP is down 35% this year, but up 59% in 52-weeks. Profit taking is probably part of the issue here. It did beat estimates in the 4Q, but the sector has been quite weak, and the company has recently seen two downgrades by brokers. EPS is supposed…

(A Top Pick Jul 30/24, Down 10.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PSI has triggered its stop at $15.  To remain disciplined, we recommend covering the position at this time.  

Some people own it for M&A takeover potential. He doesn't like to do that. It's a market where interest in small caps remains very low. Not hitting enough radar screens currently. Pursuing growth, so more modest cashflow. 

(A Top Pick Jun 15/23, Down 16.7%)Michael O’Reilly Our PAST TOP PICK with FEC has triggered its stop at $10.  To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 18%, when combined with previous recommendations. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research IPO is a small cap oil and gas company. It is down about 10% over the last year, but has been trending up year-to-date. IPO also pays out a high yield at 7.7% and is cheap on a forward price-to-earnings basis at 7.6x. Revenues have…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research TNZ reported Q3 EPS at $0.71 which beat analysts’ estimates of $0.007. Revenue came in below forecasts of $16.6M at $15.05M, nearly doubling year-over-year. Fund flow from operations (FFO) was $4.8M or $0.16 per diluted share versus the same period a year prior at $2.3M…

This was a spin out from a deal that Petrorubiales did about 6 months ago. Often these spin outs get dumped because people want to own the larger company. This is trading below cash and some nice prospects. Likelihood of success by the drill bit is pretty high.

Their debt has always been an issue. Trading at in-line levels for their multiple. Does not check his boxes in his fund.

They have two plays. It is pressured because of debt load. Production came down in the third quarter and should now increase. They should knock debt down with the sale of two non-core assets next year. It needs a catalyst before the market will revisit this story.

They brought in a partner this summer to help develop the East Duvernay. They still have too much debt. She is watching it but not recommending it. Not everything is cheap in this sector, still have to selective.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research QEC is a very small oil and gas company with market cap at $94.27M. QEC had a flat year in terms of price in 2023 but did display some volatility. Both revenues and net income margins had negative growth in Q3. The balance sheet looks…

Did a shareholder vote and Pacific Rubiales (PRE-T) will be assuming the management of the company. Drilling off the coast of Guyana. Got to about 1000 feet of the target. Because of gas creating a lot of pressure, they couldn’t finish the drilling. Potential is still there and could be a world-class discovery. Pretty good…

(A Top Pick Aug 31/23, Up 42%) Excellent company with very strong assets. Skilled management team that is able to allocate capital well. Market starting to recognize value of company - expecting 20-30% upside. Dividend very safe. 

Got in at 50 cents. It takes discipline to not take profits too early and let your winners ride if the thesis is still playing out. The investor did well to do that, not many can.Believes his firm is still the second-largest shareholder. Continues to drill exceedingly great wells. Perception of an inventory challenge, but…

It has exceeded consensus estimates for the last 5 years with growing revenue margins, working capital and debt reduction. A recent acquisition should add to growth. Energy demand is rising and management is strong. Impressive free cash flow yield looks impressive. She sees 32% upside. (Analysts’ price target is $10.41)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. KEL has strong drilling activity and currently no debt. We have KEL in the growth model portfolio, and we like it for its diversification benefits, being in the oil and gas sector. It is a strong name with a good balance sheet and healthy profit…

A Colombian natural gas producer which enjoys a favourable U.S. price of US$3.60. Production will rise as more customers and pipeline capacity are found. There's a shortage of natural gas in the country. It pays a nice dividend of 5.6%. He has a $5 target. Buy below $3.40. (Analysts’ price target is $6.09)

Doesn't believe in quality of assets. Company too new to determine whether a good investment. Good management, but not buying shares. Exploration oriented company.

Has owned shares for a long term. Was a previous top pick. Will continue to own. Power division doing very well. Traditional oilfield services stock. Gas generator business very good. Expecting large growth going forward. 

Well-run company. Always trades at a bit of a discount to the sector because of the nature of the business. Not a bad one to get into.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Q1 production was 7,015 b/d (80% gas), up 80% from the prior year period. Production fell 18% largely due to natural depletion. Cash flow was $6.1M vs $10.5M on the production decline but also due to lower prices. Debt fell, but is still $27.6M, about…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Splitting the company into two to separate the PNG business makes sense to us. The return of capital could be as much as 76c per share. This all sounds attractive...BUT....it is already a very small company. With less capital, and a split, shareholders will be…

This provides aeronautic technology that allows oil/gas companies to pinpoint where they should use seismic technology. It is about a 30th of what the cost of seismic is. They just had a conference call and indicated they are still waiting for some contracts to come in. They reiterated that some of their previous clients have…

Had some execution problems in a number of their mines. Also recently lost their CEO. Since then, he has dramatically reduced his position. At some time he will increase his holdings but there is no rush at this time.

Volatile. Not easy to understand. Engineered materials mainly for the solar industry. They've diversified. A recent acquisition may be transformative, wait and see. Hold if you own it. He's revisiting it. He prefers NEO, as a cheap way to play the EV market.

A small, very speculative land holder in Canada. Higher nickel prices may push this stock higher

Not to be confused with Osisko Mining, OR-T is a pure-play royalies streamer in precious metals, and minerals have been hot on the TSX so far this year. OR-T is up nearly 19% or three-fold the Toronto index's performance. As gold makes new highs almost every day, OR continues to shine. It trades just over…

In Mongolia. Fairly illiquid. He's a fairly large shareholder. Time is on your side. Development is drifting their way. He anticipates a takeover transaction at some point.

In Western Africa, this miner is looking for funding. It is not the exciting part of the cycle as they are in the de-risking mode. Investors are looking for projects that double resources. Institutional investors are not yet stepping in the space.

It's time will likely come, but he has a hard time understanding the geology of the project. He doesn't own stocks where he doesn't understand the geology. He holds OR instead. 

(Market Call Minute.) Great execution with a $500 million market cap. Thinks it is ahead of itself. It is expensive.

They own the Rosia Montana gold mine in Transylvania. Have been trying to get permitted for approximately the last 10 years. This is going to continue to be an uphill battle. The resource is tremendous but he feels this is stuck in the jurisdiction where they don’t want the mine to go ahead. If they…

They were abutting New Gold’s (NGD-T) Ashton project. They have an interesting exploration play and have sold some rights to New Gold. A speculative situation.

From a trade perspective, a bit overbought. He's a trader at heart, and buys into dips. If you're a bull, by all means keep holding. But he took some $$ off the table.Likes both gold and silver here. Gold and silver equities and exposure to them are very undervalued relative to long-term trends; analysts tell…

Broken out to new highs. Benefits from falling interest rates, which should continue in Canada even if not in the US. Energy is a foundation of our economy, and as our economy grows we'd expect energy demand to grow as well. May have additional boost from newer sectors, like nuclear, growing more rapidly.

In the middle of a long-term range. Yesterday's news looked very positive. Good, solid support around $38. Potential to get to $50 before it stalls out, in a 3-6 month timeframe. Get out if drops below $40.

Buy this dip? They went to raise money, but too much, which in turn pressured the stock price. But don't worry about the low price. He's bullish gold and silver. Be patient and let this wash through. The underwriters were stupid.

This name is further down the food chain. Take a look at the more interesting mid-size players. Still, he's been lightening up on gold. With a strong USD, and interest rates possibly being higher, gold may take a few steps back. So he's waiting to see how things shake out.

He's a dip-buyer of gold and a royalty name like has more correlation on the gold price than a miner like Barrick.

Current share price presenting buying opportunity. Waiting on results for size of gold mine. Political risk in Mexico is concern. Very good management team. Risky stock, but good for risk tolerant investors.

They had three working mines, now two. When you have a major catastrophe in a mine, people often jump out. This company has been around for years and years. That shows a certain staying power. He likes to invest in companies that have been around for at least 10 years. He doesn’t know their financials,…

The company has suspended its dividend. They operate diamond mines in South Africa. They are looking into underground, from open pit. The cost is more expensive than thought. The price of diamonds has been reduced, though retail prices won’t change.

Primary asset is an Alaskan property Livengood. Have been in the process over the last 3-4 years of proving it reserves. Interesting way to play gold because of volatility of a junior so be careful what you allocate to it. High potential development and pretty well developed infrastructure setting. Obvious takeover target if reserves prove…

Sees no change to the dividend theory. The 3 Irish business millionaires actually control the company and are holding it long-term for the dividends. The company has some costs going on disadvantaging it. The diamond sector itself has not produced really stellar performance. This is a “wait and see”.

It's been stuck at these levels for a long time, but likes recent volumes. No problem buying this one.

Sold off aggressively after acquisition. Reasonably good job paying down debt. Guatemalan assets will probably restart in 2024. He notes that he's a close personal friend of the CEO.

Discovery in Ecuador. If anyone can put things together in Latin America, it's them. Massively high grade mine. Really good long-term hold.

This name is further down the food chain. Take a look at the more interesting mid-size players. Still, he's been lightening up on gold. With a strong USD, and interest rates possibly being higher, gold may take a few steps back. So he's waiting to see how things shake out.

Don't argue with an uptrend. Pulling back to the trendline. You can see that it was parabolic. Will probably take a pause, but moving in the right direction along with gold. Long-term investors will be fine.

Focused on uranium, where seasonality is strong from September-January. Lots of volatility. Performed well, then pulled back, did well. Doing better than others in the space. Favourable in medium- and long-term.Lots of positive announcements in the sector, but the stocks have not responded because all the focus is still on tech, not on commodities.

Ranked as a 4 in his system, which is high praise. Holds management team in high regard. Wonderful asset allocators and patient investors. Recently entered into royalties for renewable energy.

On the sidelines until the CEO impresses him; he's having implementation challenges. He's staying on the sidelines for now. Great CEO though.

There are easier ways to make money in copper than through this company. Has known this name for about 30 years. They had problems with the tailing stem in Williams Lake British Columbia. He’ll watch to see how the start up goes for Red Chris in Western BC.

(A Top Pick May 08/23, Down 51%) Share price not performing well. However, believes demand for products will remain. Would recommend holding to see how company performs. 

Likes management. Note that there is nothing immediately happening. It’s not something to chase, but just accumulate over the summer. Turkey is not bad at all, it is a democratic system. Their mining code is working. He thinks they have permitted 10 mines in 10 years. This company is technically very, very competent. Sitting on…

A palladium-copper developer in northwestern Ontario. Rates of return are just below 30%. This will be hard to finance, though they scored funding from Export Development Canada. Can they get equity financing. That's the key question.

Expecting bankruptcy. Not a good place to invest. Company quiet on litigation problems. Too many unknowns. No cash flow, and tough debt requirements. 

They have option agreements with major partner Rio Tinto, but these have been under dispute for the past year. It's worth tens of millions of dollars. The stock has fallen because of this battle; investors have lost patience. He owned this before the legal battle and didn't want to wait for it to be sorted…

They have had a fantastic track record on the exploration front. They bought a shut in zinc mine and then the price of zinc dropped. He would stay away from it until they delineate new zones they can extract ore from.

Doesn't like the sole risk exploration. If the story develops the people behind the company have the financial connections. The terrain is legendary gold ground. he can not make the data work for hi to buy it.

(Market Call Minute.) In a big gold system and he likes it.

XME was among the strongest performers this morning, up almost 7%. Some view that protectionism would be good for the NA steel producer. Cyclical, fits the inflation theme. Hasn't done a lot of work on this one, but technical setup is good.

Has done well. Keeps getting good hits on the drill. Quite a bit of upside. Take a look at it. $5 price target. If you own it, hold it. Exploring and growing reserves is where you get the exponential reward; whereas reserves on the ground are just leveraged to the price of gold.

Expecting merger with NextGen. Will continue to own shares. Large deposits of Uranium. Very bullish on upside for company. 

To manage risk, he sets up his portfolios starting with the biggest, which is FNV. More diversified than OR. He also owns OSK proper.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research NEO is well-positioned as a global supplier of advanced industrial materials, and its strategic partnerships outside of China (Brazil, etc.) allow it to mitigate supply chain disruptions caused by China's restrictions. The restrictions from China could cause rare earth prices to rise, benefiting NEO, and…

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Being acquired at $7 but because of the lower stock price, market indicates the deal is not going to close. Doesn't see this as a good way of making a quick buck. You are trying to beat the pros at a game that they are very, very good at.

Recently had a permit on Pumpkin Hollow. Likes the story and the management team. The probable next step for the company would be to arrange funding for development of the underground resource. CapX is not stretched. Long-term, this is a great story.

Shut down production recently. This type of situation is what usually happens at the bottom of a cycle, although this one may not be around to enjoy the upside of the cycle.

10 years ago he owned it and did very well. He got interested again, but he can’t reach the company over the last two weeks. Lost $2.2 Million this last quarter. He is watching it closely. 450 Million shares fully diluted. He wants confirmation they will not do a concentration.

(Market Call Minute.) Feels the potash market is oversupplied.

Smaller cap. Income focused, with a yield around 8.5%. 50% office, 25% retail, 20% industrial. Goal is 60% industrial over 4-5 years. Issue will be having to sell assets to get there. Office space is difficult right now, both operationally and to sell. 25% discount to NAV. Pretty safe.

Both companies have done quite well and both are cheap with secure dividends. It has been a good year for the sector but they may not get the same returns going forward.

(A Top Pick Nov 13/20, Up 33%) Has started buying back shares and paying dividends. Financials should do well as the yield curve steepens. Valuation is not as compelling as before. Middle of the pack. Has moved to US banks and non-financial banks in Canada.

(A Top Pick Sep 27/23, Up 10%) Attractive valuation, about 25-30% undervalued. Last-mile distribution. Europe is seeing positive fundamentals, especially in the Netherlands and Germany. Add on weakness, sell on strength.

They get a royalty on what's delivered so are tied to iron ore prices. Their dividend is tied to earnings and they just cut the dividend from $1.10 to $0.70 for a yield of 10%. It is an interesting stock because of the valuation - 10X Earnings, cash - $40 million, and exposure, but they…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research It did miss cash flow per unit estimates in the Q3. Not by a lot, but a miss is a miss (15.9c vs 16.1c expected). The yield curve, despite Bank of Canada rate cuts, has still managed to shift upward. The recent government moves on…

Well managed. Reason for underperformance has to do with interest rates and, more recently, with supply. No pricing power, material headwind. Tremendous demand in the US Sun Belt from job growth and migration. Expects lower growth, but could be good setup for 2025. Hold on, collect the yield, hope for better things in 2025.

In an uptrend, testing the trendline. From the chart, you can see how it arced too high and now it's going through a pullback. The trend is still in place. So far, it looks fine technically. 

Lending in real estate finance. Very interest-rate sensitive. If you think interest rates are going to rise, as in 2022, then it will underperform significantly. Will do better if rates fall. Thinks the BOC has a bit more to go on that, so there could be a bit more upside.But the stock's already rallied back…

Undervalued, great fundamentals. Going through strategic alternatives. A buy and hold strategy will reward you; either from selling off properties one by one, or by closing the gap between public and private market value. In the future, the company won't exist and you'll get back your capital, likely at a premium to where trading today.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research FC is a relatively small mortgage lender. The stock is cheap at 10X earnings, and it mostly trades for its 9.4% yield. The dividend has not been raised for at least 10 years, but it does pay fairly regular small special dividends annually. There has…

Be patient with it. Has good, long-term fundamentals. Likes the managers for being focused. Could be taken out. They are executing, but sort of fly under the radar.

(A Top Pick Nov 14/23, Up 11.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MRD is progressing well.  To remain disciplined, we recommend trailing up the stop (from $10.75) to $12.00 at this time.  

They own U.S. hotels, a high-risk, high-reward stock. He's bearish on hotels, which is struggling with labour costs and keeping labour. HOT.UN has done a good job restoring vacancies, in the low-70s, though their peak was in the 80s. However, they've made up the balance on their hotel rates. Their balance sheet is slightly higher,…

They have finally inked some very significant deals in the last 3 months, which is why the stock has doubled since then. Thinks there is pretty good opportunity. One of the challenges is that there is only one analyst covering it.

Hold and watch it continue to climb without risk? No, you can never do that. Remember that MFC plunged during 2008 because it got into all kinds of trouble. Today, management has learned a lot from that. He sees big upside in their insurance, US and Asian operations. Still offers decent value and dividend growth.…

(A Top Pick Sep 10/24, Up 32.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with IGM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $39) to $43 at this time.

The REIT world is very interest-rate sensitive, as is your house. Watch your real estate exposure across your net worth. If you didn't own a house, an excellent play. Low vacancy, largest Canadian provider.

Diversified industrial globally. High quality properties. 10-12% discount to NAV. Focused on larger part of the market (over 300k square feet), where there's more vacancy. It needs to work through that. Likes the sector, stock's interesting at this level, keep owning it if you do.

More interest rate cuts are good for it and it has a good quality base. Has a sustainable dividend.

Reports on November 5. Now trading at an interesting level, over 15% discount to NAV. Fallen perhaps because of announcement on immigration being curtailed. 60% of portfolio in Atlantic Canada, actively diversifying in Ontario and BC. Likes that 44% of assets are not subject to rent control. Expecting results to be good. Stay the course.

Good business. Would buy. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The $4B withdrawal is fairly serious, though FSZ does have $166B, and it continues a trend of some assets leaving the company (including money that earlier flowed out to Pinestone following Nadim Risk's departure in 2021). On the plus side, it is coming at a…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 5c beat estimates of 4.3c; revenue of $66M beat estimates of $61M. New originations were $625.7M vs $571M last year. Guidance was afffirmed for 2024 but boosted for 2025 (19c to 25c vs 18c estimated). The company has streamlined its cost structure and…

He's long owned this, didn't do much for a while, but has made a good move this year. Trades at only 8x EBITDA. Strong managers. The stock has had a good pullback to $26, which an entry point now. They peaked in July-August, but doesn't know it has pulled back, maybe concerns over Saskatchewan's real…

Has owned shares in the past, but has since sold. Company lost biggest customer, so is suffering. Stock has sold off ~75%. Trading at cash value right now - but the company needs cash for business (not much liquidation value). Good management team, but has sold. 

Top income pick, newest holding. Provides mobile and manufactured housing parks in US. Growth through acquisition, improves services and trappings of those acquisitions. Low monthly rental fee, increased a bit every year. Strong balance sheet. Yield is 4%, payout ratio only 40%.Provides affordable home ownership when real estate is still expensive.

DRR.UN vs. DIR.UN He focuses on supply and demand, and then goes bottom-up looking for discounts. Fundamentals in industrials in Canada and Europe are far superior today to US multi-family, especially in the Sunbelt. It's a new construction supply problem, and demand won't be able to keep up. DRR.UN owns an older portfolio in key Sunbelt…

Expecting further price appreciation. Has been doing business with family for 4 generations. Second generation of business leaders very strong. Good way to get exposure to micro resources sector in Canada. Very good capital allocation. 

Both companies have done quite well and both are cheap with secure dividends. It has been a good year for the sector but they may not get the same returns going forward.

Stockchase Research Editor: Michael O'Reilly We reiterate ONEX, a Canadian private equity firm with WestJet in its portfolio, as a TOP PICK.  It trades at 7x trailing earnings and under book value.  The company is prudently using some cash reserves to draw down debt and buy back shares.  We recommend trailing up the stop (from…

Concerns over exposure to condo market. Great portfolio, quite defensive. He's bullish on outdoor shopping centre landscape across Canada, with low supply and increasing demand from population growth. Great management. You're well served by holding on.

Very good product. Manufacturing processes are very green. Battery is super compact. They are testing in massive pilots for utility companies to store power for peak time. Also could be used in cars. Analyst coverage just picked up. Sept ’11 earnings wont be up to much. Question is the next year. It’s very early days.

Only now getting back to pre-pandemic highs. Has done extremely well. This has been an extremely good performance year for long-term-care REITs. Not sure there's much more in terms of capital gains from where we are now. Unless substantial pullback, wouldn't buy now.

With 10-year bond yields popping up, some of the REITs are a bit challenged. This is a Canadian REIT, even though WMT is its anchor tenant. He prefers storage REITs in the US. He worries about the Canadian economy. Yield looks strong at over 7%, seems safe.

(A Top Pick Nov 14/24, Down 5.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GSY has triggered its stop at $165.  To remain disciplined, we recommend covering the position at this time.  Combined with our previous guidance, this will result in a net investment loss of 7%.   

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research AIF saw a sharp drop following its Q3 financial results reported in early November. The stock's struggles have been driven by the slowdown in the real estate market and particularly, concerns regarding commerical real estate. Valuation has now come down to a more reasonable 18.3x…

CIX vs. BAM Are very different asset managers. CI's balance sheet is not good. Prefers BAM, but shares have risen to a high valuation. Great managers and earnings stream (asset management fees).

(A Top Pick Jul 14/22, Up 43%) Sold off one division for lots of money. Significantly undervalued, worth $60. One of the big banks could come calling. Amazing management. Share buybacks. Huge, regular dividend increases.

Management wants to buy it out but there are two conflicting groups of shareholders. The employee shareholders want the lowest price possible while the outsider shareholders want the highest price possible. This type of conflict is not good. Value it as a whole, not on the split-up of parts.

The preferred shares, Series E Has a rate reset spread at 330 basis points, and pays a dividend yield of 15%. Something happened to the dividend last August. Doesn't know this name well. They are selling some retail assets to add stability to the stock.

It is in the short term mortgage lending business, mostly residential. It is trading at a slight discount to NAV with an 8% yield. It is not widely followed.         Buy 2  Hold 0  Sell 0 (Analysts’ price target is $12.96)

Royalty models do better in bear markets. Costs are nil, so it's a stable business. Well run. Mr. Lube over time has taken market share. Stock's pretty illiquid, make sure it's covering the dividend. Hold or buy. Yield around 8%.

(A Top Pick Mar 21/24, Down 3.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with OLY has triggered its stop at $98.  To remain disciplined, we recommend covering the position at this time.  

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research It is not looking good, considering more than $900M in debt and cash flow of only $37M in the last 12 months. Interest expenses were $73M, nearly twice cash flow. It does of course have assets, but it is not a seller's market right now,…

Has lagged the Canadian tech sector. Used to own, wouldn't be back in soon. On its recent partnership with ADBE, he tends to own the big payment systems like MA and Visa, big beneficiaries of the resurgence in the economy. 

(A Top Pick Aug 22/22, Down 17%) Software company that is based in Ireland. Offers compliance and validation software in life sciences business.Currently has 8/10 of top pharma & 18/20 top bio-pharma companies as customers. Growing customer base at a rapid rate.Very positive on outlook of business.Will continue to own shares.

It has almost doubled since the summer and this doesn't justify the improvement in guidance. It is trading at over 100X next year's earnings with 22% revenue growth for the next year. A number of stocks have run ahead of their fundamentals including Shopify. It is time to take some money off the table.

Spiked up on the close last week. Everything looks really good about this for the long term, everything says you should own some. RSI against S&P since 2022 has been really good, up and to the right. Buy some today with a partial position, then add a second component on a further breakout, and a third.…

Large infrastructure & utilities technology.Optimization software that replaces spreadsheets.Large organizations that create recurring revenues.SAP partnership helps create new opportunities. Under the radar - not widely followed in the markets. 

Good job overall, well run. Exposed to some of the AI trends. Sizable competition for what they do. He's conservative on whether it can differentiate itself in the coming years. Must show it can get the big, multi-year contracts.

It trades only 39,000 shares per day, so it isn't very liquid. (The beta is 0.23.) It still has negative earnings. POET reported on April 26 a fourth-quarter net loss of $3.7 million, or $0.10 per share, vs. a loss of $5 million, or $0.17 per share, a year ago. POET didn't supply sales for…

Customized, prefabricated environmental office interior solutions. High net cash position. Significant upside because of their flexible business model. Surge in office reconfiguration taking place across North America. Top management. No dividend. (Analysts’ price target is $3.46)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of $0.365 beat estimates of $0.311 and revenues of $75.0M beat estimates of $73.218M. Sales grew 19% driven by higher subscription revenue and customer retention. Adjusted EBITDA margins expanded from 9.7% for the same period in the prior year to 15.7%. Management noted advancements…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Average target is now $5.04. Post-earnings, Scotiabank lowered its rating from $5 to $4. At less than 9X earnings it certainly can still be called cheap. Q3 results showed EPS of 12c, beating estimates of 9.5c. Revenue of $630.7M slightly missed estimates of $639.7M. EBITDA…

Sold because its ROIC returns started to get a bit wonky. In fact in last 3 years, ROIC has been negative. Satellite internet access has eaten the lunch of fibre. Hard to form a moat around its domain business. Wait for ROIC to be in excess of 20% for at least 3 years in a…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 1c missed estimates of 3.5c; revenue of $16.17M missed estimates of $16.46M. EBITDA of $4.75M beat estimates of 11%. Total sales rose 4.5%. Subscription sales rose 16.6%. SYZ bought back 85,700 shares. Canaccord raised its target by 50c to $12.50. Despite the 'miss'…

(A Top Pick Nov 22/18, Up 12%)Convertible 8% 2022 bonds He owned the Yellow senior bonds, but then moved into these convertibles. Most of their revenues are in digital, but that has struggled. New management has cut costs a lot until free cash flow now stands around $100 million this year. Their EBITDA margins are…

When stock makes a new high, bullish? Or wait for a pullback to put money to work? Usually in technical analysis you buy the breakout, especially when the chart shows a staircase pattern. Rally, consolidation, rally, consolidation, and so on. Some people say wait for a retest, which is about $4400. Risk is that it…

Still likes the story. Lightening up, as stock's doubled over the past year. Hasn't been buying since ~$20 level. Valuation's gone up a bit. Great momentum relative to the group. Leading on the number of contracts.

Very experienced team now running the company. Insider buying. Solely focused on intelligent transportation solutions. Biggest market share in US for electronic tolls. Sitting on a ton of data analytics, looking to monetize. Wouldn't hesitate to buy on this pullback. Great infrastructure asset. The industry will be consolidating, especially be private equity.

It's a vertically integrated medical marijuana company that is dominant in Florida with a growing presence in the US northeast. They grow, process and sell at their own stores. They just opened their 73rd this week. They've been turning a profit since 2017 and keep posting good numbers. Too bad it trades only in Canada.

Has pulled back a lot. It holds US medical property. It has suffered inflationary pressures, but will diminish in 2023 and the stock will recover. Don't sell it in the current Dutch auction.

Good business that is defensive. However, debt levels high - has grown thorough debt. Would recommend watching. EBITDA would suggest company is cheap - however a true analysis of the business would suggest interest rates are a burden. Would recommend investing if the debt levels fall. 

Huge margins and free cashflow. Growing business annually compounded at over 15%. International expansion. US acquisition is growing double digits. Online China business growing 80%. Never been cheaper at 17x forward PE. Takeover potential in a few years. Yield is 2%. (Analysts’ price target is $40.82)

It got stuck above $30 and is now building a nice base. He likes this.

This has been an extremely good performance year for long-term-care REITs. Not sure there's much more in terms of capital gains from where we are now. Unless substantial pullback, wouldn't buy now.

The psychedelic space is coming to the forefront for investors who ses this as Cannabis 3.0, but these are not recreational products. Rather, the breakthroughs are coming in medicine to treat PTSD, addictions and anxiety, areas showing promise through psychs. Such companies are building a pharmaceutical platform (drugs to sell to patients). Big pharma isn't…

(A Top Pick Sep 10/24, Down 11%) (Note the short timeframe.)One of the cheapest small caps, accumulate on weakness. Pullback gives you the opportunity. Good job setting stage for margin improvement over time, not overnight. High net-cash position. Capital discipline, good insider ownership. 

Amazing job. Underlying metrics on profitability are incredible, but can it continue? If yes, will be a multi-compounder for years to come. As they keep delivering, so does confidence that they can keep doing so. Vast addressable market. Savvy management. You have to watch carefully that numbers back up the story. Safe to accumulate.

(A Top Pick Dec 20/18, Down 40%) It had a good turn in January. Beaten down stocks can have a nice bounce in January.

(A Top Pick Nov 09/21, Down 51%) The largest provider of pharmaceutical services in Canada. Growing organically and by acquisition. Has higher labour costs - margins should be compressed short term but not longer term. Good management.

Very positive on the stock price, the company, and the partnerships they're announcing. Technicals indicate the stock may head toward 90 cents, but he says higher. Just won a contract from the Ontario government. Covid testing isn't going away. Sales should triple in the next 12 months.

Doesn't know much about this. Shied away from it for now, because it doesn't trade much. Has the potential to be a bigger small-cap healthcare company, an area that he likes.

Rather bad couple of days. Was down substantially, outside of a range. Consolidated. It broke down and is more likely to go down. $1.50 on the downside.

Medical robotics? He does not know TMD-T well. He plays the space through and ETF of BOTZ-Q. He prefers ISRG-Q, if you wanted an individual holding.

There is nothing more powerful than a base breakout, and this had one in February of this year. This one is on a trend line right now and there is absolutely nothing wrong with the chart.

Stockchase Research Editor: Michael O'Reilly We reiterate this Canadian based Pet store operator.  Recently reported earnings showed a 28% increase in net income.  The company has opened its Vancouver regional distribution centre, positioning well ahead of the holiday season.  We like that cash reserves are growing, while debt is retired.  We recommend trailing up the…

Is fairly illiquid, but profitable and pays a 6.6% dividend. Price targets are high, so there's a runway ahead. But two-thirds of the business is concentrated in Canada, and a big risk is if song royalties rise. It's profitable though. He's watching it.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research GH has been steadily climbing over the past few years, and it has a dividend yield of 4.6%. Analyst estimates have mostly been rising for the name, and its valuation has mostly contracted over the past few years while its price has grinded higher -…

Owns shares in this business. Printing business that has been around for a long time. Did some M&A about 1 year ago that is going well. Business has doubled the past year. Printing business is not a growth industry - but digital asset management business growing. Good for a short term trade - not a…

Big fan of the space, especially with the incoming US administration. This name had done a tremendous job over the years. But take a look at ATRL.

Leader in home accessibility and patient handling products. Benefits from aging demographics. Phenomenal results, increased margins. Over 18% EBITDA margins YTD. Stock's down on tariff threat, big overreaction. Buying opportunity. Patient handling products are all made in USA, and most home accessibility is FDA-approved (tariff exempt). Home elevator business may not be exempt, but could easily…

A little volatile, too much for her. Hasn't seen a recovery yet, after topping at $60 in mid-2021, but may be rolling over at the current $23. To boost growth, they are spending internally and buying companies, which has impacted their margins negatively. There's risky, upside potential, but she'd pass.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research In Q4 – 2024, CGY reported a revenue growth rate of 3%, with revenues reaching $181M compared to last year’s $175.9M. Adjusted EBITDA margin improved in the quarter to 12.5% from 11.6% last year. Overall, these were acceptable numbers but not that strong, revenue growth…

Monthly dividend of 7.75 cents. Pretty range-bound, between $12-15, for a couple of years. Looks as though it's pulled back into the middle. Steady stock, steady and mature business. More of a yield play. Yield is 7%.

Value. Leaders in frozen seafood in Canadian retail and US institutional. PE of 7x. Buying back stock, paying down debt. Increased dividend by 30% last year. Yield is 4.51%. (Analysts’ price target is $15.42)

Stores may or may not be impacted by Ontario government rolling out more retail locations. The Pellers stepped down from the board, possibly planning a bid to privatize the company but he's not really sure.

(A Top Pick Mar 26/18, Up 97%) They smartly bought some spectrum rights a few years ago, and now they're on the fringe of the 5G spectrum. So the value of their spectrum rights will be realized later this year. He took profits, and would be lightening up on this now as the stock does…

Sold mobile unit. Leaders in embedded home, infrastructure, and satcom. Fixed balance sheet. Turned around, next year should be really strong with new product launches. Might be acquired. Excellent technology, solid clients.

She scores it 6 out of 10 for value and fundamentals, and it's on her watch list. Likes it. Sees 11.5% upside. Analysts are mixed, though. A lot depends on the future economy---will benefit as interest rates decline and people eat out more.

It has made progress but in the macro environment of inflation in Argentina it has under-performed.

Short interest was 2%, but has come down. Continues to slowly grind higher. Likes the technicals, especially if it breaks above the highs of 2023. 

Traditional bricks and mortar business that will face competition from eCommerce. Undifferentiated shopping experience that is not enjoyable. Discretionary product offering makes it difficult to retain customers. Would not recommend investing at this time. Housing slowdown in Canada will also be hard on the business. 

It's cheap, and surprised shares haven't moved higher. They will buy wireless assets from Shaw to become the #4 player in Canadian telcos. Valuation is lower than its peers.

(A Top Pick Jan 23/24, Up 3%) Benefiting from the Freedom Mobile purchase. Able to expand in Ontario and Western Canada without deploying too much capex. Very high ROE and free cashflow, allowing them to lower debt and obtain investment-grade rating on bonds. Aggressively buying back shares. Best-performing telecom stock this year.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Pure-play water exposure; sustainability trend. Strong position globally; renewed water focus. Attractive valuation; good dividend. Debt recently lowered but still high. Unlock Premium - Try 5i Free

Going through significant transformation. Starting to realize benefits from new manufacturing capacity, can generate as much as $700M of incremental revenue. What excites him is that margin profile of this extra capacity is ~30%. This tells him that margins for the company as a whole will expand significantly over next 12-18 months. Going to reduce leverage.…

She's anticipating economic weakness, hesitant even on the consumer staples space. Consumers in Canada have seen a lot of price increases in the last 24 months; spending same $$, but taking home less. Questions ability to continue to pass on those price increases. 

It has executed very well over the long run and works on cost structures. There could be another special dividend. It has lots of real estate and wants spin off a REIT. However a lot of their properties are not in the greatest areas so the REIT may not do as well as others. You…

A great one to buy at the height of Covid. This has come back with a vengeance. Amazing Q4 report and the housing market is on fire. Factors lined up for ZZZ. They've managed debt well. It's a one-product business, though, so keep that in mind and don't pay a big PE. Their growth will…

Tariffs shouldn't be a problem. Now improving operations and margins. Juice not growing as much as in the past, due to concerns about sugar intake. Not expensive, very well managed. Not a liquid stock. For a long-term value investor.He's never owned it. Quite acquisitive in the past. Topline has slowed, hard to see how it's…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research RSI beat EPS estimates of 13c coming in at 14c. Revenue also beat estimates of $304.7M coming in at $333.03M increasing 10% year-over-year. Adjusted EBITDA was $141.6M up 28% year-over-year. The quarterly and full-year results look solid, with increasing sales driven by price increases and…

(A Top Pick Feb 27/08. Down 3.8%. BNN misquoted as a 30% gain.) Recently suffered from the malaise in the newspaper industry. The unique thing about this one is that it is mostly exposed to Western Canadian publications and to local community advertising. Generates a significant amount of new cash flow.

Broke the downward trend, upward trend hasn't broken. Positive when you're in an upward trend.

(A Top Pick Dec 14/23, Down 21.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TSAT has triggered its stop at $11.  To remain disciplined, we recommend covering the position at this time.  

This hardly trades at all. Insiders own a very big chunk of it, about 75%. They own ice rinks and an adult hockey league. Revenue has been mostly flat for the past 5 years. There is about $45 million in net debt on a $50-$60 million market cap company. Pays a 2% dividend.

A disappointment. Pandemic has been the nail in the coffin for movie theatres and DBO's motion systems. Simulation and industrial segments have been profitable. Treading water right now. Long road ahead. Wait and see before stepping in.

This is how he'd play the renewable energy trade. Thinks rates will go higher next year, which makes him cautious. If that's the case for rates, a lot of the bond proxies like utilities and REITs are going to come under pressure. A bit more upside potential, but for a trade.

Likes the sector, lots of runway. Renewable natural gas. Governments are increasing demand. On his radar. Will look at again when risk appetite in the market returns.

Likes it long term, but is enduring issues now. 

He sold on the Kentucky Power acquisition, a red flag. Stay away. Rudderless ship. Better opportunities out there.

He bought it as a value play with sum of the parts worth more than it was trading at. They are trying to sell some of the parts. Thinks they will sell all the parts and distribute the cash. $4-$5 breakup value. It is taking longer than he thought to break it up.