This week’s new 52-week highs and lows… (Jan 16-22)

Office has suffered since the pandemic, supply/demand are out of balance everywhere. Occupancy has slipped to lowest level in 2 years. Leverage is quite high, while net operating income is down this quarter. An execution story. Some wonder if distribution can be sustained.

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

(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.

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.

Great properties, but diversification means it doesn't get a great valuation from the market. Sunbelt properties are over-supplied. Owns office properties and retail. Transforming to multi-family and industrial. Trade action starting to pick up. Secure yield of about 6.7%. Growth will be a while, depends on your time horizon. Better names in the meantime.

Compelling level. Pursues a value-added strategy, whereby you can get above-rent-control rents by improving properties. Great track record on this. Exposure to student population, with lower rents. Immigration question has unduly punished residential REITS. Over 20% discount to NAV, attractive.

(A Top Pick Sep 28/22, Up 45%) Got taken out. Traded at a 25% discount in a sector that was in high demand.

(A Top Pick Sep 08/23, Up 14%) Last year was hard on this company with interest rates having moved way up so quickly. It is in the short term mortgage market business. Property prices are coming down. It still pays a 9% dividend and is trading at a 10% discount to its hard cash value.…

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 portfolio of US properties. It also has some interesting properties around the DVP area in Toronto. The CEO is one of the few people that not only knows how to buy, but also how to sell. Thinks that at some point, he will sell the entire company if he can, or bit by bit.

They generate electivity and sell it. As we move in this direction this company will have a foothold and niche. It is a capital intensive business and interest rates rising will be a problem.

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.

Pulled off significantly. Downtrend since earlier this year, along with energy stocks in general. Over the next month and a half, energy is historically weak or sideways. January-April is a time of really positive seasonality. Price momentum started to improve. RSI started to tick up. Started to see institutional buying. Short-term price trend started to pick…

(A Top Pick July 3/15. Down 43.04%.) Sold his holdings at around $5.50, and lost money. Their business continues to grow, and this is one that he continues to watch. There is lots of promise here.

The space has been a fantastic investment. There aren't a lot of options for getting rid of garbage. Once you're on their books, they can gradually increase prices. The issue is that valuations are quite high, and always have been. High barriers to entry. When stocks come off, the expensive ones come off the fastest.

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.

Excellent asset base - very had to replicate. Consistent dividend increases. Cheap valuation given cash flow abilities. Company will perform well regardless of economy. Has a long history of quality dividends. Portfolio of growth projects for the next 5 years. 

Junior company that is basically raising money to explore for uranium. Sometimes takes years to find a deposit. Have to be patient. Some interesting prospects in the Athabascan basin. Pretty strong drill program for the first half of 2008. On negative days, you could pick some up for a short-term trade.(Buy uranium stocks when uranium…

(A Top Pick Sep 18/23, Up 18%) Buys grocers for defensiveness and value, not growth. He hasn't been trimming, still some runway to go. Efficiency gains in the space have been incredibly strong via technology. Rate cuts support households, which supports retail including grocers.

(A Top Pick Apr 28/21, Down 67.4%) Are building online grocery sales now. When he recommended it, he expected another leg up--and shares rose last summer on good numbers. But he sold this around $10 because he was concerned the company was no longer focusing on meal kits and was spending a lot to enter…

There is no dividend. Sales are up but earnings are less negative rather than positive. Earnings growth forecast for this year is zero.

$2.25 price target. Growing pains starting up a mine. He'd be averaging down. Issues always signal a really good entry point at cheap valuations. Have to be patient. This wouldn't be his only holding; he'd own it amongst at least 5-10 companies.

They just partnered with a private equity group. The company is now 45% owned by private equity. They completed their first pour in the Yukon and are moving towards commercial production. The problem is the private equity partner will have a lot of say in the operations. This will keep him out as an investor.

(A Top Pick Feb 25/21, Up 15.3%)Stockchase Research Editor: Michael O’Reilly With the recent completed acquisition by AEM now official, we now consider this position closed. When combined with the previous recommendation to cover half the position, this results in a net investment gain of 22%.

(A Top Pick Jul 14/23, Up 51%) Company has increased share price since recommendation. However room left to grow. Mine continues to grow. Believes upside still left in the stock. 

(A Top Pick Jul 25/24, Up 8.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with QBR.B has triggered its stop at $33.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 11%, when combined with our previous guidance.  

Competitive industry; harder to grow revenue, especially when costs are escalating. He owns Telus.

It's hoping to win more contracts as well as benefit from AI. Every single company is trying to implement AI into their products. Slow-growing business, more acquisition-based. Hasn't knocked it out of the park. A quite reasonable valuation. Actively looking at, would love to buy on a material pullback.

It is a greener form of cement. They use a lighter form of concrete to be a base, instead of Styrofoam. The product is fairly new but well received so far. They will probably look at making acquisitions.

He stayed away because they went to the states to make acquisitions. He did not know why the Americans would not already take these assets. He stays away from it.

Debt concerns? BXE took bankruptcy protection when debt became too much. There is no equity value in it any longer. Companies that have debt that matures in 2020 or 2021 will have issues. He sees no issues with BIR or TVE on this topic. The new Federal relief program for large companies may be difficult…

Company too small to hit institutional radar screens. Quality company, but better options in markets. 

Concerns regarding tariffs on components and whether Trump will expand public transit. Making progress on debt, but it's still too high. Supply chain issues. Too many questions to step in:  growth, costs, debt.

The biggest independent zinc producer has had its ups and downs. The new CEO has to navigate 2020, which was tough. Zinc prices have jumped to US$1.25/lb. TV's cost structure is based on $1.10-1.15. TV trades at a deep discount. Zinc doesn't capture the imagination like copper or nickel, though. Zinc prices have benefited from…

It looks interesting, but is too small for his funds. It has under-performed for the past few years. They are in the right place at the right time, but we need to see some good drill results soon.

Cobalt is attractive but this is not a cheap producer, because they're in Canada and not Russia or Congo.

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.

(Top Pick Jul 13/11, Down 8.69%) Funding issue. Venture is down about 38%. Exploration companies have come off the most. Smaller company that didn’t have a lot of cash. Two days ago they came up with a huge whole with 1.3 grams. If you have a long-term perspective, wait until they do their funding.

A large continental deposit, but there are political problems in Colombia. Are also concerns over cost overruns, can be managed. Worth buying overall.

(A Top Pick Dec 13/22, Up 19.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ELD has triggered its stop at $13.50.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 19%, when combined with our previous recommendations.  

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

Been a nice success story. His opinion is that the commodity cycle has really played out here.

Listed in Canada but operations are in the far east. Is cautious because of high debt and accounting is weird. If you are betting gold will go a lot higher it is a pretty decent bet but if not it can decline a lot.

Has an old mine outside of Los Angeles that was run in the 1930s. Closed down during the Second World War and they are doing open pit mining in the area. Has some issues, but at these gold prices, it will probably start to work again. Under followed. Highly speculative.

(A Top Pick Dec 15/20, Up 12%) Taken over. He got out when the deal was announced, as the acquirer wasn't somewhere he wanted to put his money.

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”.

Has been a bit of a disaster. Mine in Texas is not going ahead, resource was not properly done. The reserves are not what they expected.

Likes this company. Chinese have taken a 20% interest which is significant. Also have a good play in Northern B.C.

(A Top Pick Oct 07/20, Down 7%) Not long after making the recommendation the stock benefited from a lot of ETF buying. They exited on the strong buying on a much higher gain. Since then, the ETF buying has evaporated and the stock price has come back down.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research NCI just issued an equity offering at a price of $1.4 for aggregate proceeds of $5.2M. The size of the offering is quite large (10% of NCI's market cap) relative to previous years’ equity issuance of around $1M. The purpose of the issuance could be…

Owned it a few years ago and cut his losses. Now, cut your losses. This business is struggling as an asset manager, specifically to retain and attract new clients. Also, their key managers, including the CEO, have been leaving. They won't generate much in performance fees, which has been an attraction for investors in the…

They have a fair bit of cash in the bank. Being a smaller company it suffers more from pirated content on the Internet. It was a really well run company. They had a lot of cash in the bank.