Kinross Gold, Northland Power Inc and More at 52-week Highs (Sep 16-22)

Event driven investment (not long term) based on cash on the balance sheet. Lots of cash on the balance sheet. Estimate sum of parts share value is $7 when currently trading at $4 on the markets.

Involved in nonstandard automobile/motorcycle insurance as well as home insurance. BV of around $14.37 but Tangible Book is $13.50. No debt. Overly capitalized by over $35 million. Stable management. Basically Canadian, but their big driver is Europe. 25%-30% growth. Will probably earn about $1.30 next year. Have an option of putting in a dividend, free…

(A Top Pick Mar 06/23, Up 4%) Recently broke out, so it looks good. Thinks it can get back to the old level around $230. Plenty of upside from where it is now around $200. Chart's done a cup formation and a handle, and now it's breaking out. He plans to hold a little while…

Tele-health company.Has sold shares. Very high valuations.Path to profitability slower than expected.Recently selling assets.Not sure path to profitability. 

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

They have a large Brazilian gold deposit. The problem here are indigenous people challenges there and a government contract that pays out a crazy amount to the managers. This payout is not aligned to the shareholders' interests. Then again, it's a cheap stock vs. gold in the ground.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS at $0.14 beat estimates and revenues also beat estimates. While they did not generate positive free cash flow in the last quarter, they have been cash flow positive over the past few years. Balance sheet is strong and the current multiple is 7x forward…

Good takeout target. Cost structure has come down. Better than average, but not top tier. Pretty good balance sheet. Leveraged play on copper. China reopening plus the need for copper gives real leverage to better copper prices.

(A Top Pick Feb 28/22, Up 8%) Very good at business execution.Africa assets include political instability.Large deposits very attractive.Historically very good at M&A activity. Will continue to own shares. 

Really likes copper stocks for this year, poised to perform. Took out November-December highs. Next target is June 2022 highs, around $40-41. Based, took a leg higher, consolidated, broke out.

Cheap stock price given large assets.Believes company with be able to work through political problems.Historically a good operator. Sees increased cash flow going forward. Very large silver assets. 

The challenge with lithium is where it's located and who contols that. Namely, Chile just announced it will nationalized lithium (in the next few years). Yes, you want to be part of the EV play, but base metals aren't the way to do it. Albemarle, for instance, is too volatile.

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

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.  NGD has had a nice run recently alongside the price of gold, and while its fundamentals are fairly strong we might expect a slight pullback here as it has run up ~65% in the past month. Debt levels are OK, its free cash flow can be…

Hold until sale to Equinox, or buy more? He holds both to benefit from long-term effects of inflation. He thinks the takeout is great. EQX is well run, a buy, with a $12 price target.

(A Top Pick Dec 07/18, Up 36%) A volatile stock, but he likes the golds, holding 10-20% in a portfolio. Gold has a long runway.

(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.

(A Top Pick Mar 03/20, Up 14%) Are developing gold in Nunavut in a fully-permitted, high-grade, open-pit project. The knock is that it's in a northern frontier which means higher costs to fly in and out supplies, and it's less easy to work up north. He's owned this stock for years and is confident with…

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.

A silver play in Mexico, one of the last great potential silver discoveries, i.e., an extension of the vein in terms of the length, width and depth. A great play and a good speculation.

(A Top Pick Mar 05/19, Down 29%) The decline is the issue with everyone moving away from base metals. There copper asset in Peru is the place to be. The issue is that the corruption at the government level is slowing the permit process for juniors. He continues to hold it.

It is not a mining company, but a project generator. The CEO has done this for 25 years. He then sells off projects to companies that try to turn them into mines. He gets stock and a royalty in exchange. He has about a 160 properties. Some day the CEO will want to sell the…

(A Top Pick Apr 27/22, Down 17%) Still hoping for a boom in copper prices as China reopens and from EV demand. They bought Copper Mountain, and have gained permits via Copper World. Two potential tailwinds. HBM can't remain this cheap and must rise. 

One of the highest quality mid-cap royalty stocks in the space. Closer to the lower end of the trading range. More of a buy than a sell. He's delighted to own it.

This is on his watch list. He is not familiar with their fundamentals. Today's earnings release will help define their future.

Just completed an expansion. A bit more debt leveraged. Fortunes rise and fall with copper, especially with a recession scenario. China's problems aren't helping. Should be back to $3 in next 3-6 months, $4 in a year. Operational issues in Q1. Second half should improve. Sit tight. You could dip your toe in Q4.

Leveraged to the gold price, which he thinks will go higher, so there's upside. But you'll experience volatility first. It's consolidating with smaller mines, which increases stock liquidity and cashflow. Are you prepared to stomach the volatility in order to reap the profit?

ELD vs. K Doesn't own either. Kinross has historical issues trying to right the ship, doing better recently. For ELD, a very high 60% of NAV is exposed to development risk. Recent mine is financed and built, but there's still execution risk. Trades at a discount on geopolitical risk too.His preference is AEM, with one of…

(Top Pick Nov 8/12, Down 76.12%) He got out in the 4th quarter last year. They were the donut around the deposit. With Gold falling off and the market changing, there is now no rational reason to own it.

Too small for his fund. He's neutral on it. Analysts' 12-month target of $4.60. Digital media AI solutions for advertisers. Cutting edge. Phone providers have privacy concerns on this type of app. You could buy in thirds here, $2.50, and 2.

(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. Record quarters during COVID. Entry into debt valuation interesting. Greater SaaS revenues support better margins. Premium valuation means less room for error. Unlock Premium - Try 5i Free

Provides a service very similar to Alphabet (GOOGL-Q), which is provided for free. When your competitor is providing your services free, it is tough to be competitive.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. MRS closed a small financing last week, but there has been no other news. Trading volume picked up a bit, but dollar value of trading remains quite low. Still, it is up 68% YTD with a January small cap bounce. Unlock Premium - Try 5i Free

Extracts protein from vegetables like canola, peas, and soy. Has 285 patents. There is negligible revenue despite the company being around for more than 20 years. Difficult to apply fundamental analysis. Too speculative for him. Need to see revenue and profit.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. At 11X forward earnings with net cash and good growth expected this year, we don't think much has really changed here. The company expects to report on May 23. Being so close to earnings, we might prefer to just wait and act on more information…

There is not great growth in the industry of heavy equipment but it has good management making good acquisitions. It is less exposed to the commodity cycle than Finning. He likes it but doesn't own it.

They do canola mainly. At these prices the stock is so cheap. He sold because he was not seeing enough capital being deployed in Canola streams.

One of the few stocks that has been going up. Have drilled some good holes in Québec. Good high-grade widths at depth were previous drilling was off to the side but not great. It only has 3 holes into it and they are currently drilling off to the sides. Until it is known what is…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. EFL is a manufacturer of lithium-ion cells and battery systems, which are crucial for the transition to electrification of vehicles. EFL’s operating results have been good in recent quarters and the stock is now trading at 24x times' EV/EBITDA. In the 2Q, EFL’s revenue grew…

It has had a very strong start to 2023 and has had minimal impacts from inflation and supply chain issues. It has 95% recurring revenue and organic growth of 21% year over year. Trades at 13.3 X EBITDA.

Flat revenue for past few years, but Covid-19 helped.Key issue is long term growth for the business.High single digit growth not enough during recession.Higher interest rates makes it harder for consumers to pay for discretionary items.

Allan Tong’s Discover Picks Average daily volumes are only 90,000 shares, but NWC pays a hefty dividend yield of 4.22% (huge among the grocers) and safe based on a 21.88% payout ratio. NWC also offers a super-low beta of 0.62. It is safe and defensive. Performance is also consistent. The company has beaten or met…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Sales were 3% less than expected. EPS was better, at 4.8cents. Revenues grew 15% thanks to pandemic restrictions being eased. EBITDA rose 67%. A good recovery quarter. Ok buying this for small cap allocation. Unlock Premium - Try 5i Free

(A Top Pick May 10/22, Up 19%) It owns some choice properties including industrial ones. It trades like a staple and is still below its NAV. If you own you could trim half.

Pfizer bought it today, and TRIL shares tripled from $6 to $18 in the blink of an eye. That's why he always advises investing in small drug companies; sometimes they pan out.

Canadians buy utilities for their fat, reliable dividends, however rising interest rates have stolen some of that thunder and even reliable names like Northland have taken a hit in recent months. Since August 30 last year, NPI has slid from $45.45 to $33. That doesn't reflect the strong performance by this name, which has easily…

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.

Their model is based on getting royalties off the cannabis companies they produce. They've done some smart deals and have been able to put pressure on producers who needed money. Not sure why it moved so down today.

In the construction space his favorite is WSP Global. SOX is similar and he thinks they may be a value trap as there is some concerns about the dividend, the strength of the balance sheet and their ties to the energy sector.

They sell energy contracts. They have under gone several management changes over the years. He is not a great fan of this business model.

Allan Tong’s Discover Picks Air Transat is less desirable. Not exactly beloved by Canadian consumers, Transat isn’t receiving much affection from investors either. Last week, CIBC lowered its target on the hapless airline from $4.00 to $3.00 to underperform. Currently, there are three sells and one hold, with a $3.48 price target that is about…

This has limited history, but it is a $1.50 stock that is acting quite well. It’s too early in its history for him to have too much of a comment on it. It certainly looks like it is going higher, and he would watch it.

Part of their trial was suspended. Some of the patients had above normal liver enzymes. However, other arms are proceeding. The findings will show whether it has less liver toxicity. Have enough cash to go on for 2.5 more years.

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…