Earning Reports to Watch (Dec 3-7)

An extension on one of the belts where Newmont has a major mining project in Ghana.

Could be a repeat of Francesco Gold which was a very large success. Good management team. The stock has become somewhat of a cult stock. Thinly traded. Good cash balance. Needs a lot of patience.

He doesn't own any drilling stocks. As economy recovers and more resources are needed, drilling companies will do better. Would prefer Trinidad (TDG-T) because of the yield. Use a stoploss at the 50-day moving average, but once you see the market rollover, exit and take your profit.

Very risky. Got into trouble on some contracts.

Natural gas. Have announced some major deals with Crew Energy (CR-T) and West Energy (WTL-T) in the Montney region of British Columbia. Expects there will be production within the next year.

He likes management. They have a big land area in Indonesia. It looks like a very interesting story but he is waiting for a meeting with management.

Looks for and acquires undervalued Canadian companies. Uses public market valuation and private market valuation, which has a big spread between them, and arbitrages them.

Involved in fibre-optics to the home. Interesting new technology. Would not buy until it is closer to the time when their first chips start coming out in ’07 and then wait to see if they can ramp up volume production.

He has never owned this. This is a well-managed company, still mainly owned by its founders. It trades within a certain range. They make equipment for the broadcast industry. Sales move in cycles within the industry. It cranks out a lot of cash flow, has a generous dividend. He is unlikely to invest in it…

Enterprise network largely for oil/gas companies and suppliers for processing payments, purchase orders and receivables online, which eliminates paper/staffing. Also has connectivity to Blackberry for field work. About $2 million revenue growth but at the turning point of ramping this up.

Gas play in Guatemala and Colombia. Have a lot of land blocks near where Petrominerales (PMG-T) hit. Just drilled a well with a fairly large target in Guatemala and found oil at a much higher area than expected. Cased the well and we'll hear more next week. Highly speculative.

Their highs and lows are getting higher, which is good. It's better-run than, say, CIBC. Seasonality is coming for Canadian banks. He expects BMO is hit its $109 high.

The whole banking sector is quite positive. The chart shows a little head and shoulders. If it can break above $32, it would probably run away pretty nicely. He likes the whole financial sector. (See Top Picks.)

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.

(A Top Pick Jan 25/18, Down 9%) Banks in general had a rough year. Q4 was very strong for them. Trades at a discount compared to the group. He thinks it is going to grow at 8% annually. Still like it.

He thinks they have a lot of valuable real estate and have attempted to monetize it, but even as they have done this, the stock has not made any headway. The negative secular trend in retail is just too tough. If they can't get the retail business going then investors may start to question if…

A great stock. It struggled last year as the stock price fell, but has responded well thus far in 2019. Last quarter earnings were an improvement, but the multiples are now much more affordable. It is subject to opportunity if the economy slows down.

There are always big expectations for cash flow coming from grains, and then it never actually comes. It looks like they are on the up and up now, but be careful because they could have some earnings misses as well. He wouldn’t own this until they could show that they could generate cash flows and…

Retail markets is a tough area to be in right now so you should plan to hold for 5 years or more. Good quality retailer but will struggle with everybody else. About 8% dividend yield.

What normally happens with the smaller brewers is that they get taken out. He likes the company, but doesn’t follow it closely. A good story with good earnings growth.

Current inventories are selling very well and profits are very large. Stock has been off the map but is now rising. Selling at 6/7 X this year's earnings.