Earning Reports to Watch (Dec 3-7)
Earnings from the Canadian Banks continue this week.
Another noteworthy earnings report that many are waiting for is Dollarama‘s. The DOL stock has been beaten up lately, hopefully it can show it’s still a growth stock. It’s set to report earnings on December 6th 2018.
Here’s the list of companies on the Canadian Stock Markets listed on Stockchase reporting earnings this week…
🛢 Basic Materials
African Gold Group (AGG-X) Dec-03
Very strong management. Initial drilling in Mali is very promising. Stock was crushed, but there has been no deterioration in the company. Extremely cheap.
Chesapeake Gold Corp (CKG-X) Dec-04
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 has been buying on this pull back. It continues to be in the sweet spot. They pulled back because of a one time bid to purchase a lot of consumables that will last for the next 14 months. He thinks the next quarter will see it improve.
ADF Group (DRX-T) Dec-06
The chart looks good with nice volume. It's been trading sideways for a while. It looks like it's starting to fill in the drop that it has. It looks like it could go up $.20-$.30 with a stop-loss at $1.10.
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.
Sonoro Energy Ltd (SNV-X) Dec-03
Disclosure: He expressed interest in their private placement. He likes SNV because it is located in Sonoro, Mexico where there's been high historic gold production. They yield half-gram of gold per tonne. They will have a new preliminary economic assessment by end of June and are expected to go into production by end of 2021…
A conglomerate and he isn’t a big fan of this model. A well-known catalyst investor has just purchased about 19%. May sell of some weaker units.
A play that could be triple / quadruple. Optical chips for next, next generation. 100 Gig data rates. High risk.
Price target of $15, so not much room left. SaaS in the film industry, which has had a difficult time. He'd sell a third. If it goes up, that's OK. If it goes down, at least you sold a third.
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.
Just announced a discovery in Columbia. Flow tested over 2000 barrels per day. This well could produce up to 5000 when brought into production. A very well distributed stock so it might not jump too fast. Company could get taken out.
Bank of Montreal (BMO-T) Dec-04
(A Top Pick Jul 09/21, Up 103%) Still a holder of BMO. Trimmed a little due to the valuation being quite high. Dividend yield is also being compressed. Investors are looking at banks for the anticipated dividend increases. Still owns it. When yields pop up to above 4%, they will buy back more.
Working to diversify, including owning Ontario real estate. Undergoing a review to calculate capital differently which, if successful, would let them compete more aggressively on loan products. Regional banks are trades for him, in and out. Prefers this to LB.
Laurentian Bank (LB-T) Dec-05
Has traded up quite nicely, so this is not a good entry point. Being from western Canada, the regional bank he prefers is CWB. In Canada, we have lots of choices on banks, and the regional ones are always a trade. His large cap favourites are RY, TD, and BNS.
Question: Which major Canadian bank has performed the best year-to-date. TD? Royal? Nope. National Bank. Shares have climbed over 32%, just ahead of the Bank of Nova Scotia. The bigger siblings may get the love, but National Bank is prospering in the shadows. This despite NB disappointing the street last week when it released its…
Hudson Bay Co. (HBC-T) Dec-05
Nicknames it Hit By A Car like its chart. HBC is all about its real estate holdings; that's the reason you own this. Doesn't know if the current rally signals a buy. Can't predict this chart. Even consider selling it.
Dollarama Inc (DOL-T) Dec-06
(A Top Pick Jun 11/20, Up 13%) He sold. Still likes the company, but he had better ideas in the near-term. Windfall last year, as it was an essential retailer. This year, comparisons will lag and some aisles are off-limits as non-essential.
Input Capital Corp (INP-X) Dec-06
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.
Reitmans (RET-T) Dec-06
He owned it at $3.81 and sold it at $3.00 and is glad he did. Management is getting old and stodgy. As the stock has been thrashed following the share buyback program, he thinks the balance sheet still looks okay, but the cash position is not as good. Last quarter they lost a lot of…
(A Top Pick Jun 18/18, Up 1%) Still likes it. It's well-run. They're growing their brands and they have a big opportunity to get into cannabis beverages which will be legal in Canada in October 2019. BRB is well-positioned for this and this market could be very large.
Le Chateau Inc (A) (CTU-X) Dec-07
This has been a very difficult stock. Recently reported a very bad quarter. He would stay away from this one. Inventory has gone up a lot and their margins have fallen. Cut the dividend totally. Thinks they are in a bit of trouble.
Happy trading !