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
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 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.
ADF Group (DRX-T) Dec-06
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
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.
They have a solid balance sheet and are well managed. It is a lumpy business. The stock has been in a narrow band for years and years. The dividend is not at risk.
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.
Bank of Montreal (BMO-T) Dec-04
They increased their dividend. U.S. operations are attractive and they are expanding them. Better U.S. growth helps them. A good stock. Ranks BMO #4 of the big Canadian banks after TD, RBC and SB.
Has a long term Short on this. Looking back to the last downturn in 2008-2009, it took 17 quarters for them to get back to pre-recession provisioning levels. The current downturn in Alberta has been a lot longer and more protracted, so thinks the time horizon for provisions will probably be even longer than 17…
Laurentian Bank (LB-T) Dec-05
It is the only bank in North America with a unionized work force (37% of it). They are trying to come to an agreement so they can have more online services to customers. The other banks that are non-unionized have more flexibility. The valuation is cheap but so is CM-T. You could own LB-T but…
He likes Canadian banks. NA has done very well. Good management. NA is heavily exposed to Canada, so he prefers TD or BMO because of their US exposure.
Hudson Bay Co. (HBC-T) Dec-05
It's modestly undervalued now. Restructuring has borne some fruit, though the market hasn't responded to HBC in kind. Them getting out of luxury lines makes sense at this stage in the economy with limited discetionary spending. He prefers placing this in the retail, and not real estate, space. This is a consumer discretionary stock late…
Dollarama Inc (DOL-T) Dec-06
A growth company, adding stores. They've built their brand and are well-managed. However, they had a few quarters where same-store sales disappointed, so the stock got hit. But there's still room for them to grow in Canada. A decent place to put your money if you're long-term and don't need a big dividend.
Input Capital Corp (INP-X) Dec-06
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…
Reitmans (RET-T) Dec-06
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.
Le Chateau Inc (A) (CTU-X) Dec-07
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.
Happy trading !