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.
Demand for base metals is likely to continue strong as we move to clean energy. Day rates and margins are quite strong.
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.
BF-N vs. CE-X. BASF is the world's largest chemical company. It sells at a high premium. There is concern that prices are too high to last.
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.
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
Sell half of NA to buy BMO? This trade makes sense. Canadian banks have been under pressure given economic slowdown. All the banks grow earnings nicely and return excess capital to shareholders via buybacks and dividends. BMO has done a great job with Bank of the West acquisition. He's tilting toward more US exposure, as…
CWB vs. NA Between these and the Big 5, he'd prefer one of the 5. Between this and NA, he'd prefer NA. NA is better diversified in lines of business and geographically. NA has better scale advantage, management, and capitalization. High single-digit dividend increases from NA are pretty reliable, though its dividend increases may pause…
Laurentian Bank (LB-T) Dec-05
Earl: Management change. Digital cost control, great footprint in Quebec. Under the radar for years. Transformational plans.
NA vs. CWB Between these and the Big 5, he'd prefer one of the 5. Between CWB and this, he'd prefer NA. Better diversified in lines of business and geographically. Better scale advantage, management, and capitalized. Its dividend increases may pause if credit losses get too high. Otherwise, high single-digit dividend increases are pretty reliable.
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
Great short, medium, and long-term investment. Very well managed. Great balance sheet. Good long-term, predictable growth. Foot traffic is up, as is basket size. Same store sales growth is quite robust. Great purchasing power and scale. 3% annualized earnings growth for next 3 years. Lots of free cash. Majority ownership in South America's Dollar City…
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 !