Earning Reports to Watch (Feb 04-08)

He owns a bit of this, but prefers Corbys because it has a better cash generation ratio and pays a better dividend. He doesn't dislike ADW, though. (James Hodgins)

Has had a huge run and is not sure he would be courageous enough to get onboard at this point. Management has done a remarkable job of building this. He would look for a little lower entry point. (Michael Decter)

Loves it. Defensive in a down market and recession-proof. Alcohol is a high-cash flow generating business. There's a potential for privatization and for getting into cannabis. CSW has great expertise in getting shelf space in the LCBO, which could benefit the latter (James Hodgins)

He doesn’t know the seasonality on this, but the technicals show that it has been in an upward trend for quite a period of time. During the last little while, it has been in a trading range between around $19 and $22. It is not unusual for a lot of stocks in the consumer staples…

The concern is the 8.2% yield at 85% payout. It may be sustainable. Earnings estimates have been shaved by 2% in the last 90 days. Growth is forecast to drop. It is 5 times PE to Growth next year so he prefers others. (Robert McWhirter)

The most expensive stock on the comp table, and so that is the issue. Analysts say it's fully priced, despite the great quarter. Hard to start pushing the multiple higher. She wouldn't buy it here, but she doesn't know if she'd be selling it either. (Veronika Hirsch)

He watches it, watching defensive stocks. SAP has done well. They bought a UK company, Dairy Crest, and the market liked it. There'll be more acquisitions to come. The only problem is the commodity price of milk and cheeese, which is going down. (Douglas Kee)

He used own this music streaming business. After the raise in cash flow was directed to buying radio stations he got out. It is no longer of interest to him as these businesses do not make money. (Fabrice Taylor)

(A Top Pick Feb 24/16. Down 58.9%.) The print side is probably just going to continue to decline, but he thought the digital side was going to grow. They have now had a couple of bad quarters on the digital side and he got Stopped out. (Bruce Campbell (2))

Circuit boards for airplanes.  Earnings have been quite volatile.  It is a bit lumpy.  They made acquisitions and are trying to get the synergies from them.  You have to hold on.  The visibility is quite good.  There have been quite a few takeouts in that sector.  He likes the space and the management team. (Peter…

Hold it for two years? It's a deeply cyclical stock that hasn't been doing well. He wouldn't hold it for two years, but rather buy it now as a trading opportunity. (Andrew Pyle)

He's had mostly bad experiences with airline stocks over the years. WJA's recent numbers look good, and he doesn't see less travelling in North America. WJA has done some profit-protecting moves and should do okay. They've corrected with their recent numbers. (David Cockfield)

He'd sell around $20 if it breaks through which looks quite possible. In tech analysis, a stock has to break through a new level. (Elliott Fishman)

He's impressed with Brookfield as a company. Long-term this is a sector that'll continue to attract bigger and bigger investors like pension funds. Their highway 407 continues to make them money. (David Cockfield)

(A Top Pick Oct 04/17, Up 8%) They they do well during these times when the economy is strong and there's infrastructure building. They surprised last quarter with a dividend increase of 21%. (David Driscoll)

(A Top Pick Sep 10/18, Down 22%) Brookfield has the Midas touch. It's a private equity type vehicle. You put it aside, and in the tough times you have to remember not to sell it. Lots of leverage involved, so when markets go down, value of the underlying assets goes down. A good stable of…

(A Top Pick July 21/16. Down 20.91%.) Earnings have declined and pretty modest growth is being forecast. With their 9% free cash flow yield, it is still a very interesting company. (Robert McWhirter)

Cobalt is a partner commodity in the production of lithium batteries. Earnings are expected to be negative in 2019. Cobalt prices have risen sharply, causing manufacturers to find a way to move away from using it -- nickle may replace it (as an aside Sherritt could be a potential benefactor of this). He would consider…

This has been quite erratic and trading in quite a wide range. He’s been seeing contraction in breadth in forest companies, so is a little cautious on this area. If he had to focus in one space, it would be on lumber which looks attractive. You can use a basket of them through the ETF…

In a great spot now if you want to enter. Building a bit of a base, likes the selloff, nice runup. (Elliott Fishman)

Seasonally, forest product stocks have a history of reaching a peak around the 3rd week in April. This year is no different. Probably an opportunity to take some money off table. (Don Vialoux)

She's buying this now. Pricing is leveraged to potash prices which were stronger than expected in 2018. This year, there should be supply coming onstream from the Russian producers. NTR has the excess supply to bring onstream if they wish in the coming years. Pricing has been stronger in China and Brazil. It's up to…

Lumber stocks are challenging. He liked the leverage in the company and they have been paying down debt. Now that lumber prices have collapsed in the last year, he still will hold it, but would not rush out to add to his position. He likes management still. He would wait for a better entry. (Peter…

Metal tariffs caused this to fall. Also, steel futures are down. But it pays a safe 6.5% dividend and trades at a reasonable level. Likes it here. (Greg Newman)

Doesn't know this super well, but obviously with what is going on in the blockchain/Bitcoin space, this is a bit of a hybrid. They are doing a similar type of business in gold. You are seeing a big trend and big interest in that sector, but at the same time, you are also seeing gold…

Uses their GPS system to figure out where trains are, and to more accurately schedule trains and service vehicles for people working on the rails. Reported on Aug 14 and earnings were down 10%. That was against a 32% increase in sales. In the coming quarter, earnings are expected to be down 75% year-over-year. Great…

It is a well run company.  He got out of it.  They paid out a lot of special dividends and the stock did well, but he got out because most of the catalysts are out of it. (James Hodgins)

They just released earnings this week and they have been turning their business around -- increasing margins and growing organically. Management owns about 18% of the shares and it trades at 5 times earnings. He thinks it could trade at twice that level. They are involved in patient home monitoring. Yield 0% (Analysts’ price target…

Does rapid testing for clinical diagnostics. Has held in quite well. Going through an approval process and it looks like things will be okay. Leveraged earnings are pretty big. Likes the company but is not actively buying it. (Peter Hodson)

Making changes to be able to invest more in foreign stocks. Wait to see how they do. (Michael Smedley)

(A Top Pick Jun 28/17, Up 30%)  This is the non-bank financial that he likes a lot.  They do not insure high risk mortgages and this was an issue with Home Capital and it caused the stock to sell off at the time he recommended this one.  It is still cheap overall with a PE…

(A Top Pick Feb 26/18, Up 16%) Half their business is auto and costs were going up because cars got more expensive to fix. They are doing fine in auto now as the insurance industry has been able to raise their rates. (Teal Linde)

Owned it a few years ago and cut his losses. Now, cut your losses. This business is struggling as an asset manager, specifically to retain and attract new clients. Also, their key managers, including the CEO, have been leaving. They won't generate much in performance fees, which has been an attraction for investors in the…

Dream Industrial REIT vs. BPY Dream is a good asset in a good space with a decent valuation. He likes it, but he prefers BYP for its global focus and better long-term growth. BPY trades at a good valuation. He prefers BPY, but you can buy both. (Greg Newman)

General opinion of the sector The insurance group had run up earlier in the year as longer term interest rates were expected to rise. However, as short term rates have risen faster this has taken the wind out of the sails. There is still more upside in rates and with yields of 5%, it is…

The sector's been difficult as a whole. Money flowing into ETFs, which puts pressure on fees and margins. No growth in the sector. She wouldn't pick any companies in the sector. (Veronika Hirsch)

Is the 7.5% dividend sustainable? - He thinks the dividend is sustainable as the company has a nice balance sheet and the company has a different business model compared to other mutual fund companies. That hasn't stopped the stock to come down like all other mutual fund stocks. He would wait until the market works…

It has support around $38, and recently broke a neckline on the way up. Generally, you can't predict commodities, but oil should remain bullish for the next month or two. (Keith Richards)

Generally not a fan of the Chinese inter-listed companies. He has a Short position in this one. There are better places to be. (James Hodgins)

(A Top Pick Nov 15/18, Down 4%) This was caught on the oil downwave, but it hasn't seen the pick-up in oil like, say, Suncor. A big trucking group in oil. It's trading at very depressed levels. Still likes it. (Andrew Pyle)

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. (Michael Simpson, CFA)

All oil stocks have had a nice bounce-back. The risk behind crude is over and upside is coming. He'd buy this and oil stocks. (Elliott Fishman)

Conservative management team. They have re-geared their business around the Montney region. Cash flow today is not a great reflection of what the future will be, he thinks. The dividend has held around 5-6% and he plans to hold for the long term. Yield 5.8% (Ryan Bushell)

They won the first round against the Canadian government over a tax issue and they may win the second. They also have litigation in Japan that they will likely win. Uranium prices are doing better than better. He likes CCO but it's too expensive right now. It's a contrarian play for sure. (Benj Gallander)

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

One of the leaders in the space. They are buying a lot of the former Sun-Edison assets and transforming into a large solar element. As part of the Brookfield brand they are run very conservatively. Great place to be long-term if interest don't go up. You kind of have to make an interest rate call.…

A lot of success is tied to Gaz Metro in Québec, but they also have some wind farms that have recently come online in the last year or 2, and giving good returns to the company. Recent earnings were solid and they raised the dividend by 3.7%, and plan to raise it 4% next year.…

If you believe that interest rate won't go up you can do well with this name. It has higher leverage but it was always like that. Stable business. (Chris Stuchberry)