Consumer stocks such as Canada Goose, and Saputo, as well as many industrial and financial companies are reporting their earnings this week. Notable among them is the Brookfield names, BPY.UN-T and BEP.UN-T.
Here are the companies with earning reports to watch.
Andrew Peller (ADW.A-T) Feb 04
Doesn’t own dual class share companies, but this one has been an amazing growth story. Incredibly successful. If he didn’t have an issue with dual class shares, he might actually buy this. It is unbelievable to him that in an industry which is low growth, they have made some great acquisitions and they cover all…
This has its own little niche and a much smaller distribution than some of the larger names. The spirits business had struggles last year. There is nothing wrong with this one.
It has been a good IPO story. He sold after the IPO. It is a premier retailer and believes they can defend their margins. This jacket is in demand globally, so he sees more growth to come. It is just too expensive right now for him to re-enter.
Saputo Inc. (SAP-T) Feb 07
They continue to be busy, both in New Zealand and Australia. Their whole purpose is to grow by acquisition. It ranks 150 in the overall database of 700 stocks, so is roughly in the top quarter. There are other stocks that rank more attractively. As part of a portfolio though, you will do okay with…
Music on your cable box. They put up a good quarter recently and raised their dividend. There is insider trading. It is going to become a street darling. It is somewhat illiquid. (Analysts’ target: $10.00).
Yellow Media Inc (Y-T) Feb 07
A controversial stock and maybe one that people don’t pay much attention to anymore, because it fell on such hard times. Have been undergoing a major transformation of shifting from print to digital. More than 50% of their business is now digital. Trading at a very, very low valuation multiple. Some risk, but a lot…
Just reported an unbelievable quarter. No analyst follows it. 70% of revenues are from the US yet 70% of operations are in Canada so the declining CAD$ benefits them. Earnings should accelerate over the next few years. You probably have not missed the run. The CAD$ has only helped them over the last couple of…
Finning Int (FTT-T) Feb 05
It's the world's largest Caterpillar equipment dealer and they also do after-market service and support, which reduces the cyclicality of this business. It boasts 15% ROE and trades at 17x earnings. (Analysts' price target $38.83)
Westjet Airlines (WJA-T) Feb 05
His model price is $27.69, 46% higher than the current price, but the stock’s technicals are giving a sell signal and the earnings estimates have been crashing. Since 2010, the stock has hit this level three times and done fantastically after that. He would buy a little bit here but would not buy more until…
ATS Automation (ATA-T) Feb 06
This is his second biggest holding. He bought it as low as $4 and change. He won’t be buying more at this price but people who buy under a different system, such as a momentum system, might find this attractive. This had a solar arm, which was one of the reasons he bought the company.…
She likes how they make smart acquisitions and know when to sell out for good profits. It has an attractive yield. She owns the parent company as it gives exposure to infrastructure and renewables, allowing for more growth opportunities. This asset offers an investor the best opportunity for income between the two.
Toromont Industries (TIH-T) Feb 06
Finning (FTT-T) or Toromont (TIH-T) for long-term growth and dividends? This area is a little tough right now. Industrial equipment has been pretty beaten up in the last few weeks. He would prefer Finning, which has the oil Sands in Alberta as well as South America where they have a ton of mining. Toromont more…
You probably shown own anything with a Brookfield name. The team at Brookfield are such shrewd operators. This one is an interesting collection of assets. Construction, private equity, etc. Very hard to analyse. There is an incentive play on this stock. If the stock stays above $25 a share, the Brookfield asset management team collects…
Heroux-Devtek Inc. (HRX-T) Feb 08
First Cobalt (FCC-X) Feb 04
He doesn’t know their financials. The company is trying to revive a historic mining area in Ontario. This type of work takes a lot of money and might require First Cobalt to issue more shares, driving down the price. Alternatively, they might take on a lot of debt, which carries its own problems. Cobalt is…
Domtar Corp. (UFS-T) Feb 05
(Market Call Minute.) We are all using more paper than we ever did before. Might not be an unreasonable thing to own right now.
Canfor Corp (CFP-T) Feb 06
Lumber is something he doesn’t want to be playing in right now. He would prefer OSB through Norbord (OSB-T), which hasn’t really been impacted by Chinese dumping, and benefits from a low Cdn$.
Canfor Pulp Products (CFX-T) Feb 06
Nutrien Ltd. (NTR-T) Feb 06
Missed earnings by a penny, revenue up 7.4% but missed by 20M. They have cash to make acquisitions, increased the dividend. Coming into a new season, so we'll have to see how the weather turns out. Has no problem with it at the $70 level. Will flatline for a bit, until commodity prices go higher…
Interfor Corp (IFP-T) Feb 07
This is one of those stocks that has double seasonality. It has a very strong period of upside moves, and a very strong period of downside moves. Historically this has done very well from the beginning of October right through until April of each year. Something that is very important is the big arrangement with…
Russel Metals (RUS-T) Feb 07
It has been caught a little in the trade war with the US, due to its cross-border business dealings in steel. The fundamentals still look strong for the company, he says. It is a great management team. He would sell above $30 and would buy around $25. Otherwise he would hold it here. Yield 5%.
Goldmoney Inc (XAU-T) Feb 04
They now have over $1 billion in terms of the value of the gold on hand. You are buying physical gold that this company is storing for you. They are also growing globally. Thinks the growth rate is going to be quite fast. He is interested both in the stock and what they are doing.
BSM Technologies (GPS-T) Feb 05
On his Watch List and he might be buying soon. The oil/gas seismic is part of their business, but they have had more of a growth in the trucking area where they have a solution for fleet management and tracking. This adds a lot of efficiencies.
Vecima Networks Inc. (VCM-T) Feb 07
Has been long on promise and short on delivery until very recently. Looks like they are finally getting their act together. Ranks 19, top 3% of his database. Earnings growth was up 70% year-over-year. Earnings are expected to grow from $0.51-$0.62 in 2014. Pretty good opportunity for the stock.
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…
SQI Diagnostics Inc. (SQD-X) Feb 04
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.
United Corps. (UNC-T) Feb 04
(A Top Pick Dec 28/12. Down 65.71%.) 3 Shorts. He is now layering this trade back on now because the spike in rates in May through August pulled forward demand in the housing market.
Intact Financial (IFC-T) Feb 05
Has been going up for 10 years. It is targeting 10% growth every year. It has pulled back recently but has a steady business model. (Analysts’ target: $110.35).
An asset manager that operates in the high net worth space. The demographics are great. Family assets are growing more quickly than lower net worth households. Also, client relationships tend to be longer-term and stickier, due to the nature of the services offered. The stock is discounted because of long-term litigation with the founders, which…
A good yield of 6.2%. Great managers. China's economic numbers are doing well. If Trump signs a trade deal, then world and emerging markets will pick up after being sluggish. BPY's prospects looks good and he expects a dividend increase.
Great West Lifeco (GWO-T) Feb 07
Great West Life (GWO-T), Sun Life (SLF-T) or Manulife (MFC-T)? This depends on quality and size, but if you are thinking of just keeping it very safe, Manulife and Sun Life would be the 2 he would zoom in on.
CI Financial Corp (CIX-T) Feb 08
They are in a tough industry being in mutual funds and trying to transition out. Saw a big decline from 2015 until 2016 and now we’ve just moved sideways when they should have been moving up. We are in seasonal period and financial companies tends to get strong at this time of the year. From…
IGM Financial Inc. (IGM-T) Feb 08
Chart shows it has had 2 little bottoms, and is positive that the downtrend has been broken. Financials in general have been pretty weak. Until this one breaks out of the downtrend channel, he would not start a new position. Rising interest rates help financials. Dividend yield of 6.3%.
Suncor Energy Inc (SU-T) Feb 05
$60.37 is his target price. You can enter it now. It will benefit from rising oil prices. It's a low-risk trade.
Hanfeng Evergreen (HF-T), Hanwei Energy (HE-T) and Migao (MGO-T) are interesting plays into China. Have been crushed but give direct exposure to what he expects will be the strongest currency over the next 25 years. You are buying them with multiples of earnings (not cash flows) that are unbelievably low. Wants to look at these…
Mullen Group Ltd (MTL-T) Feb 06
Trucking and well completion services. Pre-eminent logistics player on oil sands. Expected them to make acquisitions by this time. Long-term, great company to own. 3.4% yield.
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.
MEG Energy Corp (MEG-T) Feb 07
He sees the deal going through in January. He thinks Husky still needs to increase their bid slightly. Currently MEG is trading at a 4% discount to the bid. It is better risk reward to buy their corporate bonds vs stock, and therefore some have been shorting the stock.
Arc Resources Ltd (ARX-T) Feb 08
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%
Cameco Corporation (CCO-T) Feb 08
Part of their commodity exposure. They added when it came off in mid-November. They shut-down some of their mines in the last couple of months. The goal was to clean up the market a little as there has been excess supply for a while. Now demand is starting to pick up. Great company.
Just Energy Group (JE-T) Feb 06
This does energy services and energy marketing, so they are a reseller of different products such as natural gas. Now they’ve just gotten into solar. Have done test marketing both in California and New York, which has gone well, so they are going to start to roll it out across the country. They are also…
We are never going back to coal. Everyone has moved off it, despite what Mr. Trump happens to say about it. If it gets back down to the $39 area he might be tempted to play it, however.
Valener Inc. (VNR-T) Feb 08
We just had a positive transit. Maybe it is becoming known. $25.80 is the model price. 5.5% yield. It is underpriced. It looks like it is going to go places.
BCE Inc. (BCE-T) Feb 07
It's more expensive than Rogers, but he prefers it. They have more wireline and more media. Well-managed. The 5% yield is very attractive. It won't rise much beyond $60. It's a safe place to park money and collect the yield. If it comes off, he'd add more, but not at current levels.
Use this list wisely to identify buying opportunities.
Happy trading !!!