Earning Reports to Watch (Feb 04-08)

Very well managed, high quality company. #2 company in Canadian wine market. Recent market selloff has created buying opportunity for investors. Expecting post Covid-19 alcohol sales to rebound quickly. High margins will allow for profitability going forward.

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.

A solid company with a good balance sheet and nice yield. There is a modest opportunity for upside. Since 2012 they have traded between 2.5 and 3.5 times book, with a downward basis trend. The share price is unchanged in ten years and has added no value to investors in that time. He calls these…

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…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Reported a decent quarter. Some change in business mix sticky. Decent growth expected. Raised dividend by 17.6%. Unlock Premium - Try 5i Free

Has owned this in the past, but not now. Probably with high inflation and slowing economy, GOOS is vulnerable to weaker sales. Long term, this will show secular growth. Has a geographic expansion story in China and is a class brand. Have been problems in China in recent years with rolling Covid lockdowns, and travel…

Too late with the runup? Strong run recently. Insider buying. Consumer staples have done quite well, and tend to do well this time of year. Good company. Wait for a better opportunity, say $31.

Pleasantly surprised with the business fundamentals. Aspects of their business are growing. Very undemanding valuation. Continue to hold. It's on his watch list.

(A Top Pick Nov 22/18, Up 12%)Convertible 8% 2022 bonds He owned the Yellow senior bonds, but then moved into these convertibles. Most of their revenues are in digital, but that has struggled. New management has cut costs a lot until free cash flow now stands around $100 million this year. Their EBITDA margins are…

(A Top Pick Jul 27/17, Down 6%) Volatile. It's come down a lot, but there's a lot of upside ahead. Well-managed. They can make accretive acqusitions. Their problems integrating some businesses are behind them and they now have a strong runway ahead.

Cheaper than competitor (Caterpillar). Company at intersection of energy mining, green energy & commodity demand. Strong financials and dividends. Cheap valuation at the moment, presenting a good buying opportunity.

It’s under review by the government whether the takeover will take place. You’re dealing with regulatory uncertainty right now. If you bought it before the takeover, unless you’re in tune with what will happen, he wouldn’t own the stock any longer. The price is fair.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Long-term demand for automation. Operates in a cyclical business. Heavier exposure to non-cyclical segments. Diverse supply base. Unlock Premium - Try 5i Free

(A Top Pick Oct 01/20, Up 38%) Great company that continues to hold. Provides high level of income. Proven model of increasing invested capital. Good track record for long term investors. Diversified across many countries and asset classes.

(A Top Pick Apr 08/22, Down 13%) Disappointing. Concerns on slowdown of the economy. 40% of revenue comes from maintenance and support, so it's less cyclical than others. Still likes its fundamentals. Good backlog. Should benefit from government infrastructure spend during a slowdown.

Impressed with how the business has grown and the direction it's heading. Attractive multiple, just under NAV. In a position to really grow NAV over the next several years. Focusing on growing investments in healthcare and tech. Lots of capital to deploy. Yield is 0.50%. (Analysts’ price target is $73.61)

Has done a fantastic job. In the top 5 of navigating the pandemic. Landing gear and aerospace business. Commercial business is slowly ramping up now. Should see a string of earnings beat in the next few quarters. The margin expansion will be good. An area of the market he wants to be in. Management can…

Cobalt is attractive but this is not a cheap producer, because they're in Canada and not Russia or Congo.

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…

(A Top Pick Jul 02/21, Down 8%) Will continue to hold as still thinks a strong company. Currently trading at 2x earnings. Stock very attractive at current price. Volatility in lumber pricing creating opportunity for long term investors.

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.

Likes agriculture sector. War in Ukraine has caused supply crunch in fertilizer. Believes a $70 (USD) share price would be a good entry point. Long term, is a good investment to hold. Strong business model.

With lumber companies and other commodity related companies it is better to trade them rather than hold for the long term. He sold last year in the 30 dollar plus range after buying at $6.50 a couple of years ago. Lumbar prices have peaked with house prices so be cautious.

Although there could be a bit of a near term fade the outlook is much better with good dividend growth. Not sure if it will get back to previous highs.

He rarely talks about Gold. He thinks it is a strong sector bet. It is been out of favor for so long that mines have closed, productions have closed, mergers and acquisitions happened. Central Banks are now massive buyers of Gold. they want to get out of the US dollar. The Fed is not raising…

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.

(A Top Pick May 29/20, Up 55%) Oxygen delivery. Recurring revenue model. Very strong outlook.

They make life easier for large diagnostic test companies. It automates the testing process. They did a final financing. They've been working on this technology for 5 years.

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

Share price on the path to recovery. Scores well on valuation, but held back by price momentum. Trades cheaply. Solid yield. Beat most recent quarter. Housing markets have been incredibly resilient. Could see himself as a buyer as they rotate into financials.

Allan Tong’s Discover Picks Since early February, IFC-T has been range-bound roughly $172 and $190 where it trades as of this writing. While the market continues to rise this summer, volatility won’t vanish as long as inflation rages, so look for IFC to fall below $180 before stepping in. The current rally was triggered by…

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…

Allan Tong’s Discover Picks BPY.UN is anchored by diverse holdings across sectors, including industrial, retail and commercial properties, and across countries. Of course, we all know what happened next to the world, which wiped out the retail and office property markets. BYP.UN shares have slid around 7.5% since that call, but the 7% dividend has…

Lifecos have not been performing. Yes, rates are rising, but not at the long end of the curve, like 10-30 years. Their asset portfolio is getting hurt by rising rates, too, as reflected in quarterly reports.

Dividend pays 4.8% and trades at a low PE, but CIX's asets are down in this market. Usually, fixed income offsets weakness in stocks, but not now. They've made lots of acquisitions, some of which are closing soon, and have taken on a lot of debt. They could spin off some US assets, but doubt…

Once private equity firms entered the space, he's never again invested in a public market asset manager. The money is not sticky enough. Business economics of private equity is more compelling. If you have a big capital gain in IGM, consider that. But if not, consider rotating into something else.

Stockchase Research Editor: Michael O'Reilly We reiterate this 720,000 boepd producer as a TOP PICK. Consider this as an inflation hedge that pays you to hold it. It currently trades at 7x earnings and 1.5x book value and supports a ROE of 24%. It pays a good dividend, backed by a payout ratio under 30%…

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

Latest FDX report gave pause. Pretty good handle on the markets in which they compete. Pullback may be a good opportunity. Well managed. Transformed themselves.

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.

Highest conviction name. 35 years of stay flat inventory with less than 3x cash flow. Trading at 30% free cash flow. Aggressively paying down debt. Expecting company to buyback 42% of shares. Expecting a multiple of 6x, or $42 share price.

Very well managed company with excellent inventory depth (several decades). Using NCIB to buy back stock aggressively. Seeing major upside for stock. Should be debt free by the end of next year. Expecting a 5x multiple equates to $39 share price (100% upside).

With the shift from fossil fuels, looks like it will come into favour. They're so affected by politics. One accident sends a chill on development. Primary supplier if the market comes back, but this can take a long time.

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

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Solid cash flow and earnings growth. In a fast-growing competitive sector. Strong backing of parent company. Improved margins and valuations stable.

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.…

Stability, fairly good dividend yield. Diversified through media, wireless, TV, and fibre optic. An excellent investment right now.