Earning Reports to Watch (Feb 04-08)

It was hit hard during the pandemic when restaurants were closed, but are recovering strongly. Recently, have faced higher freight and material costs. Despite those, margins are healthy. Consumers are returning to bars, restaurants and airports. He expects better results in coming quarters. 

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 cash machine. Owned by Pernod-Ricard and pays a decent dividend. Occasionally, it pays a special dividend. Hard to know what the future is. A safe, defensive stock. Will Pernod buy it out and go private. It's fairly valued now if you own, you could sell, but overall the stock is okay.

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. Debt becoming a concern. Delivery and take-out only sources of sales. Special dividend paid this quarter. Dividend reinstated at a lower rate.

GOOS shares dove over 27% in the first quarter this year, and China, a big buyer of these famous coats, is a headwind given that country's lockdowns Add to that inflation and supply issues effecting almost every business on the planet.

Bit of noise from 2021 that it did bump into. Will probably consolidate for a bit. He's always looking for breakouts, so would be good if it broke above high $30s. Rates an OK 6/10, but not a jump-on-it stock.

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.

A play on where the next bull market's going to be, and that's going to be cyclicals. A cheaper valuation amongst the group.

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. ATS is an industry-leading automation solutions provider to many of the world's most successful companies. It uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products, and value-added services to address the sophisticated manufacturing automation systems and service needs of…

BIP has seen decent gains this year. A good medium/long-term hold. BIP are building data centres, which is important given the AI boom. They're competing to buy a $5.5 billion data centre.

There is not great growth in the industry of heavy equipment but it has good management making good acquisitions. It is less exposed to the commodity cycle than Finning. He likes it but doesn't own it.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. BBU.UN's Adjusted 2022 EBITDA increased by 3% to a record $2.3 billion and Adjusted Free Cash Flow increased to a record $3.40 per unit. EBITDA across operating segments including Business Services, Infrastructure, and Industrials improved compared to 2021. BBU.UN is now trading at 8x times annualized EBITDA. Weaker…

(A Top Pick Apr 20/21, Down 17%) Good space and good management team let you stick with it for the long term. Best days are still ahead. Once work for Airbus and Boeing comes back, cashflow will be massive.

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…

He sold all lumber stocks after the huge runup. But if he had to look at one, this would be it. Over $10 cash per share, with stock at $24, which means over 40% of company value is net cash. Lots of optionality. Intriguing.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Re: upcoming mil closures: The closing is expected by 1Q end, but costs may slip into Q2 depending on exact timing of layoffs. Other than severance, a lot of costs will be non-cash. CFX has about 1,300 employees, so close to 25% are being impacted.…

Still owns it, but reduce his holding because the price was dismal. A spec buy. NTR has had a rough ride lately given weak potash prices. But Brazilian prices are stabilizing, for instance. Likes its valuation now, so you can start adding at cheaper levels. (Analysts’ price target is $103.86)

Lumber went on a moon shot in the first couple of months of Covid. Housing starts are rolling over. As lumber goes, so goes the stock. Buy when it's at a fraction of book value and the chart's collapsed. Not timely.

Very cheap valuation right now. Cyclical company that will perform well as economy recovers. Strong balance sheet and financials. Soft landing in the economy will be great for business.

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.

Climate change is impacting the P&C insurance world, increasing claims and pressuring companies like this. Share have done well in the past 12 months, but he sees challenges ahead for this sector. Higher interest rates offer some relief to them. 

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…

Operates under a number of different brands. Note that POW owns about 70% of shares. Growth can be slower than peers, but a steady earner with impressive dividend yield of 5.4%. Trades at a single-digit multiple. Buy and hold for the long term. Very well managed.

It took on lots of debt at low interest rates which has given it some balance sheet trouble. It has sold some holdings. There isn't growth but debt is OK now. It is exceptionally cheap at 3.9X 2024 earnings. Pays a dividend of 5.6%. He bought some last week.

It is expanding into the U.S. and making acquisitions. It has pulled back and could flat-line for a while, You could also look at the parent company Power Corp.

Good upside potential, nice yield, strong balance sheet. Oil demand isn't going away, despite ESG, making oil availability more difficult. With the Trans Mountain expansion, spread between WTI and WCS is closing, bullish for Canadian oil companies. Yield is 5.14%. (Analysts’ price target is $51.32)

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

One of North America's largest logistics providers.Defensive name that is good for low risk investors.Large & diversified business.Better names in the sector - but not a bad investment for the long term.Record Q1 revenue with ~4% dividend yield.

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 Top Pick May 16/23, Up 8.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MEG is progressing well.  We now recommend trailing up the stop to $19 at this time.  

High-quality company, good management, great balance sheet. Manageable debt levels, great assets. Price of natural gas has been pushed down over the winter, and we'll have to see what happens in the summer. His view on nat gas and oil is fairly constructive. Nat gas is cleaner, and will be used more in future. 

The long term uranium contracting prices are very robust. It is expensive at 35 X 2024 earnings but the growth rate is 56% so the price to growth is still good.

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

The federal budget offers a wide range of tax breaks for green energy producers. Stockchaser Trevor Rose picked this long before the budget for its 9.6% increase in revenues, rising EBITDA and ever-growing dividends. It helps that BEP.UN is back by a giant parent company, and it continues to grow by acquisition. Late last year,…

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.…

BCE vs. T Telecom sector is good exposure for income investors. BCE has the higher yield, close to 6%. Telus yields about 4.5%. Both increase dividend each year, generate free cashflow, build out 5G network. Immigration will be positive for the sector.