Earning Reports to Watch (Feb 04-08)

High quality earnings at a dirt-cheap price. Second largest producer in Canada. Stock's down 45%, but sales and earnings have continued to grow. Very well managed, strong brands, 40% margins, trading at 12x earnings. Buying back shares. Regularly grows its dividend. Yield is 2.13%. (Analysts’ price target is $16.25)

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…

Safer than a non-royalty stock? They pay out everything they earn at a 13.5% dividend yield. It's sold off sharply, because it is perceived that fast food chains will close down during this outbreak.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company still looks good for growth even with the good gains this year. It is at 32x 2022 earnings. Earnings are increasing nicely. The balance sheet is looking okay and the Asian economic recovery will be a tailwind. A good growth stock. Unlock Premium - Try 5i…

They've been pulling back since winter 2017, though shares have recovered well off the $30 low, now hitting resistance. This used to be a steady grower through acquisitions, but are now struggling to find new companies to buy. A bigger problem is that the acquisitions of the past 10 years are diluting company value. This…

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 Top Pick Jan 10/20, Up 12%) Trades at around 14x with 32% growth rate. Has done great cost-cutting measures and expects this to go higher with the recovery. It pays a nice dividend. You want to buy when there is fear like right now.

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.

(A Top Pick Jun 03/20, Up 49%) Still a top-5 holding for him. This business enjoys lots of tailwinds. They went into EV's and bought an Italian company in automation processes in consumer staples and bought a company in healthcare. They've put great numbers since. Their valuation is reasonable compared to peers like Rockwell. Great…

ARE-T vs. BIP.UN-T. He is happy with both. In terms of catalysts, ARE-T looks to be the more undervalued of the two. He thinks things will get more positive for it after the pandemic. It is a smaller company and could move farther. BIP.UN-T bought cell phone towers in India and are trying to take…

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The latest earnings were solid with EPS beating estimates by 19% at 58 cents. Sales were $806M. They raised their dividend by 13% and sales also rose the same percentage point. The balance sheet is strong and growth forecasts remain strong. Not cheap at 27x…

(A Top Pick May 10/19, Down 12%) They're effectively a private equity firm. It's doing well considering markets now. They look to generate a 15% return on their portfolio of energy, infrastructure and power. This market is lining up perfectly for someone with cash. There'll be opportunities for debt rescue or capitalizing companies or buying…

A great time to buy this as the economy is opening up and airlines start to re-hire pilots. The commerical aviation space should improve in coming quarters. HRX did a great job managing 2020 with 68% came from defence, but the stock traded as if 100% came from commercial. Still trades at a discount and…

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 Jan 27/20, Up 109%) He sold, albeit early. A commodity, so can be cyclical. Demand continues to be strong in NA, with tight market supply.

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.

It is a core holding for him. It has had a great run. On a long term basis, it has not done incredibly well. He was surprised at the change of CEO after the last earnings call. That argues for a bit of a catalyst at driving it. The shares are not particularly attractive at…

Should hold even though it has run up quite far. Lumber prices are astronomical, up 50% in the last quarter. Not a lot of factors that would stop or slow this. Home building is off the charts. New capacity is difficult due to covid. Will have excess cashflow. Not expensive at 4x enterprise value, 6x…

Steel producer. Payout ratio is 49%. Sales and earnings are up, ahead of analyst expectations. Yield is 4.65%. (Analysts’ price target is $33.04)

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.

Very well run. Fundamentals in the P&C insurance industry are very positive. It's a "hard market", so they're enjoying significant price increases and more volume across different lines of business. Currently making a pretty significant acquisition.

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…

Thrilled when BAM came to bump out the stock. The market, after the initial offer came in, went up expecting for a hire offer. This is where he sold his stock. Took the money and invested elsewhere. He would recommend others to do the same.

GWO vs. MFC Likes Great West because of its strong yield of about 4.76%. CMF dividend is 4.63%. Both have performed well since March 2020. Quite similar. MFC provides more foreign exposure, especially Asia. Insurers are doing well now, and benefit from steepening yield curves.

They acquire a lot of businesses, especially in the U.S. investment advsiors, and are shifting from mutual funds to private investment advisory. This will be a powerful platform. The stock has been languishing below $20 for a long time, especially in 2020. When markets go down, asset managers go down more, and rise more than…

The business of investment plans has been doing very well. With everyone at home, they are spending more time looking at portfolios. There is really a market for professional investment advice. He thinks this market will have hiccups. He is bullish on this industry in general, however.

(A Top Pick Mar 01/21, Up 8%) Solid stock. Not getting a lot of respect. Underperforming the TSX and the energy group. Paying down debt, buying back shares, driving down costs of production. He's not looking at energy, as it's just finishing seasonality. But if you really want to be in energy, this is one…

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

Has always admired management execution. Successfully transformed from oil to general trucking. He'd be interested if it traded 10-15% lower. You could buy, tuck it away, and hold for a long time.

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 15/20, Up 137%) A core holding for him. Must own if you are bullish on oil. Using all free cashflow to de-lever. 2.6x debt to cashflow next year at $60 oil. Spending some money to scale production to reach critical mass. Trading at under 5x cashflow with 33% free cashflow yield.…

(A Top Pick Jan 07/21, Up 34.8%)Stockchase Research Editor: Michael O'Reilly ARX has achieved our objective of $8.75. To be disciplined we recommend covering 50% of the position and trailing up the stop from $4.50 to $7.50. This would all but guarantee a minimum investment return of 25% if triggered.

Has always been wary. Price of uranium is not only based on supply/demand, but also politics. Cigar Lake has had its problems. Stock looks expensive. He wouldn't participate, but others are true believers in nuclear energy.

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

Has owned this for a while for the growing dividend and their positioning in green energy (wind, solar, geothermal). Big footprint diversified by facilities and power type and political risk. The U.S. now wants to green the grid. The dividend will grow for a very long time. Continues to like this. However, this stock and…

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.…

Best sweet spot of all the telecoms. Good growth in fibre, good deployment in 5G. Best footprint in Canada for wireless. Cost effective, which will help increase dividend. Payout ratio should decline. Good yield of 6%.