Aurora Cannabis, Canopy and More Earnings this Week (Feb 11-15)

He does not dig into their product but hopes to use it medically some day. For him it is the medical side that will be massive. He does not think there is a whole lot of upside. He would be a big buyer at $6. It is speculative right now. (Larry Berman CFA, CMT, CTA)

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)

This is another company in the cannabis space. This is not a cannabis producer, it is a company that adds value in that space. They are mapping cannabinoids, looking for different formulations to treat different diseases.It is highly speculative, but he thinks there is opportunity for this type of company. He likes the management. In…

For years NEPT was in partnerships where they were extracting Omega-3 oils from krill oil and selling that to consumers. Now they're taking that extraction technology and applying it to the cannabis oil market. He's in a wait-and-see spots. The fundamentals don't back the move up in the stock. He has a small short on…

CEO Linton has done a brilliant job to build this company. Now, what is Canopy really worth per share? Who knows? There aren't good metrics developed yet for this sector. Linton is the rock star in this space. Don't buy on new highs, but wait. He has owned this and done well. Expect volatility--it'll keep…

He does not know this one well. You need to understand debt, payout ratios and they could have difficulty down the road. (Stephen Groff)

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

(A Top Pick April 25/16. Up 16.15%.) A small investment management firm. Historically they have done very well in investing in both public and private oil companies, and buying and selling assets. They delivered a special $2 dividend to shareholders in June. He is a little less bullish on this now. Trading at a slight…

This is benefiting from the trend towards renting by the residential space. Canadians have not had good rental options provided by landlords offering real services to their tenants. (Joshua Varghese)

(A Top Pick June 1/17, Up 12%) A great manager. Out of Alberta with very good western properties. He sold during its recent highs, but still likes it. (Paul Gardner, CFA)

A vehicle for holding more stable properties. More of a yield play than Morguard Corp. He owns both. Over the long-term, Morguard Corp is the more attractive, because it is where fees accrue to, and also retains more capital instead of paying the bigger dividend. Because the shares of Morguard Corp trade at a meaningful…

A cheap stock that pays a 5.5% yield, It's re-rating higher. They are pivoting away from malls to mixed-use properties with condos on top--high-density buildings. (Analysts’ price target is $27.50) (Brian Madden)

Always liked it. It's the best in class, dealing in the industrial space in Canadian cities. They have executed very well. They beat their last quarter and outperform the market. But it trades at a pricey 26x AFFO which gives him pause. It rents small office space that's attracting tech companies. This is in the…

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It was a spin-off from L-T originally. They merged with CREET, who is a long standing super successful REIT with one of the best management teams out there. The marriage of these two brought a stellar portfolio together with a management team that knows how to operate through full cycles in a conservative manor. It…

He owns this and sees great growth opportunities. They recently made an acquisition in Virginia as an example. He will continue to hold them. (Tim Regan)

They own locations in the larger cities, primarily grocery anchored shopping centres. They are managed by a good focused real estate team. They like to buy the best locations in urban areas. He will look at it on a pull back. It is a good long term hold. (Michael Simpson, CFA)

The court ruled in MFC's favour and is now in the past. They just did an executive shake-up. He thinks MFC is going in the right direction, but keep an eye on it. Interest rates are pretty good now for the insurers. MFC has done a good job using automation to reduce costs. (Michael Decter)

BAM vs. Morguard BAM: He's recommended this and still does. It carries infrastructure, business partners and renewables. It's done very well and just bought Oak Tree, a good purchase for them. Morguard is much smaller. It's trading at a discount to NAV, because it's small and unrecognized. But its price hasn't done badly, though real…

(A Top Pick Apr 05/18, Up 25%) An example of a name in retail. Around 60% Ontario and the rest around the country. Now growth might be muted. He would still buy it for the yield. (Mike S. Newton, CIM FCSI)

He sold it 8 months ago, but still likes it. It's come back well. Definitely the best Canadian insurer to buy, but he's backing away from Canadian financials as a whole. It's a long-term hold that pays a good dividend. They're on top of the investment markets. (David Cockfield)

Why is it down 4% today? An analyst downgrade, so this could be an opportunity. TMX has had a huge run; it's not cheap. But TMX remains the leading exchange globally in cannabis and oil. (Colin Stewart)

BAM vs. Onex They're very different companies. BAM has moved from infrastructure to being more private equity; it's larger than Onex. Onex just bought Gluskin and Sheff, branching into a new direction. You can do well owning both; buy 50/50 in them. He can't favour one over the other. (Michael Decter)

It's well-run. Their insurance side has improved a lot and is more profitable. Their investment portfiolio has been challenging in the last two years, but their long-term record is exceptional, so he has faith in it. The stock is trading close to its book value and the lowest in 7 years. He expects its coming…

vs. Berkshire Hathaway He prefers Fairfax, run by the Canadian Warren Buffet. He really likes their India fund, FIH-T. Berkshire is not a bad choice and should do well if there's market stimulus, but look at Asia for market growth. Only 5% of Indian homes have home insurance, so there's massive room for growth here.…

2020 looks promising with success in U.S> multi. (Greg Newman)

Most recent quarter was a great one. ROE was 28%. With all the stuff that is happening in the marketplace right now, there are a lot of concerns about Alberta specifically, and you also have a lot of concerns about financials. Thinks they put in a great quarter. To be a buyer of the stock,…

He's been wrong about GOOS from the start; he missed it. GOOS has been volatile. He prefers a bigger global brand like Louis Vuitton rather than the narrower Canada Goose. (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…

New leadership has cleaned up the battle with franchisees a few years ago. The last CEO ramped up Horton's same-store sales growth. This organic growth will continue as well as acquisitions to come. (Analysts’ price target is $93.67) (Brian Madden)

Convertible 8% 2022 Bonds - They always have owned the convertible not the equity. It is a restructuring story. They think it is better to be in the convertible because they have a good yield and it is ahead of the equity holder. (Paul Gardner, CFA)

REITs investors love this, but Bay St. neglects it. He tips his hat to it, boasting a compound annual rate of return at 16.5% over 17 years. It's a fine business model, a royalty trust. A&W is the burger chain of 900 Canadian stores, and so A&W earns a 3% royalty from every dollar of…

The company trades at 12 times earnings, but despite the reasonable metrics, she does not own a lot in the retail brick and mortar space in Canada. The online competition is fierce. She does not see strong growth prospects here. (Christine Poole)

She doesn't buy Canadian retail, because the Canadian consumer isn't strong now. Also, online commerce is competing more. (Christine Poole)

He is not sure why the stock is doing so poorly except that money is being sucked out for other sectors.  A lot of these companies have never been better valued.  They had a great quarter last quarter.  They announced a lot of new systems post-quarter.  They are reinvesting in sales and marketing.  The sales…

Doesn't know this company. Names with a good name, like

They do canola mainly. At these prices the stock is so cheap. He sold because he was not seeing enough capital being deployed in Canola streams. (Stephen Takacsy, B. Eng, MBA)

West Fraser vs. Canfor He owns neither, as lumber prices are weak and not rebounding in the spring when they usually do. They're trading near book value. The upcoming quarter will be weak for lumber. Be cautious here, but start doing your homework on them. (Colin Stewart)

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)

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…

They have mines in Spain and Bolivia, but costs are too high and management changes too often. It has disappointed him a lot. They need to reduce costs. Management is overpaid which bothers him. (Benj Gallander)

An explorer/developer. It certainly hasn’t performed the same as Continental Gold. Has shown more volatility. Brazil obviously can be a difficult environment. He thinks they are appealing an injunction on their deposit. In South America, the social license is very difficult, and he thinks that is the overhang with the stock. He has avoided this.…

Fiji is an interesting place.  They have raised $85 Million last year when it was tough.  If they get this thing going it will build up confidence.  They are putting a relatively small scale gold mine into production while doing exploration.  They should eventually get bought out. (John Kaiser)

There is no dividend. Sales are up but earnings are less negative rather than positive. Earnings growth forecast for this year is zero. (Robert McWhirter)

This still has legs. There’s been a break out in the 10-year decline we have seen in base metal prices, which should be positive for all the base metal companies, particularly the Canadian ones which could have by-products of zinc, lead or other things that can bring a fair dollar. (Robert McWhirter)

West Fraser vs. Canfor He owns neither, as lumber prices are weak and not rebounding in the spring when they usually do. They're trading near book value. The upcoming quarter will be weak for lumber. Be cautious here, but start doing your homework on them. (Colin Stewart)

Short at $2? It has a solid base at $1.78. He thinks it looks more like a buy right now. If shorting it, be cautious. (Jeff Parent B. Eng. FCSI CIM)

They have assets in New Brunswick and Maine. A lot of the forestry stocks have experienced a downturn because of slowdown in US housing market. He likes West Fraser and Interfor. (Michael Simpson, CFA)

The gold industry gets a lot of attention but just isn't important, not anymore in Canada. These companies have shrunk a lot, and ABX's stock chart has declined like its peers. Yet, the gold biz still gets a lot of attention. He own no gold at all. Gold doesn't pay dividends. Gold is purely speculative.…

It has a 6-7% dividend and was paying out all its money as an income trust. In the US they made an acquisition with a law suit attached. It has plummeted. They believe it is a year's worth of cash flow in fees for this suit. There is a risk of a dividend cut in…

We are seeing consolidation in the space. This one is at risk of losing relevancy in the space. They completed phase I expansion but it is phase II where you see the production and cash flows expand. The local government has hit the brakes on that going on. It will have to be looking to…

A smart group of guys.  They are putting a fair bit of work into proving their concept is right.  They seem to be backing up their thesis.  It is looking like it is working so far. (Brent Cook)

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…

There were a couple of subtle things went on with the trust conversion which discouraged a lot of investors. An illiquid stock. Most of their exposure is in B.C. and Alberta where housing is still very strong. Thinks we're at the peak of a cycle so don't have it as a long term hold. (Ravi…

Way too pricey for him. Now, you can buy only stocks that are way, way cheap, because the market has gone up so much. (Benj Gallander)

A junior iron ore exploration company that operates in the Labrador trough in Northeast Québec/Western Labrador. Canadian National (CNR-T) announced they were not going to go ahead with the expansion of a rail line. Companies like this were dependent on that rail line to get their material out. Alternatives now include having to cut a…

Depends on China, and whether that economy goes back up. He owns Hudbay Minerals instead, it's a safer geography and a bit better balance sheet. (Bruce Campbell (1))

He's never really owned Goldcorp, Newmont and Barrick. The share appreciation would come better from an Agnico Eagle or Kirkland Lake which have growing reserves, great management and low production costs. He stays away from companies like Goldcorp or Barrick or Newmont. In fact, Aginco has outperformed Goldcorp and will be self-sufficient by 2023. It…

(A Top Pick Feb 21/19, Down 0.3%) He likes the chart. With the start of this new economic cycle, copper stocks should benefit. (Javed Mirza)

A company that has struggled with large mines that take so long to get going. Rainy River has been their Achilles heel. They put out a good update, but one quarter does not make the mine. He wants to see several quarters of success. Patience is needed, but there is still significant risk for this…

Likes it and is a major holding of his. Palladium prices got a hell of a spike due to demand from China, and there's limited supply from North America. He will average down over time. (Jaime Carrasco)

Usually silver will lead gold by a little bit. Everything in silver right now is looking really, really good. Chart shows a downward pattern, but has reached the upper side of the channel and should be breaking out anytime now, and do quite well through to mid-March and maybe April, depending on the whole complex.…

Excellent operators, but are they also excellent allocators of capital. Underlevered, overcapitalized. Pay a special dividend. Sold it recently, and moved into CCL, as it's more global. North American-centric. Will generate lower revenues and profits from new K-cups process. Organic growth has slowed down. Facing more competition. Hold on if you're a long-term investor, as…

They're trying to get rid of lots of assets in Brazil--that's their big problem. Look at their long-term debt and if they have enough working capital or need to raise money from the market. If gold prices stay low, it will be an issue for Yamana. Brent Cook: The are marginal assets--leveraged to the gold…

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…

Earnings estimates are $0.11 per share making this trading around 14 times earnings. Their recent acquisition has been successful and he believes there is more upside to come. (Analysts’ price target is $2.50) (Robert McWhirter)

It's had a miraculous run, a great Canadian growth story, a superstar. But he's a value investor so it's hard to like their valuation. Maybe take some money off the table, but you can't argue with their success. (Colin Stewart)

They recently had a joint venture with Baker-Hughes (BHGE-N), where Baker Hughes is co-marketing one of their products. It would make sense for Baker Hughes to take over this company. Schlumberger (SLB-N) is the only company with a competing product. (Analysts’ price target is $9.50.) (Veronika Hirsch)

(A Top Pick Feb 21/19, Up 3%) A beautiful chart and story. Good performer in the past month with new all-time highs. It's been on a sharp upswing since the start of 2019. Loves it. (Javed Mirza)

Stock has been disappointing even though the company has done OK. Extremely illiquid for a small cap stock. Prefers others. (Peter Hodson)

They had an earnings miss. Every couple of quarters they are up or down a lot. He is short. It has poor price momentum. It is not cheap enough to buy. The business is choppy and unstable. (Jason Mann)

A definite lid at around $85 and recently broke through. From a technical perspective that is very bullish. The chart looks pretty good now. (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)

This is a controversial name because it is a long term asset being valued on near term momentum and missed numbers last quarter.  They don’t give projections on production numbers.  They have no debt.  It is a buy and hold kind of stock.  (Analysts’ target: $32.07). (Lyle Stein)

(A Top Pick Mar 16/18, Up 12%) The balance sheet is in good shape. They are now guiding flat. They will knock off some debt this year. Book value is $6.67 and he has a $7 target. He keeps on adding to it. They raised the dividend in the last quarter. (Josef Schachter)

He expects oil prices to remain strong and there has been a disconnect between stock prices and oil prices right now. The new CEO has been de-leveraging debt and they have interest in two refineries down stream. Yield 1.52% (Analysts’ price target is $14.73) (Norman Levine)

(A Top Pick April 23/13. Long Tag Oil (TAO-T) and Short Imperial Oil (IMO-T). Down 42.51%.) Did an equity issue last fall at about $4.40, which the Street didn’t like. This is a New Zealand oil/gas play and they have about 5 or 6 catalysts coming up in terms of major wells. (Jerome Hass)

(A Top Pick Feb 21/19, Up 3%) It's been in an upward trend channel since the year started. Recent big volume is a good sign. The next upside target is $10, then $13-14 is a key point. (Javed Mirza)

Pays a 7.65% dividend, but its earnings estimates are weak. They pay out more than they earn. That's a problem. This will trade sideways. (Brian Acker, CA)

They've had a good rebound. He has a $4.50 target as a buy, but the sector is weak. Doesn't own any operators now. Buy the oil producers instead. If you own this, then average down. They just announced the sale of non-core assets, which he likes. (Jaime Carrasco)

It is a play on their growth in the propane business in the northeast. The energy part of their business is about 80% and is the focus. They did a good job with a few acquisitions. The market took it too low. They pay out only half of their earnings. Retail distribution is much better…

It had a long-term downtrend, but has reversed that since the start of the year. Positive. It could break to new highs at $65. (Javed Mirza)

(A Top Pick April 3/14. Down 12%.) A fully integrated agricultural company with a railroad to their elevators along with production of legumes and wheat. Thinks it should deliver quite nicely this summer because of what is going on in California. Feels drought is going to haunt us from a food inflation perspective. (Jaime Carrasco)

This is a funny one.  The book value is $4.80.  They started a few more projects in China.  It is not for him, but he can see why somebody would like it. (Benj Gallander)

15 years in a row of positive shareholder returns. They have the secret sauce to acquisitions. For instance, they bought Progressive Waste Solutions in 2016 and has doubled that division's profits. Amazing. (Analysts’ price target is $116.58) (Barry Schwartz)

They've sold off some of their businesses and are left with the core. They rely on their business jet. They are fairly levered and isn't in a rush to buy. It's fairly or over-valued now. (Christine Poole)

vs. FTT-T FTT is trying to find a floor. Compare this to peer, Toromont, which is like day and night. Toromont has broken to new highs. (Javed Mirza)

TELUS vs. ROGERS All Canadian telcos and utilities are overpriced as investors expect a recession later this year of mid-2020. $39.52 is his target price for Telus; $61.22 for Rogers. Investors are attacted by the yields. (Brian Acker, CA)